Investor Presentaiton

AUSTRALIAN BANKING: BUSINESS LENDING - COMMERCIAL REAL ESTATE Total $53.0bn¹ 11.5% of Gross Loans & Acceptances² State Location NSW VIC QLD WA Other Total 37% 28% 17% 9% 9% 100% Loan Balance < $5m 29% 41% 36% 34% 35% 35% Industrial. 15% Other 7% _Land > $5m < $10m ≥ $10m 11% 13% 14% 11% 14% 12% 60% 46% 50% 55% 51% 53% 6% Loan tenor 3 yrs 75% 79% 79% 78% 83% 78% Residential 13% Loan tenor ≥3 < 5 yrs 21% 17% 17% 18% 13% 18% Loan tenor ≥ 5 yrs 4% 4% 4% 4% 4% 4% Average loan size $m 3.3 2.4 2.6 2.9 2.8 2.8 Tourism & Leisure Security Level3 - Fully Secured 72% 86% 86% 91% 87% 81% 3% Retail 29% Partially Secured 11% 10% 11% 6% 12% 11% Unsecured 17% 4% 3% 3% 1% 8% Office 27% 90+ days past due ratio Impaired loans ratio 0.02% 0.13% 0.02% 0.04% 0.06% 0.25% 0.05% 0.11% 0.92% 0.04% 0.08% 0.25% Specific provision coverage ratio 11.6% 24.4% 33.1% 0.0% 0.5% 26.5% Construction/development 17% 16% 11% 18% 14% 15% Investment 83% 84% 89% 82% 86% 85% Mar 15 Sep 15 Mar 16 Sep 16 Portfolio Retail Office Residential Other4 Trend breakdown Construction/ development 2% 2% 63% 19% 90+ days past due ratio Impaired loans ratio Investment 98% 98% 37% 81% Specific provision coverage ratio 0.12% 0.13% 0.47% 0.35% 0.07% 0.05% 0.29% 0.25% 19.7% 16.1% 20.8% 26.5% (1) (2) Data has been prepared in accordance with APRA ARF230 guidelines Represents assets within the Australian geography (3) (4) 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 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 Other consists of tourism and leisure, industrial, land and other National Australia Bank 48 49 AUSTRALIAN BANKING: DEVELOPER EXPOSURES LIMITED CRE LENDING TO DEVELOPERS ⚫ $53.0bn total Australian CRE exposure, of which • 85% is Investment; and • 15% is Developer • Residential development lending exposure $4.4bn and $2.2bn for land. Exposure to higher risk inner city postcodes -20% of total residential developer portfolio · Exposure concentrated in NSW/ACT (43%) and VIC/TAS (30%) DEVELOPER-COMMERCIAL PROPERTY BY TYPE COMMERCIAL PROPERTY - DEVELOPER V INVESTMENT Developer $8bn 15% Investment $45bn 85% DEVELOPER COMMERCIAL PROPERTY BY STATE Residential 55% Land 28% Retail .3% Other 5% Office 3% Tourism & Leisure 1% Industrial NSW/ACT 43% 5% VIC/TAS 30% SA/NT 5% QLD 12% WA 10% National Australia Bank

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