#1FULL YEAR RESULTS 2021 Investor Presentation 9 November 2021 Ross McEwan Chief Executive Officer Gary Lennon Chief Financial Officer © 2021 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 National Australia Bank#2National Australia Bank 3 17 30 32 54 58 65 68 86 99 112 8 8 + ¢ $ ྨ 8 ྂ $ ཎྜ སྨྱུ 122 NAB 2021 FULL YEAR RESULTS INDEX This presentation is general background information about NAB. It is intended to be used by a professional analyst audience and is not intended to be relied upon as financial advice. Refer to page 127 for legal disclaimer. Financial information in this presentation is based on cash earnings, which is not a statutory financial measure. Refer to page 125 for definition of cash earnings and reconciliation to statutory net profit. Overview FY21 Financials Outlook Additional Information Divisional Performances Digital Transformation, Technology and Innovation Australian Business Lending Australian Housing Lending Other Australian Products Group Asset Quality Capital & Funding Long-Term: A Sustainable Approach Economics Other Information#3OVERVIEW ROSS MCEWAN Group Chief Executive Officer National Australia Bank#44 KEY MESSAGES Solid financial results in a challenging environment • Business momentum • Maintained strong asset quality Improving shareholder returns while retaining a strong balance sheet Disciplined execution of our strategy is delivering results Maintaining cost focus while investing to support growth Well positioned for economic rebound in FY22 National Australia Bank#5SOUND FINANCIAL RESULTS METRIC FY21 FY20 FY21 V FY20 Statutory net profit ($m) 6,364 2,559 large CONTINUING OPERATIONS (EX LARGE NOTABLE ITEMS¹) Cash earnings² ($m) 6,558 4,733 38.6% Underlying profit ($m) 8,989 9,640 (6.8%) Cash ROE Diluted Cash EPS (cents) 10.7% 8.3% 2.4% 191.0 146.9 30.0% Dividend (cents) 127 60 large Cash payout ratio³ 63.7% 38.9% large (1) The Group did not recognise any amounts as large notable items in FY21. For a full breakdown of large notable items in FY20 refer to Section 4, Note 16 of the 2021 Full Year Results Management Discussion and Analysis (2) Refer to page 125 for definition of cash earnings and reconciliation to statutory net profit (3) Based on basic cash EPS 5 National Australia Bank#6IMPROVING SHAREHOLDER RETURNS WHILE RETAINING A STRONG BALANCE SHEET STRONG PROVISIONING AND CAPITAL (%) +43bps of organic CET1 generated in 2H21 CLEAR CAPITAL AND DIVIDEND SETTINGS IN PLACE 10.75 11.25% target range for CET1 over time - 13.00 1.56 1.35 11.47 12.25 10.38 0.96 Sep 19 Sep 20 Sep 21 Sep 19 Sep 20 Sep 21 ■CP/CRWAS ■CET1 Ratio IMPROVING SHAREHOLDER RETURNS Cents 228 Sep 21 Proforma¹ 65-75% payout ratio range of cash earnings by which future dividends are to be guided, subject to Board determination based on circumstances at the relevant time Return on Equity 199 166 154 $2.5bn 127 60 60 Share buyback underway with $2.0bn remaining 12.4% 10.7% 8.3% FY19 FY20 Basic Cash EPS ⚫DPS FY21 FY19 FY20 FY21 6 (1) Pro forma impacts include estimated impacts from agreed sale of BNZ Life (+7bps), upfront impact of the proposed acquisition of Citigroup's Australian consumer business (-34bps) and the remaining $2.0bn of on-market share buy-backs (-48bps). Both the proposed acquisition of the Citigroup Australian consumer business and the sale of BNZ Life are expected to complete in 2022, subject to relevant regulatory approvals. Final capital impact of each transaction will be determined following completion National Australia Bank#77 WE HAVE A CLEAR STRATEGIC AMBITION WHY WE ARE HERE To serve customers well and help our communities prosper WHO WE ARE HERE FOR Colleagues Trusted professionals that are proud to be a part of NAB WHAT WE WILL BE KNOWN FOR nab bnz UBANK JBWere 86400 Customers Choose NAB because we serve them well every day Relationship-led Relationships are our strength 1. Exceptional bankers 2. Unrivalled customer value (expertise, data and analytics) 3. Truly personalised experiences Easy Simple to deal with 1. Simple products and experiences 2. Seamless everything just works 3. Fast and decisive Safe Responsible & secure business 1. Strong balance sheet 2. Leading, resilient technology and operations 3. Pre-empting risk and managing it responsibly Long-term A sustainable approach 1. Commercial responses to society's biggest challenges 2. Resilient and sustainable business practices 3. Innovating for the future WHERE WE WILL GROW Business & Private Clear market leadership HOW WE WORK Corporate & Institutional Disciplined growth Excellence for customers Personal Simple & digital Grow together Be Own it respectful BNZ Grow in Personal & SME MEASURES FOR SUCCESS Engagement NPS growth UBank New customer acquisition 吧 Cash EPS growth % ROE National Australia Bank#8SUCCESSFUL EXECUTION OF OUR STRATEGY KEY MEASURES OF SUCCESS FY21 PROGRESS Colleague engagement OUR AMBITION OVER FY23-25 Top quartile engagement Customer NPS1 Equal #1 of majors but not yet positive Strategic NPS positive and #1 of majors Cash EPS growth 0-2% cost increase YoY ROE Focus on growing share in target segments, while managing risk and pricing disciplines Disciplined approach to costs and investment - target lower absolute costs (relative to FY20 cost base of $7.7bn²) Target double digit Cash ROE (1) Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. The overall Strategic NPS result combines the Consumer (18+) and Business segment results using a 50% weighting for each. Net Promoter Score (NPS) is based on all customers' likelihood to recommend on a scale of 0 (not at all likely) to 10 (extremely likely) (2) Excluding large notable items, the impact of proposed acquisition of Citigroup's Australian consumer business and any potential non-recurring AML/KYC related costs including those incurred in addressing the issues subject to investigation by AUSTRAC, such as file remediation and other associated costs. Refer to key risks, qualifications and assumptions in relation to forward looking statements on page 127 8 National Australia Bank#9FOCUS ON CUSTOMERS AND COLLEAGUES DELIVERING RESULTS OUR CUSTOMERS -5 -10 -15 -20 Strategic NPS1,2 equal first, more work to achieve positive -7-7 -11 -13 OUR COLLEAGUES Engagement levels now at top quartile⁹ 76 77 77 66 -25 2019 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 NAB Peer 1 Peer 2 Peer 3 #1 in Consumer³ NPS #2 in Business4 NPS, #1 in Medium Business5 NPS #1 Institutional NPS6 and Transactional Banking RSI and setting record high customer scores #1 in BNZ Consumer NPS8 Jul 20 Jul 21 Top Quartile -550 Continued investment in colleagues Distinctive Leadership Program rollout underway for leaders, and Career Qualified in Banking (CQiB) program for all colleagues New customer facing roles in Business and Private Bank - new banker hires exceeding set performance benchmarks. >2.7k Industry recognised cloud certifications (1) (2) Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld Strategic NPS: Sourced from DBM Atlas, measured on 6 month rolling average. The overall Strategic NPS result combines the Consumer (18+) and Business segment results using a 50% weighting for each. Net Promoter Score (NPS) is based on all customers' likelihood to recommend on a scale of 0 (not at all likely) to 10 (extremely likely). (3) (4) September 2021. Source: DBM Atlas - Consumer. All Consumer customers, Australian population aged 18+, six month rolling averages. September 2021. Source: DBM Atlas - Business. All Business customers, six month rolling averages. (5) September 2021. Source DBM Atlas - Medium Business. Business Customers with turnover from $5m to $50m, six month rolling averages. (6) Source: Peter Lee Associates, Australia. Large Corporate Relationship Banking Survey 2021. Based on top four banks by penetration. (7) 9 (8) (9) Source: Peter Lee Associates, Australia. Large Corporate Transactional Banking Survey 2021. Based on top four banks by penetration. Relationship Strength Index (RSI) is based on a combined measure of most qualitative evaluations. Source: Camorra Retail Market Monitor (data on 12 month roll). The 2019 score of 66 represents a restated score of the AON survey into a Glint 'Heartbeat' score methodology. Top quartile comparison is based upon Glint's client group (domestic and global, from all industries) National Australia Bank#10CLEAR GROWTH MOMENTUM ACROSS OUR BUSINESSES IN 2H211 PERSONAL BANKING BUSINESS & PRIVATE 14.45% 1.1x 14.38% 9.2 HL system growth 1.0 1H21 2H21 Total Australian Housing GLA change ($bn) Market share CORPORATE & INSTITUTIONAL 1.5 1H21 26.23% 26.43% 6.7 1.4x SME BL system growth² 0.5 +19 bps in cards market share 1H21 2H21 B&PB Business GLA change ($bn) -SME market share (RBA)² NEW ZEALAND +18% in Business Transaction Account sales³ 22.45% GLA growth YOY 11% 22.26% 16.52% 1.4X HL system growth Infrastructure & Investor GLA 22% 16.23% 1.5X BL system growth growth YoY 6.9 2H21 4.0 3.0 +63 bps 1H21 2H21 Transaction Banking market share6 Total GLA change (NZ$bn) Housing market share Business market share +28 bps in retail deposits market share (1) (2) ■GLA change ($bn) Market share data are for the relevant periods and all system growth multiples are for 2H21 unless otherwise stated, and are based on APRA Monthly Authorised Deposit-taking Institution statistics, and RBNZ data for New Zealand related metrics. Housing market share for 2H21 includes 86 400. A business is classified as SME under the RBA if NAB has exposure to the business and the business has turnover less than $50 million. A business is classified as B&PB if NAB has exposure to the business less than $50m; and the business has turnover less than $100 million. Latest market share as at Aug 21. (3) Count of new Business Everyday Accounts FY21 compared with FY20 (4) Growth rates excluding FX and aviation sale 10 (5) Infrastructure includes Renewables (6) Peter Lee Associates - Transaction Banking Survey 2021. Represents the increase in NAB's domestic transactional bank 'lead' citations from 23% in 2020 to 24% in 2021 National Australia Bank#11MARKET LEADERSHIP IN BUSINESS & PRIVATE BANKING Focused on simplifying the business and getting the basics right ~550 ~200 Simplified merchant offering 11 Embedded heightened focus on performance disciplines New customer facing roles in FY21 FTE savings from process & policy changes • • 1.15% flat price on card transactions¹ Least cost routing Transforming small business lending Driving growth through better customer and colleague experiences Simplified small business lending with fast tracked assessment, digitally 15.4% captured self declared income, conditional approval in 24-48 hours New Quickbiz offering³ to enable cash disbursement within 20 mins 15.8% 0.4 -0.3 Small business lending GLA change ($bn) Market share 1H21 2H21 Straight-through processing enabling real-time onboarding Electronic ID verification and automated KYC decisioning Multi product origination Digital transaction account opening² Industry-leading relationship bankers enabled by Data & Analytics Leveraging our High Net Worth proposition New facility renewal & annual review process: faster assessment based on behavioural drivers Personalised customer leads: advanced analytics propensity models help identify opportunities for bankers to better meet customer needs ✓ New integrated HNW offering, 2.3x HL system growth in 2H21 (1) Replacing 10 separate pricing plans 50 new Private Bankers, dedicated credit team and tailored policies, improving turnaround times Improved digital: new nabtrade app, JBWere website refresh and new client portal (2) Currently available only to sole traders and Australian private companies where the individual is new to bank. Work underway to expand more broadly (3) Expected launch in late calendar year 2021 initially for unsecured lending and existing customers only (4) NAB Private Bank: Winner - Australia PRIVATE BEST A ANK AWARD 2022 GLOBAL FINANCE 4 National Australia Bank#12SIGNIFICANTLY IMPROVED HOME LENDING EXPERIENCE . • Continued rollout of simple home loans... 80% of proprietary applications now eligible Progressive rollout to Broker and B&PB in FY22 'Time to Yes' for applications through Simple Home Loans ~30% ~60% ~80% In <1 hour In <1 day In <5 days ● • ...simplified, digitised and automated policies and processes Improved application quality through colleague training New credit decision engine for brokers to simplify approvals ⚫• Leveraging data & analytics to enable automated approvals and valuations • 50% Reduction in banker time to submit an application² Increased self-serve functionality for home loan modifications via the NAB App 50% increase in home loan appointment bookings through digital channels³ and >40% of home loan appointments now via video 'Time to yes'¹ improved 30% with applications up ~60% Equal 1st PEXA Settlement service rank PROPERTY INNOVATE AWARY PRESENTED BY PEXA PEXA % of NAB settlements signed on time4 88% 88% 85% 81% 74% 70% Industry Innovation Award Winner - Lender 2H20 nab Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 1H21 Time to yes 2H21 4th #propertyXawards =1st (1) Average monthly median days from submission of a customers' application to unconditional approval. Personal Bank only (2) Measures improvement via Simple Home Loan application tool in the 12 month period to September 2021 (3) Compared to 1H21 (4) PEXA's 'Signed on Time' metric is a land and property settlement performance metric that allows NAB to track performance & benchmark against industry peers 12 National Australia Bank#13RESHAPING OUR PORTFOLIO - MLC EXIT AND BOLT ON ACQUISITIONS :86400 Sign up in 120 seconds >70% HL growth since completion MLC Wealth transaction completed in May 2021 86 400 and UBank to deliver market leading digital bank experience Innovating with new features and offerings Introduced Smart Search, enabling search across 86 400 and connected accounts Visibility of Super and Investment accounts Launched direct to customer home loans Search total 6 transactions Woolworths Double Bay: 14 Aug 2021 86 400 Cancel Woolworths 17 May-17 Aug Pay account X Amour -$23.79 -$6.51 14 Aug 20211 Woolworths Metro The Kitchen ... 86400 -$4.73 (5 Woolworths Metro Surry Hills -$4.00 12 Aug 2021 86 400 Woolworths Metro Surry Hills -$3.30 29 Jul 2021 86400 UBANK +12% growth in customer numbers FY20 FY21 Smart Search functionality ■ UBank 86 400 Proposed acquisition of Citigroup's Australian consumer business to build a more scalable business Increased access to transactional data with ~1m additional unsecured lending customers Milestone Completion TSAs Timeframe 1H CY2022² Combined business to be the 2nd largest credit card provider in Australia¹ Full integration ~ 30 months Mid 20243 Scale supports investment in new technology 13 (1) Based on outstanding balances as at Sep 21 (2) Targeted completion timeframe, subject to regulatory approvals (3) Subject to completing on expected timetable National Australia Bank#14CONTINUING TO INVEST IN OUR KEY STRATEGIC PRIORITIES INVESTMENT SPEND MIX SHIFTING TOWARDS DISCRETIONARY 14 ($m) FY21 FY22 Targeted 39% ■Discretionary Investment Spend ■Other Investment Spend ~50% • Business Lending transformation • Merchant offering uplift 61% 1,259 ~50% ~1,300 • Single end to end mortgage platform • Enhanced use of data and analytics • Simple and digital everyday Personal Bank proposition • Investment in colleagues - digital tools and CQIB • Enhanced technology resilience and agility, and migration of apps to cloud Investment to uplift systems, processes and control environment Focus on financial crime detection and prevention, and cyber security capability National Australia Bank#15ACCELERATING EXECUTION OF OUR DIGITAL, DATA AND ANALYTICS AGENDA • • Significant progress in FY21 driving better outcomes for customers and colleagues Payments innovation • One tap digital health insurance claims through HICAPS, via Apple Wallet • Launched merchant hub in partnership with Pollinate, providing customers with real-time payment insights • Launched Payments-as-a-Service enabling Fintechs to access NPP real- time payments - increased market share by 225 bps¹ Simplified lending experience - Simple Home Loans – from 10% to 80% eligibility rate in FY21 QuickBiz straight-through processing enabling disbursement within 20 mins ELT appointment builds on FY21 progress and reflects strategic importance of NAB's data and digital strategies Improved digital engagement & advocacy #1 Multichannel Bank for CX 20212 Record highs in mobile advocacy with +50 NPS, 6% YoY increase in mobile users • Increased self-serve • 65% simple consumer sales via digital • 13% increase in mobile payment value • Virtual Assistant chats up 59% YoY³ • NAB Assist - ~900 customers per week electing to 'pay now' or arrange payment through IB and mobile (1) (2) (3) Leveraging Data & Analytics • Retention, attrition and customer leads for bankers • Streamlined B&PB customer reviews • EedenBull partnership enables better analytics on business cards Open Data • Accredited Data Recipient • Innovating with the global Open Finance challenge Source: RBA (NAB domestic payments market share based on three month rolling average from September 2020 to August 2021) NAB received the highest CX IndexTM score among Banks Multichannel in Forrester's proprietary 2021 CX IndexTM survey. The ranking was based on responses from 1,487 Australian individuals measuring 5 brands in the industry. The proprietary survey results are based on consumers' opinions of the experiences with the brands in the survey. Forrester Research does not endorse any company included in any CX IndexTM report and does not advise any person to select the products or services of any particular company based on the ratings included in such reports Monthly YoY growth, Sep 20 to 21 in VA conversations 15 (4) Expected launch in late calendar year 2021 initially for unsecured lending and existing customers only National Australia Bank#16CLIMATE ACTION IS A PRIORITY AND A KEY LONG-TERM GROWTH OPPORTUNITY ALIGNING OUR PORTFOLIO TO NET ZERO BY 2050 • • First Australian bank to sign the UNEP FI Collective Commitment to Climate Action, with our goal to align our lending portfolio to net zero emissions by 2050 $56.3bn in environmental financing to customers since 20151 • Carbon neutral in operations for over a decade, focused on sourcing 100% of our electricity needs from renewable sources by 2025 • Finalised oil and gas review and published updated ESG credit risk settings for coal, oil and gas sectors • Exposure to fossil fuels² in energy generation portfolio down ~25% on 30 September 2016 with exposure to clean energy² increasing 110% WELL POSITIONED TO SUPPORT ACTION BY CUSTOMERS #1 Australian bank for global renewables transactions³ · • Driving innovation in finance products to support the transition e.g. sustainability-linked derivatives, founding member of the carbon trading network4 Investing in our bankers Backing over 150 domestic and global renewable energy finance transactions Renewables EAD as a % of energy generation5 52% 42% 31% 31% 29% 29% 48% 58% 69% 69% 71% 71% 2016 2017 2018 2019 2020 2021 ■Renewables ■Gas, coal & mixed fuel OUR CLIMATE STRATEGY GOAL OF ALIGNING OUR LENDING PORTFOLIO TO NET ZERO EMISSIONS BY 2050 *** WORKING WITH CUSTOMERS TO DECARBONISE AND BUILD RESILIENCE MANAGING CLIMATE RISK Oo. ACTIVELY REDUCING OUR OWN EMISSIONS Supported by HIGHLY CAPABLE COLLEAGUES Q RESEARCH, PARTNERSHIPS AND ENGAGEMENT (1) Represented as a cumulative amount of new environmental finance since 1 October 2015. Refer to the Group's 2021 Sustainability Data Pack for a further breakdown of this number and reference to how the environmental financing commitment is calculated (2) Fossil fuels includes net EAD to gas, coal and mixed fuel. Clean energy includes net EAD to wind, hydro and mixed renewables. Excludes exposure to counterparties predominantly involved in transmission and distribution (3) Rankings based on IJGlobal League Table, MLA, Renewables, 12 months ending 30 September 2021. (4) An international collaboration between NAB, CIBC, Itaú Unibanco and NatWest Group to organise the carbon offset market with an efficient, transparent system for buying and selling that puts a price and measure on carbon National Australia 16 Bank (5) NAB methodology (based upon the 1993 ANZSIC codes) at net EAD basis. Excludes exposure to counterparties predominantly involved in transmission and distribution. Vertically integrated retailers included and categorised as renewable where majority of their generation activities sourced from renewable energy. More detail at https://www.nab.com.au/about-us/social-impact.