Corporate Banking in Australia

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

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.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	Commonwealth Bank of Australia	48.5%	2.29%	40.0%	EUR 234bn	7.02%	267bp
2	National Australia Bank	47.0%	2.91%	43.0%	EUR 262bn	6.98%	267bp
3	Westpac	53.0%	2.42%	46.0%	EUR 213bn	6.88%	271bp
4	ANZ Group	49.0%	1.34%	47.0%	EUR 262bn	6.82%	271bp

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