ANZ New Zealand, the largest lender in the country, has announced that it has recorded a profit of $1.368 billion in the yearly profit till September.

The profit rose 10 per cent compared with the previous year mainly due to increased lending and as the costs have remained largely flat. Banks net interest income increased 4 per cent to $2.7 billion as several customers chose to shift from fixed to floating mortgage rates.

Lending by the bank increased 3 per cent to $88 billion, while on the other hand the deposits by customers rose by a healthy rate of 9 per cent to $50 billion. The amount that the bank's sets apart for covering bad loans was increased by 4 per cent to $195 million during the year.

ANZ's overall profit increased 6 per cent to $A6 billion due to improved business in Australia and growth in its institutional banking in Asian region. Chief executive David Hisco said that the bank has been working to simplify its business and retain customers.

The ANZ Banking Group recorded $5.66 billion full-year profit mainly because of improved performance from various business units as well as reduction on costs from various units.