Commonwealth Bank of Australia (CBA) today released its Basel III Pillar 3 Capital Adequacy and Risk Disclosures for the quarter ended 30 September 2026. Commonwealth Bank of Australia (CBA) is a major Authorised Deposit-taking Institution (ADI) regulated by the Australian Prudential Regulation Authority (APRA), providing a comprehensive range of banking and financial services across Australia and internationally. The Group reported a Common Equity Tier 1 (CET1) capital ratio of 11.5%, a decline from 12.0% at 30 June 2026. The Tier 1 capital ratio decreased to 13.0% and Total Capital ratio stood at 20.5%. Total Risk Weighted Assets (RWA) increased by $9.0 billion, or 1.7%, reaching $531.4 billion.
The CET1 ratio saw a 36-basis point increase in the quarter, notably after accounting for an 85-basis point impact from the 2026 final dividend. This rise was primarily driven by 52 basis points from capital generated from earnings and 6 basis points from other items, partially offset by a 22-basis point reduction due to a net increase in total RWA. The overall RWA increase was attributed to higher credit risk and operational risk RWA. Credit Risk RWA rose by $7.2 billion, predominantly from volume growth in commercial portfolios and domestic residential mortgages. Operational Risk RWA increased by $2.2 billion, or 4.4%, following the annual update of its business indicator component, reflecting higher average net interest income.
CBA’s leverage ratio, defined as Tier 1 Capital as a percentage of total exposures, settled at 4.4% as at 30 September 2026, down from 4.6% in the previous quarter. This decline was influenced by the 2026 final dividend and higher exposures, though partly mitigated by earnings-generated capital. The bank maintained its leverage ratio comfortably above the 3.5% minimum requirement for Internal Ratings Based (IRB) institutions. Both the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) remained stable quarter-on-quarter at 132% and 115% respectively. Capital initiatives during the period included the issuance and redemption of various Basel III compliant subordinated notes.
