Profits at ANZ New Zealand, the country's biggest lender, fell 28% in the final three months of last year.
The New Zealand subsidiary of the Australian bank made an after-tax profit of $296 million in the three months ending December, compared with $415 million for the same period a year earlier.
Despite the fall, ANZ New Zealand says it managed to increase market share, though margins remained under pressure.
ANZ, its Australian parent, increased its quarterly profit by 6.2% to $A1.58 billion.
