Westpac yesterday reported a mix of lower revenues and rising expenses and a measure of cash profit for the bank's third quarter that disappointed the market.Cash earnings, a measure of net profit, was around $1.4 billion in the June 2010 quarter, Westpac said.The bank reported cash earnings of $3.0 billion in the March 2010 half.       Revenue fell one per cent in the June quarter from March. Treasury, financial markets and Westpac Institutional Bank all reported lower revenue. The bank said revenue from retail and business banking, including from the St George business, were slightly higher in the quarter.Spending increased over the quarter, though the bank did not put a number on this.The net interest margin fell two basis points, to 2.17 per cent, over the quarter.The charge for bad debts was around $300 million for the June 2010 quarter compared with an average of $440 million for the two prior quarters and an average of around $800 million per quarter in 2009.The bank's chief executive, Gail Kelly, noted one strategic milestone. In a media release she said that "from a strategic perspective the merger with St George is now complete. Planned expense synergies are on track and key milestones have been delivered on time."On the other hand elevated costs in the quarter relate, in part, to continuing projects in relation to the amalgamation of the businesses of Westpac and St George.On asset quality Westpac said that "consistent with this stage of the cycle, we have seen a further rise in small business experiencing stress."The bank also noted that delinquencies increased in consumer lending.Loans more than 90 days past due increased 20 per cent over the June quarter, a much sharper rise in this metric than for any of Westpac's peers.