ASB says competition for retail deposits continues to squeeze margins but the overall economy is showing signs of improvement.
The bank's Australian owner, the Commonwealth Bank of Australia, says in a trading update to the market that earnings in the first three months of the year climbed 30% to $A1.5 billion.
This compares with just over $A1 billion reported a year earlier.
Provisions to cover bad debts fell to $A500 million down from $A630 million a year ago.
There were no separate figures to show how ASB was performing.
