Commonwealth Bank announced a notable half-yearly net profit of $5.1 billion, up from $4.8 billion last year, contributing to a 40% rise in its share prices. The bank is anticipated to declare an interim dividend of $2.25 per share. Despite this positive financial outlook, CEO Matt Comyn indicated that he cannot guarantee a reduction in mortgage interest rates, even if the Reserve Bank of Australia’s Governor Michele Bullock announces a cash rate cut next week. Comyn acknowledged the significance of potential rate cuts for households but noted that he cannot confirm anything due to price signaling regulations. Historically, the bank has had a mixed record regarding passing on interest rate cuts to borrowers; between 2015 and 2020, the Reserve Bank lowered the cash rate ten times, yet CBA only transmitted four of those cuts, providing borrowers with a relief of 1.65%. If any cuts are made on Tuesday, Comyn assured that adjustments would be reflected in borrower accounts within ten days.
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