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16 BUSINESS BANKING MOMENTUM IMPROVING BUSINESS BANKING CUSTOMER REVENUE 1,2 ($m) 3,918 3,969 4,007 4,065 NET INTEREST MARGIN³ 2.41% 2.31% 2.34% 2.33% 2.05% 1.85% 1.79% 1.81% Mar 15 Sep 15 Mar 16 Sep 16 Mar 15 Sep 15 Mar 16 Sep 16 Business Banking¹ Mar 15 Sep 15 Mar 16 Sep 16 Business Lending BUSINESS LENDING TO HIGHER RETURNING SEGMENTS NAB Business, Agri and Health loans Institutional and Corporate5 7.3% 6.3% 2.2% 4.8% 2.3% 2.1% 1.1% (2.8%) REVENUE GROWTH IN PRIORITY SEGMENTS6 0.3% 1.3% 4.4% 2.1% Mar 15 Sep 15 Mar 16 Sep 16 Mar 15 Sep 15 Mar 16 Sep 16 1H15 2H15 1H16 2H16 (1) Based on unaudited management information data (4) (2) Customer revenue numbers have been restated to reflect the transfer of customers between Business Banking and Personal Banking, consistent with where customers are domiciled in 2016 (5) NAB Business is the segment of Business Banking which supports business customers with lending typically up to $25m, excluding the Specialised Businesses Includes Institutional, Corporate, Corporate Property loans and Capital Finance (3) Business Banking NIM is earned on home lending, deposit and business lending products. It includes the impact of cost of funds (6) methodology changes between Housing Lending and Deposits products, resulting in a 1bp benefit in the Sep 16 half (nil impact for Australian Banking). Business Lending NIM is the product margin earned predominantly through distribution to Business Banking customers Based on unaudited management information for NAB Business, Specialised Businesses and Private Wealth. Specialised Businesses includes Agri, Health, Government, Education and Community National Australia Bank PERSONAL BANKING REVENUE IMPACTED BY HIGHER FUNDING COSTS PERSONAL BANKING CUSTOMER REVENUE¹ NET INTEREST MARGIN ($m) 3.5% 2.25% 2.14% 2.16% 2.13% (0.5%) 2,214 2,345 2,439 2,428 1.40% 1.35% 1.35% 1.28% Mar 15 Sep 15 Mar 16 Sep 16 Mar 15 Sep 15 Mar 16 Sep 16 Personal Banking1,2 Mar 15 Sep 15 Mar 16 Sep 16 Housing lending³ HOUSING LENDING BY CHANNEL 1,4 ($bn) 5% 6% 2% 103.9 106.6 108.9 88.2 84.8 83.5 75.2 75.9 76.8 Sep 15 Mar 16 Sep 16 Sep 15 Mar 16 Sep 16 ■Broker ■Retail, Direct and Small Business Mar 16 Sep 15 Sep 16 ■NAB Business, CSB5 and Private Wealth Personal Banking NIM includes the impact of cost of funds methodology changes between Housing Lending and Deposits products, resulting in a 2bps NIM decline in the Sep 16 half year (nil impact for Australian Banking) Housing lending NIM includes the impact of cost of funds methodology changes between Housing Lending and Deposits products, resulting in a 4bps NIM decline in the Sep 16 half year (nil impact for Australian Banking) Spot volumes. Excludes Ubank, Asia and Non-performing loans. Prior periods have been restated to reflect customer transfers Corporate and Specialised Business (1) Based on unaudited management information (2) (3) (4) (5) 17 National Australia Bank

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