MELBOURNE (Standard&Poor's) May 9, 2003-- Westpac Banking Corp. (AA-/Stable/A-1+) reported a satisfactory interim profit, underpinned by strong growth in mortgage lending, which increased 18% for the half year ended March 31, 2003. Although growth in cash underlying earnings was satisfactory, the after-tax profit result increased only a modest 3.2% to A$1,051 million from the corresponding period in the previous year. Westpac's business profile and its interim results were also impacted by a number of wealth management acquisitions and the sale of Australian Guarantee Corp. (AGC), as the bank further refined its focus on traditional banking and wealth management activities. As a result of the divestment of AGC, Westpac's net interest income margin has contracted for the half year,
