The Bank of New Zealand's net profit dipped slightly after a number of one off items but it still made $1.022 billion for the year to September 30.
The profit was dragged down 0.7 per cent after a reduction in its capitalised software balances offset by the gain from the sale of its share of Paymark and an insurance settlement relating to its quake-damaged building in Wellington.
Excluding those one-offs the BNZ's net profit rose 2.2 per cent or $23 million.
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BNZ chief executive Angie Mentis said the result was a solid performance which was down to more home and business lending.
"Our results tell a story of Kiwi enterprise and endeavour.
"BNZ's focus on helping New Zealanders be good with money so they can do great things with it has seen growth in lending across business and consumer portfolios. This is supported by our continued emphasis on simplifying our products, improving our systems and fixing issues when we find them."
BNZ's net interest income rose by 5.9 per cent to $2.061b while its total operating income was up 3.9 per cent $2.656b. But its operating expenses also rose by 8.6 per cent to $1.135b.
Credit impairment charges at the bank rose from $82m to $114m.
Total loans and advances were up 5.9 per cent to $88b while its deposits rose 7.3 per cent to $68b.
Mentis said BNZ loaned money to 5000 first home buyers in its latest financial year - a 25 per cent increase on the prior period.
It also did new or increased lending to more than 16k small and medium sized businesses.
BNZ's parent National Australia Bank reported its New Zealand segment made a cash profit of $1.055 billion in the year to September 30.
That was 5 per cent up on the $1.004b it made in the prior year.
BNZ is the latest to report its financial results following Westpac on Monday and ANZ last week.
The New Zealand arm of NAB includes BNZ's consumer, wealth, business, agribusiness, corporate, insurance and market sales operation but exlcudes its group capital market and markets trading operations.
In its statement to the ASX NAB said its New Zealand business had higher earnings with growth in revenue benefiting from lending growth which was partly offset by investment spend and higher credit impairment charges.
NAB announced its total cash profit was down 10.6 per cent to A$5.097 billion and cut its dividend for the full year by 16 per cent.
The New Zealand segment saw its operating income rise by 5 per cent to $2.537b but its margin was also squeezed down 2 basis points to 2.25 per cent due to the low interest rate environment.
Credit impairment charges in the New Zealand segment also rose from $76m to $110m.
This was driven by an increase in provisions relating to a small number of large corporate dairy exposures, the bank noted.
Yesterday BNZ told its 5000 staff it would be boosting annual leave from four weeks to six from January.
Mentis said the change was being made to increase the wellbeing of its staff.
The bank has faced its challenges this year.
In September it was hit by a backlash of complaints from customers after it had issues with its online banking for five days in a row.
Leaked documents also appeared to have shown the BNZ had difficulties in meeting laws meant to prevent money laundering and financing of terrorism.
The bank said it was compliant with the law and the Reserve Bank, which regulates banks, said it was comfortable with the BNZ's approach and its remediation.
In September Mentis spoke out strongly at a women in leadership conference in Australia admitting she had been wrong about her perception of gender targets.
Mentis became chief executive of the BNZ in January 2018 moving over from parent company National Australia Bank where she was chief customer officer for business and private banking.
She been with NAB since 2006.
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