Westpac New Zealand's full-year profit is down 9% on the previous year due to stiff competition and narrower interest margins.
The company posted a $1,087m net profit for the 12 months to September, down from $1,197m the previous year.
Westpac's interest margin - the difference between what it charges for loans and pays for deposits - fell to 2.23%, from 2.32% in 2025.
The bank said this reflected intense competition, particularly for new home lending, and the declining interest rate cycle in 2025.
There was a net impairment charge of $33m this year, compared with an impairment benefit of $44m in the previous period.
Net operating income of $3,074m was flat for the year, while home lending was up 4% to $74.5b.
Business lending was up 6% to $36.3b, while deposits were up 4% to $84.4b.
Westpac NZ chief executive Catherine McGrath said the result shows it is supporting its customers by growing its lending and investing strongly in its people, products and systems.
McGrath stressed that Westpac was also doing its bit to help drive economic growth, with lending to medium and large business customers growing faster than the market average in 2026.
"SMEs are the engine room of the economy and we're backing them to succeed. We've lent $86m out of our $100m commitment for start-ups and delivered a new programme helping women-led businesses.
"More than 25,000 businesses are now on the new Westpac One Business platform."
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