Financial Performance and Remediation Update

TOURISM, 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

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