ASB Bank's annual net profit rose more than 14 percent against the background of a steadily improving economy and favourable funding conditions.
ASB's profit for the year ended June rose to $806 million - the bank says its preferred measure of underlying profit was up 11 percent.
ASB's chief executive, Barbara Chapman, said all areas of the business performed well over the year with solid lending growth of 5 percent across all key portfolios, despite heightened price competition in the home loan market.
ASB's mortgage portfolio grew by $290 million dollars in the June quarter, taking annual growth to $1.53 billion.
At the end of June, the mortgage portfolio totalled $41.8 billion dollars.
Ms Chapman said deposit volumes had also been rising.
She said confidence had improved, particularly among business and rural customers - rural and business lending rose 8 percent in the year.
