Commonwealth Bank of Australia has posted a 30 per cent rise in third quarter earnings to A$1.5 billion ($1.34 billion), helped mostly by strong volume growth, lower bad debt charges and cost cuts.

According to unaudited results released Wednesday, impairment expenses for the quarter to 31 March figured at around A$500 million, compared to A$630 million in the previous corresponding quarter. The bank had expected to see a drop to A$400 million, but said that this would more likely be achieved as markets temper up to next year.

Australian banks have been enjoying more positive results in the wake of the global financial crisis, with the Australian government predicting a doubling in economic growth over the next two years.

"There will be challenges along the way, evidenced by the current sovereign debt issues in the European Union. Given this uncertainty, the group is retaining its conservative business settings," said Ralph Norris, CBA's chief executive officer.