The Greater, which is slated to merge with Newcastle Permanent in 2022, also reported that its total assets had exceeded $8 billion for the first time in FY2021, up from $7.5 billion in 2020. It notched up a 10% increase in deposit growth in 2021, attributing the result to customers who were turning to their bank to save and pay down debt.

The results were delivered by Greater Bank chair Wayne Russell, and its CEO Scott Morgan at its annual general meeting in Hamilton on Tuesday.

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Mr Russell said the group profit result was "in line with" the 2020 results and "pleasing" given the macroeconomic challenges and the bank's continued investment in the digital side its business, which topped $30 million in the past financial year.

"There is little doubt that Financial Year 2021 challenged our business as we continued to navigate a pandemic and the associated economic issues. These positive top-level results come off the back of prudential fiscal control of the underlying business and strong net interest margin management," he said.

"Our profit result has remained stable, which is exceptionally pleasing when considering our ongoing investment in the digital transformation of our business."

Mr Russell said Greater Bank was moving closer to delivering a new "core banking system" in 2022 which would be a milestone for the business.

While low interest rates and high provisions of liquidity had resulted in "the desired economic effect" with record levels of refinancing, he said it had also prompted the most competitive lending market seen in recent years.

"Changes in the official cash rate remain a key consideration for our interest rates, however we remain cognisant of other costs associated with funding and servicing loans, and ensuring we continue to meet regulatory responsibilities," he said.

Mr Russell said the business' ingoing investment in the community was again imperative in a year where many people and businesses across its regions were impacted by the ongoing pandemic.

Looking ahead, Mr Morgan said that the economy's response to the COVID-19 pandemic as well as the focus on delivering banking solutions to meet the needs of customers would continue to drive and shape the business operations.

"Broadly, we have already seen some positive economic signs in recent months as COVID-19 restrictions ease across the state and nation. The resumption of travel will be a significant stimulus for the economy, while record low interest rates will ensure the housing boom we are experiencing, particularly across regional NSW, is expected to continue for some time yet," he said.

"As we move through the current financial year and beyond, our underlying philosophy of providing customers and the communities we serve with banking solutions that genuinely meet their needs, will continue to guide out operations."

Mr Morgan said the merger with Newcastle Permanent "remains a high priority" as the two organisations worked through the process to create one of Australia's largest customer-owned banks.

"Our collective capabilities and capacity will enable us to invest more in technology and innovation, and offer great value for our customers," he said.

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