#17FY21 FINANCIALS GARY LENNON Group Chief Financial Officer National Australia Bank#18RESULTS IMPACTED BY LOWER MARKETS & TREASURY INCOME GROWTH BY KEY FINANCIAL INDICATORS (EX LARGE NOTABLE ITEMS¹) (6.8%) 38.6% 240 bps (80 bps) (3.6)% (3.8%) 9,640 8,989 6,558 10.7 11.1 4,733 10.3 4,576 4,413 8.3 3,343 3,215 FY20 FY21 1H21 Underlying profit ($m) P&L key financial indicators Net operating income ex Markets & Treasury Operating expenses Credit impairment write-back 2H21 FY20 FY21 1H21 2H21 FY20 FY21 2 Cash earnings ($m) 1H21 Cash ROE (%) 2H21 (1) Refers to large notable items in FY20. No notable items in FY21 (2) Refer to page 125 for definition of cash earnings and reconciliation to statutory profit 18 FY21 ($m) FY21 V FY20 2H21 ($m) 2H21 v 1H21 16,806 (3.0%) 8,367 (0.9%) 15,418 (0.5%) 7,787 2.0% 7,817 1.8% 3,954 2.4% 217 large 89 (30.5%) National Australia Bank#19SOLID UNDERLYING PERFORMANCES DIVISIONAL UNDERLYING PROFIT (HOH) ($m) ■1H21 ■2H21 Above system, broad based growth in business lending 1,815 1,854 • 1 ● 2.1% Higher NIM benefitting from lower funding costs Additional spend on customer facing roles for growth, higher technology investment Business & Private Banking 1,133 1,115 (1.6%) Personal Banking 997 856 (14.1%) • Corporate & Institutional 859 835 New Zealand Banking1 2.9% Growth in housing lending, but NIM impacted by competition and mix Good cost discipline . Lower markets risk management income ($124m decline in 2H21) Underlying profit up 5% ex Markets • . GLA growth driven by target growth sectors of infrastructure and investor - Above system growth in housing and business lending – broad based growth in business, particularly strong in SME • Spend on additional colleagues for growth and compliance & risk activities. (1) Results in local currency. Divisional earnings exclude increase in forward looking collective provision economic adjustment. 19 National Australia Bank#20REMEDIATION WORK PROGRESSING CUSTOMER-RELATED REMEDIATION PROVISION CHARGES¹ ($m) 749 654 1,189 1,011 380 268 58 245 138 31 178 95 1H19 130 135 27 2H19 1H20 2H20 1H21 Discontinued charges mainly relate to Advice Partnerships Adviser Service Fee Program higher interest costs and refund rates Continuing Operations charges mainly relate to ■Continuing Operations ■Discontinued Operations CUSTOMER-RELATED REMEDIATION PROVISIONING AND UTILISATION ($m) 1,185 Costs to do 219 • Customer payments 1,290 966 • >1,200 colleagues dedicated to remediation activities JBWere 137 117 20 2H21 • >1.3m payments to customers since June 2018 totalling $1,290m - up 80% from FY20 Progressing accelerated payments to customers of Advice Partnerships Adviser Service Fee Program, with ~80% completion expected by Dec 2021 AUSTRAC INVESTIGATION UPDATE • Enforcement investigation commenced by AUSTRAC in June given serious concerns about NAB's potential non-compliance with its AML/CTF obligations AUSTRAC advised that it had not made any decision as to whether it will take any enforcement action, but that it was not considering civil penalty proceedings at that stage and that its decision was "reflective of the work undertaken" by NAB to date. NAB has not been notified of any change to this position, however the AUSTRAC investigation is ongoing Outcomes, including costs, relating to AUSTRAC investigation remain uncertain at this stage • NAB's Financial Crime Remediation team are driving a dedicated program of work aimed at ensuring that all relevant KYC data is captured and recorded appropriately Provision at 30 Sep 2021 Payments since June 2018 • All major programs expected to be essentially completed in CY22 (1) Charges were included as large notable items in FY19 and FY20. Charges are shown pre-tax; 1H19 and 2H19 have been restated for the presentation of MLC Wealth as a discontinued operation 20 20 National Australia Bank#21REVENUE UP EX MARKETS & TREASURY NET OPERATING INCOME (EX LARGE NOTABLE ITEMS)¹ ($m) 8,884 8,439 HoH revenue decline 0.9% (PcP decline 5.8%) 7 (64) 33 180 (228) HoH revenue increase 2.0% ex M&T (PcP decline 0.5%) 8,595 8,367 Sep 20 Mar 21 Volumes Margin Fees & Commissions Other Sep 21 (ex M&T) Markets & Treasury Income Sep 21 (1) Refers to large notable items in FY20. No notable items in FY21 21 221 National Australia Bank#22MARKETS & TREASURY INCOME LOWER MARKETS & TREASURY INCOME BREAKDOWN ($m) 940 1,250 838 808 578 888 572 580 453 392 277 206 345 372 402 387 362 366 71 (4) (17) 0 8 (86) Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 ■Derivative Valuation Adjustment¹ ■Customer Risk Management 2 ■NAB Risk Management 3 HISTORICAL MARKETS & TREASURY INCOME ($m) KEY CONSIDERATIONS Lower NAB Risk Management income in FY21 primarily reflects: 1,933 1,738 1,778 1,828 578 494 577 550 1,388 380 • lower volatility in global rates & FX markets • ⚫ surplus liquidity impacting repo margins 1,355 1,244 1,201 1,278 1,008 • Recent re-emergence of interest rate volatility, but outlook difficult to predict FY17 FY18 FY19 Markets FY20 ■Treasury FY21 (1) Derivative valuation adjustments include credit valuation adjustments and funding valuation adjustments (2) Customer risk management comprises NII and OOI (3) NAB risk management comprises NII and OOI and is defined as management of interest rate risk in the banking book (IRRBB), wholesale funding and liquidity requirements and trading market risk to support the Group's franchises 22 222 National Australia Bank#23NET INTEREST MARGIN NET INTEREST MARGIN (EX LARGE NOTABLE ITEMS)¹ (0.01%) 0.04% (0.05%) 0.02% 1.78% 1.74% (0.03%) (0.02%) 1.74% 1.69% Sep 20 Mar 21 Lending Margin Funding Costs Deposits Capital & Other Sep 21 Ex Markets & Treasury Higher Liquids Other Markets & Treasury Sep 21 CUSTOMER DEPOSITS BY INTEREST RATE³ $285bn of deposits already 80 at or near zero interest rate KEY CONSIDERATIONS FOR FY22 • . NIM impact from the low rate environment2 in FY22 expected to be broadly neutral, turning positive in FY23. Competitive pressures and mix expected to continue impacting housing lending margins, along with full period impact of liquids build in 4Q21 (%) 100 60 Lower funding costs and deposit mix expected to be a moderating tailwind 40 $137.1bn $147.8bn 20 20 $76.4bn $15.5bn $11.9bn Expect minimal NIM drag from CLF phase out in FY22 $3.5bn 0 less than or equal 0.01% between 0.02% to 0.25% between 0.26% to 0.50% between 0.51% to 0.75% between 0.76% to more than 1.00% 1.00% (1) Refers to large notable items in FY20. No notable items in FY21 (2) Refers to impact of the replicating portfolio net of any repricing, and based on current rates (3) Australia only, as at 30 September 2021. Customer deposits exclude home loan offsets, and set-off facilities 23 23 National Australia Bank#24REINVESTING SAVINGS FOR GROWTH OPERATING EXPENSES (EX LARGE NOTABLE ITEMS)¹ ($m) 7,679 (411) 138 99 YoY growth 1.8% Investment related (207) 364 42 113 Mainly relates to non- recurrence of FY20 restructuring related costs and lower consulting spend 7,817 FY20 Productivity savings Remuneration and inflation Technology and investment Depreciation and Amortisation Growth hires Performance based compensation Other FY21 INVESTMENT SPEND ($m) 55% Opex 696 655 749 COMMENTS Cost growth of 1.8% consistent with FY21 target of 0-2% 510 137 107 229 • Targeting broadly flat costs in FY222 248 270 156 226 177 311 278 294 177 Mar 20 Sep 20 Mar 21 Sep 21 FY22 investment spend expected to be broadly flat Continue to target FY23-25 costs to be lower than $7.7bn² ■Infrastructure ■Compliance and risk ■Customer experience (1) Refers to large notable items in FY20. No notable items in FY21 (2) Excluding large notable items, the impact of proposed acquisition of Citigroup's Australian consumer business and any potential non-recurring AML/KYC related costs including those incurred in addressing the issues subject to investigation by AUSTRAC, such as file remediation and other associated costs. Refer to key risks, qualifications and assumptions in relation to forward looking statements on page 127 24 24 National Australia Bank#25CREDIT IMPAIRMENT WRITE-BACK. PROVISIONS MODESTLY LOWER CREDIT IMPAIRMENT CHARGE (CIC) ($m) 0.38% 0.54% 1,601 (0.04%) (0.03%) 1,161 661 807 367 (89) (128) 21 573 221 181 333 (114) (113) (235) (157) Sep 20 Mar 21 Sep 21 Mar 20 ■ Underlying CIC/(write-back)¹ EA top-up (COVID-19) COLLECTIVE PROVISION BALANCES Target sector FLAS 2 CIC as a % of GLAS 3 KEY CONSIDERATIONS 2H21 Underlying CIC write-back of $113m broadly consistent with 1H21, including continued low specific charges and improved asset quality Forward looking charges little changed vs 1H21: • • Economic Adjustment (EA) top up of $181m reflecting recent lockdowns and reopening uncertainty Partially offset by $157m write-back in Forward Looking Adjustments (FLAs) COLLECTIVE PROVISION COVERAGE 25 ($m) 5,536 5,209 4,401 4,715 1,468 1,233 1.21% 807 1,414 1,029 1,250 662 845 0.72% 2,932 3,039 2,726 2,456 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 ■Collective Provision EA top-up (COVID-19) ■ Collective Provision FLAS Underlying Collective Provision 1.56% 0.93% Sep 20 1.50% 1.35% 0.87% Mar 21 0.75% Sep 21 ■ Collective Provisions as % of Credit Risk Weighted Assets Collective Provisions as % of GLAs (1) Represents total credit impairment charge less EA top-up and FLAs increase (2) Represents collective provision FLAs for targeted sectors (3) Half year annualised Collective provision FLA decline Sep 21 v Mar 21 of $405m includes $248m of provisions derecognised as a result of sale of aviation loans National Australia Bank#26ASSET QUALITY IMPROVING KEY IMPACTS IN 2H21 • 90+ DPD & GIA ratio reduction with improvements in business lending and Australian home lending NEW IMPAIRED ASSETS³ ($m) • Reduction in Watch loans reflects aviation sale 807 Small number of well-secured NZ dairy exposures 276 New impaired assets remain at low levels • >70% of non-retail categorised assets relate to COVID- 19 sectors1 553 531 539 271 286 . Total deferral balances associated with recent lockdowns ~$2.2bn at 30 September², majority housing Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 90+ DPD, GIAS & WATCH LOANS AS A % OF GLAS4,5 Re-gradings of performing customers 1.03% 1.03% 0.93% Sep 19 0.97% Mar 20 2.58% 2.30% 1.95% 1.03% Sep 20 1.23% Mar 21 0.94% Sep 21 90+ DPD & GIAS as a % of GLAS ■Watch loans as a % of GLAS (1) Categorised assets include 90+ DPD, GIAS and Watch loans. COVID-19 sectors refer to Retail Trade, Tourism, Hospitality & Entertainment, Air Travel and related services, Office, Retail, Tourism & Leisure CRE (see slides 82-85 for more details) (2) APRA concessional treatment of deferrals ended 30 September 2021 (3) Figures represent Half Year to date flow of new impaired assets 26 (4) Referral to Watch generally triggered by banker annual reviews through the year or as a result of performing customers experiencing cashflow pressures (5) Eligible deferral customers treated in accordance with APRA guidance, with arrears profile frozen for period of deferral National Australia Bank#27COVID-19 NON-RETAIL SECTORS REMAIN CHALLENGED KEY CONSIDERATIONS Continued close monitoring of exposures to sectors significantly impacted by COVID-19 While asset quality for these sectors improved compared with 1H21, it remains materially worse than for the total non-retail book EAD broadly stable vs 1H21 FLAs for non-retail COVID-19 sectors now account for 100% of non-retail FLAS COVID-19 SECTORS - KEY METRICS SUMMARY Retail Trade Tourism, Hospitality & Entertainment¹ % of 90+ DPD and EAD $bn GIA to EAD Mar 21 Sep 21 Mar 21 Sep 21 14.5 5 14.6 1.71 1.24 13.5 5 1 13.6 1.23 1.13 Air travel and related services Office, retail, tourism & leisure CRE² 10.1 8.8 0.77 0.80 41.6 42.4 0.21 0.15 Total COVID-19 non-retail sectors 79.7 79.4 0.72 0.59 100% 88% 89% COVID-19 SECTORS VS TOTAL NON-RETAIL BOOK 90+ DPD & GIA % of EAD COVID-19 SECTOR FLAS % OF TOTAL NON-RETAIL FLAS³ 0.72% 0.64% 0.57% 0.59% 52% 0.44% 0.45% 0.40% 0.29% (2) COVID-19 sectors Total non-retail book ■ Mar 20 ■Sep 20 Mar 21 ■ Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 (1) Tourism, hospitality and entertainment include regulatory industry classification of accommodation and hospitality, plus cultural and recreational services CRE EAD figures are limits based on ARF230 and the FLAS relate to the whole CRE portfolio with Office, Retail, Tourism and Leisure CRE most impacted by COVID-19 stress (3) Refer page 75 for a breakdown of target sector FLAS 27 27 National Australia Bank#28STRONG CAPITAL POSITION GROUP BASEL III COMMON EQUITY TIER 1 CAPITAL RATIO (%) 12.37 0.75 Capital generation +43bps (0.47) 0.15 (0.12) 0.29 0.03 Target range 10.75 11.25% 13.00 12.25 Mar 21 Cash earnings Dividend RWA 2 Share buy-back M&A Transactions Other Sep 21 Sep 21 pro forma 3 CET1 CONSIDERATIONS Continued strong organic capital generation. Flat RWAS CRWAS stable with improved asset quality and portfolio mix offsetting $30bn GLA growth GROUP RWA ($bn) (0.2) (0.8) (2.8) 3.4 • On-market share buy-back ~20% complete with ~$2bn remaining 417.6 417.2 APRA's 'unquestionably strong' standards are expected to reset capital ratios but are not expected to have a significant impact4 Mar 21 Credit Risk Operational Risk Market Risk IRRBB Sep 21 (2) €23 (1) Excludes FX translation Includes sale of MLC Wealth (+34bps) and acquisition of 86 400 (-5bps) (3) Pro forma impacts include estimated impacts from agreed sale of BNZ Life (+7bps), upfront impact of the proposed acquisition of Citigroup's Australian consumer business (-34bps) and the remaining $2.0bn of on-market share buy-backs (-48bps). Both the proposed acquisition of the Citigroup Australian consumer business and the sale of BNZ Life are expected to complete in 2022, subject to relevant regulatory approvals. Final capital impact of each transaction will be determined following completion Standards expected to be finalised in November 2021 28 (4) National Australia Bank#29FUNDING & LIQUIDITY KEY MESSAGES . • . Strong funding and liquidity position, well above regulatory minimums Term Funding Facility (TFF) Additional and Supplementary Allowances totalling $17.6bn were fully drawn in 4Q21, supporting lending growth, refinancing of term wholesale maturities and higher liquid assets Term wholesale issuance expected to increase to more normalised levels in FY22 Phase out of CLF by December 2022 is manageable, expected to increase liquid assets COMMITTED LIQUIDITY FACILITY REDUCES TO ZERO IN 20221 ($bn) 51 38 38 31 223 23 23 16 8 17 8 0 Sep 21 Mar 22 Jun 22 ■ RMBS Sep 22 Forecast CLF Dec 22 Sep 20 ■ External Securities LIQUIDITY RATIOS REMAINS ABOVE REGULATORY MINIMUMS LIQUID ASSETS³ ($bn) (%) 136 139 136 128 127 116 122 123 100% minimum 252 234 234 204 82 40 64 50 32 34 34 43 162 136 136 111 Mar 20 Sep 20 Mar 21 Sep 21 2 - LCR Mar 20 Sep 20 Mar 21 Sep 21 ■ NSFR Mar 20 Sep 20 ■Internal RMBS (post haircuts) ■ Government, Cash & Central Bank (1) 23 (2) (3) 29 29 CLF reduction dates are 1 January, 30 April, 31 August and 31 December 2022 Average LCR for the quarter Spot Liquid Assets as at end of each period Mar 21 Sep 21 ■ Bank, Corporates & Other National Australia Bank#30OUTLOOK ROSS MCEWAN Group Chief Executive Officer National Australia Bank#31OUR PRIORITIES IN FY22 31 Continue to focus on execution of Group strategy Supporting customers and colleagues as we manage transition to "COVID-normal" Investing in growth while maintaining cost and capital discipline Resolution of AUSTRAC investigation Complete proposed acquisition of Citigroup's Australian consumer business and integration of UBank and 86 400 National Australia Bank#32ADDITIONAL INFORMATION DIVISIONAL PERFORMANCES NAB At A Glance We Have Clear Growth Opportunities Divisional Contributions Business & Private Banking Personal Banking Corporate & Institutional Banking New Zealand Banking 33 34 35 36 39 40 42 32 National Australia Bank#33NAB AT A GLANCE Division Business & Private Banking >32,000 Employees CASH EARNINGS DIVISIONAL SPLIT¹ ~8 million Customers % of FY21 Cash Earnings 38% Key Financial Data Cash Earnings¹ Cash ROE 748 Branches/Business centres >160 years in operation Personal Banking 25% Corporate & Institutional Banking 18% New Zealand Banking 18% CET1 (APRA) Gross Loans & Acceptances Non-performing loans to GLAS² FY21 $6,558m 10.7% $629bn 94 bps 13.00% Corporate Functions & Other 1% Cash Earnings 100% NSFR (APRA) GROSS LOANS & ACCEPTANCES SPLIT Australian Market Share 123% As at September 21 Mortgages 57% Business lending³ 22.0% Unsecured Lending 1% Housing lending³ 14.4% Personal lending4 9.2% Business Loans 42% =@ST (1) Refer to page 125 for definition of cash earnings and reconciliation to statutory net profit (2) 90+ days past due and gross impaired assets to gross loans and acceptances (3) APRA Monthly Authorised Deposit-taking Institution statistics (4) Personal loans business tracker reports provided by RFI, represents share of RFI defined peer group data 