This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Very strong capitalization Changing business model Established broker network Unseasoned lending exposures Funding pressure in a systemwide stress scenario BNK Banking Corp. Ltd.'s small scale and constrained earnings will continue to weigh on its business stability. In our view, the bank's small size, relatively unknown brand, and high-cost base relative to similar-sized peers limit its profitability and ability to compete. Execution risks related to BNK's technology transformation also remain a headwind. We view the credit and operating risks facing BNK to be higher than for other rated banks in Australia. We believe BNK
