ASB, Commonwealth Bank's subsidiary in New Zealand, has experienced a sharp drop in mortgage loan activity in recent weeks, the
Dominion Post reported.
Managing director Hugh Burrett told the newspaper: "I signalled in early July we felt things were slowing a little and that has continued in to August."
ASB's experience suggests the escalation in short-term interest rates in New Zealand is finally having an impact (a factor reinforced by data that shows retail sales declined last month).
ASB said profit increased nine per cent over 2007 to NZ$480 million. Asset growth was 19 per cent, according to a media release from the bank, with total assets now exceeding NZ$50 billion. The detailed financial commentary from Commonwealth Bank said asset growth for ASB was lower at 16 per cent.
During the financial year covered by the latest profit report, ASB estimates it maintained market share in housing at 23.1 per cent and says market share in deposits lifted, to 21.2 per cent at June 2007 from 20.7 per cent at June 2006.
CBA's financial commentary excludes any discussion of its operations in Fiji, where economic growth is negative and much of its business subject to additional regulation by the military government.
The bank's businesses in Indonesia and its minority investments in China also receive short shrift.
The bank noted the purchase of an 83 per cent stake in Arta Niaga Kencana (Bank ANK) in the Surabaya region of Indonesia added 20 branches. PT Bank Commonwealth, CBA's long established subsidiary in Indonesia added four branches in its own right.