33 Cards³ Credit Ratings NAB Ltd LT/ST 13.4% S&P AA-/A-1+ (Stable) Moody's Aa3/P-1 (Stable) Fitch A+/F1 (Stable) National Australia Bank#34WE HAVE CLEAR GROWTH OPPORTUNITIES CORPORATE & BUSINESS & PRIVATE BANKING PERSONAL BANKING INSTITUTIONAL BNZ UBANK Clear market leadership • Industry-leading relationship • . . . bankers, enabled by data and analytics 550 new customer facing roles Strengthen sector specialisation Transform business lending experience Leverage High Net Worth proposition Partner to deliver differentiated transactional banking experiences • • • Simple & digital Flexible and professional bankers able to serve customers whenever, wherever and through any channel they choose Deliver a simple and digital everyday banking experience, including unsecured lending Deliver Australia's simplest home loan 34 BANKING Disciplined growth • Highly professional • · Grow in personal & SME New customer acquisition relationship managers and specialists Leadership in infrastructure, investors, and sustainability Enhanced transactional banking and asset distribution capability • Step change in digital banking capability • New propositions driving customer acquisition • Simpler, more focused bank • Market leading digital experience Re-weight to less capital intense segments • Ambition to expand share in younger segments National Australia Bank#35DIVISIONAL CONTRIBUTIONS 35 Divisional cash earnings FY21 ($m) FY21 v FY20 2H21 ($m) 2H21 v 1H21 Business and Private Banking 2,480 0.3% 1,264 3.9% Personal Banking 1,650 14.4% 791 (7.9%) Corporate & Institutional Banking 1,207 (14.8%) 425 (45.7%) New Zealand Banking¹ (1) In local currency 1,230 18.7% 614 (0.3%) National Australia Bank#36BUSINESS & PRIVATE BANKING CASH EARNINGS ($m) 0.3% REVENUE AND MARGIN (1.0%) 36 3.9% 2,472 2,480 1,216 1,264 3.5% 6,278 6,216 2.90% 2.81% 2.83% 2.85% 3,054 3,162 FY20 FY21 1H21 2H21 FY20 FY21 1H21 2H21 ■Total revenue ($m) Mar 20 Sep 20 Mar 21 ■Net interest margin Sep 21 BUSINESS AND HOUSING LENDING GLAS ($bn) 6.6% CREDIT IMPAIRMENT CHARGES AND AS A % OF GLAS ($m) 5.1% 0.20% 0.13% 0.07% 0.04% 109.4 109.9 116.6 88.5 84.2 84.8 126 Mar 20 Sep 20 Mar 21 ■Business lending Sep 21 Sep 20 Mar 21 Housing lending Sep 21 196 Sep 20 70 Mar 21 39 Sep 21 Credit impairment charge Credit impairment as a % of GLAS (half year annualised) National Australia Bank#37BUSINESS LENDING GROWTH & MARKET SHARE AUSTRALIAN BUSINESS LENDING GROWTH (YOY)¹ 14.2% BUSINESS & PRIVATE BANKING Denotes lending balance as at 30 September 2021 6.6% 2.6% 3.4% 3.8% Agri Health CRE² Other NAB B&PB³ $35bn $8bn $29bn $45bn $117bn SME AND AGRI BUSINESS LENDING MARKET SHARE 2.3x system growth 32.8% 31.2% 31.2% 26.0% 26.0% 26.2% 26.4% 30.5% Mar 20 Sep 20 Mar 21 Aug 21 3 ■SME market share (RBA) Mar 20 Sep 20 Mar 21 Aug 21 ■ Agri market share (RBA) (1) Growth rates are on a customer segment basis and not industry (2) (3) CRE primarily represents commercial real estate investment lending across a range of asset classes including Retail, Office, Industrial, Tourism and Leisure, and Residential A business is classified as SME under the RBA if NAB has exposure to the business and the business has turnover less than $50 million. A business is classified as B&PB if NAB has exposure to the business less than $50m; and the business has turnover less than $100 million. 37 National Australia Bank#38BUSINESS & PRIVATE BANKING BUSINESS & PRIVATE BANKING - LEVERAGING HIGH NET WORTH (HNW) • INVESTING IN A NEW INTEGRATED APPROACH IN FY21 Single leadership of Private Bank, JBWere and nabtrade ($bn) Growing home lending 2.3x system growth in 2H21 ● Closer collaboration with Business Banking: HNW representatives across specialised banking teams 19.5 18.0 17.5 • Aligning Private Bankers and Wealth Advisors with every metropolitan Business Banking Centre 2H20 1H21 2H21 Established cross-business referral model • 50 new Private Bankers added, dedicated credit team and tailored HNW credit policies, improving turnaround times +12 pts HNW NPS1 . Digital initiatives: PRIVATE BEST BANK AWARD 2022 GLOBAL FINANCE 2 Growing net fund inflows driving higher FUM • New nabtrade app - 116k downloads since launch; +30 NPS uplift³ • JBWere website refresh and new client portal providing real time portfolio performance reporting ($bn) 31.7 • 100% of eligible Private Bank home lending documents provided via DigiDocs 36.4 2 2 3 1H21 40.7 2H20 Net inflows 2H21 Market movements JBWere FUM (1) Change in September 2021 score versus September 2020 score. DBM Atlas - Consumer. HNW customers, six month rolling average to September 2021. HNW includes consumer aged 18 up to 75, Total net worth $2m+ across Deposits / Lending / Credit/ Super / Investments (Managed and Direct) / Equity in investment property. Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. Net Promoter Score (NPS) is based on all customers' likelihood to recommend on a scale of 0 (not at all likely) to 10 (extremely likely) NAB Private Bank: Winner - Australia (2) 38 (3) From Oct-20 to Sep-21 National Australia Bank#39PERSONAL BANKING CASH EARNINGS ($m) 39 14.4% 1,650 1,442 (7.9%) REVENUE AND MARGIN (1.9%) (0.6%) 4,531 4,445 2.06% 2.02% 2.05% 2.01% 2,229 2,216 859 791 FY20 FY21 1H21 2H21 Mar 20 FY20 FY21 1H21 2H21 ■Total revenue ($m) Sep 20 Mar 21 ■Net interest margin Sep 21 HOUSING LENDING GLAS ($bn) CREDIT IMPAIRMENT CHARGES AND AS A % OF GLAS ($m) 0.10% 0.14% 147 109 208.1 206.7 206.8 212.0 Mar 20 Mar 20 Sep 20 Mar 21 Sep 21 Sep 20 (0.09%) (0.00%) (2) (93) Mar 21 Sep 21 Credit impairment charge/(write-back) Credit impairment as a % of GLAS (half year annualised) National Australia Bank#40CORPORATE & INSTITUTIONAL BANKING CASH EARNINGS ($m) (14.8%) (45.7%) MARGINS AND REVENUE BREAKDOWN¹ ($m) Revenue Margins (7.4%) 1.72% 1.68% 1.68% 1.59% 401 228 Markets revenue down 43.1% 1,416 1,207 0.70% 0.81% 0.73% 0.75% 782 1,272 1,321 425 Non Markets revenue up 3.9% FY20 FY21 1H21 2H21 1H21 2H21 RETURNS FOCUS Sep 20 Corporate & Institutional Banking ex Markets CREDIT IMPAIRMENT CHARGES AND AS A % OF GLAS Mar 20 Mar 21 Sep 21 40 40 ($bn) 1.92% ($m) 2.05% 1.91% 1.96% (0.01%) 0.37% 0.44% (0.09%) 231 1.79% 1.56% 1.35% 1.38% 176 248 (6) (45) (17) 137.8 Mar 20 129.9 Sep 20 125.7 121.5 Mar 21 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 (1) =@ -- Spot RWA Pre provision profit % of RWA Ex Markets pre provision profit % of RWA² Credit impairment charge/(write-back) Aviation sale related CICS Credit impairment charge as % of GLAs annualised Markets revenue represents Customer Risk Management revenue and NAB Risk Management Revenue. Includes derivative valuation adjustments (2) Excludes Markets pre provision profit and average RWAS National Australia Bank#41CUSTOMER METRICS LARGE CORPORATE & INSTITUTIONAL - RELATIONSHIP STRENGTH INDEX¹ - INTEREST RATE HEDGING³ CORPORATE & INSTITUTIONAL BANKING FOREIGN EXCHANGE4 Relationship Strength Index Relationship Strength Index (Index) 620 600 640 (Index) 650 580 600 600 560 560 540 520 520 480 550 500 500 480 440 450 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 Peer 1 Peer 2 Peer 3 NAB Peer 3 NAB Peer 1 Peer 2 Peer 1 Peer 2 Peer 3 NAB INSTITUTIONAL NPS1,2 40 23210 -10 DEBT MARKETS ORIGINATION5 Relationship Strength Index (Index) 600 550 500 450 TRANSACTIONAL BANKING6 Relationship Strength Index (Index) 550 500 -20 400 2017 2018 2019 2020 2021 450 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Peer 1 Peer 2 Peer 3 NAB Peer 1 Peer 2 Peer 3 NAB Peer 1 Peer 2 Peer 3 NAB All data from Peter Lee Associates, Australia. Based on top four banks by penetration. Relationship Strength Index (RSI) is based on a combined measure of most qualitative evaluations. Corporate and Institutional Relationship Banking Survey 2021 Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld Interest Rate Derivatives Survey 2021 (1) (2) (3) (4) Foreign Exchange Survey 2020 (5) Debt Securities Origination Survey 2021 41 (6) Transaction Banking Survey 2021 National Australia Bank#42NEW ZEALAND BANKING CASH EARNINGS (NZ$m) 18.7% REVENUE AND MARGIN 6.0% (0.3%) 3.3% 1,230 2,537 2,689 1,036 2.29% 2.29% 2.24% 616 614 1,323 1,366 2.14% FY20 FY20 FY21 1H21 2H21 FY21 1H21 2H21 Mar 20 Sep 20 ■Net interest margin Mar 21 Sep 21 BUSINESS & HOUSING LENDING GLAS (NZ$bn) 42 42 14.6% 1.0% 52.7 49.5 46.0 41.1 41.5 40.6 Sep 20 Sep 21 Sep 20 Mar 21 ■Housing lending ■Total revenue (NZ$m) CREDIT IMPAIRMENT CHARGES AND AS A % OF GLAS (NZ$m) 0.24% 0.09% 0.01% 106 (0.04%) 42 6 (19) Mar 20 Sep 21 Mar 21 ■Business Lending Sep 20 Mar 21 Sep 21 Credit impairment charge/(write-back) Credit impairment as a % of GLAS (half year annualised) National Australia Bank#43KEY CUSTOMER METRICS BNZ BUSINESS NPS 1,3 NEW ZEALAND BANKING 15 5 -5 -15 -25 -35 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 BNZ -Peer 1 Peer 2 -Peer 3 15 25 BNZ CONSUMER NPS2,3,4,5 40 35 30 25225050 15 10 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 BNZ -Peer 1 -Peer 2 -Peer 3 (1) Source: Kantar Business Finance Monitor (data on 4 quarter roll). Total business market up to annual turnover of $150m; includes Agribusiness with a turnover of $100k+. (2) Source: Camorra Retail Market Monitor (data on 12 month roll). There has been a change in NPS used for BNZ reporting vs. previous years. The result now reflects the total Consumer market, rather than Combined Priority Segments (which included Starters and Savers, Home Owners and Investors and High Net Worth). (3) Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. (4) In 2019, a change in Retail Market Monitor methodology led to a re-set of NPS for the consumer market for all major banks. Use of a 12 month rolling average in BNZ reporting smoothed the transition but a methodology-driven increase in NPS for all banks is visible. The new methodology has been fully embedded since October 2019. (5) In September 2021 there was a further methodological improvement. Customer share (alongside population census results) is now included in the underlying data weighting approach. This change has been applied across the market, so affects both BNZ and our peers. It has also been applied to the historical results from May 19 so comparisons over time remain valid, including for blended periods. 43 National Australia Bank#44LENDING MIX PORTFOLIO BREAKDOWN – TOTAL NZ$95.1BN - NEW ZEALAND BANKING MORTGAGE PORTFOLIO BREAKDOWN BY GEOGRAPHY - TOTAL MORTGAGE NZ$52.7BN 44 Commercial Real Estate 9% Agriculture, Forestry and Fishing 16% Retail and Wholesale Trade 4% Manufacturing_ 3% Other Commercial Personal Lending 2% 11% Mortgages 55% Canterbury 11% Auckland 48%. Wellington 11% Waikato 7% Bay of Plenty 5% Other 18% AGRIBUSINESS PORTFOLIO BREAKDOWN BY INDUSTRY - TOTAL AGRI NZ$14.7BN Dairy 46% Drystock 21% Forestry 5% Kiwifruit 8% Other 13% Services to Agriculture 7% National Australia Bank#45NEW ZEALAND HOUSING LENDING KEY METRICS New Zealand Housing Lending Total Balances (spot) NZ$bn NEW ZEALAND BANKING Mar 20 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Portfolio Drawdowns¹ 44.8 46.0 49.5 52.7 5.1 9.5 8.8 By product - Variable rate 15.2% 14.1% 12.9% 11.3% 15.1% 11.2% 10.0% - Fixed rate 82.6% 84.1% 85.5% 87.3% 84.6% 88.2% 89.7% - Line of credit 2.2% 1.8% 1.6% 1.4% 0.3% 0.6% 0.3% By borrower type Owner Occupied 66.4% 66.0% 64.5% 64.6% 64.5% 60.1% 68.5% - Investor 33.6% 34.0% 35.5% 35.4% 35.5% 39.9% 31.5% By channel - Proprietary 77.9% 76.2% 73.7% 71.6% 68.8% 67.9% 64.7% - Broker 22.1% 23.8% 26.3% 28.4% 31.2% 32.1% 35.3% Low Documentation 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Interest only² 24.4% 25.5% 20.2% 18.9% 28.2% 28.5% 25.4% LVR at origination 66.7% 66.8% 66.0% 65.4% 90+ days past due 0.11% 0.13% 0.14% 0.09% Impaired loans 0.03% 0.02% 0.01% 0.00% Specific Impairment coverage ratio 25.5% 26.3% 20.8% 11.5% Loss rate³ 0.01% 0.00% 0.00% 0.00% (1) Drawdowns is defined as new lending including limit increases and excluding redraws in the previous six month period (2) Excludes line of credit products (3) 12 month rolling Net Write-offs / Spot Drawn Balances 45 45 National Australia Bank#46NZ CUSTOMER DEPOSITS BY INTEREST RATE NZ CUSTOMER DEPOSITS BY INTEREST RATE (NZD)¹ $41.0bn of deposits already at or near zero interest rate NEW ZEALAND BANKING $16.8bn $24.2bn $11.3bn $10.5bn $2.4bn $0.9bn less than 0.01% between 0.01% to 0.25% between 0.26% to 0.50% between 0.51% to 0.75% between 0.76% to 1.00% more than 1.00% CUSTOMER DEPOSIT BALANCES BY PRODUCT (NZD) ($bn) 31.9 28.7 24.7 23.9 18.2 15.5 15.9 17.2 10.6 12.1 13.5 13.9 8.7 9.6 5.4 6.6 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 Mar 21 Sep 20 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 ■NBIS ■Transaction ■Savings Sep 20 ■Term Deposits Mar 21 Sep 21 2.0 Mar 20 2.1 Sep 20 2.3 Mar 21 2.4 Sep 21 ■ Offsets (1) Customer deposits exclude offset products, and set-off facilities 46 National Australia Bank#47ADDITIONAL INFORMATION DIGITAL TRANSFORMATION, TECHNOLOGY AND INNOVATION National Australia Bank#48SIMPLIFYING, DIGITISING AND INNOVATING NAB BNZ Sep 20 Up 59% Sep 21 1 Virtual assistant conversations www ك ~38k Virtual Assistant Conversations I 1300:1 Ratio of payments now executed digitally v/s in branch 65% I per week² Of simple consumer sales via digital³ Continued network simplification and modernisation to reflect customer needs 13% YOY Reduction in Branches and BBCs ~3,500 Australia Post outlets serving customers • Decommissioned all cheques, paper payments and FX cash Down 47% • Continued network simplification - Reduced data centre footprint reducing risk and cost • >50% of all home lending rollovers, lump sum payments and change repayment events now digital ANK OF THE YEAR CANSTAR 2021 ONLINE BANKING BNZ awarded best bank for online 95% reduction in OTC cash deposit transactions over 5 years FY18 FY21 banking in 2021 Banking products (1) Monthly YoY growth, Sept. 20 to 21 in VA conversations (2) Average # of weekly contacts answered by the Virtual Assistant from July to September 2021 (3) Simple consumer products refer to transaction accounts, savings accounts, credit cards and personal loans 48 National Australia Bank#49CONTINUED FOCUS ON MOBILE EXPERIENCES NAB APP-NEW HIGHS IN USAGE AND NPS • 80% of all Simple Home Loan modifications done via the NAB App (up from 52% at Sep 2020) • 6% increase in digital payment value¹, and a 13% increase in mobile payment value First bank to integrate with Slyp to provide - a digital smart receipting capability — 2021 Canstar Innovation Excellence Award winner Slyp IMPROVED FUNCTIONALITY IN NABTRADE APP • Significant investment to improve app functionality in FY21 >40% of customer interactions on nabtrade now via app • Now among top rated investment apps in Australia 29% Increase in Mobile Satisfaction 3 Mobile App users +6% Mobile App NPS2 44 50 50 TOO Sep 20 Sep 21 Sep 20 Sep 21 116k Downloads 4.1 4.5 ~ 800 ratings nabtrade ~ 3.7K ratings $24.82 +11.300(106) 524.82 $24.91 05 device to interact with chart Key stats nabtrade < Trading Account 2727900 Welcome 24.375 BVY Sell Home FAQS Login Day charge $65,432.41 Code Day change Day AJM -3.099 -12 +2899 PLEASE 33440 CANASE APTASE Research based on your portfolio AZMASI Based on recommendation Banalysts BHPASI Pale a.am HOLD . BUY 40% Unique Logins (1) Digital includes desktop Internet Banking and the Mobile App. Figures compare monthly activity Sep 20 to Sep 21 (2) Internal measure of NPS, calculated on a 26 week rolling average. Net PromotorⓇ and NPS® are registered trademarks and Net Promotor Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld (3) Increase from 1 Oct 2020 to 30 Sep 2021 49 National Australia Bank#50ENHANCED UNSECURED PROPOSITION • • SIMPLIFYING EVERYDAY BANKING Debit cards added to 3rd party wallets (including Apple Pay) without the need to wait for a physical card Cards and personal loan applications can now be completed without re- authenticating and with pre-filled data, increasing conversion rates NAB BUSINESS CREDIT CARDS Partnership with EedenBull allows NAB business card customers to have more control and oversight of expenses . STRAIGHTUP CARD Launched the NAB StraightUp Card in 2H20, Australia's first no-interest credit card NAS STRAIGHTUP nab more than money Your card naba money Your card About you Employmen About you Employmen‣ EedenBull About you To save time we have pre-filled some information: Pre-filled personal details Pre-filled financial details Previous YOU'RE APPLYING FOR: Next Confirm your details We have pre-filled your information from your last application with us. You don't need to use this information, but if you do please ensure you review and update anything that has changed. For information that is not editable, please contact NAB on 13 22 65 or visit your nearest branch. +12% • Rates & Fees apps completed Visibility of all transactions and receipts on single dashboard Real time expense capture and categorisation Integration with existing accounting platforms 50 50 F A VISA NAB's most popular credit card product 30% of NAB's credit card applications in FY21 Millennial appeal 37% More applicants under 35 years old vs other cards National Australia Bank#51INNOVATING WITH NAB VENTURES . • NAB Ventures is NAB's venture capital arm that makes investments to promote strategic priorities NAB Ventures work alongside other parts of the bank, incubating and testing innovative new customer propositions and leveraging new developments in technology Manages over 20 investments spread across ten themes of innovation 51 Investments announced since 30 Sep 2020 Innovation Themes Open Data & Data Driven Personalisation Spriggy SME Banking and Merchants Payments innovation Banking as a service New to Banking Market Embedded Finance Simplified Lending and everyday banking experiences Carbon and the Environment Security & ID Tokenisation Follow on Investments bugcrowd Spriggy provides a mobile-first pocket money app for managing family finances. NAB Ventures was the lead investor in Spriggy's most recent $35m capital raising Archistar is an Al-driven, cloud-based property intelligence platform that enables enterprise clients to understand and model numerous compliant, property development outcomes Bugcrowd provides a platform and service for organisations to access trusted and highly skilled security researchers to identify bugs and security vulnerabilities, to protect their business Slyp is a digital receipting company enabling Slyp banks to embedded receipts in banking app with rich data, relevant merchant offers and loyalty lighter capital Lighter Capital provides revenue-based financing to technology companies. Edstart works with our Education clients customers' to offer financing for private school fees with a mission of supporting access to learning and providing reassurance to families. Stash has developed a mobile-first platform for STASH personal finance including investing, banking, h BioCatch develops behavioural biometric BIOCATCH Less Friction. Less Fraud. technology for use in identity authentication and fraud detection. insurance and financial literacy Hometime provides a short-term rental management services (co-hosting) platform for Airbnb property owners Figured is a farm financial management software company that aims to help farmers better manage the profitability and productivity of their farming operations National Australia Bank#5252 59 OUR TECHNOLOGY TRANSFORMATION UNDERPINS EXECUTION OF OUR STRATEGY KEY AREAS OF FOCUS Leverage the Cloud, Microservices and APIs 3 YEAR ACHIEVEMENTS¹ - • 54% of total apps² now running on the cloud and targeting 80% – greater flexibility and reliability • Built >300 microservices and >2,500 APIs – increasing efficiency of new feature delivery • Reduced the number of applications by 13%³ - reduced complexity Simplify legacy technology Embracing Data & Analytics World class cyber security Culture of high speed delivery • • • . • Simplified and modernised workplace technology for colleagues 87% reduction in High and Critical rated incidents 4 - significantly less customer impacts Delivered numerous machine learning use cases for processes such as voice analytics & compliance, customer complaints, fraud and insider crime detection, customer retention, financial difficulty support, and credit decisioning Kept losses broadly stable despite significant surge in attempted fraud Achieved a 18% increase in NIST5 score - improved capability to protect customers Significant reduction in average time to deliver change 32% improvement in technology productivity6 Insourcing key technology functions & uplifting skills • Insourcing of major contracts mostly completed, or winding down. Workforce now 68% insourced from 30% • >2,700 industry recognised cloud certifications (#1 in Australia for AWS & Azure for non-cloud companies) Investment in technology has generated clear benefits and underpins cost & revenue momentum going forward Cost reduction NPS7 increase Improved resilience Faster time to market Safe growth Uplifting colleague skills 1234 1. Using October 2018 as the baseline 5. 