The boss of one of our biggest banks is seeing light at the end of the economic tunnel

Westpac's New Zealand division is reporting annual profit of more than a billion dollars -- up 10-percent on last year.

The cost of borrowing's been dropping, and more more than three-quarters of customers are expected to be on lower rates by this time next year.

Westpac New Zealand Chief Executive Catherine McGrath says they are "very hopeful" about the year ahead.

She says the key thing to watch is unemployment, which is expected to peak half-way through next year.