1H24 Financial Results

Group margin Group • Increased hedge earnings from higher rates Replicated portfolio (RP) & equity hedge In 1H24, RP and equity hedge earnings benefitted from higher rates • Earnings outlook continues to improve with higher exit tractor rates Domestic equity hedge Deposit hedge Liquidity & basis risk Liquidity • Every additional $10bn of liquid assets is expected to reduce Group NIM by ~2bpts Basis risk Increased sensitivity to basis risk in 1H24 with mix reversion back to variable rate home loans and term deposits driving higher exposure to basis risk • Dec 23 average BBSW/OIS spread = 1bpt . Dec 23 balance $bn 1H24 Avg. tractor¹ Exit tractor¹ rate Investment term 51 2.25% 2.52% 3 years 108 1.95% 2.05% 5 years • As at Dec 232, every 9bpts = ~1bpt of Group NIM, this ratio will reduce as exposure to basis risk increases 8.00% 4.00% 0.00% Jun 08 RP hedge rate 1.0% Equity hedge rate 3M BBSW RBA official cash rate 0.6% 0.2% -0.2% Dec 23 Jun 08 3 months BBSW/OIS spread Long Term Basis Risk Avg: 22bpts Dec 23 1. Tractor is the moving average hedge rate on equity and rate insensitive deposits. Exit tractor rate represents average rate for December 2023. 2. Based on average exposure to basis risk in December 2023. 72

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