Its counterparts may be on the verge of reporting a handsome recovery in profit, but Commonwealth Bank, the sector leader, yesterday cautioned its shareholders on the earnings outlook.David Turner, chair of the board of CBA, highlighted the fragility in business and consumer confidence, in prepared remarks at the bank's annual general meeting. He reminded shareholders of "a slowing in the underlying momentum of our business at the end of 2010 financial year."This has continued into the current year, with underlying credit growth in Australia slow, particularly so for business lending where our customers remain cautious.""As a result," Turner said, "we must remain cautious about the prospects for the business for the coming year."CBA's net profit increased 20 per cent, to $5.66 billion, in the year to June 2010, while its return on equity fell to 15.9 per cent, from 18 per cent, over the second half.Ralph Norris, CBA's chief executive, in his speech to the AGM, shed little extra light on the increasingly taut debate over the implications for bank pricing of rising funding costs.After recapping on the trends responsible for the rise in funding costs, Norris said that "this is likely to remain an issue for all banks in the short- to medium-term."Asked later about his views on rates and margins, at least as they relate to home loans, Norris criticised one metropolitan newspaper (assumed to be the Australian Financial Review), saying that one "particular article... was quite forthright in saying that I had flagged interest rate increases and that we would be the first bank to increase rates, and that was absolutely untrue."I think that this has... got a little bit out of hand. And I think that... some elements of the media have got to take responsibility for that. I mean this has become a bit of a media feast."