Westpac New Zealand made a billion-dollar full year profit, boosted by strong revenue growth and the sale of Westpac Life.

Chief executive Catherine McGrath says the result put the bank in a strong position to support customers, amid an uncertain economic environment.

"After a year of market volatility and rising living costs, many New Zealanders will be feeling uncertain about the future. We want our customers to know our bankers are here to offer help and solutions."

Westpac NZ's cash earnings were up 15 per cent for the 12 months ended September 30, 2022, compared with the same period last year, but down two per cent when one-time items were excluded, such as a $126 million gain on the sale of Westpac Life.

McGrath says Westpac has good positive momentum.

"This has translated into good growth in mortgage and business lending market share in the past six months."

Total customer deposits rose three per cent to $77.9m, when total net loans rose five per cent to $96.8m.

Home lending grew by five per cent and business lending by four per cent.

"We've grown our market share in the second half of the year across home and business lending, giving us strong momentum as we go into the new financial year.

"While the rise in interest rates has coincided with a retreat in house prices, recent home buyers who have bought for the long term shouldn't be worried about the current value of their property."

Funds under management in the Westpac KiwiSaver Scheme fell three per cent to $8.9b as at September 30, compared with the year earlier as a result of volatility in financial markets.

However, McGrath says it's still a big year for its KiwiSaver business, with the transfer of 37,000 KiwiSaver members to its default balanced fund, following its reappointment as one of six default providers.

The bank's operating expenses rose two per cent to $1.16 billion over the year, including a five per cent increase of $30m in the second half, primarily spent on regulatory, risk and compliance spending, increased investment in technology resilience, cyber security and data capability, as well the taking on of an additional 269 staff.

McGrath says New Zealand's economy is well-positioned to deal with market volatility and a worsening global economic outlook compared with other countries.

"Commodity prices are holding firm, exporters are being assisted by the subdued New Zealand dollar, and hospitality businesses will be pleased tourists are beginning to return.

"Inflation remains a concern, however our economists think that the rate of increase has peaked, and the accumulated effect of higher interest rates will gradually bring it down over the next couple of years."

Westpac's Australian parent Westpac Group's full year net profit rose four per cent to A$5.69b

Key numbers for the 12 months ended September compared with a year ago:

• Net profit $1.05b vs $931m up 12 per cent
• Revenue $2.71m vs $2.46b up 10 per cent
• Cash earnings $1.17b vs $1.01b up 15 per cent
• Impairment $27m vs $84m down 68 per cent
• Net interest margin two per cent vs two per cent unchanged

-RNZ.