New Zealand-owned Kiwibank says it is winning more customers, demonstrated by a strong increase in deposits and lending.
The bank's full year net profit fell 6 percent to $108 million in the year to June, compared with $122m the year before, partly due to lower fees and one-off revenue received in the prior year.
Net revenue was flat at $538m reflecting a slight drop in net interest margins.
Interest income rose 6.1 percent to $933m with net interest income up 8 percent to $445m.
Customer deposits rose 2.1 percent to $2.1 billion while lending rose 12 percent to $2.1b.
"With highly competitive rate offers we have also assisted (net) 3305 customers to switch to us," chief executive Steve Jurkovich said.
"Helping small and medium businesses operate and grow has always been a core focus, but increasingly over the past 12 months we have been able to support some of New Zealand's larger businesses."
The bank said bad debts increased by $10.7m driven by select business loans.
Mr Jurkovich said last year's focus was on building reputation and culture.
"Over the coming year our priority is continued investment to ensure Kiwibank is fit to deliver on its purpose and meet its potential.
Kiwibank is part of KiwiGroup, which is owned by NZ Post, ACC and the NZ SuperFund.