Kiwibank has had a strong rise in its half year profit on the back of solid growth in lending and deposits, while it's also lowered the cost of doing business.
The state-owned bank's profit was $62 million compared with $42m a year ago, as the growth in deposits outpaced lending and it increased its margins.
"Kiwibank is back to the performance levels it enjoyed before the Kaikōura earthquake and the abandoned technology project," chief executive Steve Jurkovich said.
The aborted revamp of the bank's IT system caused significant writeoffs last year.
Growth in lending grew 7 percent but customer deposits grew 9 percent on a year ago.
Mr Jurkovich said the bank would continue to "chip away" at increasing market share, but accepted it would not have the same levels of profits as the four main Australian-owned banks.
He said one area of concern was its cost of doing business, which had been reduced, but was unsustainable at its current level and it would look at ways to cut costs.
Mr Jurkovich said Kiwibank was also planning to invest further in technology, which would allow it to increase its share of the business banking market.
The bank is majority owned by NZ Post with the Superannuation Fund and ACC as minority shareholders.