Southland Building Society Bank has made an annual profit despite an increase in loan impairments and costs associated with clients refixing mortgages.
The building society became a bank in October in a move to distance itself from the troubles of the financial sector.
Profit fell by 13% to $12 million in the March year, compared with the previous year.
SBS Bank booked a $3 million rise in provisions for credit impairment, to $12.4 million, while costs associated with a rapid decline in interest rates rose $4.7 million to $6 million.
Chief executive Ross Smith says part of that cost was due to clients breaking their mortgage contracts.
Depositors' funds increased by $200 million, leading to a $68 million rise in lending, to $2.4 billion.
Mr Smith expects the next 12 months to be tough and SBS Bank will retain what he calls a "cautious" strategy.