2. Application count is based on full application set, regardless of technical platform The NIST Cybersecurity Framework provides guidance for how organisations can assess and improve their ability to prevent, detect, and respond to cyber attacks. 3. 4. Reduction calculated on a like for like basis, excluding acquired or divested businesses Incidents include NAB and BNZ, using FY17 as baseline 6. 7. Based on the improvement in delivery velocity, as measured by story points delivered Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld National Australia Bank#5353 53 IMPROVED WORKPLACE TECHNOLOGY FOR COLLEAGUES 2018 Outsourced-Rigid delivery by 3rd parties 30% internal workforce Average 10-15min logon; Multiple aged versions of Windows Three browsers, multiple versions required to access apps <3,500 token based remote access capacity Audio conference only on desk phones; Limited video rooms available Legacy on-premise collaboration, email, share drives and Lync messaging Service Desk: slow, limited responsiveness and poor customer satisfaction Outsourced to Insourced Windows Upgrade Simple Browsing Remote Access for Everyone Easy Audio and Video Conferencing Collaborate Wherever you are Faster and Better Tech Support Insourced 68% internal workforce driving improved service & stability, and reduced cost <10 sec biometric logon; 100% desktops on Windows 10%; Windows 11 pilot begins Q1; Microsoft Technology Adoption Pilot partner One version of a single browser for all apps Seamless "Always on" remote access for 100% of NAB colleagues, no tokens Video/Audio on all colleague laptops; >1,000 VC rooms Evergreen cloud- based collaboration MS Teams, Zoom, OneDrive, SharePoint Service requests down 10%; customer satisfaction up 7% 2021 National Australia Bank#54ADDITIONAL INFORMATION AUSTRALIAN BUSINESS LENDING National Australia Bank#5555 55 KEY METRICS BUSINESS LENDING REVENUE ($m) 2,223 343 2,428 2,204 2,205 326 329 334 1,880 1,875 1,871 2,102 Mar 20 BUSINESS LENDING GLAS ($bn) Sep 20 Mar 21 Sep 21 ■ NII 215.0 205.1 207.1 220.8 0.1 0.1 0.1 0.1 105.8 95.6 97.1 104.1 109.1 Mar 20 ■Business & Private Banking 109.4 109.9 116.6 Sep 20 Mar 21 Sep 21 ■ Corporate & Institutional Banking ■ Other National Australia Bank#56BUSINESS LENDING ASSET QUALITY BUSINESS LENDING CREDIT IMPAIRMENT CHARGE AND AS 56 % OF GLAS ($m) 0.07% 0.33% 0.04% 0.25% BUSINESS LENDING 90+ DPD AND GIAS AND AS % OF GLAS ($m) 0.66% 0.72% 0.74% 0.62% 274 336 Includes $248m 1,420 1,474 1,528 77 Mar 20 of Aviation sale related CICS 1,362 Sep 20 44 Mar 21 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 Credit impairment charge CIC as a % of GLAS (half year annualised) TOTAL BUSINESS LENDING SECURITY PROFILE¹ Total Business Lending 90+ DPD and GIAS Business Lending 90+ DPD and GIAs to Business Lending GLAS BUSINESS LENDING PORTFOLIO QUALITY 22% 20% 20% 21% 19% 20% 19% 18% 52% 49% 49% 50% 59% 60% 61% 61% 48% 51% 51% 50% Mar 20 Sep 20 Mar 21 Sep 21 ■Fully Secured ■Partially Secured ■ Unsecured Mar 20 Sep 20 ■Sub-Investment grade equivalent Sep 21 Mar 21 ■Investment grade equivalent (1) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security National Australia Bank#57BUSINESS & PRIVATE BANKING ASSET QUALITY 57 B&PB CREDIT IMPAIRMENT CHARGE AND AS % OF GLAS¹ B&PB 90+ DPD AND GIAS AND AS % OF GLAS¹ ($m) 0.20% ($m) 1.53% 0.13% 1.32% 1.25% 196 1.07% 0.07% 3,025 126 2,584 2,596 21 70 40 170 7 0.04% 39 2,111 1,611 1,246 84 6 40 1,351 2 5 84 (21) 1,036 (7) 1,338 1,414 1,075 1,245 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 Business lending Other banking products Housing lending Credit impairment charge as % of GLAS annualised Housing 90+ DPD and GIAS 90+ DPD and GIAs to GLAS Non-housing 90+ DPD and GIAS B&PB BUSINESS LENDING SECURITY PROFILE² B&PB BUSINESS LENDING PORTFOLIO QUALITY 5% 5% 5% 5% 21% 20% 20% 20% 25% 24% 26% 25% 74% 75% 75% 75% 75% 76% 74% 75% Mar 20 Sep 20 Mar 21 Sep 21 ■Fully Secured ■Partially Secured ■ Unsecured Mar 20 Sep 20 ■Sub-Investment grade equivalent Mar 21 ■Investment grade equivalent Sep 21 (1) B&PB credit impairment charges and 90+ DPD and GIAS reflect the total B&PB portfolio including mortgages (2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security National Australia Bank#58ADDITIONAL INFORMATION AUSTRALIAN HOUSING LENDING National Australia Bank#59HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING REVENUE ($m) HOUSING LENDING VOLUME GROWTH¹ Owner Occupier ($bn) 1,988 114 2,038 119 2,085 108 2,150 113 10.4% (6.8% HOH) 172.7 156.4 161.7 1,874 1,919 1,977 2,037 Investor -3.5% (-0.2% HOH) 104.0 100.6 100.4 Mar 20 Sep 20 ■NII Mar 21 Sep 21 Sep 20 Mar 21 ■PB B&PB Sep 21 Sep 20 Mar 21 ■PB B&PB Sep 21 HOUSING LENDING FLOW MOVEMENTS² HOUSING LENDING BY DIVISION³ ($bn) ($bn) 212.0 58 (4) (17) 206.7 206.8 (27) 300 309 88.5 84.2 84.8 9.1 8.2 8.1 Mar 21 New fundings Interest & & redraw Repayments Pre- payments Sep 20 Mar 21 External refinance Sep 21 & closures Sep 21 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 ■Personal Banking Business & Private Banking ■Other (1) APRA Monthly Authorised Deposit-taking Institution statistics September 2021. UBank and 86 400 included in Personal Banking (2) Excludes home loan offsets and 86 400 (3) Other includes UBank and 86 400 59 59 National Australia Bank#60HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING VOLUME BY BORROWER AND REPAYMENT TYPE¹,2 Owner Occupier 63.2% Owner Occupier Interest Only, 3.4% Investor Interest Only, 10.9% Investor Principal & Interest, 25.8% Investor 36.8% AUSTRALIAN MORTGAGES STATE PROFILE² VIC/TAS 32% Owner Occupier Principal & Interest, 59.9% OWNER OCCUPIER MONTHLY GROWTH 1,3 NSW/ACT 41% INVESTOR MONTHLY GROWTH1,3 QLD 15% WA 8% SA/NT 4% 0.5% 1.6% 1.4% 0.3% 1.2% 0.1% 1.0% -0.2% 0.8% -0.4% 0.6% -0.6% 0.4% -0.8% 0.2% -1.0% 0.0% NAB growth MoM Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 20 20 20 21 21 21 21 21 21 21 21 21 System growth MoM Oct Nov Dec Jan Feb 20 20 20 21 21 -NAB growth MoM Jul Aug Sep Mar Apr May Jun 21 21 21 21 21 21 21 System growth MoM (1) Only includes housing loans to households based on APRA ARF 720.1 reporting definitions, and excludes counterparties such as private trading corporations (2) Excludes 86 400 23 (3) Includes 86 400 from May 2021 660 National Australia Bank#6161 HOUSING LENDING PORTFOLIO PROFILE PAYMENTS IN ADVANCE¹ 60% INTEREST ONLY CONVERSIONS TO P&I² ($bn) 50% 40% 36% 37% 30% 2.0 1.5 2.1 3.8 2.3 1.6 2.4 1.1 1.6 1.6 20% 17% 15% 13% 12% 12% 13% 12% 15% 7.9 8.2 7.8 6.4 6.3 6.2 10% 7% 7% 5.5 4.8 5.1 5.2 2% 2% 0% > 2 years 1-2 years 3-12 months 1-3 <1 months month On time Behind 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 ■Sep 20 Sep 21 ■Contractual conversion ■ Early conversion PROFILE OF REPAYMENTS <1 MONTH, ON TIME¹ APPROVED APPLICANTS BORROWING CAPACITY2 29% 28% 10% 8% 7% ■Loans for investment purposes 9% 8% ■Structural e.g. interest only fixed rates 4% 6% 90% 92% 93% 6% Accounts opened in prior 12 4% months ■Residual 10% 10% 2H20 1H21 2H21 Sep 20 Sep 21 (1) By accounts. Includes offsets. Excludes Advantedge book, line of credit and 86 400 (2) Excludes 86 400 and Advantedge ■Applicants who borrowed at capacity ■Approved applicants with additional capacity to borrow National Australia Bank#62HOUSING LENDING PORTFOLIO QUALITY DYNAMIC LVR BREAKDOWN OF DRAWN BALANCE¹ LVR BREAKDOWN AT ORIGINATION¹ 70% 70% 60% Sep 21 Dynamic LVR 38.8% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% LVR LVR ≤60% LVR 60.01% 70% 70.01%-80% LVR 80.01% - 90% LVR >90% LVR ≤60% LVR 60.01% 70% LVR 70.01%-80% LVR 80.01%-90% ■Mar 20 ■Sep 20 ■Mar 21 ■Sep 21 ■ Mar 20 ■Sep 20 ■Mar 21 HOUSING LENDING 90+ DPD & GIAS AS % OF GLAS¹ LVR >90% ■Sep 21 90+ DPD & GIAS AS % OF TOTAL HOUSING LENDING GLAS - BY CHANNEL¹ 3.0% 2.0% 2.5% 2.00% 1.6% 2.0% 1.35% 1.5% 1.2% 1.45% 1.17% 1.33% 1.0% 1.32% 0.8% 1.26% 1.26% 0.5% 0.4% 0.0% Sep 15 Sep 16 Sep 17 0.0% Sep 18 Sep 19 Sep 20 Sep 21 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 -NSW/ACT (1) Excludes 86 400 QLD SA/NT VIC/TAS ―WA - -Total Broker -Proprietary 62 69 National Australia Bank#63HOUSING LENDING PRACTICES & REQUIREMENTS KEY ORIGINATION REQUIREMENTS Income Household expenses Serviceability Existing debt • Income verified using a variety of documents including payslips and/or checks on salary credits into customers' accounts • 20% shading applies to less certain incomes (temporarily increased to 30% in May 2020, reduced back to 20% in November 2020) Assessed using the greater of: • • . • • Customers' declared living expenses, enhanced in 2016 to break down into granular sub categories Household Expenditure Measure (HEM) benchmark plus specific customer declared expenses (e.g. private school fees). HEM is adjusted by income and household size Assess customers' ability to repay based on the higher of the customer rate plus serviceability buffer (3.0%¹) or the floor rate (4.95%) Assess Interest Only loans on the full remaining Principal and Interest term Verify using declared loan statements and assess on the higher of the customer rate plus serviceability buffer (3.0%¹) or the floor rate (4.95%) • Assessment of customer credit cards assuming repayments of 3.8% per month of the limit Assessment of customer overdrafts assuming repayments of 3.8% per month of the limit (1) Serviceability buffer increased by 0.50% to 3.00% as of 1 November 2021 LOAN-TO-VALUE RATIO (LVR) LIMITS Principal & Interest - Owner Occupier Principal & Interest - Investor Interest Only Owner Occupier Interest Only - Investor 95% 90% 80% 90% 80% 'High risk' postcodes (e.g. mining towns) 70% 'At risk' postcodes • OTHER REQUIREMENTS Loan-to-Income decline threshold of 7x Debt-to-Income decline threshold of 9x • Lenders' mortgage insurance (LMI) applicable for majority of lending >80% LVR • LMI for inner city investment housing >70% LVR Apartment size to be 50 square metres or greater (including balconies and car park) NAB Broker applications assessed centrally - verification and credit decisioning Maximum Interest Only term for Owner Occupier borrowers of 5 years 63 National Australia Bank#64HOUSING LENDING KEY METRICS¹ Australian Housing Lending Total Balances (spot) $bn Average loan size $'000 O Variable rate Fixed rate Mar 20 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Portfolio Drawdowns² 302 299 300 309 29 32 49 309 309 310 315 383 401 427 75.9% 71.9% 67.8% 61.3% 64.0% 53.2% 41.9% 18.3% 22.8% 27.3% 34.4% 35.0% 45.8% 56.9% 5.8% 5.3% 4.9% 4.4% 1.1% 1.0% 1.2% Line of credit By borrower type Owner Occupied ³,4 58.4% 60.1% 61.6% 63.2% 70.1% 71.3% 67.8% Investor³,4 41.6% 39.9% 38.4% 36.8% 29.9% 28.7% 32.2% By channel - Proprietary Broker Interest only5 Low Documentation Offset account balance ($bn) LVR at origination 62.8% 62.2% 60.0% 58.2% 53.1% 52.1% 48.7% 37.2% 37.8% 40.0% 41.8% 46.9% 47.9% 51.3% 17.2% 14.8% 13.6% 12.7% 17.9% 17.3% 20.5% 0.4% 0.4% 0.3% 0.3% 30.0 32.6 33.3 33.5 69.1% 69.2% 69.5% 69.6% Dynamic LVR on a drawn balance calculated basis 44.6% 45.5% 42.3% 38.8% Customers in advance ≥1 month (including offset facilities) 66.5% 69.9% 69.1% 68.5% Avg # of monthly payments in advance (including offset facilities) 36.3 43.4 45.1 47.1 90+ days past due 1.04% 1.18% 1.61% 1.24% Impaired loans 0.12% 0.10% 0.10% 0.10% Specific provision coverage ratio 33.3% 35.4% 32.8% 32.3% Loss rate? 0.02% 0.02% 0.01% 0.01% Number of properties in possession³ 268 155 113 169 HEM reliance 33% 33% 35% 33% (1) Excludes Asia and 86 400 (5) Excludes line of credit products (2) Drawdowns is defined as new lending excluding limit increases and redraws in the previous six month period (6) Excludes Advantedge and line of credit (3) Portfolio sourced from APRA Monthly Banking Statistics (7) 12 month rolling Net Write-offs / Spot Drawn Balances (4) Drawdowns sourced from management data (8) Reduction in properties in possession in Sep 20 and Mar 21 reflects pause in legal activity due to COVID-19 National Australia Bank 64#65ADDITIONAL INFORMATION OTHER AUSTRALIAN PRODUCTS National Australia Bank#66DEPOSITS & TRANSACTION ACCOUNTS DEPOSIT REVENUE ($m) 66 CUSTOMER DEPOSITS BY INTEREST RATE¹ (%) 100 1,623 1,541 $285bn of deposits already 27 24 1,407 22 80 at or near zero interest rate 1,303 22 60 1,596 1,517 40 $137.1bn $147.8bn 1,385 1,281 20 20 $76.4bn $15.5bn $3.5bn 0 Mar 20 Sep 20 Mar 21 Sep 21 less than or between between between equal 0.01% ■ NII ■ OOI 0.02% to 0.25% 0.26% to 0.50% 0.51% to between 0.76% to 0.75% 1.00% CUSTOMER DEPOSIT BALANCES BY PRODUCT ($bn) 141 131 121 111 127 109 116 120 97 108 93 86 $11.9bn more than 1.00% 32 36 42 22 30 33 33 35 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 Mar 21 Sep 20 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 ■NBIs ■Transaction ■Savings Sep 20 ■Term Deposits Mar 21 Sep 21 Mar 20 Sep 20 Mar 21 Sep 21 ■ Offsets (1) Australia only, as at 30 September 2021. Customer deposits exclude home loan offsets, and set-off facilities National Australia Bank#67OTHER BANKING PRODUCTS PERSONAL LENDING BALANCE AND MARKET SHARE¹ 67 ($bn) 9.4% 9.2% 9.0% 9.2% 1.4 1.1 Mar 20 Sep 20 Personal Lending CARDS BALANCE AND MARKET SHARE2,3 ($bn) 13.2% 13.2% 13.3% 13.4% 5.4 4.4 4.6 4.2 1.0 1.0 Mar 21 Sep 21 Mar 20 -Market share Sep 20 Cards Mar 21 Sep 21 Market share CARDS² AND PERSONAL LENDING 90+ DPD AND AS % OF TOTAL CARDS AND PERSONAL LENDING GLAS ($m) CONSUMER CARDS 90+ DPD AS % OF OUTSTANDINGS4 1.6% 1.4% 1.13% 1.16% 1.2% 0.82% 1.0% 0.77% 0.8% 0.61% 77 0.6% 64 46 40 0.4% 0.2% Mar 20 Sep 20 Mar 21 Sep 21 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 90+ DPD 90+ DPD/GLAS (1) Personal Loans market share is based on RFI peer group benchmarking and includes secured and unsecured loans Includes consumer and commercial cards 234 (3) Market share refers to consumer cards only (4) Consumer Cards outstandings now reflect balances at month-end date National Australia Bank#68ADDITIONAL INFORMATION GROUP ASSET QUALITY National Australia Bank#69GROUP CREDIT IMPAIRMENT CHARGE CREDIT IMPAIRMENT CHARGE AS % OF GLAS 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% Late 80's/Early 90's Recession GFC 0.2% -0.1% (0.03%) Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 69 CREDIT IMPAIRMENT CHARGE AND AS % OF GLAS¹ ($m) 0.54% 0.38% 0.31% 1,212 0.18% 0.16% 0.16% 0.12% 0.13% 0.14% 0.16% 0.14% 0.15% 0.13% 0.14% 0.15% 858 928 58 81 579 553 148 146 146 152 113 (0.04%) (0.03%) 341 426 474 428 268 268 227 260 297 357 303 389 84 97 (206) Sep 13 (153) Mar 14 (254) Sep 14 (51) (49) (34) (212) (186) Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 ■ Collective charge/(write-back) ■Specific charge (1) Ratios for all periods refer to the half year ratio annualised National Australia Bank#70GROUP ESTIMATED LONG RUN LOAN LOSS RATE 1985 TO 2021 GROUP BUSINESS MIX - GLAS BY CATEGORY 1985 Personal lending 8% ESTIMATING LONG RUN LOAN LOSS RATE NAB Australian geography net write off rates as a % of GLAS 1985 - 20212 Long run average Home lending 16% 2021 Home lending 57% Home lending³ 0.03% Commercial¹ 76% Personal lending³,4 1.56% Commercial³ 0.52% Australian average (1985-2021) 0.32% Personal lending 1% Group average 5 based on 2021 business mix 0.25% Commercial 42% Group average 5 based on 2021 business mix excluding 1991-1993 and 2008-2010 0.17% (1) For 1985 Group business mix, all overseas GLAs are allocated to Commercial category (2) Data used in calculation of net write off rate as a % of GLAs is based on NAB's Australian geography and sourced from NAB's Supplemental Information Statements (2007 - 2020) and NAB's Annual Financial Reports (1985 - 2006). 2021 net write off rates is based on NAB unaudited results (3) Home lending represents "Real estate - mortgages" category; Personal lending represents "Instalment loans to individuals and other personal lending (including credit cards)" category; Commercial represents "all other industry lending categories" as presented in the source documents as described in note 2 above National 70 (4) Personal lending net write off rate since 2008 is above long run average of 1.56%. Average net write off rate 2008 - 2021 is 2.62% Australia Bank (5) Group average is calculated by applying each of the Australian geography long run average net write off rates by product to the respective percentage of Group GLAs by product as at 30 September 2021. Commercial long run average net write off rate has been applied to acceptances#71GROUP LENDING MIX GROSS LOANS AND ACCEPTANCES BY PRODUCT - $629BN GROSS LOANS AND ACCEPTANCES BY GEOGRAPHY¹ 71 Other term lending 39% Asset & lease _financing 2% Overdrafts 1% Other International. 3% New Zealand 15% Australia 82% Housing loans. 