Investor Presentaiton

14 15 ASSET QUALITY AREAS OF INTEREST ASSET QUALITY CONSIDERATIONS NZ Dairy • • Outlook for NZ Dairy improved following Fonterra milk price forecast increase from NZ$4.25 to NZ$5.25 1.92% CP coverage of NZ Dairy book (~9.4% of impaired no loss portfolio) NZ DAIRY PORTFOLIO BY CATEGORISATION (NZ$m) 8,269 8,417 8,430 18 57 99 579 999 823 576 509 -80% of dairy farm valuations updated in 2H16 resulting in 3% (~NZ$307m) reduction in total valuations Residential Development Residential development lending exposure $4.4bn and $2.2bn for land. Exposure to higher risk inner city postcodes -~20% of total residential developer portfolio RESIDENTIAL DEVELOPMENT EXPOSURE¹ 60% 7,252 7,205 6,999 Mar 16 Sep 16 Sep 15 ■Performing Watch & 90+ DPD ■Impaired - No Loss Impaired - Loss NZ DAIRY COLLECTIVE PROVISIONS AND AS % OF NZ DAIRY EAD 1.92% (NZ$m) 40% 20% 0% VIC NSW ■Within Inner-City QLD WA SA ■Outside Inner-City 1.63% 1.03% 169 147 0.71% 59 93 Mar 15 Sep 15 Mar 16 Sep 16 (1) 'Inner-City' includes CBD and adjoining postcodes. There is exposure to one development in each of the inner-cities of Darwin and Hobart. Includes transactions that are well advanced but not yet drawn-down SOLID AUSTRALIAN BANKING PERFORMANCE AUSTRALIAN BANKING Cash earnings Underlying profit' Revenue Expenses 7.3% 5.5% 4.9% 4.1% 3.1% 0.7% 1.9% (1.1%) National Australia Bank 2H16 vs 1H16 FY16 vs FY15 2H16 vs 1H16 FY16 vs FY15 2H16 vs 1H16 FY16 vs FY15 2H16 vs 1H16 FY16 vs FY15 AUSTRALIAN BANKING NET INTEREST MARGIN 1.70% AUSTRALIAN BANKING LOAN GROWTH² (%) 0.03% (0.06%) 0.01% (0.01%) (0.06%) 4.9% 1.67% 3.0% 3.0% 1.61% 1.7% 1.7% (0.3%) 0.1% Sep 15 Mar 16 Sep 16 Sep 15 Mar 16 Sep 16 Sep 15 Mar 16 Lending Margin Funding Mix Other Sep 16 ex Markets & Treasury Markets & Sep 16 ■Housing Lending Business Lending Treasury (1) Underlying profit represents cash earnings before various items, including tax expense and the charge for bad and doubtful debts. It is not a statutory financial measure (2) Spot volumes (3) Personal lending includes consumer cards and personal loans 4.1% (0.2%) Mar 16 Sep 16 ■Personal lending³ National Australia Bank

View entire presentation