Westpac Banking Corp.'s second-half earnings hit a high of $3.47 billion ($3.47 billion) in the six months ending Sept. 30, as against the $1.27 billion a year earlier.

Australia's second biggest bank said in a statement to the stock exchange that profits tripled as bad loans ratio declined.

Westpac's second-half cash earnings after tax rose by 26 percent to A$2.93 billion, from A$2.33 billion a year ago.

Westpac Chief Financial Officer Phil Coffey told reporters in Sydney today that the bank has not yet decided how much it will raise its mortgage rates after the RBA's increase and will take a few days to consider the issue.

Westpac is part of Australia's Big Four lenders comprised by the Commonwealth Bank of Australia, the National Australia Bank, and the Australia & New Zealand Banking Group Ltd.

Westpac's rival banks also reported staggering profits recently, and are now under scrutiny for demanding higher borrowing rates that are exceeding the Reserve Bank's benchmark interest rates.

Australia & New Zealand Banking Group Ltd said last week that second-half profit jumped 69 percent as it slashed down soured loans and lending to homebuyers increased. The National Australia Bank Ltd., the biggest lender to companies, reported a 32 percent gain in cash profit as it expanded its share of the business loan market by targeting smaller borrowers.

The downside of borrowing at very high rates now confronts Australian consumers. Since the RBA begun to tighten monetary policy in May, loans acquired from banks and other lending firms have not prospered in the last six months.