Australian businesses will be a beneficiary of the Reserve Bank’s widely expected interest rate cut next week, capitalising on the improved mood of borrowers emboldened by tax cuts and energy rebates, Commonwealth Bank boss Matt Comyn says.

Record lending for home loans and businesses over the six months to December 31, and ultra-low bad debts in the economy, helped drive a $5.13 billion first-half profit for the nation’s largest bank. This was up 2 per cent, ahead of analysts’ expectations, and set another record for CBA’s world-class sharemarket valuation.