UPDATE 1-Commonwealth Bank reports strong Q1, shares leap

* Q1 cash earnings A$1.4 bln, no comparative figure

* Australian wealth and retail drives earnings

* Pace and extent of economic recovery remain unclear (Recasts lead, adds CEO comment, shares, detail)

By Morag MacKinnon

SYDNEY, Nov 9 (Reuters) - Commonwealth Bank of Australia Ltd (CBA) (CBA.AX), the nation's second-biggest lender, reported a strong first-quarter profit on Monday, with business improving across the board, sending its shares sharply higher. CBA, also the country's largest mortgage lender, said in a trading update that cash net profit was about A$1.4 billion ($1.29 billion), as home-loan growth and stronger equity markets drove earnings. It did not give a comparative figure.

The result is almost equal to one third of the full-year cash profit of A$4.415 billion reported in August.

CBA shares jumped 3 percent in early trade. The stock has risen about 20 percent since it reported profits in mid August, well outperforming the benchmark S&P/ASX200 stock index .AXJO.

Chief Executive Ralph Norris said that despite the strong performance, the operating environment remained challenging with average funding costs rising and credit growth slowing.

He didn't provide specific full year guidance.