Investor Presentaiton

28 STRONG CAPITAL POSITION SUPPORTS DIVIDEND DIVIDEND CONSIDERATIONS • Dividend in each half considered in the context of capital, earnings and outlook • FY16 final dividend of 99 cents per share reflects current circumstances • Strong capital position (CET1 of 9.77% well above target range of 8.75-9.25%) • Current RWA growth and ROE • Surplus franking credits CAPITAL NEUTRAL PAYOUT RATIO SCENARIOS¹ SURPLUS FRANKING CREDITS3 ($m) 29 Return on Equity 12% 13% 14% 15% 548 449 1% 92% 93% 93% 93% 2% 84% 86% 87% 87% RWA 3% 77% 79% 80% 81% Growth 178 p.a. 4% 69% 72% 74% 75% 5% 62% 65% 67% 69% 71 6% 54% 58% 61% 63% FY16 capital neutral payout ratio² Sep 13 Sep 14 Sep 15 Sep 16 (1) Illustrative scenarios assume maintenance of a 9.75% CET1 ratio, excludes DRP (2) Full year 2016 underlying RWA growth 1.3%, excluding CYBG demerger, sale of 80% of NAB Wealth's life insurance business, operational risk, and mortgage risk weight changes (3) After payment of final dividend OVERALL SUMMARY • Completed all major legacy asset disposals . Core business sound Granular focus on ROE о CET1 ratio and asset quality strong о Tight management of expenses о Business Banking showing steady improvements . Environment challenging but stable • Clear future plan о Great customer experience о Deepen relationship with customers in our priority segments о Reshaping our business for the future environment – productivity, digital/physical, bank/wealth о Great leadership, talent and people National Australia Bank National Australia Bank

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