The New Zealand arm of ANZ Bank says cost savings and better credit quality are behind its 8% lift in annual net profit.
The bank reported a $1.37 billion net profit for the 12 months to the end of September - up from $1.27 billion the previous year.
The bank's cash profit for the year rose 12% to $1.44 billion.
ANZ's New Zealand chief executive, David Hisco, says expenses fell 13% in the latest year while charges against profit for bad debts were down 66%.
ANZ's lending grew 3.6% in the year, as its mortgage lending grew faster than the overall market. Its customer deposits rose 6.8%.
Mr Hisco says the improved performance is down to it simplifying its products, and improving its processes and systems.
He says these measures have saved costs and increased the bank's market share.
Mr Hisco says the bank has pledged $500 million of lending to support new small to medium sized businesses.
About 10,000 start-up accounts were opened during the year.