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NEW ZEALAND BANKING: ASSET QUALITY B&DD CHARGE AND AS % OF GLAS¹ (NZ$m) TOTAL 90+ DPD AND GIAS AND AS % OF GLAS (NZ$m) 72 73 0.26% 0.24% 0.14% 31 23 0.11% 58 57 61 30 511 11 (12) Mar 15 Sep 15 Mar 16 Sep 16 Mar 15 ■Specific B&DD charge ■Collective B&DD charge NET WRITE-OFFS TO GLAS (bps) 13bps 9bps 7bps 27bps 24bps 25bps 23bps 22bps 17bps 412 Sep 15 1,251 1,017 1.80% 823 1.20% 579 438 Mar 16 0.60% 428 0.00% Sep 16 Dairy Impaired Assets currently assessed as no loss 90+ DPD and GIAs Total 90+ DPD and GIAS as % GLAS (RHS) COLLECTIVE AND SPECIFIC PROVISION COVERAGE 49.0% 42.6% 44.3% 39.2% 0.84% 0.91% 0.90% 0.75% 6bps Mar 15 Sep 15 Mar 16 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Specific Provisions as % of GIAs² (1) Half year B&DD as a % of GLAS annualised Sep 16 -Collective provisions as % of Credit Risk Weighted Assets (2) Consists only of impaired assets where a specific provision has been raised and excludes New Zealand dairy exposures currently assessed as no loss based on security held National Australia Bank NEW ZEALAND BANKING: LENDING MIX AND MORTGAGE PORTFOLIO BY GEOGRAPHY PORTFOLIO BREAKDOWN - TOTAL NZ$74.1BN MORTGAGE PORTFOLIO BREAKDOWN BY GEOGRAPHY Agriculture, Forestry and Fishing 20%. Commercial Property .11% Retail and Wholesale. Trade 4% Manufacturing. 4% Wellington 11% Canterbury. 14% Mortgages 47% Waikato 7% Bay of Plenty 6% Auckland Other 17% 45% Other Commercial. 12% Personal Lending 2% National Australia Bank

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