ASB Bank has posted a higher half-year profit as customer deposits increased.
The bank, owned by Australia's CBA, made a profit of $525 million in the six months to December, up 11 percent on the previous period.
Customer deposits grew 5 percent and total lending was up 11 percent.
"Despite some challenging market conditions, we've continued to see robust nationwide volume growth in our business, rural and retail lending portfolios,"ASB chief executive Barbara Chapman said.
But the company's interest rate margin - in essence the bank's profit margin - has fallen.
Ms Chapman said that was partly a result of higher overseas funding costs.
"With levels of local deposits failing to keep pace with the amount of lending banks are doing, the increased use of offshore funding has increased funding costs, reducing our net interest margin."