No proof of a CBA spectacular

Commonwealth Bank's result is respectable, placing the bank in a strong defensive position to global debt turmoil, but it doesn't sustain the view it is excessively profitable.

The headline numbers in Commonwealth Bank’s December half results will inevitably be looked at in the context of its 10 basis point increase in its home loan interest rate and will trigger another bout of charges that bank profits are too high and something should be done about it.

At face value that case can be made. A 19 per cent increase in statutory earnings and a return on equity of 19.2 per cent is, in the current economic climate, an impressive performance by the sector-leading institution.

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