ASB's CEO isn't surprised by today's reduced half-year profit.

The bank has reported a 11 percent fall, due to slower lending, reduced margins and higher costs.

CEO Vittoria Short says their profitability is linked to New Zealand's economy.

"We've seen a slowing in growth as headwinds impact everything from inflation that's feeding through to businesses and homes- and also the rising interest rate environment. That's really contributed to the decline." 

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