Commonwealth Bank has posted a record $8.68 billion full year cash profit, with gains across each of its core divisions.

Australia’s largest bank lifted its cash profit 12 per cent for the year to June 30, 2014, from $7.82 billion in 2013.

Cash profit is a measure banks use to reflect underlying performance.

Analysts had expected a cash profit of around $8.7 billion.

Net profit, which includes one-off financial items, was $8.63 billion, up 13 per cent from $7.67 billion in 2013.

The bank lifted its fully-franked final dividend 18 cents to $2.18, taking its full year dividend pay out to $4.01, a 10 per cent increase.

The Commonwealth lifted its net interest margin, the profit it makes on its loans, by one basis point to 2.14 per cent during the year despite strong competition among the big four banks for loans.

Customer deposits were up $34 billion to $439 billion and now represent 64 per cent of the group’s total funding.

Earnings from its retail banking division were up 12 per cent to $3.47 billion, and up four per cent from its business and private banking business to $1.53 billion.

Meanwhile, the bank’s wealth management division lifted earnings 17 per cent to $793 million and its institutional banking and markets division recorded a five per cent increase to $1.26 billion.