IMB Building Society has reported a $29.1 million operating profit this week.
Chief executive Robert Ryan said the solid net profit after tax for the 2013-14 financial year was a 2 per cent improvement.
Mr Ryan said that was achieved despite challenges from strong competition for retail funds and lending.
He said the growth in profit also highlighted the resilience of IMB's underlying business fundamentals and would allow it to continue to provide highly competitive products and services to members.
Mr Ryan said lending was strong during the last 12 months for the IMB.
"Loan approvals, at $753 million, were 21 per cent higher than the previous year despite a subdued start to the year and a highly competitive lending market," he said.
"The balance sheet was maintained with total assets of $4.8 billion while our liquidity position remains well above regulatory levels."
IMB chairman Michael Cole said the board was pleased with the result, which matched or exceeded expectations in key areas.
"In particular, the maintenance of IMB's capital base, at 16 per cent, should be noted as a significant achievement, particularly given that IMB's second share buyback was successfully completed during the year," he said.