Australia’s second-biggest bank has posted a “solid” earnings result, after raking in more than $5 billion in a year.

Westpac’s bottom line net profit was $5.7 billion, up 4 per cent, for the year to September 30.

But cash earnings – the banking industry’s preferred measure of operational strength because it strips out volatile and one-off items – fell one per cent to $5.3 billion.

“We’ve delivered a solid financial result and made steady progress on our strategic priorities,” CEO Peter King said on Monday

“We’ve built positive momentum and positioned the company for the future.”

Westpac said it had returned to growth in its key segments of Australian mortgages and business lending.

“We are charting our way through a period of high inflation and rapid increases in interest rates,” Mr King said.

But the bank was yet to see an increase in hardship or stressed assets.

“Many customers built up savings during the past two years and 68 per cent remain ahead on their mortgage repayments,” Mr King said.

“However, it is inevitable that the impact of higher rates will be felt, including when borrowers’ low fixed-rate loans are rolled over.”

While consumer spending remains resilient Westpac expects the “heat” to come out of the economy as higher rates bite.

“Small business is one sector we are watching closely as consumption slows,” Mr King said.

Westpac also noted that it expects housing prices to continue to fall in fiscal 2023, which would likely see an easing in credit growth.

Still, the economy remains robust and the bank said it was well-positioned to handle the road ahead.

“Our own portfolio is in good shape going into 2023,” Mr King.

Westpac will pay a final dividend of 64 cents per share, taking the full year payout to $1.25.