The statutory profit of $869million was up 14% on the previous corresponding period. The statutory profit has been adjusted to exclude non-core items to arrive at the cash profit, the result for the ongoing business activities of ANZ NZ.
Operating income grew 8% on the pcp to $2billion.
Across the Tasman, ANZ New Zealand's parent ANZ lifted first-half cash profit 23% to $A3.4billion ($NZ3.7billion), although it fell short of most analysts' expectations.
The result was a big improvement on the writedown-heavy $A2.8billion in the prior corresponding period, but was short of the $A3.5billion to $A3.8billion predicted by analysts.
ANZ NZ chief executive David Hisco said the ''solid performance'' was a result of the business being focused on sustainable growth, increasing productivity across the organisation and delivering digital innovation for customers.
''All our business units performed well in this half due to our continued simplification of business.''
The bank had boosted its focus on digital innovation, positioning it well for a period of rapid change in banking, he said.
Adapting to the new digital environment resulted in record high brand consideration and customer satisfaction.
ANZ was the only bank in New Zealand to offer ApplePay, which had been taken up by thousands of Kiwis. ApplePay complemented the ANZ goMoney app, Mr Hisco said.
Net interest income increased 3% compared to March last year, mainly reflecting continued lending growth. Net interest margins contracted due to increased funding costs and demand for fixed rate home lending.
Expenses fell by 12% and with the increase in other operating income reflected higher markets trading income and
valuation gains.
Lower levels of credit losses reflected improvements in credit quality in the commercial and agri portfolios, partly offset by increased and new provisions.
''We've retained our No 1 market share in mortgages, which has been balanced with our commitment to lending responsibly.
''Our encouragement to Kiwis to save has pleasingly also gained traction, with growth in customer deposits.''
ANZ NZ's KiwiSaver business now had more than 725,000 investors. In the six months under review, funds under management grew $700million to nearly $10billion, making ANZ New Zealand's largest KiwiSaver provider, he said.
For the ANZ parent, net interest margin for the six months fell from 2.07% - and 2.06% in the preceding half - to 2%, reflecting stiff competition for deposits and loans as well as the impact of the Reserve Bank of Australia's August cash rate cut, chief executive Shayne Elliot said in a statement.
