Investor Presentaiton

ESTIMATED GROUP LONG RUN LOAN LOSS RATE - 1985 TO 2016 GROUP BUSINESS MIX - GLAS BY CATEGORY 1985 Personal lending 8% ESTIMATING LONG RUN LOAN LOSS RATE NAB Australian geography net write off rates as a % of GLAS 1985 - 20162 Long run average (1) (2) (3) (4) 82 83 2016 Home lending 16% Home lending 58% Home lending³ 0.03% Commercial1 76% Personal lending³ 1.39% Commercial³ 0.58% Australian average (1985-2016) 0.36% Personal lending 2% Group average4 based on 2016 business mix 0.28% Commercial 40% Group average4 based on 2016 business mix excluding 1991-1993 and 2008-2010 0.20% For 1985 Group business mix, all overseas GLAS are included in Commercial category Data used in calculation of net write off rate as % of GLAS is based on NAB's Australian geography and sourced from NAB's Supplemental Information Statements (2007 - 2015) and NAB's Annual Financial Reports (1985 - 2006). 2016 net write off data is NAB unaudited estimates Home lending represents "Real estate - mortgages" category; Personal lending represents "Instalment loans to individuals and other personal lending (including credit cards)" category; Commercial represents all other industry lending categories as defined by source document Group average is calculated by applying each of the Australian geography long run average net write off rates by product to the respective percentage of Group GLAS and acceptances by product as at 30 September 2016. Commercial long run average net write off rate has been applied to acceptances GROUP ASSET QUALITY - NEW IMPAIRED ASSETS GROUP ($m) AUSTRALIAN BANKING ($m) 1,291 1,046 522 300 677 679 769 746 476 460 642 570 National Australia Bank Mar 15 Sep 15 ■Impaired assets Mar 16 Sep 16 Mar 15 Sep 15 Mar 16 Sep 16 ■NZ Dairy NZ BANKING (A$m) 125 99 Mar 15 Sep 15 ■Impaired assets 609 367 522 300 87 Mar 16 ■NZ Dairy 67 Sep 16 National Australia Bank

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