Investor Presentaiton

STRONG CAPITAL AND FUNDING POSITION GROUP BASEL III COMMON EQUITY TIER 1 CAPITAL RATIOS (%) 9.69 Capital generation 25bps (17bps ex DRP) 0.90 (0.64) (0.01) (0.69) 0.45 0.07 9.77 4.23 14.00 Mar 16 Cash earnings Dividend net of DRP participation RWA growth¹ Mortgage risk weight changes 80% sale of Life insurance Other business Sep 16 (APRA standards) Internationally Comparable CET1 adjustments Sep 16 (Internationally Comparable CET1)² CAPITAL CONSIDERATIONS • CET1 ratio operating target range of 8.75% - 9.25% Leverage ratio is 5.7% on an APRA basis and 6.2% on an Internationally Comparable basis 2,3 · • Internationally Comparable CET1 ratio up 98bps in 2H16 to 14%, reflecting mainly mortgage risk weight change-ratio comfortably within top quartile of global peers based on recent studies NET STABLE FUNDING RATIO • NAB Group NSFR is >100% as at 30 September 2016 based on draft APRA rules • Minimum 100% compliance required by 1 January 2018 • Draft rules largely consistent with Basel with adjustment for assets supporting the CLF 20 (1) RWA growth excludes the impacts of mortgage risk weight changes, sale of 80% of NAB Wealth's life insurance business and reduction in operational risk capital (2) Internationally Comparable CET1 ratio at 30 September 2016 aligns with the APRA study entitled "International Capital Comparison Study" released on 13 July 2015. Refer to appendix page 94 for more detail (3) Leverage ratio calculated using an International Capital Tier 1 capital measure includes transitional relief for non-Basel 3 compliant instruments SUMMARY • Solid operational performance with costs well managed • Business Banking improvement - margins stable Asset quality sound - $100m top up to collective provision overlay • Well placed for any potential regulatory changes 21 21 о Capital position strong - 9.77% CET1 о NSFR above 100% National Australia Bank National Australia Bank

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