TSB Bank boosted March-year net profit by 13.2%, or $6.7 million, to $57.6 million.
Net operating income rose by $7.8 million, while operating costs fell by 1.7%.
The bank said lending and deposit growth remained strong, with commercial lending up 29% and deposits up 2%.
TSB will pay $15 million of dividends to its owner, Taranaki-based community charity Toi Foundation, for the year.
It said asset quality remained strong, with non-performing loans at 0.4%, below the industry average of 0.7%.
Chairman Mark Darrow said the result "reflects the Bank's focus on simplifying operations to pave the way for accelerated investment in digital capability."
Chief executive Kerry Boielle said that, while regulatory reform was needed "to support improved competition and innovation across the sector," some regulatory requirements were "disproportionate and hinder innovation."
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