Pwc's analysis suggests big banks are in for another bumper year.

New Zealand's five major banks are on track for another bumper year, with profits already up strongly in the first quarter.

ANZ, ASB, BNZ, Kiwibank and Westpac made $1.69 billion of pre-tax profit in the three months to March 31, up 5.9 per cent from the last quarter of 2014.

The gains came from an increase in "other" operating income and lower expenses, offset by falling interest income and a higher level of bad loans.

Total gross loans increased by $6b, or 1.9 per cent, but interest income fell slightly.

PwC partner and banking and capital markets leader Sam Shuttleworth said that reflected the very competitive lending market.

"Banks [are] keen to attract new customers or retain existing customers through low interest rates, which have eaten into their lending margins," he said.

Mortgage lending growth for the quarter was 1.72 per cent, up strongly from the previous period's 1.26 per cent.

That rate was higher than any quarter during 2014, which Shuttleworth said reflected the continued heated housing market, particularly in Auckland, and the low interest rates offered by the banks.

Other retail lending remained largely static at $13b.

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