Important note on these presentation slides, including the use of non-ifrs financial information

Transcription

1 Important note on these presentation slides, including the use of non-ifrs financial information This document is a visual aid accompanying a presentation to analysts by the Group Chief Executive Officer and the Executive Director Finance on 9 May It is not intended to be read as a stand-alone document. It contains select information, in abbreviated or summary form, and does not purport to be complete. It is intended to be read by an analyst audience familiar with National Australia Bank Limited and its March 2013 Half Year Results, and to be accompanied by the verbal presentation. This document should not be read without first reading the National Australia Bank Limited March 2013 Half Year Results, which has been lodged with the Australian Securities Exchange at the same time as this document and is available at The verbal presentation to analysts places emphasis on cash earnings measures of the Group s performance. NAB uses cash earnings for its internal management reporting purposes and considers it a better reflection of the Group s underlying performance. Accordingly, as a visual aid to that presentation, information in this document is presented on a cash earnings basis unless otherwise stated. Cash earnings is calculated by excluding some items which are included within the statutory net profit attributable to owners of the Company. It is not a statutory financial measure and is not presented in accordance with Australian Accounting Standards nor audited or reviewed in accordance with Australian Auditing Standards. The definition of cash earnings, a discussion of non-cash earnings items and a full reconciliation of the cash earnings to statutory net profit attributable to owners of the company is set out on pages 2-8 of the National Australia Bank Limited March 2013 Half Year Results. The Group s financial statements, prepared in accordance with the Corporations Act 2001 (Cth) and Australian Accounting Standards, and reviewed by the auditors in accordance with Australian Auditing Standards, are included in Section 5 of the 2013 Half Year Results Announcement. Note: The inclusion of percentage changes in brackets in this document indicates an unfavourable movement on a prior comparative period. This document is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. This document contains certain "forward-looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", outlook, "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. 2

2 Solid result from core franchise and improved UK performance Mar 13 Mar 13 vs Sep 12 Mar 13 vs Mar 12 Cash earnings 2, % 3.1% Dividend (100% franked cps) % 3.3% APRA Basel III Common Equity Tier 1 ratio 8.22% 32bps 1 64bps 1 Cash ROE 14.7% 120bps (30bps) Statutory net profit attributable to owners 2, % 22.8% 3 (1) Estimated comparison to Sep 12 and Mar 12 as APRA Basel III Common Tier 1 ratio was effective from 1 January 2013 Environment remains challenging, especially UK System credit growth % change year-on-year Regulation (%) Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Source: RBA Financial System, RBNZ, Bank of England, NAB Australian business conditions and confidence Mar 13 quarter (Net Balance) Source: NAB Australia New Zealand UK Conditions Confidence Basel III liquidity Domestic systemically important banks (D-SIBs) Supervision of Conglomerate Groups Dodd-Frank Act Changes to superannuation UK customer redress Quarterly real output path during UK recessions 1 (Index) s 1970s 1990s Current 1930s 2Q 4Q 6Q 8Q 10Q 12Q 14Q 16Q 18Q 20Q 4 (1) Previous peak 100. Source: NAB Economics, UK Office of Budget Responsibility

3 Good progress on a number of fronts Technology transformation over 1H13 NAB Connect launched on any smart mobile device Commenced roll-out of 130,000 new Verifone merchant terminals Money Tracker and PeopleLikeU launched Oracle Credit Risk Engine built and being deployed Same day settlement for merchants seven days a week NAB s private cloud core infrastructure built New state of the art data centre built Basel III Common Equity Tier 1 ratio 8.22% 7.90% 7.58% 1 Mar 12 1, 2 Sep 12 Mar 13 Basel III Common Equity Tier 1 ratio (CET1) Basel III CET1 target >7.50% Results excluding UK UK restructuring ($bn) 12.2% 7.7% Mar 11 Mar 12 Mar 13 Cash earnings Since UK restructuring announcement in April 2012: ~ 1bn reduction in NAB UK CRE to 5bn ( 4.4bn net of provisions) Realised 64m of annual run-rate cost savings o Reduction of 1,110 FTEs (1,400 planned by 2015) o Footprint rationalisation nearing completion Clydesdale Bank now 91.6% customer funded 150bps increase in Clydesdale Bank Tier 1 Capital ratio to 11.8% 5 (1) Estimated Basel III Common Equity Tier 1 ratio (2) The Group s Sep 12 proforma Basel III Common Equity Tier 1 ratio has been amended down by 1bp to 7.90% from the previously reported 7.91%. This reflects minor refinements to NAB s interpretation of APRA s Basel III standards Updated strategy aligned to changing landscape To deliver sustainable, satisfactory returns to shareholders Simplify and digitise our business Simplify and standardise product offering Re-engineer and automate processes Simplify technology Reshape footprint Enhance payments and mobile capability Enhance Australian franchise Meet evolving customer needs Deliver world class customer management Provide DIY digital options for customers Enhance banking services for superannuation and ageing Broaden services for Asia active customers NextGen technology and infrastructure People, culture and reputation Balance sheet strength Risk and compliance Manage international portfolio for value Maintain strong NZ franchise Complete SGA and UK CRE run-off Complete UK restructure 6

