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TERM DEPOSIT PORTFOLIO COSTS² FUNDING COSTS AND REPLICATING PORTFOLIO INDICATIVE TERM WHOLESALE FUNDING ISSUANCE COSTS¹ 400 (bps) 80 300 200 100 70 70 60 60 60 50 0 Mar 18 Sep 18 Mar 19 3 yr senior 5 yr senior Sep 19 10yr senior Mar 20 Sep 20 10NC5 Tier 2 40 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 DOMESTIC SHORT TERM WHOLESALE FUNDING COSTS³ CAPITAL & DEPOSIT HEDGES - REPLICATING PORTFOLIOS4 Current swap rates ~108bps below portfolio rate Replicating portfolio 30 Sep 20 balance Avg investment term 2 years 5 years $41bn $43bn Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 20 652322 (bps) 60 50 40 % 3.0 2.5 2.0 30 1.5 1.0 10 0.5 Capital 0 Low rate deposits 0.0 -10 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 3M Bills-OIS Spread 90 Day Moving Average Portfolio Rate 3m BBSW (1) Indicative Major Bank Wholesale Tier 2 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. Term 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. (4) Blended replicating portfolio earnings rate (Australia only). Replicating portfolio includes capital and non-interest bearing deposits 103 National Australia Bank

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