Commonwealth Bank books $5.15 billion half-yearly profit

Half-year profits have jumped at Commonwealth Bank of Australia to a record $5.15 billion, a nine per cent increase from the year earlier.

The bank said it had benefited from rising interest rates and stronger business lending growth, in the six months to December 31.

Operating income rose by 12 per cent to $13.5 billion, and net interest income increased 19 per cent.

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The profits were primarily driven by a recovery in net interest margins in the rising rate environment, the bank said, and growth in home, business and institutional loans.

CBA said will pay an interim dividend up 20 per cent to $2.10 per share.

"Higher interim cash profits were a result of volume growth and the recovery in our margins as cash rates rise from historic lows," chief executive Matt Comyn said.

"The result was further supported by sound portfolio credit quality."

The bank made $511 million in loan impairment or bad debt expenses.

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Many household budgets across the country have been stretched by a cost of living crisis and rising home loan repayments.

Interest rates have spiked sharply from record lows, after the Reserve Bank began to hike the official cash rate in May in response to rising inflation.

Nine successive RBA hikes have left many home owners scrambling.

Comyn said many households were under significant strain.

CBA is not alone in announcing major billion-dollar profits in February.

Earlier this month oil giant BP reported record annual profits of $38 billion, while competitor Shell booked record earnings of nearly $57 billion.

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