Investor Presentaiton

GLOSSARY Overnight OIS Index Swap ΟΟΙ Other operating income Other banking products Residential Mortgage RMBS Backed ROE Securities Cash Return on Equity Risk-weighted RWAs assets SFI SME Stable Funding Index Small and Medium Enterprise Term Funding TFI Index Total TSR Shareholder Returns Underlying profit Watch loans Interest rate swap involving the overnight rate being exchanged for a fixed interest rate. Revenue derived from non-interest bearing products, such as fees and premiums. Personal lending, credit cards (consumer and commercial), investment securities and margin lending. Where a bank sells a pool of mortgages to a related special purpose vehicle (SPV), and the SPV in turn issues debt securities. Internal RMBS is where those securities are held entirely by the bank which originated the mortgages. These securities are eligible for use as collateral in repurchase agreements with the Reserve Bank of Australia. Calculated as cash earnings (annualised) divided by average shareholders' equity, excluding non-controlling interests and other equity instruments and adjusted for treasury shares. A quantitative measure of the Group's risk, required by the APRA risk-based capital adequacy framework, covering credit risk for on- and off-balance sheet exposures, market risk, operational risk and interest rate risk in the banking book. Term Funding Index (TFI) plus Customer Funding Index (CFI). A segment of NAB business lending which supports business customers with lending typically up to $25m, excluding the Specialised Businesses. Term wholesale funding (with a remaining maturity to first call date greater than 12 months) divided by core assets. Measured against Australian Financial Services firms as listed in our 2015 Annual Financial Report. Underlying profit is a performance measure used by NAB. It represents cash earnings before various items, including income tax expense and the charge to provide for bad and doubtful debts. It is not a statutory financial measure and is not presented in accordance with Australian Accounting Standards nor audited or reviewed in accordance with Australian Auditing Standards. Loan facilities where customers are experiencing operating weakness and financial difficulty but are not expected to incur loss of interest or principal. 128 DISCLAIMER The material in this presentation is general background information about the NAB Group current at the date of the presentation on 27 October 2016. The information is given in summary form and does not purport to be complete. It is intended to be read by a professional analyst audience in conjunction with the verbal presentation and the 2016 Full Year Results Announcement (available at www.nab.com.au). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. No representation is made as to the accuracy, completeness or reliability of the presentation. This presentation contains statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believe", "estimate", "plan", "project", "anticipate", "expect", "intend", "likely", "may", "will", "could" or "should" or, in each case, their negative or other variations or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. The Group disclaims any responsibility to update any forward-looking statement contained in this presentation to reflect any change in the assumptions, events, conditions or circumstances on which a statement is based, except as required by law. Further information on important factors that could cause actual results to differ materially from those projected in such statements is contained in the Group's Annual Financial Report. 129 For further information visit www.nab.com.au or contact: Ross Brown Executive General Manager, Investor Relations Mark Alexander Mobile | +61 (0) 417 483 549 Natalie Coombe Senior Manager, Investor Relations Mobile | +61 (0) 477 327 540 Head of Corporate Affairs, Group Media Mobile | +61 (0) 412 171 447 National Australia Bank National Australia Bank

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