Overview of CBA's capital position and initiatives

The Commonwealth Bank of Australia (CBA) (ASX: $CBA) has released its Pillar 3 report, detailing the capital adequacy and risk disclosures as at 31 March 2024. The report presents the Group's Basel III Common Equity Tier 1 (CET1), Tier 1, and Total Capital ratios, which stood at 11.9%, 14.2%, and 20.5% respectively. Additionally, the report outlines the Group's significant capital initiatives undertaken during the quarter, including the completion of a $250 million share buy-back and the issuance of a USD1,250 million Basel III compliant subordinated note.

Executive commentary on capital position and initiatives

The Group's capital ratios have shown positive movement, with the CET1 ratio increasing by 30 basis points in the quarter, primarily driven by capital generated from earnings. We are pleased with the completion of the share buy-back and the issuance of the subordinated note, which further strengthens our capital position and supports our ongoing growth initiatives.

Summary of Pillar 3 report and outlook

The Pillar 3 report reflects CBA's robust capital position and the successful execution of significant capital initiatives during the quarter. The increase in capital ratios demonstrates the Group's commitment to maintaining a strong capital base. Looking ahead, CBA remains focused on prudent capital management and is well-positioned to support its strategic objectives and growth plans. The rise in risk weighted assets underscores the Group's proactive approach to managing credit, market, and liquidity risks in line with regulatory requirements.