This report does not constitute a rating action. Overview Key strengths Key risks Likely extraordinary financial support from parent, if needed. Susceptible to heightened competition from larger players. Very strong capitalization, supported by ongoing capital injections from the parent. Funding pressure in a systemwide stress scenario. This is despite the sale of AUB?s assets and liabilities to Bank Australia Ltd. We expect a sale completion sometime in November 2025 and AUB to hand back its banking license shortly after. Australian Unity Ltd. (AUL) will support AUB as another prudentially regulated entity until completion of the sale, in our view. Consequently, we rate the mutual bank one notch above our assessment of its stand-alone credit profile (SACP). We forecast the mutual
