ANZ New Zealand has reported an eight per cent fall in after-tax profit in the nine months to June 30 after bad loan charges almost doubled and the bank booked a NZ$96 million one-off loss because of a change in accounting policy for software spending.The biggest New Zealand bank also reported a sharp drop in trading profits from its institutional division, which it did not specify in detail in its nine-month disclosure statement.ANZ NZ reported a profit of NZ$1.163 billion for the nine months, including a NZ$105 million charge for bad loans, which was up from NZ$58 million in the same period a year ago. Provisions for non-retail individual credit impairments rose to NZ$49 million from a write-back of NZ$1 million.Net interest income rose 6 per cent to NZ$2.267 billion, but this was offset by a NZ$141 million fall in non-interest income to NZ$626 million. This was driven by a drop in trading gains in its institutional division to NZ$44 million in the nine months from NZ$218 million in the same period a year earlier.ANZ NZ's retail division in New Zealand reported a ten per cent rise in net profit to NZ$710 million, while institutional profit fell 36 per cent to NZ$164 million and commercial division profits fell ten per cent to NZ$324 million.ANZ's customer deposits rose seven per cent over the nine months from a year ago, while gross lending rose five per cent. Mortgage lending rose 8.8 per cent to NZ$72.3 billion, while non-housing lending rose 2.1 per cent to NZ$43.8 billion.