Investor Presentaiton

KEY REGULATORY CHANGES IMPACTING CAPITAL AND FUNDING 93 Change Capital Adequacy Measurement of Capital Credit Risk Operational Risk Market Risk Interest Rate Risk in the Banking Book Public Disclosures Loss Absorbing Capacity Recovery and Resolution 2020 1H21 Consult 2H21 Finalise 2022 2023 Implementation 2024 Consult Finalise Implementation Consult Finalise Implementation Implementation Consult Implementation Finalise Implementation Consult Finalise Implementation Implementation Consultation and implementation date not yet advised RBNZ UPDATE APRA POLICY PRIORITIES APRA's consultation on 'a more flexible and resilient capital framework for ADIs' released in December 2020 • Follows the 2017 APRA benchmark of 'unquestionably strong' capital ratios. • Includes revisions to the capital adequacy framework . Overall level of capital in the banking system is not proposed to change APRA's active 2021 policy development also includes proposed consultations for Interest Rate Risk, Remuneration and Public disclosure • The RBNZ has eased restrictions on dividend payments, allowing banks to pay up to 50% of their earnings as dividends to shareholders The 50% restriction will remain in place until 1 July 2022, at which point the RBNZ intends to remove the restrictions entirely, subject to economic conditions The RBNZ has also lifted the restriction on redeeming non-CET1 capital instruments National Australia Bank

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