Commonwealth Bank chief executive Ralph Norris dismissed suggestions that the bank was shying away from high-risk market segments and rationing loans in response to a sharp increase in its bad debts.Speaking at the presentation of the bank's December 2008 half results yesterday, Norris pointed to 27 per cent growth in interest-earning assets in the six months since June as evidence that the bank was still open for business. The home loan book was up 23 per cent, from $204 to $250 billion over the half, and business and corporate lending was up 30 per cent, from $127 to $165 billion. Personal lending, including credit cards, fell five per cent over the same period, from $20.3 to $19.3 billion Norris said: "We have had strong asset growth. That does not smack of rationing. We are doing our bit as far as providing credit is concerned."But another set of numbers tells a different story. The bank increased market share in only one segment: home lending. Market share in that segment was up from 19.2 to 20.3 per cent over the six months to December (excluding any BankWest contribution). Home lending is a low risk market the bank has been targeting. Its share in higher risk markets was down.Its share in credit cards was down from 18.3 to 18.2 per cent over the six months, its share in personal lending was down from 15.8 to 14.2 per cent, business lending was down from 13.6 to 13.5 per cent and New Zealand business lending was down.Norris said the bank had not changed its credit policies and it was still looking at each case on its merits, but he acknowledged that the bank was re-pricing commercial loans.He said: "We have been through a period when margin for risk was competed out of the market. Now as we de-leverage the price for risk will be much more of a focus."The bank reported net profit of $2.6 billion for the half, up nine per cent on the previous corresponding period. After adjustments, most notably the $547 million gain reflecting the difference between the acquisition price for BankWest and its book value, the bank reported cash earnings of $2 billion, down 16 per cent on the previous corresponding period.Underlying performance was strong, with operating income up 15 per cent to $8 billion. But the bottom line was hit by a $183 million loss on assets held in an annuity portfolio and impairment expenses of $1.6 billion.Impairments, which were up from $333 million on the previous corresponding period, included an increase of $601 million in the collective provision and $738 million in new individually assessed provisions. Gross impaired assets, which now stand at $2.7 billion, represent 0.58 per cent of gross loans and acceptances. That ratio has increased from 0.15 per cent a year ago.Commenting on the likely course of bad debts, Norris said small business problems came though first and there was a lag of three to nine months before consumer defaults followed.The bank's return on equity was