1H24 Financial Results

ASB1 Balancing sustainable margins and growth in a competitive environment 35 Consumer Net Promoter Score² Peers ASB Business Net Promoter Score³ Peers ASB #1 Volume growth4 12 months to Dec 23 System ASB 25 15 5 Dec 22 10 0 #3 -10 -20 -30 Dec 23 Dec 22 6.6% 2.6% 3.0% 2.8% 0.2% 0.2% Dec 23 Business lending Home lending Deposits Margin6 Lower lending margins reflecting increased competition, and unfavourable deposit mix as customers switch to higher yielding deposits Cost-to-income Financials Increase vs 1H23 driven by lower operating income and higher operating expenses % of Group NPAT7 12% $NZDm Income 1H24 vs 1H23 1,640 (8%) Expense (648) +6% Impairment NPAT (10) (80%) 707 (12%) 247 232 39.4% 39.5% 221 34.4% bpts 1H23 2H23 1H24 Income - Lower lending margins, and deposit margins mainly due to unfavourable deposit mix, partly offset by volume growth Expense - Increased investment spend, software amortisation and licensing, and staff costs 1H23 2H23 1H24 Impairment - Lower home lending provisioning, partly offset by higher individually assessed provisions in the business portfolio 1, 2, 3, 4, 5, 6, 7. Refer to sources, glossary and notes at the back of this presentation for further details. 84

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