Kiwibank has posted a net profit after tax of $131 million, up 4% on last year and the best result in the bank's history.
Net interest income rose from $528m to $630m, but operating expenses also increased from $422m to $480m.
“Today’s result and our continued success means $131m of profit stays right here in Aotearoa, allowing us to have even more impact for New Zealand in the year ahead as we deliver on our purpose of Kiwi making Kiwi better off,” chief executive Steve Jurkovich said.
Home lending grew by $1.8 billion, as did business banking by $700m.
Jurkovich said home lending growth slowed in the second half of the year due to "changes to consumer lending laws (CCCFA), loan-to-value ratio (LVR) restrictions, a cooling housing market, and rising interest rates."
“Potential buyers are being a lot more circumspect – whether that’s first home buyers holding off, existing owners looking to upsize, or property investors taking a wait and see approach."
Last week, ASB reported a 9% profit jump to $1.42 billion.
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