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70 71 NEW ZEALAND BANKING CASH EARNINGS AND UNDERLYING PROFIT¹ (NZ$m) 627 639 REVENUE V EXPENSE GROWTH (NZ$m) 636 641 1,034 1,058 1,051 1,060 39.4% 39.6% 39.5% 39.5% 432 418 405 404 407 419 415 419 Mar 15 Mar 15 Sep 15 Sep 15 Cash earnings Mar 16 -Underlying profit Sep 16 % Cost to income ratio NET INTEREST MARGIN: MARCH 16 v SEPTEMBER 16 2.31% (0.02%) (0.07%) 0.00% (0.02%) Mar 16 Revenue Sep 16 Expenses 2.20% Mar 16 Lending Margin Funding Mix Other (1) Underlying profit represents cash earnings before various items, including tax expense and the charge for bad and doubtful debts. It is not a statutory financial measure Sep 16 NEW ZEALAND BANKING: VOLUMES AND MARKET SHARE BUSINESS LENDING¹ (NZ$bn) RETAIL LENDING¹ (NZ$bn) CUSTOMER DEPOSITS¹ (NZ$bn) 36.4 48.8 50.5 34.7 44.7 45.8 1.3 32.9 33.3 1.3 1.3 1.5 26.8 27.9 24.7 25.7 37.9 36.4 34.8 35.1 33.3 33.4 31.4 32.0 20.0 20.1 22.0 22.6 National Australia Bank Mar 15 Sep 15 Mar 16 Sep 16 Mar 15 Sep 15 ■Housing lending Mar 16 Sep 16 Unsecured personal Mar 15 Sep 15 Mar 16 ■BNZ Partners ■BNZ Retail Sep 16 LENDING MARKET SHARE² DEPOSIT MARKET SHARE² 27.2% 27.5% 26.5% 26.5% 24.6% 24.0% 24.4% 24.2% 22.2% 22.4% 22.6% 22.5% 18.1% 17.6% 17.6% 17.6% 14.8% 13.8% 14.0% 14.1% 15.8% 15.5% 15.5% 15.5% Mar 15 Sep 15 Mar 16 Aug 16 Mar 15 Sep 15 Mar 16 Aug 16 3 Business -Agribusiness -Housing Business deposits Total Retail deposits Personal deposits (1) Spot volumes (2) Source RBNZ: August 2016 (3) Source RBNZ: Retail deposits include both Personal and Business deposits National Australia Bank

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