In a development which has come as a relief to economists and analysts, Commonwealth Bank of Australia Ltd. has, while asserting that there are slim chances of bad debts rising any further, revealed a 27% rise in its quarterly earnings. The rapidly rising equity markets are being credited by the firm as the reason for this rise.

Post the announcement, shares of the country's biggest lender climbed 4% to reach a new high. The total cash earnings reported for the July-September period for the current year stood at $1.4 Billion, higher than the $1.1 Billion recorded for the same period last year.

"Wealth management came from a low base, but across the board we've seen improvements in our businesses", Chief Executive Ralph Norris shared. "Whilst we have likely reached the top of the bad debt cycle, asset quality measures still remain at elevated levels".

After a blow last year due to mounting bad debts, the current figures have been a much welcome development. CBA share value saw an increase of $2.10, or 3.98%, to $54.81, which helped nudge the whole market higher.