Financial Performance and Remediation Update

RETAIL TRADE! EXPOSURE AT DEFAULT EAD $14.5bn 2.1 3.7 8.7 EAD $14.6bn EAD $14.6bn 2.3 3.4 8.9 6.6 8.0 ■B&PB C&IB ■NZ ■B&PB C&IB ■ NZ ■Non-Discretionay ■Discretionary Mar 21 Sep 21 EAD PORTFOLIO BY SECTOR AND SECURITY2 Personal & Household Food 22% Goods 52% Motor Vehicles 26% Fully secured 51% Partially secured 36% KEY CONSIDERATIONS • Notwithstanding challenges pre COVID-19, the Retail Trade sector performed relatively well during lockdowns as consumers continued spending, but impacts have been uneven across segments • Full impact of COVID-19 on the Retail industry not yet fully played out, given unprecedented levels of government and bank support • Retail Trade portfolio COVID-19 impacts mixed: • ~46% is non-discretionary with more limited COVID-19 impacts • ~11% of B&PB exposure is CBD located 90+ DPD AND GIAS AND AS % OF SECTOR EAD ($m) 1.97% 1.97% 1.71% 1.58% 1.45% 1.24% 1.06% Unsecured 13% 295 293 212 229 248 181 151 Sep 18 Mar 19 Sep 19 190+ DPD & GIAS Mar 20 Sep 20 as % EAD Mar 21 Sep 21 (1) Retail Trade is aligned to Regulatory Industry Classifications. Discretionary / Non-discretionary Retail Trade determined at an individual ANZSIC code level (2) Fully Secured is where the loan amount is less than 100% of the bank extended value of security; Partially Secured is where the loan amount is greater than 100% of the bank extended value of security; Unsecured is where no security is held and/or no value held against the security and negative pledge arrangements are normally in place. Bank extended value is calculated as a discount to market value based on the nature of the underlying security 83 National Australia Bank

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