Shares of Westpac Banking Corporation (WBC.AU) surged 5.16% in intraday trading, following the release of its robust third-quarter financial results. The Australian banking giant reported a 5% increase in cash profit, driven by higher margins and growth in both lending and deposits.

Westpac's net profit for the quarter ended June 30 rose to AU$1.9 billion, up from AU$1.8 billion in the same period last year. The bank's performance was bolstered by a significant improvement in net interest income, which climbed to AU$5 billion from AU$4.7 billion a year earlier. Non-interest income also saw a notable increase, reaching AU$800 million compared to AU$700 million in the previous year.

CEO Anthony Miller attributed the strong performance to the bank's resilience in the face of changing economic conditions. "The resilience of both households and businesses has been aided by the reduction in interest rates and the moderation of inflation," Miller stated. He added that these factors have led to lower levels of customer stress and are expected to support a recovery in private sector activity and lending growth. The bank's net interest margin improved to 1.99%, up from 1.92% a year ago, while customer deposits grew by A$10 billion and gross loans increased by A$16 billion during the quarter. Additionally, Westpac reported a decrease in late mortgage repayments, further underscoring the improved financial health of its customer base.