The Commonwealth Bank of Australia (ASX: CBA) share price is in focus today as the bank released its Basel III Pillar 3 Capital Adequacy and Risk Disclosures for the quarter ended 31 March 2026. Key highlights include a Common Equity Tier 1 (CET1) ratio of 11.6% and a total capital ratio of 20.0%.
What did Commonwealth Bank of Australia report?
- Common Equity Tier 1 (CET1) capital ratio was 11.6%, up 7 basis points from the prior quarter.
- Total capital ratio stood at 20.0%, down slightly from 20.6% at 31 December 2025.
- Total risk weighted assets (RWA) increased 2.4% to $517.5 billion.
- Liquidity Coverage Ratio (LCR) averaged 133% for the quarter.
- Leverage ratio measured at 4.4%, remaining well above the required 3.5% minimum.
What else do investors need to know?
The growth in RWAs during the quarter was largely driven by higher interest rate risk in the banking book, as well as ongoing lending growth. Credit risk RWA rose 1.3% to $414.6 billion, notably across commercial lending and mortgages in both Australia and New Zealand.
The Group undertook several capital initiatives, including the completion of an on-market share purchase to satisfy its Dividend Reinvestment Plan and the issuance of $1.85 billion in new subordinated notes to strengthen Tier 2 capital. Liquidity and funding ratios remained strong, with the Net Stable Funding Ratio (NSFR) at 116%.
What’s next for Commonwealth Bank of Australia?
CBA noted it will remain focused on prudent management of capital, funding, and liquidity as it navigates evolving economic conditions. The bank aims to provide stability and support to customers while meeting all APRA regulatory requirements. Ongoing efforts to strengthen earnings and maintain a resilient balance sheet are expected to continue.
Commonwealth Bank of Australia share price snapshot
Over the past 12 months, CBA shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
The post Commonwealth Bank of Australia posts Q3 2026 capital update appeared first on The Motley Fool Australia.
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