New Zealand’s five major banks have recorded solid first half growth with pre-tax profit of $3.3 billion, up five percent on six months earlier.

But they are facing increasing competition with the changing technology.

The latest PriceWaterhouseCoopers report is not ruling out other major European or American banks targeting the New Zealand market.

Spokesman Sam Shuttleworth said that's up five percent on six months earlier.

"Drivers for that lift is increases in net interest income, now that's off the back of solid lending growth again for the last six months worth. The banks have lent out another $10 billion both for household and for corporate sectors."

Shuttleworth said because of the way technology has evolved it's less likely now for them to have a physical branch here.

"You've got the mechanisms of the iconic brand and name from a Northern Hemisphere bank, so you don't need the brick and mortar of the branch channel which we're used to seeing..they could actually try and tackle the New Zealand market just through the use of the digital channel."