Wholesale Banking Performance Analysis slide image

Wholesale Banking Performance Analysis

Solid result and progress against strategy Half year to Mar 12 Sep 11 Change (%) Mar 11 Change (%) Revenue ($m) 9,108 8,795 3.6% 8,799 3.5% Underlying profit ($m) 5,156 4,812 7.1% 4,808 7.2% 3 Cash earnings ($m) 2,828 2,792 1.3% 2,668 6.0% Core Tier 1 ratio 8.03% 7.58% 45bps 7.12% 91bps Dividend 90 88 2.3% 84 7.1% (100% franked cps) Cash ROE 15.0% 15.2% (20bps) 15.1% (10bps) Statutory net profit attributable 2,052 2,791 (26.5%) 2,428 (15.5%) to owners ($m) National Australia Bank Environment remains challenging System credit growth % change year-on-year Increased cost of funding an Australian variable rate mortgage 18 16 Australia 14 12 160 (F) the RBA 140 cash rate (bps) 120 Funding cost over Recovery via repricing 10 100 Liquidity Portfolio Costs Term Funding 8 6 80 New Zealand 4 60 Customer Deposits 2 United Kingdom 40 0 -2 20 -4 Bank Bill/Overnight Index Swap Spread Jan 90 Jan 93 Jan 96 Jan 99 Jan 02 Jan 05 Jan 08 Jan 11 Jan 14 RBA, RBNZ, Bank of England, NAB Forecasts Pre-crisis Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Mar 12 Ongoing full regulatory agenda Key global reforms Quarterly real output path during UK recessions¹ (%) Basel III Capital & Liquidity Systemically Important Financial Institutions 106 Recovery & Resolution - 'Living Wills' Reforms for Over-The-Counter derivatives (inc. clearing arrangements) 104 Key domestic reforms 102 Financial Claims Scheme 100 Future of Financial Advice Superannuation Reforms 98 Life Insurance and General Insurance Capital Framework > National Consumer Credit Protection Phase II 96 Other key international reforms Dodd-Frank reforms (US) Foreign Account Tax Compliance Act (US) ▸ Independent Commission on Banking - Business Models (UK) > International Financial Reporting Standards 9 - Financial Instruments 4 (1) Previous peak = 100. Source: NAB Economics, UK Office of Budget Responsibility ཚ ོ སྐྱ ོ March 2008 onwards Early 1980s 1Q 2Q 3Q 4Q 5Q 6Q 7Q 8Q Mid 1970s Early 1990s 1930s 9Q 10Q 11Q 12Q 13Q 14Q 15Q National Australia Bank
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