57% Credit card outstandings 1% GROSS LOANS AND ACCEPTANCES BY BUSINESS UNIT Other 2% (1) Based on booking office where transactions have been recorded New Zealand Banking 14% Business & Private Banking 33% Corporate & Institutional Banking 17% Personal Banking 34% National Australia Bank#72GROUP PROVISIONS COLLECTIVE PROVISIONS ($m) 1.56% 1.50% SPECIFIC PROVISIONS ($m) 1.21% 1.35% 5,536 5,209 4,715 4,401 299 191 46 337 43 155 39 56 52.8% 47.6% 45.0% 40.6% 827 840 794 125 115 664 108 100 5,191 4,975 4,521 702 725 4,008 686 564 72 Mar 20 Sep 20 Mar 21 Sep 21 Mar 20 Sep 20 Amortised Loans Fair Value Loans Retail Fair Value Derivatives Business -CP/CRWA TOTAL PROVISIONS ($m) 5,228 1.43% 0.85% Mar 20 1.80% 1.07% 6,376 1.72% 1.00% 6,003 Sep 20 Mar 21 Total Provisions -Total Provision Coverage to GLAS Mar 21 Sep 21 Specific Provisions/Gross Impaired Assets 1.55% 0.86% 5,379 Sep 21 -Total Provision Coverage to CRWA National Australia Bank#73PROVISIONS MOVEMENT IN PROVISIONS¹ ($m) (230) 6,011 5,745 181 (405) (120) 5,171 Total Provisions Sep 20 Total Provisions Mar 21 Underlying collective Forward looking provision Economic Adjustment Target sector forward looking adjustments UNDERLYING CP Model outcomes based on point-in- time data . Forms baseline 2H21 release reflects improved environment and customer positions . • . Specific provision Total Provisions Sep 21 ECONOMIC ADJUSTMENT (EA) Forward view of additional stress across portfolio from base- line, according to 3 probability weighted scenarios (upside, base case & downside) Scenarios based on forward looking macro economic data and granular PD and LGD assumptions EA top-up required where probability weighted EA higher over the period (and vice versa) 2H21 EA increase of $181m reflects modest increased TARGET SECTOR FLAS • Considers forward looking stress incremental to EA changes $248m release in FLAS relating to the partial sale of the Aviation portfolio weighting to downside scenario (30% to 32.5%) given increased uncertainty in the economic outlook² (1) Excludes provisions on fair value loans and derivatives (2) Australian base case weighting now 62.5% (from 65% at 1H21) and Downside weighting now 32.5% (from 30% at 1H21) 73 National Australia Bank#74ECL ASSESSMENT ECL SCENARIOS & WEIGHTINGS Total Provisions for ECL1,2 74 • 2H21 100% Base $m (probability case 100% Downside weighted) Total Group 5,171 Change vs Mar 21 (574) 4,291 (613) 6,984 (346) Macro economic scenario weightings KEY CONSIDERATIONS • Reduction in ECL vs Mar 21 includes $299m CP derecognised with aviation sale³ and $120m SP reduction due to work-outs and low levels of new impairments Modest underlying CP release given improved asset quality $157m reduction in target sector FLAs (ex. aviation sale) Modest EA increase with increased uncertainty in economic outlook Australian Portfolio (%) Upside Base case Downside 31 Mar 21 5 65 30 30 Sep 21 5 62.5 32.5 Limited change in exposures (total and mix) TOTAL PROVISIONS FOR EXPECTED CREDIT LOSSES¹ ECONOMIC ASSUMPTIONS ($m) 6,011 5,745 Economic assumptions considered in deriving Base Case ECL scenario at Sep 21 5,171 4,835 514 314 % 2022 2023 2024 153 410 GDP change (Year ended September) 5.9 2.2 2.5 4,252 4,126 3,770 3,275 Unemployment (as at 30 September) 4.5 4.0 3.8 1,150 Mar 20 1,245 Sep 20 1,305 1,248 Mar 21 Sep 21 House price change 5.5 3.0 (Year ended September) 20 2.0 ■Housing Business Other (1) ECL excludes provisions on fair value loans and derivatives (2) Scenarios, prepared for purposes of informing forward looking provisions, rely on NAB Economics modelling and management judgement (3) Of which $248m relates to target sector FLAS National Australia Bank#75TARGET SECTOR FLAS COLLECTIVE PROVISION TARGET SECTOR FLAS 75 ($m) 1,250 1,029 458 845 372 662 182 155 133 147 232 202 81 160 89 95 180 139 127 136 134 170 190 179 91 25 25 25 59 Mar 20 Sep 20 Mar 21 Sep 21 ■ Aviation ■Australian Tourism, Hospitality and Entertainment Australian Mortgages Australian Agri ■Australian Retail Trade ■Commercial Property ■ Other Aviation FLA release includes $248m as a result of the partial sale of the aviation portfolio $95m release in Australian Agri due to improved trading conditions and outlook $42m release in Australian mortgages due to the impact of house prices and lower delinquencies National Australia Bank#76ECL PROVISIONING BY STAGES LOANS AND ADVANCES BY STAGE¹ PROVISIONS BY STAGE² 76 PROVISION COVERAGE BY STAGE3 ($bn) ($m) (%) 0.77 784.5 792.6 833.3 6,011 5,745 0.72 5,171 0.62 7.9 8.7 9.5 1,644 1,594 206.5 237.8 248.9 1,539 19.0 16.8 19.5 3,897 569.3 545.3 576.5 3,879 3,376 1.89 0.56 1.63 0.53 1.36 470 272 256 0.44 0.08 0.05 0.04 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 ■Stage 1 (12 month ECL) ■Stage 2 (Lifetime ECL) ■Stage 3 (Lifetime ECL) • Status Type of provision Stage 1 (12 month ECL) Credit risk not increased significantly since initial recognition; performing Collective Stage 2 (Lifetime ECL) Credit risk increased significantly since initial recognition but not credit impaired Collective Stage 3 (Lifetime ECL) Credit impaired: default no loss Credit impaired: default with loss Collective Specific • Significant increase in credit risk determined by change in credit risk scores for business exposures and change in behavioural scoring outcomes for retail exposures. These rules are not prescribed by accounting standards • No automatic migration from stage 1 to stage 2 as a result of COVID-19 repayment deferrals; migration assumptions included in forward looking adjustments Stage 2 includes majority of forward looking adjustments (1) Notional staging of loans and advances including contingent liabilities and credit-related commitments, incorporates forward looking stress applied in the ECL model (2) Excludes collective provision on loans at fair value and derivatives which are not allocated to a stage under the ECL model (3) Provision coverage: provisions as a percentage of loans and advances including contingent liabilities and credit-related commitments National Australia Bank#77PROBABILITY OF DEFAULT (PD) ANALYSIS NON RETAIL CORPORATE EAD¹ BY PROBABILITY OF DEFAULT ($bn) 120 100 Investment grade 60% Sep 21 80 60 40 20 ° Sub investment grade 39% Sep 21 Default 1% Sep 21 0<0.03% 0.03<0.11% 0.11<0.55% 0.55<2.00% ■Mar 20 ■Sep 20 ■Mar 21 2.00<5.01% Sep 21 5.01<99.99% 100% AUSTRALIAN AND NEW ZEALAND BUSINESS EXPOSURES PD ≥ 2% 27% 26% 23% 20% 17% 14% 15% 14% 13% 13% 13% 12% 11% 12% 11% Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 (1) For internal ratings based portfolios. Excluding Bank and Sovereign exposures. Total $285bn at Sep 21, $269bn at Mar 21, $266bn at Sep 20 and $283bn at Mar 20 77 National Australia Bank#78NON RETAIL INDUSTRY SECTOR ANALYSIS NON RETAIL EAD BY INDUSTRY¹- $584BN % Non performing² Mar 21 Sep 21 Finance & insurance 37% 0.03% 0.02% Commercial property 13% 0.43% 0.34% Govt & public utilities 11% 0.00% 0.00% Agri, forestry & fishing 9% 0.89% 0.56% Transport & storage 5% 0.67% 0.54% Other inc Health, Education, Community 4% 0.60% 0.43% Includes assets Business & property services 4% supporting the Group's LCR 0.97% 0.97% Manufacturing 3% 0.54% 0.65% Wholesale trade 3% 0.42% 0.29% Utilities 3% 0.01% 0.01% Retail Trade 2% 1.71% 1.24% 1.19% 0.93% Construction 2% 1.38% 1.24% Accomodation & Hospitality 2% 0.42% 0.16% Mining 2% (1) Industry classifications are aligned to those disclosed in the 30 September 2021 Pillar 3 report - Table 5.1D (2) Non performing reflects exposures which are 90+ DPD or Impaired 78 National Australia Bank#79GROUP AGRICULTURE, FORESTRY & FISHING EXPOSURES GROUP EAD $52.8BN SEPTEMBER 2021 Australia 69% New Zealand 31% KEY CONSIDERATIONS • Sector outlook continues to improve, with favourable weather conditions, higher than predicted commodity prices and minimal impact from ongoing China trade tensions • Portfolio asset quality remains robust, benefitting from favourable external conditions 79 AUSTRALIAN AGRICULTURE, FORESTRY & FISHING Diverse Portfolio EAD $36.6bn Sep 21 Other Crop & Cotton 4% Vegetables 3% Grain 7% Grain 10% Beef 22% Australian Agriculture Asset Quality Australian Agriculture Portfolio Well Secured¹ ($m) 0.49% 0.48% Fully Secured 86% 0.43% 0.40% Dairy 5% Forestry & Fishing 3% Services 8% Mixed 25% Sheep/Beef 7% 146 153 158 134 Sheep 3% Other Livestock 2% Poultry 1% Mar 20 Sep 20 90+ DPD & Impaired Mar 21 Sep 21 as % EAD Partially Secured 13% Unsecured 1% (1) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security National Australia Bank#8080 GROUP COMMERCIAL REAL ESTATE¹ GROSS LOANS & ACCEPTANCES ASSET QUALITY Aust New Zealand Total Trend Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 TOTAL CRE (A$bn) 53.2 7.6 60.8 Increase/(decrease) from Impaired loans ratio 0.22% 0.25% 0.26% 0.32% 0.30% 0.19% 2.0 0.1 2.1 Sep 20 (A$bn) % of geographical GLAS Change in % from Sep 20 BALANCES OVER TIME ($bn) 17.1% 10.3% 8.4% 9.7% Specific Provision Coverage 34.4% 31.9% 32.2% 39.9% 39.2% 44.6% (0.7%) (0.2%) 11.6% 11.3% 10.2% 9.9% 9.7% 75 61 62 62 62 59 199 61 10 7 6 6 16 52 55 53 55 45 Sep 09 Sep 13 Sep 16 Sep 19 Investor Developer (1) Measured as balance outstanding as at 30 September 2021 per APRA Commercial Property ARF 230 definitions Sep 20 -Group CRE % of Group GLAS Sep 21 National Australia Bank#81GROUP COMMERCIAL REAL ESTATE¹ BREAKDOWN BY TOTAL GROSS LOANS & ACCEPTANCES ($60.8BN) Geographic breakdown QLD 14% WA VIC 25% 5% SA 5% Other Australia 4% Investor 90% NSW 34% New Zealand 13% Borrower breakdown Retail 29% Tourism Developer 10% & Leisure ✓ 3% Developer includes $1.1bn for land development and $2.1bn for residential development in Australia (1) Measured as balance outstanding as at 30 September 2021 per APRA Commercial Property ARF 230 definitions 81 Sector breakdown Residential 11% Industrial 17% Other 7% Office 28% -Land 5% National Australia Bank#82GROUP OFFICE, RETAIL, TOURISM & LEISURE COMMERCIAL REAL ESTATE¹ GLA PROFILE KEY CONSIDERATIONS Limit utilisation ~87% • $35.9bn $36.9bn 2.0 2.0 16.3 17.7 17.6 ■Tourism & Leisure ■Retail ■ Office Mar 21 PORTFOLIO CHARACTERISTICS¹ 17.2 ■Tourism & Leisure ■Retail ■ Office Sep 21 Office, Retail and Tourism & Leisure (T&L) viewed as most impacted by COVID-19 across Group CRE portfolio • Office faces medium term uncertainties, dependent on extent and timing of return-to-work and asset-specific lease expiries; ~44% of Australian balances CBD-based (of which ~88% C&I) • Market liquidity and well supported valuations for Retail assets with stronger bias to non-discretionary tenants; T&L to benefit from increasing vaccination rates and lifting of restrictions • CBD-based Retail and T&L assets impacted by lockdowns given low office occupancy and closed borders: ~6% of Australian Retail balances (of which ~50% C&I); minority of Australian T&L balances 90+ DPD AND GIAS AND AS % OF SECTOR GLAS 82 Geographic breakdown Portfolio security² ($m) WA Qld 14% 4% ៨៖ SA 5% 0.16% Vic 25% Fully secured New Zealand 12% 90% Partially secured 4% NSW 35% Other Unsecured 6% 5% 0.25% 0.24% 0.17% 90 85 62 58 Borrower breakdown: Investor 96%, Developer 4% Mar 20 Sep 20 190+ DPD & GIAS Mar 21 as % of GLAS Sep 21 (1) Measured as balance outstanding as at 30 September 2021 per APRA Commercial Property ARF230 definitions (2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security. Unsecured proportion represents Institutional exposures that are weighted towards listed A-REITs and wholesale funds which are lowly geared and exhibit strong debt servicing. National Australia Bank#83RETAIL TRADE! EXPOSURE AT DEFAULT EAD $14.5bn 2.1 3.7 8.7 EAD $14.6bn EAD $14.6bn 2.3 3.4 8.9 6.6 8.0 ■B&PB C&IB ■NZ ■B&PB C&IB ■ NZ ■Non-Discretionay ■Discretionary Mar 21 Sep 21 EAD PORTFOLIO BY SECTOR AND SECURITY2 Personal & Household Food 22% Goods 52% Motor Vehicles 26% Fully secured 51% Partially secured 36% KEY CONSIDERATIONS • Notwithstanding challenges pre COVID-19, the Retail Trade sector performed relatively well during lockdowns as consumers continued spending, but impacts have been uneven across segments • Full impact of COVID-19 on the Retail industry not yet fully played out, given unprecedented levels of government and bank support • Retail Trade portfolio COVID-19 impacts mixed: • ~46% is non-discretionary with more limited COVID-19 impacts • ~11% of B&PB exposure is CBD located 90+ DPD AND GIAS AND AS % OF SECTOR EAD ($m) 1.97% 1.97% 1.71% 1.58% 1.45% 1.24% 1.06% Unsecured 13% 295 293 212 229 248 181 151 Sep 18 Mar 19 Sep 19 190+ DPD & GIAS Mar 20 Sep 20 as % EAD Mar 21 Sep 21 (1) Retail Trade is aligned to Regulatory Industry Classifications. Discretionary / Non-discretionary Retail Trade determined at an individual ANZSIC code level (2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security 83 National Australia Bank#84TOURISM, HOSPITALITY AND ENTERTAINMENT EXPOSURE AT DEFAULT EAD $13.5bn EAD $13.6bn 1.9 1.9 5.5 5.5 6.1 6.2 KEY CONSIDERATIONS • Industry outlook for Hospitality & Entertainment sectors continues to improve, reflecting growing confidence in COVID-19 tracking, controls and immunisation levels; Tourism and Accommodation sectors exposed to international visitors continue to face uncertainties • Prior resurgence in regional TH&E activities has stalled given lockdowns and domestic border closures • Extent of COVID-19 impacts dependent on location. ~19% of B&PB portfolio is in CBD and has seen a significant drop in activity given lockdowns and WFH ■B&PB C&IB ■NZ ■B&PB C&IB ■NZ Mar 21 Sep 21 EAD PORTFOLIO BY SECTOR AND SECURITY2 Accomodation 46% Pubs, Taverns & Bars 16% Others 38% Partially secured 20% 90+ DPD AND GIAS AND AS % OF SECTOR EAD ($m) 1.15% 1.13% 1.23% 0.88% 0.97% 1.07% 1.13% Fully secured 72% 157 153 138 152 166 153 121 Unsecured 8% Sep 18 Mar 19 Sep 19 90+ DPD & GIAS Mar 20 Sep 20 Mar 21 Sep 21 as % EAD (1) Tourism, hospitality and entertainment include regulatory industry classification of accommodation and hospitality, plus cultural and recreational services (2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security 84 National Australia Bank#85AIR TRAVEL AND RELATED SERVICES EXPOSURE AT DEFAULT EAD $10.1bn 0.7 8.6 EAD $8.8bn 0.7 7.8 KEY CONSIDERATIONS ● ~2% of non retail EAD • 0.8 0.3 • ■ B&PB ■C&IB ■NZ ■ B&PB ■ C&IB ■ NZ Portfolio comprises airlines which are usually national carriers and sovereign owned, airports, lessors and service companies supporting the aviation industry Ongoing disruption caused by COVID-19 related travel restrictions, with length and severity unknown; sovereign support and access to capital markets continues EAD reduction driven by sale of part of the aviation portfolio Mar 21 Sep 21 EAD PORTFOLIO BY SECTOR AND SECURITY¹ 90+ DPD AND GIAS AND AS % OF SECTOR EAD 0.80% 0.77% ($m) Partially Service to Air secured Transport 39% 66% 0.46% 0.45% 0.43% 0.40% Aircraft leasing 25% Air Transport 36% 0.16% 77 70 70 49 47 47 48 Fully secured 26% Unsecured 16 8% Sep 18 Mar 19 Sep 19 90+ DPD & GIAs Mar 20 Sep 20 Mar 21 Sep 21 as % EAD (1) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security 85 National Australia Bank#86ADDITIONAL INFORMATION CAPITAL & FUNDING National Australia Bank#87CREDIT RISK WEIGHTED ASSETS CREDIT RWA ($bn) 87 348.2 12.5 (3.5) I I | I Credit quality & portfolio mix -$11.3bn (3.1) (3.4) (4.8) 3.9 (1.8) 348.0 2 Mar 21 Volume Model and Methodology Net non-retail Other non-retail² Retail Derivatives and Translation FX Sep 21 Upgrades/ Downgrades¹ Repurchase Agreements (1) Includes SME overlay release (-$1.4bn) (2) Includes changes in quality, portfolio mix and maturity National Australia Bank#88GROUP BASEL III CAPITAL RATIOS 22.25% 19.07% 17.97% 17.01% 15.80% 23.98% 20.05% 17.95% 25.54% 18.91% 17.90% 16.62% 13.20% 14.01% 14.64% 11.47% 12.37% 13.00% Sep 20 Mar 21 Sep 21 APRA Common Equity Tier 1 ratios APRA to Internationally Comparable CET1 Ratio Reconciliation APRA Tier 1 ratios ■APRA Total Capital ratios Equivalent Internationally Comparable ratios¹ CET1 Group CET1 ratio under APRA APRA's Basel capital adequacy standards require a 100% deduction from common equity for deferred tax assets, investments in non-consolidated subsidiaries and equity investments. Under Basel Committee on Banking Supervision (BCBS) such items are concessionally risk weighted if they fall below prescribed thresholds Mortgages - reduction in loss given default floor from 20% to 15% and adjustment for correlation factor Interest rate risk in the banking book (IRRBB) - removal of IRRBB risk weighted assets from Pillar 1 capital requirements Other adjustments including corporate lending adjustments and treatment of specialised lending Group Internationally Comparable CET1 (1) Internationally Comparable CET1 ratios align with the APRA study entitled "International capital comparison study" released on 13 July 2015 88 13.00% +68bps +194bps +49bps +184bps 17.95% National Australia Bank#89KEY REGULATORY CHANGES IMPACTING CAPITAL AND FUNDING 89 Change 1HCY21 2HCY21 CY22 Capital Adequacy (APS 110) Consult Finalise CY23 Implementation CY24 CY25 Measurement of Capital (APS 111) Consult Finalised Implementation Credit Risk (APS 112/113) Consult Finalise Implementation Operational Risk (APS 115)1 Implementation Market Risk (APS 116) Consult Finalise Counterparty Credit Risk (APS 180) Consult Finalise Implementation Implementation Interest Rate Risk in the Banking Book (APS 117) Finalise Implementation Public Disclosures (APS 330) Credit Risk Management (APS 220) Loss-Absorbing Capacity Remuneration (CPS 511) Consult/Finalise Implementation Finalise Implementation Implementation Finalised Consult Finalise Implementation Implementation Recovery and Resolution APRA'S REVISIONS TO ADI CAPITAL FRAMEWORK Revisions follow the 2017 APRA benchmark of 'unquestionably strong' capital ratios and APRA's discussion paper on 'a more flexible and resilient capital framework for ADIs' released in December 2020 Final prudential standards expected in November 2021, with implementation from 1 January 2023 Overall level of capital in the system is expected to be broadly unchanged Interim reporting requirements to be finalised throughout 2022 and final reporting standards to be released in 2024 APRA FUNDING & LIQUIDITY CHANGES In September 2021, APRA announced the phasing out of the RBA's Committed Liquidity Facility (CLF) to zero by the end of December 2022 subject to market conditions. The CLF reduction is expected to be offset by ADIs increasing holdings of HQLA APRA is consulting on requiring ADIs subject to LCR requirements to hold unencumbered self-securitised assets equal to 30% of LCR Net Cash Outflows (1) APRA has provided the option to banks using the Advanced Measurement Approach to implement APS 115 from 1 January 2022 National Australia Bank#90FUNDING PROFILE GROUP STABLE FUNDING INDEX (SFI)' 101% 101% 93% 93% 90% 91% 86% 23% 22% 20% 22% 24% 23% 20% 78% 79% 70% 69% 69% 70% 66% Sep 12 Sep 14 Sep 16 Sep 18 Sep 19 Sep 20 Sep 21 ■Customer Funding Index ■Term Funding Index (1) The Group Stable Funding Index (SFI) is the sum of the Customer Funding Index (CFI) and Term Funding Index (TFI). CFI is measured as customer deposits (excluding certain short dated institutional deposits used to fund liquid assets) as a percentage of core assets. TFI is measured as term wholesale funding (with remaining maturity to first call date greater than 12 months), including Term Funding Facility (TFF) and RBNZ funding facility drawdowns, as a percentage of the core assets. 