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 Strong market position in commercial and retail banking in Australia and New Zealand. Material dependence on domestic and offshore wholesale borrowings. Strong capitalization. Exposure to risks from high household debt and house prices. High likelihood of timely financial support from the Australian government. The bank focuses on retail, small and midsize enterprise (SME), and commercial banking. We see a reasonable outlook for the economies of Australia and New Zealand. This is despite subdued GDP growth due to creeping inflation and higher interest rates largely associated with the conflict in the Middle East. We
