New Zealand's largest bank, ANZ, is reporting a small rise in net profit

Profit is up one percent, to almost 2.3 billion dollars.

Expenses are up six percent, driven by inflationary pressures on staff and vendor costs.

Chief Executive Officer Antonia Watson says it's a solid result despite a tough year for the economy.

She says while stubborn inflation, a restrictive Official Cash Rate and a lack of economic growth are still feeding through, they're starting to see a brighter picture emerge.