The Commonwealth Bank of Australia reported a rise in profits for the second half of 2010, up 5 per cent year-over-year to A$3.05 billion ($3.06 billion). Meanwhile, the bank's wealth management and business and private banking units saw double-digit profit grow.

The bank's wealth management business saw a 12 per cent rise in underlying profit, due largely to a solid performance at its funds management division. The business and private banking unit also performed positively, rising 15 per cent on cash profit. Bad debt charges were down 48 per cent to A$722 million.

Cash profit for the six months to 31 December rose 13 per cent to A$3.335 billion, while cash earnings per share gained 12 per cent to A$2.143 per share. The bank said that while competition will remain tough for the rest of the year, due to continued market hesitation, the costs anticipated will not likely be as high as in previous periods.

"There is probably about 12 more months to play out," David Craig, chief financial officer of CBA, predicted.

Net interest margins were down 6 basis points from the previous year, to 212 points, but the continued demand for home loans will likely help even this out, the firm said. In addition, the bank said that while business lending was subdued, a boost of business confidence would get the market going.