Investor Presentaiton

NET INTEREST MARGIN NET INTEREST MARGIN 1.78% 1.78% 0.04% (0.08%) 0.03% (0.02%) 1.75% 0.06% (0.04%) 1.77% Sep 19 Mar 20 Lending Margin Funding Deposits Capital & Other Sep 20 Ex Markets & Treasury Higher Liquids Markets & Treasury 1 Sep 20 KEY CONSIDERATIONS AVERAGE LONG TERM WHOLESALE FUNDING COSTS4 (bps) • FY21 NIM impact from the low rate environment expected to be ~6bps² 225 200 • . Competitive pressures and higher liquidity to remain a headwind, however lower funding costs and deposit mix provide a modest tailwind Bills-OIS sensitivity reduced - 17bps of spread³ = 1bp of NIM (was 13bps spread in June) $84bn replicating portfolio provides 3.5 year average hedge for capital ($41bn) and low rate deposits ($43bn) 25 - 175 150 125 100 75 50 Sep 07 Sep 09 Sep 11 Sep 13 Sep 15 Term Funding Portfolio WAC Forecast WAC of Portfolio Sep 17 Sep 19 New Issuance WAC (rolling 6m average) Sep 21 (1) Largely relates to NII/OOI offset (2) Estimated impact of previously announced RBA and RBNZ cash rate cuts on Group NIM, including the deposits impact, lower expected replicating portfolio benefits, and impact of announced repricing. Excludes the impact of any future cash rate movements (3) Based on September month average (4) Term Wholesale Funding Costs (including subordinated debt and TFF drawdowns) >12 Months at issuance (spread to 3 month BBSW). Average cost of new issuance is on a 6 month rolling basis 20 20 National Australia Bank

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