(Adds outlook, CEO quote) Nov 6 (Reuters) - Westpac Banking...

(Adds outlook, CEO quote)

Nov 6 (Reuters) - Westpac Banking Corp (WBC) reported a 3 percent rise in annual cash profit on Monday, helped by its consumer and business lending arms and reduced costs on impaired assets, but missed forecasts.

Australia's No. 2 lender reported a cash profit of A$8.06 billion ($6.17 billion) for the year ended Sept. 30, up from A$7.82 billion a year ago.

That missed the 4 percent increase in cash profit expected by seven analysts polled by Reuters.

Cash profit, a measure that excludes one-offs and non-cash accounting items, is closely watched by investors.

On a statutory basis, net profit rose 7 percent to A$7.99 billion.

Westpac's outlook for the Australian housing market remained positive although it expected "price growth to moderate through 2018", Chief Executive Officer Brian Hartzer said in a statement.

The bank added that its net interest margin, a barometer of profitability, was down 4 basis points to 2.06 percent hurt by strong lending competition.

In March, Westpac and other major banks raised mortgage rates, a move seen as favourable for regulators desperate to cool runaway real estate prices and also good for bank margins.

Impairment charges fell by 24 percent or A$271 million to A$853 million.

Westpac's common equity Tier-1 capital ratio at September end rose to 10.6 pct from 9.5 percent a year earlier, above the Australian Prudential Regulation Authority’s (APRA) target of at least 10.5 percent.

Westpac announced a final dividend of A$0.94 per share, same as last year.

($1 = 1.3062 Australian dollars)