News: CBA UPDATE 1-Australia's CBA profit jumps 20% on stronger home, business loans

(Adds details on lending, background)

Nov 17 (Reuters) - Commonwealth Bank of Australia (CBA) on Wednesday said its cash net profit after tax jumped more than 20% in the first quarter, driven by strong growth in its home and business loans.

Its home loans rose 7%, driven by continued demand for fixed-rate loans, while the bank's business lending increased 13%.

CBA holds about a quarter of the country's home lending market share.

Australian banks have been posting strong cash earnings growth thanks to a softer-than-expected hit from the pandemic, favourable policy and a red-hot property market driving up lending volumes.

The other three of the country's "Big Four" banks - National Australia Bank (NAB) , Westpac Banking Corp (WBC) and Australia and New Zealand Banking Group (ANZ) - had reported a surge in their annual cash profits this year.

CBA, however, also said its net interest margin was considerably lower in the quarter, partly due to the continued impact of a low interest rate environment.

The bank's cash profit, which excludes one-offs and non-cash accounting items, rose to A$2.20 billion ($1.60 billion) in the three months ended Sept. 30, from A$1.80 billion reported last year. ($1 = 1.3708 Australian dollars)