Financial Performance and Remediation Update

PROVISIONS MOVEMENT IN PROVISIONS¹ ($m) (230) 6,011 5,745 181 (405) (120) 5,171 Total Provisions Sep 20 Total Provisions Mar 21 Underlying collective Forward looking provision Economic Adjustment Target sector forward looking adjustments UNDERLYING CP Model outcomes based on point-in- time data . Forms baseline 2H21 release reflects improved environment and customer positions . • . Specific provision Total Provisions Sep 21 ECONOMIC ADJUSTMENT (EA) Forward view of additional stress across portfolio from base- line, according to 3 probability weighted scenarios (upside, base case & downside) Scenarios based on forward looking macro economic data and granular PD and LGD assumptions EA top-up required where probability weighted EA higher over the period (and vice versa) 2H21 EA increase of $181m reflects modest increased TARGET SECTOR FLAS • Considers forward looking stress incremental to EA changes $248m release in FLAS relating to the partial sale of the Aviation portfolio weighting to downside scenario (30% to 32.5%) given increased uncertainty in the economic outlook² (1) Excludes provisions on fair value loans and derivatives (2) Australian base case weighting now 62.5% (from 65% at 1H21) and Downside weighting now 32.5% (from 30% at 1H21) 73 National Australia Bank

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