Commonwealth Bank has reported third quarter cash earnings of $1.7bn amid a slight rise in mortgage arrears.

The result brings the bank's cash earnings for the year to date to $5bn, and puts CBA on track to top last year's cash earnings of $6.1bn. The rest of the majors have also posted strong results, with Westpac seeing an interim cash profit of $3.17bn for the six months to March 2011, ANZ posting a $2.66bn net profit and NAB showing $2.428bn in net profit.

CBA joined Westpac and ANZ in reporting slightly higher mortgage arrears, though the bank claimed in a statement that consumer credit quality remained strong. Commonwealth subsidiary Bankwest also saw a positive result for the quarter with above-system growth in home loans.

The bank also announced today a cut of its Advance 1 Year Fixed Rate in Mortgage Advantage Package. From 9 May to June 30, the product will be offered at a 50 basis point discount, bringing the rate to 6.59%. The offer will be applicable to all new loans and existing loans switching to the product. The bank has also offered brokers the opportunity to switch applications in progress to the new rate by submitting an addendum by 30 June.