Westpac Banking Corp, Australia's biggest lender by market value, said first-half profit fell 6 percent and announced its first dividend cut in 17 years after charges for bad debts tripled.

Cash earnings dropped to A$2.29 billion ($1.7 billion) in the six months ended March 31 from A$2.44 billion a year earlier, the Sydney-based bank said yesterday, using pro-forma figures adjusted to reflect last year's takeover of St. George Bank Ltd. Bad debts rose to A$1.61 billion from A$541 million. Westpac shares gained 2.4 percent to A$19.96 in Sydney.

CEO Gail Kelly, who led the purchase of Australia's No 5 lender St. George shortly after taking over last year, is setting aside more money for future bad debts as the country nears its first recession in 18 years.