• Borrowing could become more expensive as the number of people wanting loans outstrips those who want to deposit their cash in the bank, ANZ has warned.

The bank has released its 2016 financial result, which shows a profit of $1.53 billion, down 9 per cent on the previous year.

Net interest income increased 5 per cent over the year, reflecting growth in loans.

The margin that the bank makes on those loans has dropped, because of competition and a customer preference for cheaper, fixed-rate mortgages.

READ MORE: ANZ, ASB, Westpac and BNZ rake in $4.59 billion of profits 

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ANDREW GORRIE/FAIRFAX NZ
ANZ chief executive David Hisco said the bank was in a strong position, holding the biggest share of the mortgage market.

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