ASB promises no forced mortgagee sales
ASB has pledged not to force owner-occupiers out of their homes if they fall into financial difficulty.
Thursday, February 11th 2021, 8:52AM
The bank has made the promise as the Government's Covid wage subsidy comes to a close in the coming weeks.
ASB chief executive Vittoria Shortt said: "There will be no forced sales of owner-occupied family homes in 2021 for ASB customers we are working with to resolve the challenges they are facing. Mortgagee sales are uncommon, and they are always the last resort, however, we are taking this step to give customers added peace of mind during what is a very worrying time for some."
The announcement came as ASB unveiled its financial results for the six months to December. Post-tax profit fell to $614 million.
The big four bank said home lending was up 9% compared to the same period in 2019, with 7,500 new first home buyers.
ASB also increased business lending by 3%, "while the wider market declined 4%".
The bank has made provisions for Covid-related losses, however.
According to its accounts, impairments on financial assets, including write-offs, rose by $8 million, bringing total provisions to $604 million at the end of last year.
Shortt added: "We remain confident about New Zealand’s ability to remain resilient to the challenges of Covid-19, but the past 12 months have taught us all to expect the unexpected. That is why we have made a conscious decision to continue to provision for the uncertainties surrounding the pandemic and its possible long-term effects."
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