Australia's no. 3 lender Westpac Banking Corp reported an uptick in its debt arrears in third-quarter due to high interest rates and sticky inflation, while also posting a fall in its capital levels.

The bank said that its mortgages with more than 90 days late rose 0.80% in the three-months ended June for the country, in a update which did not include any cash earnings number.

The bank further reported cash profit of A$1.8 billion ($1.15 billion) for the third quarter ended June on account of higher earnings and margin management.

($1 = 1.5630 Australian dollars)

(Reporting by Riya Sharma and Archishma Iyer; Editing by Mark Porter and Diane Craft)