The bank said the cash profit fell because the result in the pcp included a high level of provision write-backs and the one-off insurance recovery.
Statutory profit was up 3% at $877 million.
ANZ New Zealand chief executive David Hisco said all New Zealand business units contributed strongly.
The result reflected market share growth in lending and deposits, confidence in the economy and continued productivity gains driven by the company's simplification programme.
''Confidence among businesses and consumers is lifting economic activity and lending volumes. With our market-leading domestic network and global connections, ANZ is well placed to leverage this activity in New Zealand.''
Simplification of the business and growing adoption of digital technologies were contributing to greater productivity, he said.
There had been strong growth in the key Auckland and Christchurch markets and the migrant customer segment.
New Zealand's economy was continuingd to perform well but problems were emerging, associated with the high dollar and slowing growth in Australia and China.
''Notwithstanding this, we are drawing on our strong financial position and scale and moving towards our goal of creating New Zealand's best bank while supporting customers and communities and contributing to economic growth,'' Mr Hisco said.
In Australia, the parent ANZ lifted its first-half cash profit 5% to $A3.76 billion ($NZ3.91 billion), slightly ahead of the 4% analysts had expected.
Net profit, which includes one off items, was $A3.51 billion, up 3% from $A3.42 billion for the same period a year ago.
ANZ increased its interim dividend A3c to A86c.
