Financial Performance and Remediation Update

NET 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

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