Wholesale Banking Performance Analysis

5 6 Continued focus on strategic priorities To deliver sustainable, satisfactory returns to shareholders Balance sheet strength Efficiency, quality & service People, culture & reputation Portfolio ▸ Keep the bank safe ▸ Strong capital, funding and liquidity ▸ Tight controls and risk settings ▸ Transform the way we do business ▸ More competitive cost structure ▸ Reduce operational risk ▸ Replace ageing infrastructure ▸ Improve customer experience and service delivery ▸ Differentiate for our people, customers and communities ▸ Shape our future environment ▸ Focus in Australia ▸ Maintain value and options internationally ▸ Wholesale banking refocused on core franchise National Australia Bank Good progress against strategic priorities Balance sheet strength¹ ▸ Core tier 1 ratio up from 6.6% to 8.0% ▸ Stable Funding Index improved from 76% to 85% ▸ Liquids up $22bn to $90bn ▸ Collective Provision and GRCL top-up coverage of CRWA (ex housing) up from 1.38% to 1.76% Efficiency, quality & service ▸ CAGR cost growth 1.6% over three years ▸ Positive jaws over last three halves ▸ Continuing to invest ($955m FY10, $1,160m, FY11, $516m 1H12) ▷ 1/3rd of transformation programme completed - NextGen on track People, culture & reputation ▸ Differentiated customer proposition ▸ Customer satisfaction up from 69.0% to 79.3% since Mar 092 ▸ Employee engagement remains above global finance industry norms, continual improvement since FY09 ▸ Employer of Choice for Women for the sixth year in a row Portfolio ▸ Australian & New Zealand loan and deposit market share growth ▸ Portfolio shift to mortgages reduces concentration of risk and averages up returns ▸ SGA run-off progressing - RWAs down $17.3bn (68%) since Sep 09 and SCDO risk closed out ▸ Wholesale banking customer income 14% CAGR (Sep 08 to Mar 12) ‣ UK CRE assets to be run-off; implement simplified business model (1) All figures since 31 March 2009 (2) Roy Morgan Research, Aust MFIs, population aged 14+, six month moving average. Customer satisfaction is based on customers who answered very/fairly satisfied. NAB compared with the weighted average of the three major banks (ANZ, CBA, WBC) National Australia Bank

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