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Investing.com-- Shares of Westpac Banking Corp (ASX:WBC) rose sharply on Thursday after Australia’s third-largest lender clocked slightly stronger earnings for its fiscal third quarter.
Westpac’s shares rose 6% to A$36.280, underpinning a 0.7% rise in the ASX 200 index. The bank’s shares were at an over 10-year high.
Westpac’s net profit for the three months to June 30 rose 5% to A$1.9 billion, the company said. Net interest income rose 4% to A$5 billion, while net interest margins grew by 7 basis points to 1.99%.
The bank benefited from relatively high Australian interest rates, as the Reserve Bank of Australia kicked off a shallow easing cycle after hiking interest rates over the past two years.
Resilience in Australian consumer spending and credit activity also aided Westpac, especially as local inflation trended steadily lower this year.
Westpac’s earnings came a day after larger peer Commonwealth Bank of Australia logged record annual cash earnings. Australian banks have largely benefited from recent resilience in the Australian consumer, putting their valuations at multi-year highs.