90 90 National Australia Bank#91LOSS-ABSORBING CAPACITY • LOSS-ABSORBING CAPACITY Based on the Group's RWA and Total Capital position as at 30 September 2021, the incremental Group Total Capital requirement prior to January 2024 is approximately $3.0bn $1.8bn of surplus provisions are eligible for inclusion in Tier 2 Capital $1.5bn of NAB's existing Tier 2 Capital has optional redemption dates prior to January 20241 Group RWA Sep-21 ($bn) 417.2 Tier 2 Requirement (5% by Jan-24) 2 Existing Tier 2 Capital (4.27%) Current Shortfall 20.8 17.8 3.0 APRA CHANGES TO MAJOR BANKS' CAPITAL STRUCTURES³ CET1 buffer/ surplus ~5% CCB6 3.5% CET1 minimum requirement 4.5% Total Capital 18.91% T2, 4.27% AT1, 1.64% CET1, 13.00% NAB Sep 2021 Total Capital 17.0% T2, 5.0% AT1, 1.5% CET1 Surplus 4,5, 2.5% CCB6, 3.5% CET1, 4.5% Jan 2024 LAC Requirements NAB TIER 2 ISSUANCE AND PORTFOLIO DIVERSIFICATION NAB TIER 2 MATURITIES (TO FIRST CALL') JPY 1% GBP 7% SGD 3% CAD 7% USD 47% AUD 35% Bullet 39% Callable 61% ($bn) WAM 7.9 yrs (RTM) 8.4 2.4 0.1 1.4 1.7 1.0 1.1 • In FY21, NAB issued $5.6bn of Tier 2. NAB's FY22 Tier 2 issuance is expected to be approximately $3-4bn FY22 FY23 FY24 FY25 FY26 FY27 >FY27 (1) Subject to the prior written approval of APRA (2) Ahead of January 2024 APRA will consider "feasible alternative methods" for raising an additional 1-2% of RWA in loss-absorbing capacity, in consultation with industry and other interested stakeholders (3) APRA's proposed revisions to 'unquestionably strong' framework (released December 2020) not reflected (4) Capital surplus of 2.5% is generally higher than the normal level for D-SIBS, as a result of the 'unquestionably strong' capital benchmarks (5) Excludes any Pillar 2 requirements and additional loss-absorbing capacity 1-2% RWA requirement through "feasible alternative methods" 91 (6) CCB is the Capital Conservation Buffer National Australia Bank#92ASSET FUNDING FUNDED BALANCE SHEET¹ $837bn $837bn Liquid Assets², 23% Other Short Term Assets³,1% Short Term Wholesale, 13% Term Funding <12 Months, 4% Other Deposits5, 5% Business and Other Lending³, 32% Stable Customer Deposits6, 55% Central Bank Housing Lending, 43% Funding Facilities7, 4% Term Funding >12 Months, 12% SOURCE AND USE OF FUNDS ($bn) Source of funds 32 22 3 20 20 24 21 I I I I I | I 24 24 Use of funds I I 34 I I 17 I I I I I I I I |- 34 == I Customer Deposits Equity Other Assets4. 1% Assets Equity, 7% Term Wholesale Funding Issuance 7 Central Bank Short Term Liquid Funding Wholesale I Assets Facilities Funding Term Wholesale Term Wholesale Lending ³ 3 8 Funding Maturities FX and 8 Other 3,9 Funding 12 months to 30 September 2021 1) Excludes repurchase agreements, trading and hedging derivatives, and any accruals, receivables 6) and payables that do not provide net funding 2) 3) 4) 237 Market value of marketable securities including HQLA, non-HQLA securities and commodities Trade finance loans are included in other short-term assets, instead of business and other lending Includes net derivatives, goodwill, property, plant and equipment and net of accruals, receivables and payables 7) Includes operational deposits, non-financial corporate deposits and retail / SME deposits and excludes certain offshore deposits as defined in APRA standard APS 210 Liquidity Includes RBA's Term Funding Facility (TFF) and RBNZ's Term Lending Facility (TLF) and Funding for Lending Programme (FLP) 8) Includes Additional Tier 1 9) Includes the net movement of other assets and other liabilities 925) Includes non-operational financial institution deposits and certain offshore deposits as defined in APRA standard APS 210 Liquidity National Australia Bank#93LIQUIDITY LIQUIDITY COVERAGE RATIO (QUARTERLY AVERAGE) 136% LCR 139% LCR 136% LCR 128% LCR 126 137 163 98 73 47 28 54 143 135 149 112 Mar 20 Sep 20 Mar 21 Sep 21 ■Net Cash Outflows 1 ALA ■ HQLA LCR MOVEMENT % 136 17 12 9 4 NET STABLE FUNDING RATIO COMPOSITION Group NSFR 123% as at 30 September 2021 $580bn Wholesale Funding & Other Non-Financial Corporate Deposits Retail/SME Deposits $473bn Liquids and Other Assets Other Loans Capital Available Stable Funding Residential Mortgages <35% RWA Required Stable Funding NET STABLE FUNDING RATIO MOVEMENT % 122 128 0.5 (0.2) (0.6) 2.6 (5.4) 4.0 123 2 Ave LCR Mar 21 HQLA ALA-TFF Drawn NCO - Customer Deposits & Wholesale Other Ave LCR Sep 21 Mar 21 Loans Deposits Wholesale Capital Funding Liquids Derivatives Sep 21 3 & Other Funding (1) Committed Liquidity Facility (CLF) and Term Funding Facility (TFF) values used in LCR calculation are the undrawn portion of the facility. The average amount of undrawn TFF included in the LCR was $12bn for the March Quarter and $0bn for the September Quarter (2) Other includes an increase in lending commitments and reduced lending inflows (3) Includes drawdowns of Term Funding Facility (TFF) 93 National Australia Bank#94LIQUIDITY CONSIDERATIONS • INCREASED SYSTEM LIQUIDITY Central bank policies continue to increase system liquidity and deposit growth. TFF has been fully drawn ($17.6bn in FY21 for NAB), with NAB managing maturity concentration over FY23-24 CLF to be phased out to zero by end of 2022 (currently at $31bn). Implications for NAB include: • Increased wholesale funding issuance • Higher physical liquids from replacement of CLF to impact margins as more low yielding assets are added to the balance sheet • Reduced CLF cost due to removal of 20bps fee by end of 2022 offset by cost of additional funding required for liquid assets UNWINDING THE LIQUIDITY INJECTION BY THE RBA3 Bond purchases expected to cease in AUSTRALIAN CORE FUNDING GAP1 ($bn) 260 240 220 200 180 160 140 120 APRA Methodology Change² Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Peer 3 -NAB Peer 1 Peer 2 SYSTEM EXCHANGE SETTLEMENT ACCOUNT (ESA) BALANCES4 ($bn) ($bn) 600 500 400 300 200 100 0 Mar-20 February 2022 Mar-22 Mar-24 400 TFF matures by June 2024 350 300 250 Wind down of current bond purchase program 200 Policy response to COVID-19 commenced Mar-20 150 100 50 Mar-26 Mar-28 Mar-30 Mar-32 0 Mar 19 Sep 19 RBA bond purchasing commences Final drawdowns of the TFF Continuation of QE Australian Government Securities ■Semi-Government Securities ■TFF Mar 20 Sep 20 Mar 21 Sep 21 (1) Australian core funding gap = Gross loans and advances plus Acceptances less Total deposits (excluding financial institution deposits and certificates of deposit) (2) APRA Monthly Banking Statistics are used from September 2017 to March 2019. April 2019 onwards is prepared using APRA Monthly Authorised Deposit-taking Institution Statistics. Statistics as at September 2021 (3) RBA unconventional monetary policies from March 2020, including TFF, bonds purchased to address market dysfunction, Yield Curve Control or Quantitative Easing (QE). Also includes forecast bond purchases at a rate of $4bn per week to February 2022 94 (4) ESAs are the means by which providers of payments services settle obligations that have accrued in the clearing process, operated through the Reserve Bank Information and Transfer System (RITS) Effective 4 November 2020, the interest rate on surplus ESA balances set by the RBA is 0.00%. RBA data National Australia Bank#95TERM WHOLESALE FUNDING PROFILE HISTORIC TERM FUNDING ISSUANCE¹ ($bn) 5.4 yrs 36 30 30 4.8 5.2 5.7 yrs yrs yrs 6.7 yrs 8.1 yrs 37 37 28 28 26 29 29 33 32 14 18 23 21 13 10 5 FY17 5 FY18 5 2 FY19 FY20 FY21 ■Senior and Sub Debt CRBA Term Funding Facility CRBNZ Term Funding Facilities 6 FY16 Tenor² ■Secured TERM FUNDING MATURITY PROFILE² ($bn) WAM 3.5 yrs³ 4 4,5 ■Secured ■Senior and Sub Debt WAC of maturing portfolio is 113bps6 40 CRBA Term Funding Facility CRBNZ Funding Facilities 39 28 14 23 5 FY22 21 5 FY23 18 16 4 FY24 26 14 11 21 165 FY25 9 3 FY26 5 Beyond (1) Includes senior unsecured, secured (covered bonds and securitisation) and subordinated debt with an original term to maturity or call date of greater than 12 months, excludes Additional Tier 1 instruments (2) Weighted average maturity and maturity profile of funding issuance with an original term to maturity greater than 12 months. Excludes Additional Tier 1, Residential Mortgage Backed Securities, RBA Term Funding Facility and RBNZ funding facilities (3) Remaining weighted average maturity, excludes Additional Tier 1, Residential Mortgage Backed Securities, RBA Term Funding Facility and RBNZ funding facilities National 95 (4) Contractual maturity is based on drawdown date Australia 95 Bank (5) Includes RBNZ's Term Lending Facility (TLF) and Funding for Lending Programme (FLP) (6) Weighted average cost refers to the cost of the maturing portfolio over the year and is shown as a spread over 3m BBSW. Includes subordinated debt and excludes Additional Tier 1 and BNZ#96DIVERSIFIED AND FLEXIBLE TERM WHOLESALE FUNDING PORTFOLIO FY21 ISSUANCE BY PRODUCT TYPE¹ FY21 ISSUANCE BY CURRENCY¹ 96 Subordinated Public 45% Secured Public Offshore 11% Secured Public Domestic 11% Senior Public Offshore 7% Senior Public Domestic 26% OUTSTANDING ISSUANCE BY PRODUCT TYPE¹ RMBS 2% Covered 21% Senior 64% Subordinated 13% (1) Excludes Additional Tier 1, RBA Term Funding Facility and RBNZ funding facilities AUD 32% EUR 21% OUTSTANDING ISSUANCE BY CURRENCY¹ USD 29% JPY 3% GBP 5% USD 33% NZD 5% GBP 9% AUD 27% EUR 27% Other 9% National Australia Bank#97FUNDING COSTS INDICATIVE TERM WHOLESALE FUNDING ISSUANCE COSTS¹ (bps) 400 300 200 100 0 Sep 18 TERM DEPOSIT PORTFOLIO COSTS² (bps) 80 70 60 50 40 30 Mar 19 Sep 19 Mar 20 3 yr senior 5 yr senior - Sep 20 10yr senior Mar 21 Sep 21 20 10NC5 Tier 2 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 DOMESTIC SHORT TERM WHOLESALE FUNDING COSTS³ (bps) 50 40 30 20 10 0 -10 Sep 19 Mar 20 Sep 20 3M Bills-OIS Spread CASH RATES (bps) 1 0.8 0.6 0.4 0.2 Mar 21 Sep 21 0 -- - 90 Day Moving Average Sep 19 Dec 19 Mar 20 Jun 20 ―RBA Target Cash Rate Sep 20 Dec 20 Mar 21 ―Interbank Overnight Cash Rate (IOCR) Jun 21 Sep 21 (1) Indicative Major Bank Wholesale subordinated and senior unsecured funding rates over 3m BBSW using a blend of multi-currency inputs (3 years, 5 years, 10-year non-call 5-year and 10 years) (2) Management data. Total deposit portfolio cost over relevant market reference rate. Australia only (3) Spread between 3 month AUD Bank Bill Swap Rate and Overnight Index Swaps (OIS). Source: Bloomberg 97 National Australia Bank#98CAPITAL & DEPOSIT HEDGES NAB REPLICATING PORTFOLIOS¹ - NAB REPLICATING PORTFOLIOS¹ (%) Replicating portfolio Ave return of replicating portfolio 3.0 1H21 2H21 FY21 30 Sep 21 balance Invested out to term of 2.5 0.95% 0.75% 0.85% Capital Low rate deposits AUD $63bn AUD $42bn 3 years 2.0 5 years 1.5 BNZ REPLICATING PORTFOLIOS2 1.0 Replicating portfolio 0.5 30 Sep 21 balance Invested out to term of 0.0 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Capital Low rate deposits SWAP RATES³ (%) NZD $9bn 2 years NZD $9bn 5 years NAB Portfolio Rate 3m BBSW Swap rates have BNZ — REPLICATING PORTFOLIOS2 increased sharply since (%) 30 September 2021 3.0 3.0 Ave return of replicating portfolio 2.5 2.5 1H21 2H21 0.94% 0.78% FY21 0.86% 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Mar 18 Mar 18 Sep 18 Mar 19 Sep 19 Sep 18 Mar 19 Sep 19 Mar 20 Mar 20 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 AUD 3 Year - AUD 5 Year - NZD 2 Year NZD 5 Year BNZ Portfolio Rate 3m BKRM (1) Blended replicating portfolio (Australia only). Replicating portfolio includes capital and low rate deposits, which consist of non-interest bearing deposits and lower tiers in Retirement account. The investment tenor for Capital was extended from 2yr to 3yr in 2H21 Blended replicating portfolio (New Zealand only). Replicating portfolio includes capital and low rate deposits, which consist of non-interest bearing deposits and lower tiers in Retirement account AUD Swap Rates sourced from Bloomberg and NZD Swap Rates sourced from Reuters (2) (3) 98 National Australia Bank#99ADDITIONAL INFORMATION LONG-TERM: A SUSTAINABLE APPROACH National Australia Bank#100SUSTAINABILITY IS EMBEDDED IN OUR GROUP STRATEGY . COMMERCIAL RESPONSES TO SOCIETY'S BIGGEST CHALLENGES 磁 Embedding sustainability means doing good through the way we do business. Using our core skills and resources and focusing activity in three areas: Our priorities: Climate change Affordable and specialist housing Indigenous business RESILIENT AND SUSTAINABLE BUSINESS PRACTICES Getting the basics right and managing our environmental, social and governance (ESG) risks and opportunities responsibly. Our priorities: Colleagues and culture Inclusive banking ESG risk management Supply chain management Human rights, including modern slavery . • INNOVATING FOR THE FUTURE $ Driving investment in new, emerging and disruptive technologies, and partnering with customers, industry and government on critical initiatives. Our priorities: Our future core business and market- leading data analytics Partnerships that matter 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 AND INFRASTRUCTURE INDUSTRY, INNOVATION 11 SUSTAINABLE CITIES AND COMMUNITIES 13 CLIMATE ACTION 15 LIFE ON LAND ALIGNED TO SIX KEY UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS¹ - WHERE WE CAN MAKE THE BIGGEST IMPACT (1) www.un.org/sustainabledevelopment 100 National Australia Bank#101ESG GOVERNANCE & PERFORMANCE Audit Committee Chair: David Armstrong Customer Committee Chair: Ann Sherry BOARD COMMITTEES: Nomination & Governance Committee Chair: Philip Chronican People & Remuneration Committee Chair: Anne Loveridge Risk & Compliance Committee Chair: Simon McKeon Sustainability Council Chair: Les Matheson Updates on ESG risks are provided to the Board Risk & Compliance Committee and Board as appropriate EXECUTIVE COMMITTEES OVERSEEING KEY ASPECTS OF ESG RISK Executive Risk & Compliance Committee Chair: Shaun Dooley Group Non-Financial Risk Committee Chair: Patrick Wright Group Credit & Market Risk Committee Chair: David Gall NAB's overall approach to corporate governance available at: nab.com.au/corporate governance Summary of relevant ESG policies and positions available at: nab.com.au/esgrisk IMPLEMENTATIION OF APRA SELF-ASSESSMENT ACTIONS AND ROYAL COMMISSION RECOMMENDATIONS • . Of 26 actions identified in NAB's 2018 Self-Assessment, all but three are now embedded and closed, those remaining relate to reviews that are ongoing in nature NAB will engage with APRA to determine whether related issues identified in NAB's Self-Assessment have been addressed to the satisfaction of the regulator Reform program has driven improvement in governance, accountability and culture, to address the root causes of past failings The voice of the customer is now firmly represented, executive accountabilities are clear due to updated operating model and risk committee structure has improved ownership and accountability for risks and issues • Actively Implementing all applicable reforms following the Banking & Financial Services Royal Commission Not applicable Do not currently require action In progress Completed or well advanced 21 24 10 21 101 National Australia Bank#102ESG REPORTING FRAMEWORKS AND BENCHMARKED ESG PERFORMANCE GRI Empowering Sustanable Decisors INTEGRATED REPORTING TCFD HE HARMONY OF NATURE IR TASK FORCE CLIMATE-RELATED FINANCIAL DISCLOSURES PEOPLE AND TERRA CARTA RDIAC NATURA Member of HOMINUM Dow Jones Sustainability Indices Powered by the S&P Global CSA REPORTING FRAMEWORKS Since 2003, NAB has prepared its sustainability reporting in alignment with the Global Reporting Initiative Since 2011, NAB has actively supported the concept of integrated reporting, and as a pilot programme member, actively contributed to the development of the Integrated Reporting Framework Since 2017, NAB has aligned its climate reporting to the recommendations of the Task Force on Climate- related Financial Disclosures BENCHMARKED ESG PERFORMANCE Recipient of the 2021 inaugural Terra Carta Seal for our commitment to, and momentum towards, the creation of genuinely sustainable markets. The only Australian bank to receive the Seal, and one of only three Australian companies Ranked 11th globally for banking sector in 2020. Included in DJSI World Index and DJSI Australia MSCI ESG RATINGS A CCC BBB BBB AAA AAA FTSE4Good CDP DISCLOSURE INSIGHT ACTION Received a rating of A (on a scale of AAA- CCC) in the MSCI ESG Ratings assessment in 20211 ESG Rating 4.5 in 2021. Top 4% of Banks globally Classified in the Leadership band amongst the global financial services sector with a score of A- in 2020 (1) The use by NAB of any MSCI ESG research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of NAB by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI 102 National Australia Bank#103OUR GROUP CLIMATE STRATEGY GOAL OF ALIGNING OUR LENDING PORTFOLIO TO NET ZERO EMISSIONS BY 2050 • First Australian bank to have signed the Collective Commitment to Climate Action (CCCA) • Financed emissions estimate expanded to 8 sectors • • . Sector specific pathway mapping work is under way and interim target-setting is on track to be published in our 2022 annual reporting suite SUPPORTING OUR CUSTOMERS TO DECARBONISE AND BUILD RESILIENCE Working closely with 100 of our largest GHG-emitting customers to support them as they develop or improve their low carbon transition plans by 30 September 2023 $70 billion environmental financing target by 30 September 20251 ⚫ Bank for Transition to support customers in their journey to net zero emissions • ACTIVELY REDUCING OUR OWN EMISSIONS Carbon neutral in operations for over a decade Focused on reducing our operational greenhouse gas emissions (targeting 51% reduction by 30 June 2025 against a 30 June 2019 baseline) • Target to source 100% of electricity consumption needs from renewable energy sources by 30 June 2025 . MANAGING CLIMATE RISK • Committed to TCFD since 2017 • Progressing Climate Vulnerability Assessment . Completed review of oil and gas sector - published additional ESG- related credit policy settings and capped exposure to oil and gas SUPPORTED BY HIGHLY CAPABLE COLLEAGUES Climate change module in annual Risk Awareness training for all colleagues Climate change included in Board development agenda • Select bankers taking part in a course on identifying climate-risk and developing transition plans in partnership with Melbourne Business School RESEARCH, PARTNERSHIPS & ENGAGEMENT Actively taking part in nationwide discussions on how Australia gets to net zero as a leader in sustainable technology • Launched Project Carbon, a Voluntary Carbon Marketplace pilot in partnership with CIBC, Itaú Unibanco and NatWest Group (1) Represented as a cumulative amount of new environmental finance since 1 October 2015. Refer to the Group's 2021 Sustainability Data Pack for a further breakdown of this number and reference to how the environmental financing commitment is calculated 103 National Australia Bank#104CLIMATE METRICS AND TARGETS ENVIRONMENTAL FINANCING¹ (cumulative $bn) RENEWABLES EAD AS A % OF ENERGY GENERATION² 70 70 31% 31% 29% 29% 42% 52% 56 43 34 69% 69% 71% 71% 58% 48% 23 13 7 2016 2016 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2025 Target NAB GROUP ELECTRICITY CONSUMPTION FROM RENEWABLE SOURCES³ (% of total electricity consumption) 7% 3% 2019 2020 31% 2021 100% 2025 Target ■Renewables ■Gas, coal & mixed fuel NAB GROUP OPERATIONAL GHG EMISSIONS (SCOPE 1 & 2)3,4 (tCO2-e 000's) Carbon neutral in operations for over a decade 151 136 123 117 106 89 74 68 2015 baseline 2016 2017 2018 2019 2020 2021 104 (1) This includes NAB's financing of green infrastructure, capital markets, asset finance and new mortgage lending flow for 6 Star residential housing in Australia (new dwellings and significant renovations) as a cumulative flow of new environmental finance since 1 October 2015. Refer to 2021 Sustainability Data Pack. (2) NAB methodology (based upon the 1993 ANZSIC codes) at net EAD basis. Excludes exposure to counterparties predominantly involved in transmission and distribution. Vertically integrated retailers included and categorised as renewable where majority of their generation activities sourced from renewable energy. More detail at https://www.nab.com.au/about-us/social-impact. (3) NAB's operational environmental numbers are reported on a July-June performance period (4) Significant progress towards NAB's 2025 science-based target was demonstrated in 2020 and 2021 however performance has been influenced by COVID-19 impacts and we do not expect all of the reductions achieved to date to be permanent. 