Commonwealth Bank of Australia Ltd (ASX: CBA) said today it will retain conservative capital and liquidity settings given the still uncertain environment after posting 42 per cent growth in full-year cash profit.

The country's biggest bank recorded a cash net profit after tax of $6.1 billion for the year to June 30, in line with analysts' forecasts.

CBA chief executive Ralph Norris said he is optimistic about the medium-term outlook for Australia and for the group's ability to deliver superior returns for shareholders.

But while the Australian economy remains in better standing compared with most other developed countries, "recent uncertainty over the pace of recovery in the United States and Europe highlight the downside risks still in play."

"These risks have not helped domestic business and consumer confidence, both of which remain fragile," he said.

"This fragility manifested itself in a slowing in the underlying momentum in our business at the end of the 2010 financial year.

"As a result it is appropriate to maintain a degree of caution about the prospects for our business for the coming year. We intend to retain conservative capital and liquidity settings for the foreseeable future so that we are able to provide support to our customers in these uncertain times," Mr Norris said.

CBA's statutory net profit after tax for the year climbed 20 per cent at $5.66 billion. Meanwhile, net interest income grew 11 per cent.

The bank's Tier 1 capital ratio was 9.15 per cent at June 30.

Declaring a fully-franked final dividend of $1.70, up 48 per cent on the previous year, CBA pushed its full-year dividend to $2.90.