TSB Bank has lifted its full year earnings by more than 10% despite intense competition in the mortgage lending market.
The Taranaki-based bank made a profit of $73.5 million, returning a dividend of $11 million to its sole shareholder, the TSB Community Trust.
Despositor funds increased by 5% to $4.9 billion.
The bank's lending book grew by 5% to $2.9 billion due to more lending to the rural and commercial sector.
Chief executive Kevin Murphy says the industry is facing a difficult environment with lending rates at 50 year lows, but TSB has diversified into rural and commercial loans and wealth management providing good opportunities to take the bank forward.
Mr Murphy says TSB's move into wealth management by taking a stake in Fisher Funds was an important step.