2020 and 2019 progress restated due to additional electricity charges at our BNZ operations. Includes our net operational scope 1 and 2 GHG emissions, 2020 and 2021 figures calculated using a market-based approach 2025 Target National Australia Bank#105OUR EXPOSURES TO THE ENERGY GENERATION AND RESOURCE SECTOR ENERGY GENERATION EAD BY FUEL SOURCE¹ ($bn) 7.79 7.37 7.18 6.83 Gas 1.16 0.98 0.12 0.08 0.78 0.78 0.09 . ■ Coal 1.15 0.08 1.04 1.19 0.99 ■Mixed Fuel 1.94 1.74 1.70 2.27 ■ Other/Mixed Renewable 1.07 1.18 0.97 0.63 ■ Hydro 2.35 2.35 2.31 2.22 Wind RESOURCE EAD BY TYPE ($bn) Mar 20 Sep 20 Mar 21 Sep 21 11.54 ■Gold Ore Mining 1.45 9.33 0.62 9.15 ■Metallurgical Coal Mining 0.74 8.41 1.08 0.79 0.84 ■Thermal Coal Mining 0.63 0.60 0.35 0.32 0.52 0.67 0.65 0.93 2.39 0.76 0.65 ■Iron Ore Mining 2.05 2.02 2.23 1.40 ■Other Mining 1.40 1.41 1.44 ■Mining Services 4.09 2 2.74 2.76 2.90 ■■Oil & Gas Extraction Mar 20 Sep 20 Mar 21 Sep 21 • • . Renewables comprise 71.4% of energy generation EAD at September 21, increasing from 39% as at September 2014 Thermal coal exposures decreased 20.8% over the half Thermal coal exposures have reduced 32.4% against September 19 cap level 20% of thermal coal mining EAD is for performance guarantees to rehabilitate existing coal mining sites (1) NAB methodology (based upon the 1993 ANZSIC codes) at net EAD basis. Excludes exposure to counterparties predominantly involved in transmission and distribution. Vertically integrated retailers included and categorised as renewable where majority of their generation activities sourced from renewable energy. More detail at https://www.nab.com.au/about-us/social-impact. (2) A significant contributor to the reduction of $1.3bn in the Resources portfolio between Mar-20 and Sep-20 is AUD currency appreciation of USD denominated exposures and lower mark-to-market positions of treasury-related products in the Oil & Gas extraction sector. 105 National Australia Bank#106ENGAGING WITH 100 OF OUR LARGEST EMITTERS ON THEIR TRANSITION PLANS OUR TARGET To work closely with 100 of our largest greenhouse gas emitting customers to support them as they develop or improve their low carbon transition plans by 30 September 2023 OUR TRANSITION FRAMEWORK In 2021, we developed a Transition Framework Diagnostic to assist in working with our customers: Framework was developed with reference to other international transition frameworks including the UNPRI Transition Pathway Initiative and the ClimateWise Transition Risk Framework Brings rigour and consistency to help us understand our customers' transition maturity relative to their sector and geography Initial analysis suggests majority of customers acknowledge climate change as an issue, disclose emissions and have committed, or are already, reporting in alignment with TCFD. ~73% of companies assessed in Band 3 or 4. Band Category (drawing on UNPRI Transition Pathway Initiative) TRANSITION MATURITY OF 34 OF OUR HIGHEST EMITTERS Manufacturing 33% 45% 22% Other diversified¹ 25% 50% 25% Power generation and mining 21% 43% 36% Property, business services and construction 33% 67% ■Band 2 Band 3 Band 4 0 1 2 Unaware of (or not acknowledging) climate change as a business issue Acknowledgement of climate change as business issue: the company acknowledges that climate change presents business risks and/or opportunities, and that the company has a responsibility to manage its greenhouse gas emissions. This is often the point where companies adopt a climate change policy Building capacity: the company develops its basic capacity, its management systems and processes, and starts to report on practice and performance 3 Integrating into operational decision-making: the company improves its operational practices, assigns senior management or board responsibility for climate change and provides comprehensive disclosures on its carbon practices and performance. 4 Strategic assessment: the company develops a more strategic and holistic understanding of risks and opportunities related to the low-carbon transition and integrates this into its business strategy and capital expenditure decisions (1) Other diversified includes transport, health services, communications, wholesale and retail trade. 106 National Australia Bank#107SET A GOAL OF ALIGNING OUR PORTFOLIO TO NET ZERO EMISSIONS BY 2050 NAB HAS SIGNED THE COLLECTIVE COMMITMENT TO CLIMATE ACTION To meet requirements of CCCA, NAB has set a goal to align our Australian lending portfolio to net zero emissions by 2050, and publish interim sector-specific decarbonisation targets in our 2022 Reporting Suite PROGRESSING: BASELINING GHG EMISSIONS COMMENCED: DECARBONISATON PATHWAYS • In 2021, we have expanded the coverage of our estimated greenhouse gas emissions attributable to NAB's lending, to cover an additional three segments of our lending. The full eight segments are shown in the table opposite • • The estimate covers a proportion of our lending book only (50.7% of Group EAD) We apply a sector-wide emissions intensity methodology to estimate emissions for 100% of small to medium sized businesses, residential mortgages and agriculture exposures • For the remaining sectors, a bottom-up approach is taken, based on reported and verified emissions data from customers where available, leading to variations in sectoral coverage We are on track to publish, in our 2022 annual reporting suite, interim sector-specific decarbonisation targets, applying the following principles: ⚫ Broad portfolio coverage: targets set will account for substantial majority of Australian lending portfolio ⚫ Science-based: Decarbonisation scenarios will be set for 2030 and 2050 using scenarios that are science-based and aligned to limit global warning to 1.5C Sector Power generation % of Sector EAD covered¹ Emissions Absolute emissions (tCO2-e) intensity (tCO2-e/ AUD$M EAD) (Power generation, 22% 2,036,484 1,018 gentailers, electricity transmission and distribution Heavy manufacturing (cement, lime, plaster, concrete, bricks, iron and steel and aluminium) 69% 185,727 267 Resources (including coal, oil and gas) Transport 22% 536,921 261 (road freight, air, rail and international sea transport) 9% 101,347 135 Agriculture 100% 3,929,316 115 SME (in commercial and services sectors²) 100% 990,005 Residential mortgages 100% 3,072,195 8 • Up to date: Targets will be reviewed regularly to ensure consistency with current climate science, updated data and available methodologies Commercial real estate (office and retail) 19% 33,844 CO 6 • Governance: Targets shall be approved by the Executive Leadership Team and Board . Guided by global best practice: NAB shall be guided by the UN Environment Programme Finance Initiative's Guidelines for Climate Target Setting for Banks 24 24 (1) Detailed methodology available in 'How we calculate our carbon emissions' on https://www.nab.com.au/about-us/social-impact/environment/climate-change (2) Based on Australian Energy Statistics data for Commercial and Services sectors and aligned to 1993 ANZSIC classifications: F, G, H, J, K, L, M, N, O, P and Q. 107 National Australia Bank#108CONTINUING PHASED RISK REVIEW We continued our ongoing, phased review of credit risk policy settings for carbon intensive, climate sensitive and low-carbon sectors. In 2021, this included a specific review of the oil and gas sector. We will align to the International Energy Agency's Net Zero Emissions by 2050: A Roadmap for the Global Energy Sector report OIL AND GAS COAL We have capped oil and gas exposure at default at USD2.4bn and will reduce our exposure from 30 September 2026 through to 30 September 2050, aligned to IEA NZE 2050. This provides for measured re-orientation of client activity ensuring NAB can continue to support clients committed to transition¹ • We will only consider directly financing greenfield gas extraction in Australia where it plays a role in underpinning national energy security We will not directly finance greenfield gas extraction projects outside Australia • We will continue to support integrated LNG in Australia, NZ, PNG and selected LNG infrastructure in other regions, under the oil and gas exposure cap • We will not directly finance greenfield oil extraction projects or onboard new customers with a predominant focus on oil extraction • We will not finance oil and gas extraction, production or pipeline projects within or impacting the Arctic National Wildlife Refuge area or any similar Antarctic Refuge • We will not directly finance oil/tar sands or ultra-deep water oil and gas extraction projects We have capped thermal coal mining exposures at 30 September 2019 levels, and updated our plans to reduce thermal coal mining exposures by 50% by 30 September 2026 and to be effectively zero by 30 September 2030, apart from residual performance guarantees to rehabilitate existing thermal coal mining assets • We will not finance new or material expansions of coal-fired power generation facilities • • We will not finance new thermal coal mining projects or take on new-to-bank thermal coal mining customers From FY22, we will separately report our thermal coal-related rehabilitation performance guarantees as part of reporting our resources exposures • We recognise that currently there are no readily available substitutes for the use of metallurgical coal in steel production. We will continue providing finance to our customers in this segment, subject to enhanced due diligence which further considers underlying environmental, social and governance risks (1) The cap of USD2.4 bn was determined giving consideration to the three-year average exposure up to 30 September 2021 due to COVID impacts. Use of USD for the purposes of this cap is to account for currency movement because the majority of the portfolio is USD denominated. From 2022, oil and gas exposure at default will be reported in USD. For the purposes of this review oil and gas included: oil and gas extraction (upstream); liquefied natural gas (LNG) production (not at refineries - downstream LNG); and LNG production at wellhead (integrated LNG) 108 National Australia Bank#109WE ARE A LEADER IN SUSTAINABLE FINANCING GLOBAL COVERAGE MODEL WITH HIGHLY PROFESSIONAL BANKERS WORKING CLOSELY WITH CUSTOMERS • We are raising the bar on Climate Banking professionalisation, having highly skilled bankers work with PRODUCT INNOVATION TO SUPPORT THE TRANSITION • #1 Australian bank for global renewables transactions¹ Recently completed our first ESG-linked derivative with an ASX50 listed company • Launched Project Carbon² 75 BANKERS COMPLETING customers on their transition planning • We will extend this training to our national agribusiness banker network MELBOURNE BUSINESS SCHOOL CLIMATE BANKING TRAINING IN 2021 >$33 BILLION Helped customers raise over $33bn by arranging 60 green, social and sustainability linked bonds since 2014 -$25 BILLION ACCESS TO INSIGHTS, RESEARCH & PARTNERSHIPS • We have established a Bank for Transition series to support our customers in their journey to net zero emissions with market leading strategic insights and support >$11 BILLION more than money nab ESG TRENDS AND CAPITAL PART 1: EQUITY BANK FOR TRANSITION SERIES May, 2021 ABOUT THIS REPORT Welcome to NAB's Bank for Transition series Theseat the Best of a series that a cover a range of tours related to stay and tramonto netre esos The series wis provide a detated look at global trends in sund offers inights far business leaders, company boards and stay profesional The first topic in the Bank for Transmion series ESG Trends and Capta The topic covers Interest and ther ⚫Trends in ESC, aby of capital and cost of Fatways to improve any of cartal, cost of captal and wal Emerging dewelopments, opportunities and challenge being Due to the substantive nature of this topic, ESG Trends and Capital will be split into a two part series: Paquity Part 3: Debo be released mesta) CLOSED 7 Supported customers to raise close to $25bn across green, social and sustainability linked loans since 2018 Committed over $11.5bn in renewable energy project finance since 2003, backing over 150 domestic and global transactions ESG-linked derivatives (six in the European market including the first in the UK social housing market, as well as the first known inflation swap linked to the performance of ESG metrics globally, and one in Australia) Well positioned to support growth in global financing needs, representing a significant opportunity for NAB USD 11 TRILLION Cumulative sustainable debt issuance on track to hit $11 trillion by 2025 having recently surpassed $3 trillion in 20213 (1) Rankings based on IJGlobal League Table, MLA, Renewables, 12 months ending 30 September 2021 (2) A voluntary Carbon Marketplace pilot in partnership with CIBC, Itaú Unibanco and NatWest Group (3) Bloomberg NEF: "Tipping point: ESG debt issuance tops $3 trillion❞ June 2021 109 National Australia Bank#110PROGRESSING OUR PRIORITIES - COMMERCIAL RESPONSES TO SOCIETY'S BIGGEST CHALLENGES AFFORDABLE AND SPECIALIST HOUSING Progress against $2bn financing target to support affordable and specialist housing1 (Cumulative $bn) $0.3bn $1.8bn $2.0bn INDIGENOUS BUSINESS • Hosted our first Indigenous Business Roundtable, hearing directly from NAB's Indigenous business customers on their experiences with NAB • Finalised our comprehensive indigenous business strategy, outlining our target investment to support growth over the next three years Developed a dedicated customer value proposition for Indigenous Community customers within the Government, Education and Community banking sub-sector 2020 2021 2023 Target • • • Cumulative total includes funding of affordable housing, specialist disability accommodation, sustainable housing; as well as a subset of loans made under the First Home Loan Deposit Scheme for: • Properties under the national median house price Borrowers with taxable income below the national median household income >4,300 affordable, sustainable and specialist dwellings created >11,000 people housed . Target under review for future ambition SUSTAINABLE AGRICULTURE • Worked with researchers from the Food Agility CRC to develop a tool that catalogues and reviews investment opportunities for Australian farmers that supports them to mitigate emissions and adapt to the physical risks of climate change Supported ClimateWorks Australia with the development of a natural capital catalogue which defines what, and how, natural capital metrics can be measured across Australian Farms. The next phase of this work in 2022 will involve supporting farmers to pilot the metrics on participating farms (1) Affordable and specialist housing includes loans for affordable housing, specialist disability accommodation, and sustainable housing. It also includes loans made under the First Home Loan Deposit Scheme for properties under the national median house price, and borrowers with taxable income below the national median household income. Progress is based on total lending facilities committed, where first drawdown occurred during the target period (1 October 2019 - 30 September 2023). This number does not reflect debt balances. 110 National Australia Bank#111PROGRESSING OUR PRIORITIES - RESILIENT AND SUSTAINABLE BUSINESS PRACTICES NEW INCLUSION AND DIVERSITY STRATEGY Focus areas of the new framework: • Inclusive leadership: Leaders who are visible in their commitment to inclusion and actively build diversity in teams Inclusive workplace: A workplace that actively promotes and leverages team diversity, flexibility and wellbeing • Customer inclusion: Colleagues who take pride in understanding the needs of our customers, and ensure that they can access the information, services and products they need with ease Inclusion score¹ 79 92 Colleague Wellbeing score² 81 81 80 78 72 71 60 RESILIENT AND SUSTAINABLE BUSINESS PRACTICES Provided >32k Spent $4.6m no and low interest loans. Including programs for people on low incomes, are experiencing domestic and family violence or who have experienced loss of income due to COVID-19 on diverse suppliers within our supply chain in FY21, up from $2.9m in FY20³. We have a goal to spend at least $10m annually with diverse suppliers by 2025 As a founding signatory to the Principles for Responsible Banking (PRB), we are actively working on shifting the balance of our activities towards positive environmental and social impact. Read more on our progress in the Sustainability Data Pack. NAB DJSI Ranking4 (compared to total number of companies assessed in BANKS sector) Oct 20 Feb 21 Apr 21 Jul 21 Oct 20 Feb 21 Jul 21 11th WORKFORCE GENDER EQUALITY AGENCY Employer of choice BLOOMBERG GENDER EQUALITY INDEX EQUILEAP (top 100) AUSTRALIAN WORKPLACE EQUALITY INDEX 20th (LGBTI Inclusion) Gold employer 32nd WGEA Employer of Choice for Gender Equality Bloomberg Gender Equality Index 2021 We are delighted to have been ranked one of the best 100 companies globally for gender equality. EQUILEAP 253 175 133 AUSTRALIAN AWEI LGBTQ INCLUSION GOLD AWARDS 2021 EMPLOYER 2018 2019 2020 (1) Represents score based on the survey question of "Our team has a climate in which diverse perspectives are valued" (2) Represents score based on the survey question of "Our team takes a genuine interest in employee wellbeing" (3) Describes NAB's purchases made with Indigenous-owned, minority-owned and women-owned businesses and disability and social enterprises, total excludes GST (4) NAB has set a target to maintain its inclusion in the Dow Jones Sustainability World and Australia Indexes, representing the top 10% of all companies assessed in the banking sector. 