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ANZ chief executive David Hisco: "ANZ has grown in home lending and deposits, which reflects the continuing strength of the New Zealand housing market and of the economy generally."

ANZ has reported a record profit for the six months to the end of March.

The bank pulled in a cash profit of $941 million over the half-year. Its statutory profit, of $964m, was up 11 per cent on the same time last year.

New Zealand customer deposits were up 5 per cent and lending up 3 per cent.

Chief executive David Hisco said the bank had a focus on sustainable growth. He said the half-year had been affected by the election, which had made some businesses "sit on their hands".

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"ANZ has grown in home lending and deposits, which reflects the continuing strength of the New Zealand housing market and of the economy generally," Hisco said.

"Major infrastructure and building projects across the country are providing jobs and fuelling consumer spending and saving, and will do so for the foreseeable future."

Hisco said he did not expect home loan growth to "roar away" from here. "Everyone in the business is focused oin make sure we make the most of the opportunities out there. Property prices have stabilised, which is sensible."

That helped customers make the decision to buy a property, he said. 

If international interest rates continued to rise, that could have a flow-on effect to borrowing in New Zealand.

He said ANZ New Zealand has invested in digital capabilities to deliver a better, more secure bank and build functionality for its customers. That increased expenses by 3 per cent for the six months, although Hisco said there had been focus on cost management.

Net interest margins increased slightly in the half, meaning the bank made more money off its lending, due to stabilising funding costs and home loan price changes.

Banking expert Claire Matthews, of Massey University, said the profit increase was surprising. "A small decrease was seen as more likely."

She said she would not describe 11 per cent year-on-year profit growth as "sustainable".

Second-half profits are usually a little higher than first-half, which puts ANZ on track to deliver the country's first $2 billion annual bank profit. Only Infratil has exceeded that number previously.

Matthews' colleague, David Tripe, said it was possible that the bank would hit that milestone.

"It will depend on things like what happens with their non-perfoming loans."

Matthews agreed the bank would get there at some point, although she said it was not certain it would be this financial year.

Hisco said he could not give guidance. "It's a bit like predicting the weather. If you say you'll get there you won't and if you say you won't you will."

 - Stuff