UPDATE 3-Australia's Westpac says bad debts have peaked
* Westpac says peak of bad-debt cycle reached
* H2 cash profit falls 10.5 pct, result above forecast
* Shares gain by as much as 2.6 percent
* Says not actively scanning for acquisitions (Recasts lead, adds graphic link, details)
By Morag MacKinnon
SYDNEY, Nov 4 (Reuters) - Westpac Banking Corp (WBC.AX: Quote, Profile, Research), Australia's third-biggest lender, gave a brighter outlook for bad debts than its rivals on Wednesday, saying the worst was over and vindicating market expectations for healthy growth ahead.
The bank posted a 10.5 percent fall in second-half cash profit, hurt by higher bad-debt charges, but its result narrowly beat the top of market forecasts and contained an outlook that was more confident than its major competitors.
"We are right now at the top of the credit cycle," Chief Financial Officer Phil Coffey told reporters.
Westpac's relative optimism on bad debts is due to its greater presence in the stable home-lending market. Continued...
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