Kiwibank will shut branches despite reporting a strong after-tax profit of $127 million dollars - $27 million more than last year.

Chief executive Paul Brock said more people are joining the bank, and they are increasingly banking online.

He said as digital plays out, it will mean fewer branches overall - how many however, he can't yet say.

Mr Brock said the bank's space-sharing relationship with Post Shop is set to change.

"What we're doing is partnering with a lot more businesses and small communities around New Zealand, to make sure that we can keep a presence there."