ANZ New Zealand has revealed another record profit, hitting $1.986 billion for the year to September 30 - just shy of $2 billion.
The country's largest bank said strong economic growth was behind the 12 per cent increase on the prior year.
Its cash profit was also up 3 per cent to $1.904b while its revenue rose 3 per cent to $4.18b.
ANZ chief executive David Hisco said the result reflected the performance of the economy, credit control, digital innovation and customer service.
"The continued strength of the economy - strong exports and tourism sector aided by a lower dollar, continued demand for houses and growth in household incomes - has been good for our business," he said.
The bank also reported lower levels of credit losses reflecting an improvement in credit quality in its retail, commercial and agri divisions.
But its expenses increased 3 per cent which the bank said was a reflection of investment in its digital initiatives.
Hisco said the last five year it had continued to invest in digital capabilities to deliver a better, more secure bank and make it easier for customers to use our services anywhere and at any time.
"Getting the right balance between technologies that are convenient and still presenting a human face is the challenge for all retailers and banking is no different," he said.
The bank launched a new digital assistant called "Jamie" this year which had already had nearly 12,000 conversations with customers.
New Zealand banks have come under the spotlight of regulators this year in the wake of damning revelations during Australia's Royal Commission into misconduct in the financial services industry.
New Zealand's regulators the Reserve Bank and the Financial Markets Authority are due to release a conduct and culture report on the sector on Monday.
Hisco said it had continued to transform its culture to meet the expectations of customers by removing frontline retail sales incentives and getting rid of fees on other bank ATMs and its overseas ATMs.
"We are committed to doing what is best for our customers and the community, being transparent and putting things right quickly. This will continue to be a strong focus for us in the future."
ANZ also said it was no longer considering an initial public offer for UDC Finance after a strategic review of the business.
ANZ announced it was exploring the options for UDC in March after a bid by Chinese firm HNA was blocked by the Overseas Investment Office.
Hisco said it may still consider a sale of the business in the future but it had decided to put it on hold for now to focus on continuing to grow the business.
ANZ New Zealand's parent company Australia and New Zealand Bank reported a net profit of A$6.4b, flat on last year and a cash profit of A$5.8b down 16 per cent including discontinued operations.