Westpac says lending in New Zealand is showing signs of picking up.
In a trading update, Westpac Group reported cash earnings of $A1.55 billion for the three months to the end of June - 2% less than in the previous two quarters.
Net profit for the third quarter was about $A1.45 billion.
Chief executive Gail Kelly describes the result as sound, given the subdued operating environment, with increasingly cautious consumers and large firms repaying debt.
Westpac says New Zealand lending was up almost 2% in the quarter, with growth in both business and mortgage lending.
Mortgage delinquencies also fell, and margins climbed.
Westpac says it continues to grow its market share in New Zealand, as it further trains staff and opens new community branches.
Shares in Westpac rose 95 cents on Tuesday morning to $A27.
