CBA may move out
(12 February 2010 – Australia) The Commonwealth Bank of Australia’s CEO, Ralph Norris, has said that the bank cannot guarantee it will not increase interest charges above the RBA’s official rate, The Australian newspaper reported.
Only a few days ago the bank announced a 54 percent increase in its cash profit, for the first half of the financial year, to A$2.94 billion.
The earnings increase could largely be attributed to the bank’s 26 percent share in the home loan market and senior executive pay freezes.
Mr Norris said that it was difficult to talk about interest rate rises out of cycle.
CBA increased its mortgage rates above the RBA’s official rate announcement in December last year; and is now in a situation where that rise probably did contribute to the fact there was no rate rise this month, Mr Norris told The Australian newspaper.
Mr Norris said that the bank will have to play it by ear, but there's a balancing act between the interest of CBA’s customers and its shareholders.
Mr Norris also told The Australian he believed that banks had been unfairly criticised during the recovery for raising interest rates above the RBA’s mark, especially in December.
Mr Norris pointed out that banks are one of the largest taxpayers in the country.
The earnings increase could largely be attributed to the bank’s 26 percent share in the home loan market and senior executive pay freezes.
Mr Norris said that it was difficult to talk about interest rate rises out of cycle.
CBA increased its mortgage rates above the RBA’s official rate announcement in December last year; and is now in a situation where that rise probably did contribute to the fact there was no rate rise this month, Mr Norris told The Australian newspaper.
Mr Norris said that the bank will have to play it by ear, but there's a balancing act between the interest of CBA’s customers and its shareholders.
Mr Norris also told The Australian he believed that banks had been unfairly criticised during the recovery for raising interest rates above the RBA’s mark, especially in December.
Mr Norris pointed out that banks are one of the largest taxpayers in the country.
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