"The last financial year saw a major compliance uplift, a significant upgrade of our systems and technology, an ongoing Covid-19 response and considerable regulatory developments in the New Zealand banking industry.
"Despite this, we have delivered a solid financial result and shareholder dividend, along with some key customer initiatives."
Last year the bank was ordered by the High Court at Wellington to pay $3.5m in civil penalties after it was found to have breached anti-money-laundering laws.
The penalties were based on TSB's acceptance that it did not have adequate and effective procedures, policies and controls for monitoring and managing compliance with its AML/CFT programme.
It has been working on improving its processes since 2019.
Cooper said its focus and investment in the past three years – and last 12 months in particular – was required to set it up for the future.
"We've had a massive amount of work to do, but now we're ready to springboard into a new era of profitable growth and innovation."
Residential lending at the bank rose from $5.48 billion to $5.85b. Its commercial lending rose slightly from $537m to $537.7m while its agricultural and personal lending was down.
Agricultural lending fell from $316m to $268m while personal lending went from $27.6m to $20.9m.
Its deposit book rose from just shy of $8b to $8.18b.
Meanwhile, the bank's impaired assets fell from $23m to $16.7m.
The bank's annual report shows there has also been change in its board over the last year.
Longstanding former chairman John Kelly retired in March, with Mark Darrow becoming a director on February 1 and stepping up as the new chairman on March 18.
Peter Schuyt also resigned from the board in August, to be replaced by Michael Schubert.
Total fees for directors rose to $1,034,788, up from $827,769.
The bank is wholly owned by community trust the Toi Foundation, which took a dividend of $12.5m during the year.
In the last financial year the bank did not pay any dividends to the foundation.
The Reserve Bank of New Zealand stopped all New Zealand banks from paying out any dividends in March 2020 at the start of the global pandemic.
That was eased in July last year to allow banks to pay out up to 50 per cent of their surplus in dividends, with all restrictions to be lifted next month.
TSB chairman Darrow said the bank's results came against the backdrop of significant regulatory developments within the banking industry, following the implementation of changes to the Credit Contracts and Consumer Finance Act (CCCFA).
He said there was no doubt the CCCFA changes had had an impact on the bank and its customers.
"Despite the national and global challenges and significant investment in compliance and back-office systems, the TSB team has delivered an on-target profit and solid asset growth.
"In turn, this work puts us in good stead for future profitable growth and innovation. We have a clear business plan that ensures we can achieve this, as well as be the bank that our shareholder, customers, people and community want and need us to be," said Darrow.
