Westpac Banking Corporation Ltd. revealed that funding costs were soaring and the speed of bad loan recovery would be measured, exceeding expectations after a stronger-than-expected 33 per cent rise in first quarter cash profit.

Cash earnings on an unaudited basis were reported as $1.6 billion for the three months to December 31, up from $1.2 billion in the same period the previous year.

The boost in the first quarter earnings underscored its strength as one of the nation’s biggest lenders with its shares registering a 6 per cent jump.

While, the fourth quarter cash earnings were $1.23 billion for the bank’s fiscal 2009, which ended on September 30 last year.

Westpac Chief Executive Gail Kelly quoted, ‘‘Our strategy for the whole of the crisis has been to remain open for business. Across our group, we’ve seen growth in market share, in superannuation, in retail deposits, in home lending, in the SME (small to medium enterprise) sector”.

The bank reveals its deposit growth to be 1.5 times system growth over the three months to December 31, reinforcing its position as the country’s second biggest deposit holder.

Westpac witnessed its shares to climb $1.33, or 5.1 per cent, to $24.63 in afternoon trade.