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ASB Bank - Source: ONE News -
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ASB Bank's underlying earnings after tax for the six months to the end of December slid 16.4% to $199 million compared with $238 million reported in the same period last year.
The figure does not take into account a one-off tax charge of $264 million following the settlement of a bank tax case with the Inland Revenue.
ASB, along with New Zealand's three other major banks ANZ National, BNZ and Westpac, collectively owe IRD $2 billion in back taxes and interest.
Overall, ASB posted a $10 million after tax loss for the six months once $209 million of the tax charge is included in the result.
ASB says provisions for possible bad loans also increased by $60 million to $127 million, taking total provisions on the balance sheet to $340 million.
ASB says $70 million in dividends were paid to its New Zealand holding company though none were paid to its parent, the Commonwealth Bank of Australia.
