Another of the country's major Australian-owned banks has reported a lift in its half year earnings helped by higher margins and reduced bad debts.
The Bank of New Zealand made cash earnings of $385 million in the six months to March, an increase of 17% compared with the same period a year earlier.
Revenue rose 9% to $944 million due to higher margins as mortgage holders switched from fixed to floating rates.
The bank also lifted its share of the retail deposit and farm lending markets.
The recovering economy led to a decline in the amount set aside to cover potential bad loans, which fell by two-thirds to $34 million.
BNZ chief executive Andrew Thorburn says the bank has performed well despite a subdued economic recovery, and competitive banking sector.
The bank's parent, National Australia Bank, experienced a 5% rise in its half year cash profit to $A2.8 billion.
That was due to higher trading and fee income and a stronger share of the mortgage market, offsetting charges related to its struggling UK operations.
