New Zealand Post has seen its profit expand by 27% on the previous year, underpinned by ongoing growth at KiwiBank.
The State-owned postal operator made a profit of $110.2 million for the year to June.
Excluding one-off changes, underlying profit rose 21% to $114.4 million.
To combat a decline in its core letter business, New Zealand Post is broadening its reach through KiwiBank and expanding its courier and data services operations here and in Australia.
Chief executive John Allen describes the postal business as low margin.
He says it's under pressure from a slowing economy and high fuel costs, which it's partly addressing by investing in streamlining operations to keep costs down.
The company will pay the Government a reduced dividend of $23.5 million.