The country's largest bank, ANZ, has made another strong full year result, with fewer bad debts and an increase in savings and loans.
The New Zealand bank's net tax tax profit for the year ended September rose 12 percent to $1.99 billion, while the cash profit, which excludes one-offs and changes in value of financial instruments, rose 3 percent to $1.90b.
The New Zealand bank outperformed its Australian parent, which ran up a billion dollars in restructuring costs and compensation payments to customers associated with the Australian royal commission into the wrongdoing of financial institutions.
The group profit, which includes the Australian parent was flat at $A6.4b, with a 16 percent drop in cash profit to $A5.8b.
Its large costs included $454m ($A419m) paid to customers, $29m ($A27m) of which was paid to New Zealand customers.
ANZ New Zealand chief executive David Hisco said the strong result reflected the performance of the economy, credit quality improvements and the bank's focus on digital innovation and customer service.
"The continued strength of the economy - strong exports and tourism sector aided by a lower dollar, continued demand for houses and growth in household incomes - has been good for our business," Mr Hisco said.
"The government's investment in major infrastructure across the country and trade achievements are providing jobs and fuelling consumer spending and saving."
Customer deposits rose 7.5 percent, while gross lending rose 3 percent.
"We have also had a significant reduction in provision charges - funds set aside for bad debts - due to credit quality improvements across our Retail, Commercial and Agri businesses."
ANZ New Zealand also announced it will not be pursuing an initial public offering (IPO) of UDC Finance, following the completion of a strategic review of the business.