Hisco said the ANZ brand had strengthened, as reflected by growth in market share in mortgages, particularly in the commercially important Auckland market.
He said the rising average cost of its funding portfolio has had some impact on our net interest margin and this was expected to continue unless offshore conditions change significantly.
The bank's statutory profit included a charge of $135 million (after tax) related to the New Zealand simplification programme, including implementation of a single core banking system, a single bank brand and an "optimised" branch network.
"Credit quality has strengthened across the book, reflecting the ongoing recovery of the New Zealand economy from the impacts of the global financial crisis," Hisco said.
"Delinquency rates have declined and there has been an overall reduction in the individual provision charge," he said.
"However, due to lower releases of collective provisions, the overall impairment charge has increased slightly," he said.
The bank announced last month that it would progressively bring the ANZ and National Bank brands together as ANZ.
In Australia, the ANZ Group reported a record A$5.66 billion full-year profit, driven by improvement in its domestic and international operations.
