Strong capital position Likely to receive financial support from its parent, if needed Very small market share and limited competitive advantages in a commoditized, price-sensitive market Funding profile vulnerable to competitive pressures in a stressed operating environment The stable outlook on Australian Unity Bank Ltd. (AUB; BBB/Stable/A-2) reflects our expectation that the mutual bank will remain an important part of the broader Australian Unity Ltd. (AUL) group's overall strategy, as evidenced by AUB's recent branding alignment and ongoing downstream capital injections from AUL to support growth. Furthermore, we expect that AUB's risk-adjusted capital (RAC) ratio will remain between 10% and 15% and asset quality will remain strong over the next two years, notwithstanding our expectation of strong organic growth. There
