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The Commonwealth Bank of Australia yesterday announced it had managed to boost its cash profits by 13 per cent over the six months to December 31 2010.
The major recorded a profit of $3.33 billion for the six months despite having to make a $100 million provision to cover the losses stemming from the Queensland floods.
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Speaking to a media conference about the results, Mr Norris said while the operating environment remains a challenging one, “we are cautiously optimistic about the outlook for calendar 2011”.
Mr Norris also said the bank would be reluctant to move out of cycle with the Reserve Bank moving forward, after the backlash it received last November.
Late last year, CBA lifted its standard variable rate by 45 basis points – almost double the RBA’s 25 basis point rate hike.
“The decision to increase our home loan standard variable rate in November last year was one of those challenges,” Mr Norris said.
“I would be very reluctant to make that move again, but if we had to make that move, sometimes chief executives have to make tough decisions.”
