Westpac Banking, Australia's No.3 lender by assets, on Monday posted a 3 percent rise in annual cash profit to a record A$7.8 billion ($5.57 billion) helped by growth in mortgages.
Last month, Westpac pre-released its earnings as it raised A$3.5 billion ($2.54 billion) to meet new stricter capital rules and became the first lender to push home loan rates higher to protect profits.
Australia's four major banks are preparing for their slowest earnings growth since the global financial crisis amid record low interest rates and a cooling economy. Bad debt charges are ticking up even as regulators demand more cash be set aside against loan books.
Westpac CEO Brian Hartzer expects "Australian banks to continue to operate in a lower-for-longer environment with modest credit growth, intense competition and ongoing regulatory uncertainty."