Westpac banking group is reporting a slide in profit -- but its New Zealand arm is bucking the trend

Group net profit profit is down three-percent to 7-billion dollars, but for New Zealand net profit is up 10-percent - to more than a billion dollars.

Kiwi consumer lending is up 18-percent, business lending up 16 - and deposits up 17 percent.

Inflation and technology costs have pushed operating expenses up six percent.

It's a very different story in Australia, where Westpac says intense mortgage competition is hitting revenue.