Investor Presentaiton

18 NZ BANKING BENEFITING FROM MORE NORMAL B&DD EXPENSE CASH EARNINGS AND UNDERLYING PROFIT¹ NET INTEREST MARGIN (NZ$m) 627 639 636 641 432 2.31% 418 405 404 (0.02%) (0.07%) 0.00% (0.02%) 2.20% Mar 15 Sep 15 Cash earnings Mar 16 -Underlying profit Sep 16 Mar 16 Lending Margin Funding Mix Other Sep 16 B&DD CHARGE AND AS A % OF GLAS² (NZ$m) TOTAL 90+ DPD AND GIAS AND AS % OF GLAS (NZ$m) 0.26% 1,251 0.24% 1,017 2.00% 0.14% 31 23 0.11% 650 823 1.50% 488 511 579 412 1.00% 58 57 61 30 11 0.50% 438 428 0.00% (12) Mar 15 Mar 14 Sep 15 Mar 16 Sep 16 ■Specific B&DD charge Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Dairy Impaired Assets currently assessed as no loss based on security held 90+ DPD and GIAs Collective B&DD charge Total 90+ DPD and GIAS as % GLAS (RHS) (1) Underlying profit represents cash earnings before various items, including tax expense and the charge for bad and doubtful debts. It is not a statutory financial measure (2) Spot volumes. Half year B&DD as a % of GLAS annualised GOOD GROWTH IN NAB WEALTH EARNINGS NAB WEALTH CASH EARNINGS LIFE INSURANCE SALE ($m) 262 249 241 223 • Sale of 80% of life insurance business to Nippon Life for $2.4bn completed on 3 October and captured in FY16 results¹ 65 81 90 • CET1 capital benefit of 45bps 67 National Australia Bank 197 156 160 159 Mar 15 Sep 15 Mar 16 Sep 16 Discontinued operations ■Continuing operations NET INVESTMENTS INCOME TO AVERAGE FUM AND FUA² • NAB's 20% interest in MLC Life insurance business is included in continuing operations cash earnings and reported as a share of associate profit in NAB Wealth earnings Goodwill for the NAB Wealth business is reduced by $1.7bn to $2.4bn NAB retains MLC brand, but licensed for use by the MLC Life insurance business for 10 years. MLC brand will continue to be applied to NAB's superannuation, investments and advice business 3 YEAR PERFORMANCE OF FUM EXCEEDING BENCHMARK³ ($m) 0.73% 0.63% 0.62% 0.61% 77.5% 584 552 560 595 71.9% 61.4% 64.8% Mar 15 Sep 15 Mar 16 Sep 16 Net Investments Income Net Investments Income to Average FUM/A Mar 15 Sep 15 Mar 16 Sep 16 (1) (2) Of the $2.4bn, $0.2bn was received as a dividend during FY16 and $2.2bn was received on completion (3 October 2016). Loss of control and deconsolidation occurred on 30 September 2016 Funds Under Management and Funds Under Administration on a proportional ownership basis. 2H16 margins exclude the life insurance business related FUM. Prior period margins have been restated (3) This is a representative measure of performance across all asset classes which is inclusive of approximately 75% of Funds Under Management 19 National Australia Bank

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