Wholesale Banking Performance Analysis

Commercial Real Estate - UK Banking Total £6.0bn 17.8% of Gross Loans & Acceptances Residential 37%- Land 8% Tourism & Leisure 7% Region Location % North East South West Total 28% 29% 16% 27% 100% Loan Balance <£2m 14% 13% 8% 14% 49% Loan Balance > £2m <£5m 6% 6% 3% 6% 21% Loan Balance > £5m 8% 10% 5% 7% 30% Industrial 10% Average loan tenor < 3 yrs 19% 16% 11% 15% 61% Average loan tenor > 3 < 5 yrs 3% 4% 2% 5% 14% Other 3% Average loan tenor > 5 yrs 6% 9% 3% 7% 25% Average loan size Security Level¹ £0.75m £0.84m £1.00m £0.76m £0.81m Retail 19% Fully Secured Partially Secured 13% 14% 11% 15% 53% 14% 15% 5% 12% 46% Office 16% Unsecured 1% 0% 0% 0% 1% Trend Mar 12 Sep 11 Mar 11 Sep 10 90+ days past due 1.91% 0.88% 1.42% 1.47% Impaired Loans 10.46% 9.12% 8.13% 7.69% Specific Provision Coverage 25.21% 11.2% 9.1% 4.8% (1) Fully secured represents loans of up to 70% of the market value of security. 97 Partially secured are over 70%, but not unsecured. Unsecured is primarily negative pledge lending National Australia Bank Commercial Real Estate - NZ Banking Total NZ$6.9bn 11.9% of Gross Loans & Acceptances Region Location % Auckland Other Regions Total 38% 62% 100% Loan Balance < NZ$5m 10% 26% 36% Residential 6% Loan Balance > NZ$5m<NZ$10m 5% 9% 14% Industrial 17% Land 9% Loan Balance > NZ$10m 23% 27% 50% Loan tenor <3 yrs 35% 51% 86% Loan tenor > 3 < 5 yrs 1% 6% 7% Tourism & Leisure 5% Other 6% Loan tenor > 5 yrs 2% 5% 7% Average loan size NZ$m Security Level¹ 4.5 2.8 3.3 Fully Secured 23% 44% 67% Partially Secured 11% 12% 23% Unsecured 4% 6% 10% Retail 21% Office 36% 90+ days past due Impaired Loans Specific Provision Coverage 0.37% 0.19% 0.56% 0.16% 1.18% 1.34% 24.1% 16.3% 17.2% Trend Mar 12 Sep 11 Mar 11 90+ days past due 0.56% 0.50% 0.89% Impaired Loans 1.34% 1.66% 2.03% Specific Provision Coverage 17.2% 24.6% 21.3% 98 (1) Fully Secured represents loans of up to 70% of the Market Value of Security. Partially Secured are over 70%, but not Unsecured. Unsecured is primarily Negative Pledge lending National Australia Bank

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