Investor Presentaiton

EXPECTED CREDIT LOSSES (ECL) HIGHER EXPECTED CREDIT LOSS (ECL) PROVISIONING PROCESS AND MOVEMENTS¹ ($m) 3,900 4,835 155 661 367 (7) 6,011 Probability weighted ECL Probability weighted ECL Sep 19 Mar 20 Underlying collective provision Forward looking Economic Adjustment Target sector forward looking adjustments Specific provision Probability weighted ECL Sep 20 UNDERLYING CP Model outcomes based on point-in- time data • Forms base-line • ECONOMIC ADJUSTMENT (EA) Minimum 6 monthly reviews Forward view of additional stress across portfolio from base-line, according to 3 scenarios (upside, base, downside) which are probability weighted 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) TARGET SECTOR FLAS Considers forward looking stress incremental to EA top- up Specific to particular parts of the portfolio e.g. sector or region (1) Expected credit losses (ECL) excludes collective provisions on fair value loans and derivatives 24 24 National Australia Bank

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