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NEW ZEALAND BANKING: HOUSING LENDING - KEY METRICS New Zealand housing lending Mar 15 Sep 15 Mar 16 Sep 16 Low Documentation 0.15% 0.13% 0.10% 0.08% Proprietary 100% 99.6% 97.1% 94.4% Third Party Introducer 0.0% 0.4% 2.9% 5.6% Variable rate lending drawn balance 25.5% 23.1% 21.1% 20.4% Fixed rate lending drawn balance 70.8% 73.5% 75.7% 76.7% Line of credit drawn balance 3.7% 3.4% 3.2% 2.9% Interest only drawn balance1 23.2% 23.8% 24.0% 25.1% Insured % of Total Portfolio² 8.5% 7.3% 6.1% 5.3% Current LVR on a drawn balance calculated basis 63.5% 63.1% 62.8% 62.6% LVR at origination 68.9% 68.4% 67.9% 67.8% Average loan size NZ$ ('000) 296 304 316 332 90+ days past due ratio Impaired loans ratio Specific provision coverage ratio Loss rate³ 0.17% 0.14% 0.17% 0.09% 0.16% 0.13% 0.11% 0.09% 36.9% 35.5% 47.0% 35.9% 0.04% 0.03% 0.02% 0.02% 74 75 (1) Excludes Line of credit (2) Insured includes both LMI and Low Equity Premium (3) 12 month rolling Net Write-offs / Spot Drawn Balances NEW ZEALAND BANKING: AGRIBUSINESS AND DAIRY PORTFOLIO AGRIBUSINESS PORTFOLIO AGRIBUSINESS NZ$14.7BN - 19.8% OF TOTAL GLAS DAIRY PORTFOLIO ■Fully Secured 60% ■Partially secured 38% ■Unsecured 2% Dairy 57% NZ$8.4bn Drystock 19% Forestry 5% Kiwifruit 3% Other 12% National Australia Bank - Services to Agriculture 4% FONTERRA MILK PRICE FORECASTS (INCLUDING DIVIDEND) 9 8 ■Fully Secured 56% 7 Partially Secured 43% 6 ■ Unsecured 1% 5 €2 (1) Source: Fonterra (2) Source: DairyNZ. Cost of production includes interest and rent, RBNZ FSR 4 2012 2013 2014 -Fonterra milk price (Inc Dividend)' 2015 2016 —Average cost of production (per kg)² 2017 (FC) National Australia Bank

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