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Commonwealth Bank of Australia vs National Australia Bank

Side-by-side credit pricing comparison from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Verdict:

On a representative BBB+ EUR 25M 5-year term loan, Commonwealth Bank of Australia is the cheaper lender by 0bp in minimum spread. For a EUR 25M facility, that's EUR 767 per year.

Bank profiles compared

Metric Commonwealth Bank of Australia
Australia		 National Australia Bank
Australia
IRB approachMixedMixed
Cost-to-income48.5%47.0%
Effective tax rate30.4%30.0%
Avg corporate PD2.29%2.91%
Avg LGD unsecured40.0%43.0%
Avg LGD secured18.0%24.0%
Funding spread (bp)12bp13bp
Corporate EADEUR 234bnEUR 262bn

Sample RAROC: BBB+ EUR 25M 5Y term loan

Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.

Component Commonwealth Bank of Australia National Australia Bank
Annual revenueEUR 385,000EUR 385,000
Operating costEUR 154,000EUR 154,000
Expected lossEUR 28,750EUR 28,750
Capital required (FPE)EUR 2,451,320EUR 2,451,320
RAROC (after tax)7.02%6.98%
Min spread for 12% RAROC267bp267bp
This is just one sample deal.

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Commonwealth Bank of Australia full profile National Australia Bank full profile All banks RAROC methodology

FAQ: Commonwealth Bank of Australia vs National Australia Bank

Which bank is cheaper on corporate credit: Commonwealth Bank of Australia or National Australia Bank?
On a BBB+ EUR 25M 5-year term loan, Commonwealth Bank of Australia requires a minimum spread of 267bp to reach a 12% RAROC hurdle, versus 267bp at the other bank — a difference of 0bp on the same deal.
How do Commonwealth Bank of Australia and National Australia Bank compare on corporate PD?
Commonwealth Bank of Australia reports an EAD-weighted corporate PD of 2.29%, while National Australia Bank reports 2.91%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
Commonwealth Bank of Australia uses Mixed and National Australia Bank uses Mixed. The IRB approach determines whether internal LGD models or supervisory LGDs apply, which materially affects capital required on every corporate facility.
What deal is used in this comparison?
A single standardised facility: BBB+ rated, EUR 25M drawn on a EUR 30M commitment, 5-year tenor, 150bp spread, 20bp commitment fee. Both banks are priced on this exact deal using their own disclosed Pillar 3 parameters.