ANZ New Zealand's after tax profits have fallen by $489 million this year to $1.336 billion, down 27 per cent on last year.
The country's biggest bank made $1.825 billion in the year to September last year, but this year faced a drop in operating income of six per cent to $4.049 billion.
Operating expenses were also up 10 per cent, to $1.736 billion.
Net income from interest was relatively stable, falling just $3 million to $3.229 billion, down 0.09 per cent.
Among ANZ's home loan customers, about 10 per cent were currently on a deferral plan, making up about two per cent of the bank's 529,000 home loan accounts.
ANZ NZ chief executive Antonia Watson said the results were due to a significant uplift in the charge for expected credit losses due to changes in the economic environment, as well as the sale of UDC Finance.
"Covid-19 brought unprecedented challenges to our country and consequently for many businesses, including ANZ NZ, and this is reflected in our full-year result," Watson said.
"Despite the difficult year, ANZ NZ has continued to perform well, demonstrating it can weather challenging economic conditions and play an important role in supporting customers through the crisis."