111 Companies assessed (banking) NAB rank National Australia Bank#112ADDITIONAL INFORMATION ECONOMICS National Australia Bank#113AUSTRALIA AND NZ KEY ECONOMIC INDICATORS AUSTRALIAN ECONOMIC INDICATORS (%)¹ NZ ECONOMIC INDICATORS (%)¹ CY19 CY20 CY21(f) CY22(f) CY23(f) CY19 CY20 CY21(f) CY22(f) CY23(f) GDP growth² 1.9 -0.9 1.6 4.0 2.3 GDP growth² 1.8 0.1 -1.0 7.8 1.3 Unemployment³ 5.1 6.7 4.7 4.2 3.8 Unemployment³ 4.0 4.8 3.3 3.6 4.5 Core Inflation4 Cash rate target³ 1.4 1.3 2.2 2.3 2.8 Inflation4 0.75 0.10 0.10 0.10 0.75 Cash rate (OCR)³ AUSTRALIAN SYSTEM GROWTH (%)5 1.9 1.4 5.8 2.7 2.5 1.0 0.25 0.75 2.00 2.25 NZ SYSTEM GROWTH (%) 5 FY19 FY20 FY21(f) FY22(f) FY23(f) FY19 FY20 FY21 FY22(f) FY23(f) Housing 3.0 3.3 6.5 5.1 5.0 Housing 6.6 6.8 11.6 4.7 3.6 Personal -4.2 -12.9 -5.3 0.0 1.5 Personal 0.1 -11.8 -9.0 5.9 5.1 Business 3.3 1.9 4.6 4.2 4.5 Business 4.8 -1.4 1.6 4.0 5.7 Total lending 2.7 1.9 5.3 4.6 4.7 Total lending 5.6 3.0 7.3 4.5 4.3 System deposits 3.8 11.7 8.0 7.3 3.4 Household retail deposits 5.1 9.4 4.5 4.5 4.3 (2) (1) Sources: ABS, Econdata DX, RBA, RBNZ, Stats NZ, NAB December quarter on December quarter of previous year (3) As at December quarter (4) December quarter on December quarter of previous year. For Australia, average of trimmed mean and weighted median indices (5) 113 Source: RBA, RBNZ, NAB. Bank fiscal year-ended (September). NZ business credit includes credit to Agriculture and is calculated from break adjusted data. National Australia Bank#114ACTIVITY IS EXPECTED TO BOUNCE BACK AFTER CURRENT LOCKDOWNS • • • Economic activity and hours worked are expected to have fallen relatively sharply in the September quarter with widespread lockdowns in NSW, VIC and the ACT as well as state border closures. Employment and labour participation also declined in the quarter and the unemployment rate is expected to see a small increase in the near term. However, the relatively healthy pre-COVID starting point as well as ongoing policy support should support a rapid rebound in both activity and the labour market over coming quarters. The recovery continues to be uneven with some sectors still held back by state and international border closures, while others have seen a boost as a result of policy stimulus. The normalisation of consumer spending patterns will also likely take some time. HOUSEHOLD CONSUMPTION CONTINUES TO BE IMPACTED² (Index) 110 GDP IS EXPECTED TO BOUNCE BACK¹ (Index) 105 100 95 90 Forecasts 90 Dec 19 Sep 20 Jun 21 Mar 22 Dec 22 Sep 23 INCREASED SAVINGS HAVE BUILT A BUFFER³ (%) 25 100 20 90 15 80 10 70 Cafes & takeaway Other retail sales 5 60 0 50 40 -5 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 1993 1997 2001 2005 2009 2013 2017 2021 (2) ཀྱིསི Source: ABS, NAB. Data are indexed to December quarter 2019. NAB Economics Forecasts from September quarter 2021 Source: ABS, NAB. Data are ABS retail sales indexed to January 2020, data to September 2021 (3) Source: ABS, NAB. Household savings rate (ABS national accounts), data to June quarter 2021 114 National Australia Bank#115HIGH FREQUENCY DATA SHOWS RESILIENCE IN THE FACE OF RECENT LOCKDOWNS CONSUMER SPENDING RESILIENT IN THE FACE OF RECENT LOCKDOWNS¹ (Index) 140 120 100 -Total spend 60 60 Jan 20 Mar 20 May 20 Jul 20 Sep 20 Nov 20 Jan 21 Mar 21 May 21 Jul 21 Sep 21 Nov 21 80 00 CONSUMER SPEND BY INDUSTRY² (Index) 250 Accom. & Food Arts & Rec. Education & Training Admin & Support Construction -Utilities (Index) 250 CONSUMER SPEND BY INDUSTRY (CON'T)² Healthcare Info. Media -Prof., Scientific & technical -Rental, hiring & real estate Retail 200 200 -Trans., Postal & Warehousing Other Services 150 16 σ 100 150 100 50 National Australia Bank 0 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 0 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 Source: NAB. Weekly spend data derived from NAB platforms, indexed to 4 January 2020, data to 30 October 2021 (2) Source: NAB. Data are a 4-week moving average of total weekly transactions, indexed to 26 January 2019, data to 30 October 2021 50 50 115#116A NEAR-TERM HIT TO THE LABOUR MARKET, BUT A GOOD STARTING POINT UNEMPLOYMENT IS LOW¹ UNEMPLOYMENT IS LOW ACROSS THE STATES¹ (%) 20 20 15 10 10 5 (%) -Unemployment Rate Underutilisation Rate 8 7 6 5 4 NSW VIC QLD SA WA TAS 0 3 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 HOURS WORKED HAVE BEEN HIT BY LOCKDOWNS2 EMPLOYMENT BY INDUSTRY³ (Index) NSW -VIC QLD SA WA -TAS (Index) 105 110 100 100 95 90 Mining 90 -Health 90 Construction Trans., & postal 80 Household services ex health Goods Distribution Business Services Goods Production 85 70 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 Feb 20 May 20 Aug 20 Nov 20 Feb 21 May 21 Aug 21 €23 Source: ABS. Data to September 2021 (2) Source: ABS, NAB. Data are monthly hours worked from the labour force survey, indexed to February 2020 = 100, data to September 2021 (3) Source: ABS, NAB. Data are employment by industry from the labour force survey, February 2020 = 100, data to August 2021 116 National Australia Bank#117THE HOUSING MARKET HAS STRENGTHENED HOUSE PRICE GROWTH HAS BEEN STRONG¹ (%) 35 Sydney -Perth Melbourne Adelaide RENTS ARE RECOVERING² Brisbane Hobart (%) 10 30 25 20 5 15 10 5 0 -5 -5 Sydney Brisbane -Perth -10 -15 -10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2006 2009 2012 DWELLING INVESTMENT HAS PICKED UP³ ($Bn) NSW VIC QLD 10 -SA -WA -TAS 8 6 4 2 m Melbourne Adelaide Hobart 2015 2018 2021 SLOWER POPULATION GROWTH YET TO IMPACT HOUSING4 (%) Population growth 2.0 1.5 1.0 0.5 0 0.0 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2000 2003 2006 2009 2012 2015 2018 2021 (2) Source: CoreLogic. 6-month-ended-annualised growth. Data to 31 October 2021 Source: ABS. Year-ended growth in CPI rents, data to September quarter 2021 (3) (4) Source: ABS. Chain volume measure (reference year 2018-19). Data to June quarter 2021 Source: ABS. Year-ended growth, data to Q1 2021 National Australia Bank 117#118118 (Net Bal.) 20 THE BUSINESS SURVEY SHOWS A RAPID REBOUND AS LOCKDOWNS END CONFIDENCE AND CONDITIONS HAVE REBOUNDED¹ CONFIDENCE AND CONDITIONS BY INDUSTRY² 0 -20 Confidence Conditions -40 -60 -80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CONFIDENCE AND CONDITIONS BY STATE² (Net Bal.) 50 40 10 3200 -10 -20 2010 Trans. & Postal Rec. & Personal Retail ■Confidence ■ Conditions Manufacturing Fin., Bus. & Prop Construction CAPACITY UTILISATION HAS HELD UP³ Wholesale Mining (%) (Net Bal.) 50 40 30 20 20 10 L ■Confidence ■ Conditions % % % 82 86 -10 06 76 74 72 ༠ཝས་ 80 78 -Quarterly -Monthly -20 70 SA Vic Qld Tas WA NSW 1989 1993 1997 2001 2005 2009 2013 2017 2021 €23 (2) Source: NAB. Overall confidence and conditions from the NAB Monthly Business Survey in net balance terms, data to October 2021 Source: NAB. Confidence and conditions by industry from the NAB Monthly Business Survey in net balance terms, data to October 2021 (3) Source: NAB. Overall capacity utilisation from the NAB Quarterly and Monthly Business Surveys. Quarterly data to September 2021, monthly data to October 2021 National Australia Bank#119LOW RATES TO PERSIST IN THE NEAR-TERM BUT BEGIN NORMALISING THE CASH RATE TO REMAIN ON HOLD UNTIL 20231 (%) 2.0 Cash Rate Target -Overnight Cash Rate 3-year AGS -5-year AGS 10-year AGS THOUGH BOND PURCHASES WILL TAPER² ($B) 600 500 1.5 RBA Assets 400 1.0 300 200 0.5 100 0.0 0 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 2005 2007 2009 2011 2013 2015 2017 2019 2021 INFLATION LIKELY TO RISE IN THE NEAR TERM³ (%) (%) Forecasts 4.5 4.0 4.0 3.5 3.0 WAGE GROWTH A KEY DETERMINANT FOR INFLATION4 3.0 л muy Forecasts 2.5 Quarterly 2.0 Quarterly Year-ended 2.0 -Year-ended 1.5 1.0 1.0 0.5 0.0 2001 2005 2009 2013 2017 2021 0.0 1997 2000 2003 2006 2009 2012 2015 2018 2021 ངོ Source: Macrobond. Data to 2 November 2021 (2) Source: Source: RBA, NAB. Data to 11 October 2021. Total Assets on the RBA's Balance Sheet (3) Source: ABS, NAB. Average of the trimmed-mean and weighted-median CPI measures, data to September quarter 2021, NAB forecasts thereafter Source: ABS, NAB. Data to June quarter 2021, NAB forecasts thereafter (4) 119 National Australia Bank#120NEW ZEALAND ECONOMY ECONOMY HAD SOLID MOMENTUM BEFORE Q3 LOCKDOWN; LABOUR MARKET STRENGTH CONTINUED INTO Q3¹ STRONG DAIRY FARM VIABILITY ($NZ billion, chain prices) (%) 70 NZ GDP 6.0 Unemployment rate 8.40 7.74 99 5.0 66 4.0 62 62 5.85 3.0 58 2.0 54 1.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 50 0.0 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Jun-19 Mar-20 Dec-20 Sep-21 3 Final Dairy Price -Assessed average cost of production (per kg) 4 IMPACT OF LATEST LOCKDOWN: WHILE SMALLER THAN IN 2020 STILL LARGE; RECEDING AS RESTRICTIONS EASE² Total card spending (first four weeks of year = 100) 120 170 150 1st nationwide lockdown (2020) Auckland Alert level 3 (2020) 130 2019 110 90 2021 70 2020 50 30 01-Jan 26-Feb 23-Apr 18-Jun 2021 lockdown (start 17 Aug) 13-Aug 08-Oct (1) Source: Refinitiv, Statistics NZ 03-Dec 2 (2) Source: BNZ; weekly card spending by BNZ customers through New Zealand merchants. This includes all credit and debit card transactions plus EFTPOS card transactions. Transactions include spending less any refunds. Spending data has been indexed to 100 in the first four weeks in each series. Dates displayed are for 2021 (2019 begins week ended 4-Jan, 2020 3-Jan). (3) Source: Fonterra (milk price) FY20/2021 final price of $7.74 p.kg includes dividend of $0.20 p.kg. FY21/22 forecast payout ratio of $8.40 p.kg is mid point of current forecast payout range (4) Source: Dairy NZ estimated cost of production National Australia Bank#121121 NEW ZEALAND HOUSING HOUSING MARKET VERY STRONG: PRICES KEEP GROWING THROUGH LOCKDOWN AS SALES VOLUMES FALL¹ (Index) House prices Dwelling sales transacted ('000s) 4500 4000 12 3500 Auckland 3000 2500 2000 National ex Auckland 1500 1000 500 M mmmyp 10 88 4 0 Sep 13 Sep 15 Sep 17 Sep 19 Sep 21 Sep 13 Sep 15 Sep 17 Sep 19 RESTRICTIONS ARE MODERATING PACE OF NEW LENDING² New residential mortgage lending ($NZ million) 9,000 Tax changes announced and LVR restrictions reinstated LVR tightening for investors in effect LVR tightening for owner occupiers announced 2 0 Sep 21 Consumer credit law changes 6,000 3,000 0 Dec 19 Jan 20 Feb 20 Owner-occupiers Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Investors (1) Source: Refinitiv, REINZ ཀྱིས (2) Source: RBNZ. Consumer credit law changes include changes to the Credit Contracts and Consumer Finance Act Oct 20 Nov 20 ૦૪૦૦૦ Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 National Australia Bank#122OTHER INFORMATION National Australia Bank#123OPERATING EXPENSES - HALF ON HALF OPERATING EXPENSES (EX LARGE NOTABLE ITEMS)¹ ($m) 3,932 3,863 HoH expense up 2.4% (YoY growth 1.8%) 20 9 105 (83) 40 3,954 Sep 20 Mar 21 Productivity savings Remuneration and inflation Technology and investment Depreciation and Amortisation Other Sep 21 (1) Refers to large notable items in FY20. No notable items in FY21 123 National Australia Bank#124STRATEGIC NPS EQUAL FIRST BUT MORE WORK TO DO TO ACHIEVE POSITIVE STRATEGIC NPS1,2 -5 -10 -15 -20 -25 -30 Jan 17 May 17 Sep 17 Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21 Sep 21 -NAB Peer 1 Peer 2 Peer 3 BUSINESS³ CONSUMER4 -5 5 -10 0 -15 -5 -20 -10 -25 -30 -15 -35 -20 -40 Jan May Sep Jan May Sep Jan May Sep Jan- May Sep Jan May Sep 17 17 17 18 18 18 19 19 19 20 21 21 -25 Jan 20 20 ⚫NAB Peer 1 Peer 2 21 Peer 3 17 17 May Sep- Jan- May Sep 17 18 18 18 Jan 19 May Sep- Jan- May- Sep- Jan- May Sep 19 19 20 20 20 21 21 21 NAB Peer 1 Peer 2 -Peer 3 124 (1) (2) (3) Net PromoterⓇ and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld Strategic NPS: Sourced from DBM Atlas, measured on 6 month rolling average. The overall Strategic NPS result combines the Consumer and Business segment results using a 50% weighting for each. Net Promoter Score (NPS) is based on all customers' likelihood to recommend on a scale of 0 (not at all likely) to 10 (extremely likely) September 2021. Source: DBM Atlas - Business. All Business customers, six month rolling averages (4) September 2021. Source: DBM Atlas - Consumer. All Consumer customers, Australian population aged 18+, six month rolling averages National Australia Bank#125GROUP CASH EARNINGS RECONCILIATION TO STATUTORY NET PROFIT • NAB uses cash earnings (rather than statutory net profit attributable to owners of NAB) for its internal management reporting purposes and considers it a better reflection of the Group's underlying performance. Accordingly, information is presented on a cash earnings basis unless otherwise stated. . Cash earnings is not a statutory financial measure and is not presented in accordance with Australian Accounting Standards nor audited or reviewed in accordance with Australian Auditing Standards. Cash earnings is calculated by excluding discontinued operations and certain other items which are included within the statutory net profit attributable to owners of NAB. These non-cash earning items, and a reconciliation to statutory net profit attributable to owners of NAB, are presented in the table below. • The definition of cash earnings is set out on page 10 of the 2021 Full Year Results Management Discussion and Analysis, and a discussion of non-cash earnings items and a full reconciliation of the cash earnings to statutory net profit attributable to owners of NAB is set out on pages 75 - 77 of the same document. The Group's financial statements, prepared in accordance with the Corporations Act 2001 (Cth) and Australian Accounting Standards, and is audited by the auditors in accordance with Australian Auditing Standards, are set out in the 2021 Annual Financial Report. Cash earnings FY21 ($m) FY21 v FY20 6,558 76.8% 2H21 ($m) 2H21 v 1H21 3,215 (3.8%) Non-cash earnings items (after tax) Distributions Hedging and fair value volatility 13 (66.7%) large (63) 85.3% 63 large Amortisation of acquired intangible assets (4) (98.2%) (4) large Acquisition, integration and transaction costs (33) large (33) large Net profit from continuing operations 6,471 85.0% 3,241 0.3% Net loss attributable to owners of NAB from discontinued operations (107) (88.6%) (85) large Statutory net profit attributable to owners of NAB 6,364 large 3,156 (1.6%) 125 National Australia Bank#126ABBREVIATIONS ALA Alternative Liquid Assets KYC Know Your Customer AML Anti Money Laundering LCR Liquidity Coverage Ratio CET1 Common Equity Tier 1 Capital LGD Loss given default CIC Credit impairment charge LVR Loan to Value Ratio CLF Committed Liquidity Facility MTM Mark to market CP Collective Provision NBI Non Bearing Interest CTI Cost to income ratio NCO Net Cash Outflow DPD Days Past Due NII Net Interest Income NILS No Interest Loan Scheme DRP Dividend Reinvestment Plan NPS Net Promoter Score EAD Exposure at Default NSFR EA Economic Adjustment Net Stable Funding Ratio ECL Expected Credit Losses OIS Overnight Index Swap EOFY End Of Financial Year OOI EPS Earnings Per Share PD RMBS FTEs Full-time Equivalent Employees ROE Other Operating Income Probability of Default Residential Mortgage Backed Securities Return on Equity GHG Greenhouse Gas RWAs Risk-weighted assets GIAs Gross Impaired Assets SFI Stable Funding Index GLAS Gross Loans and Acceptances SHL Simple Home Loans HQLA High Quality Liquid Assets SME Small and Medium Enterprise IRB Internal Ratings Based approach TFF Term Funding Facility 126 National Australia Bank#127DISCLAIMER The material in this presentation is general background information about the NAB Group current at the date of the presentation on 9 November 2021. The information is given in summary form and does not purport to be complete. It is intended to be read by a professional analyst audience in conjunction with the verbal presentation and the 2021 Full Year Results Management Discussion and Analysis (available at www.nab.com.au). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. No representation is made as to the accuracy, completeness or reliability of the presentation. This presentation contains statements that are, or may be deemed to be, forward looking statements. These forward looking statements may be identified by the use of forward looking terminology, including the terms "believe", "estimate", "plan", "project", "anticipate", "expect", "target", "intend", "likely", "may", "will", "could" or "should" or, in each case, their negative or other variations or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and financial position and performance are also forward looking statements. You are cautioned not to place undue reliance on such forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. There are a number of other important factors that could cause actual results to differ materially from those projected in such statements, including (without limitation) a significant change in the Group's financial performance or operating environment; a material change to law or regulation or changes to regulatory policy or interpretation; and risks and uncertainties associated with the ongoing impacts of the COVID-19 pandemic, the Australian and global economic environment and capital market conditions. Further information is contained in the Group's Annual Financial Report for the 2021 financial year, which is available at www.nab.com.au. For further information visit www.nab.com.au or contact: Sally Mihell Executive, Investor Relations Mobile | +61 (0) 436 857 669 Natalie Coombe Director, Investor Relations Mobile | +61 (0) 477 327 540 Mark Alexander Executive, Corporate Communications Mobile | +61 (0) 412 171 447 127 National Australia Bank