ANZ Bank New Zealand Ltd. posted a year-over-year increase in profit for the quarter ended Dec. 31, 2017, on the back of a surge in net funds management and insurance income.

The bank's profit after income tax for the fiscal first quarter rose to NZ$510 million from NZ$393 million in the year-ago period.

Net interest income grew to NZ$785 million from NZ$762 million. Operating income increased to NZ$1.11 billion from NZ$952 million. The bank said operating expenses climbed year over year to NZ$386 million from NZ$369 million.

Meanwhile, net funds management and insurance income jumped to NZ$111 million from NZ$21 million in the year-ago period.

At the end of December 2017, the bank's total capital ratio under Basel III stood at 15.0%, while common equity Tier 1 and Tier 1 capital ratios clocked in 11.3% and 14.7%, respectively.

As of Feb. 20, US$1 was equivalent to NZ$1.36.