Westpac H2 Profit Up 9 Pct on Strong Loan Growth

SYDNEY (Reuters) - Westpac Banking Corp (WBC.AX), Australia's fourth-biggest lender, said on Thursday second-half cash profit rose 9 percent, helped by strong business lending and robust growth in its wealth management division.

Westpac, Australia's oldest bank, reported cash profit of A$1.829 billion ($1.7 billion) for April-September, up from A$1.678 billion from a year ago. Six analysts on average had projected profit to rise 13.4 percent to A$1.778 billion.

Cash earnings, effectively core profit, exclude one-off items and non-cash accounting items, and form the basis for dividends payable to shareholders.

The three Australian banks that have reported profits so far have met analysts' forecasts, but higher funding costs have forced them to collectively raise about A$2.03 billion to sustain strong lending growth.

Westpac shares are up about 25 percent so far this year, making it the best performing major banking stock, outpacing a 19 percent rise in the benchmark S&P/ASX 200 index .AXJO.

($1=A$1.07)