Wednesday 10 August 2016

Australia's CBA defends record profit amid calls for inquiry

Commonwealth Bank of Australia CEO Ian Narev on Wednesday hit back at criticism of the banking sector as the nation's No. 2 lender posted its seventh straight record profit, saying strong banks were good for the economy as a whole.

CBA's cash profit of A$9.45 billion (US$7.27 billion) for the year to June 30, up 3% from the previous year, came days after it refused to pass on a full cut in official interest rates and triggered fresh calls for the banks to be reined in.

Opposition Labor Party leader Bill Shorten said the result showed the need for a high-powered judicial inquiry into the banking sector, while the Greens demanded banks pay a "too big to fail" levy for their implicit government guarantee.

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