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Corporate Banking in Australia

RAROC profiles and pricing benchmarks for 4 Australia banks, sourced from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Banks tracked
4
Headquartered in Australia
Total corporate EAD
EUR 972bn
Combined exposure
Avg cost-to-income
49.4%
Operating efficiency
Avg corporate PD
2.24%
Probability of default

Overview

OpenRAROC tracks 4 banks headquartered in Australia with a combined corporate credit exposure of EUR 972bn. The average Australia bank in our dataset has a cost-to-income ratio of 49.4% and an average corporate probability of default of 2.24%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 6.93%.

Cheapest vs most expensive in Australia

On the standard sample deal, Commonwealth Bank of Australia is the cheapest lender in Australia, requiring just 267bp to hit a 12% RAROC hurdle. The most expensive is Westpac at 271bp — a difference of 4bp on the same deal. For a EUR 25M facility, that's EUR 10,917 per year in interest expense.

All 4 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#BankC/IAvg PD LGDEADRAROCMin spread
1Commonwealth Bank of Australia48.5%2.29%40.0%EUR 234bn7.02%267bp
2National Australia Bank47.0%2.91%43.0%EUR 262bn6.98%267bp
3Westpac53.0%2.42%46.0%EUR 213bn6.88%271bp
4ANZ Group49.0%1.34%47.0%EUR 262bn6.82%271bp
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FAQ: corporate banking in Australia

How many banks in Australia does OpenRAROC cover?
OpenRAROC tracks 4 banks headquartered in Australia, with a combined corporate credit exposure of EUR 972bn reported in their most recent Pillar 3 CR6 disclosures.
Which Australia bank has the tightest corporate credit pricing?
On a representative BBB+ EUR 25M 5-year term loan, Commonwealth Bank of Australia requires the lowest minimum spread to clear a 12% RAROC hurdle (267bp), making it the cheapest lender in the Australia cohort on that specific deal.
What is the average cost-to-income ratio of Australia banks?
The 4 Australia banks in the dataset report an average cost-to-income ratio of 49.4% and an EAD-weighted average corporate probability of default of 2.24%.
How is RAROC calculated for Australia banks?
Each bank is priced on the same BBB+ EUR 25M 5-year term loan, using its own disclosed cost-to-income, effective tax rate, funding spread, and IRB-approach PD/LGD parameters. See the methodology page for the full formula.