Company: Westpac Banking Corporation

Westpac Banking Corp., one of Australia's largest banks, has posted a 25 percent fall in first-half net profit.

Westpac, Australia's third-largest lender by assets, on Thursday posted a record first-half cash profit, driven by its retail and business banking groups.

Australia's large banks are very profitable, but subdued credit demand means future profit growth could slow, the country's central bank said, warning they should not take on more risk to chase unrealistic goals.

Credit ratings agency Fitch cut its ratings on Australia's top three banks on Friday, bringing it in line with Standard & Poor's, saying their reliance on offshore funding markets made them vulnerable to swings in confidence.

Westpac, Australia's third-largest lender, missed analyst forecasts with a 3 percent fall in first-quarter cash profit due to slower loan growth and higher funding costs, knocking its shares down 4 percent.

Moves by Australian banks to raise mortgage rates independently of the central bank did not change the impact of monetary policy, a top central banker said on Tuesday, dampening speculation of a cut to its official rate in response.

Most of Australia’s four major banks closed lower on Tuesday after Fitch put them on review for a possible downgrade, citing their reliance on foreign debt markets and rising funding costs. But, David Marshall, Senior Analyst at CreditSights, told CNBC Australian banks are still a good buying opportunity.

Fitch ratings agency placed Australia's four major banks on review for possible downgrade on Monday, reflecting their reliance on offshore funding as costs soar in the face of macroeconomic uncertainty.

Standard & Poor's Ratings Services cut the ratings on five Australian banks on Thursday as a result of major changes in the criteria it uses to assess risk.