Westpac New Zealand's June quarter profit has jumped more than 45 percent, partly reflecting a big drop in charges for bad debts.
The bank's net profit of $259 million took its profit for the nine months ended June to $723 million.
Following the trend being set by all the major banks, Westpac's mortgage lending to people with less than a 20 percent deposit fell $292 million.
However, its other mortgage lending grew by $901 million.
Since October last year, the Reserve Bank has limited each bank's new mortgage lending to people with small deposits to no more than 10 percent of total new lending.