Narev defends CBA rates decision

Commonwealth Bank boss Ian Narev has defended not passing the latest cash rate cut on in full, insisting the bank needs to listen to all its customers - not just those with home loans.

The bank unveiled a seventh straight record profit of $9.45 billion on Wednesday, days after it passed on just half of the Reserve Bank's 25 basis point rate cut.

Mr Narev told ABC's 7.30 the bank listened carefully to the needs of its two million home borrowers, but it equally listens to its depositors who are struggling with minimal returns in the low interest rate environment.

CBA was the largest corporate taxpayer and also paid dividends to 800,000 Australian households that own shares directly.

The difference between passing on the full cut would have been worth "low hundreds of millions of dollars", he said.

"The reality is after our decision last week mortgage holders are paying less for their mortgage, depositors had the opportunity to get more, and shareholders are feeling safer about their $6 billion of dividend."