4 Summary Strong balance sheet Australia and New Zealand banking performing well UK restructure ahead of plan; environment still challenging Technology transformation well progressed Strategy refreshed 7 1H13 Financials

5 Group financial result Mar 13 Change on Sep 12 Change on Sep 12 ex ECA Change on Mar 12 Net operating income 9, % 1.6% Operating expenses (3,976) (2.6%) (0.6%) Underlying profit 5, % 2.3% B&DDs (1,092) 26.4% 11.5% 3.4% Cash earnings 2, % 4.8% 3.1% Cash ROE (%) 14.7% 120bps 30bps (30bps) Spot GLAs ($bn) (0.3) 10.2 Spot Customer Deposits ($bn) Statutory net profit attributable to owners 2, % 14.3% 22.8% 9 Net interest margin Group net interest margin half-on-half attribution analysis 0.05% (0.03%) 0.01% 0.03% (0.01%) (0.02%) (0.05%) (0.01%) Customer margin up 6bps 2.06% 2.03% Sep 12 Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix Earnings on Capital Markets & Treasury (ex Liquids) Liquid holdings Mar 13 Business unit net interest margin (%) Mar 13 Margin change on Sep 12 Customer margin 1 change on Sep 12 Business Banking bps 4bps Personal Banking bps 9bps UK Banking bps 4bps Average Long Term Wholesale Funding Costs 2 (bps) NZ Banking bps 1bp 0 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Average Cost of Term Funding Portfolio Forecast Average Portfolio Cost (New 100bps) Forecast Average Portfolio Cost (New 145bps) Forecast Average Portfolio Cost (New 120bps) Average Cost of New Issuance (1) Customer margin comprises lending margin, deposit and funding costs and liability mix (2) NAB Ltd Term Wholesale Funding Costs >12 Months at issuance (spread at 3 month BBSW). Average cost of new issuance is on a 6 month rolling basis Forecast assumptions as follows: - new issuance at 100bps: blended onshore and offshore market levels as at 30 April 2013 (5 year) - new issuance at 145bps: March 2013 average portfolio cost - new issuance at 120bps: approximate cost of maturing debt to September 2014 Group 2.03 (3bps) 6bps

6 Operating expense trends Jaws momentum (ex SCDO and FX) 5.0% Revenue growth +3.3% 2.3% 2.4% 1.7% +1.7% +3.1% 0.0% 0.6% Expense growth -0.7% +2.3% -2.3% 1H11 v 2H10 2H11 v 1H11 1H12 v 2H11 2H12 v 1H12 2.7% -1.2% 1.5% 1H13 v 2H12 Depreciation, amortisation and capitalised software balance Investment spend 1,252 1,291 1,454 1,646 $638m $516m $571m $525m 2% 6% 6% 4% Depreciation Amortisation Capitalised software balance 65% 60% 53% 59% 25% 23% 28% 20% 8% 11% 13% 17% Compliance / Operational Risk Infrastructure Efficiency and Sustainable Revenue 11 Group B&DD charge B&DD charge 1, ,131 1, , Sep 10 Mar 11 Economic cycle adjustment UK Banking and NAB UK CRE B&DD charge Group B&DD charge (ex UK Banking & NAB UK CRE) UK Banking & NAB UK CRE B&DD charge ( m) Sep 10 Mar 11 CRE Non CRE NAB UK CRE UK Banking B&DD charge to GLAs compared to norms 0.87% B&DD charge by business (constant currency) 0.43% 0.24% 0.57% 0.51% 0.52% 0.43% 0.38% 0.46% 0.44% 0.30% 1,484 (120) 114 (18) (4) (2) (112) (250) 1,092 Sep 09 Mar 10 Sep 10 Mar 11 NAB long term average (43bps) NAB benign period average (24bps) B&DD charges as a % of GLAs (annualised) B&DD charges as % of GLAs (ex UK Banking, NAB UK CRE and Economic cycle adjustment, annualised) Sep 12 Business Banking Personal Banking Wholesale Banking offshore & FX UK Banking & NAB UK CRE Economic cycle adjustment Mar 13 12

7 Asset quality and coverage ratios Categorised assets by class 90+ DPD & impaired assets as a % of GLAs ($bn) % 5.0% 4.0% Mar 10 Sep 10 Mar 11 Watch Loans 90+DPD Impaired Assets Categorised Assets as % of GLAs (RHS) 1.77% 1.73% 1.78% 1.74% 1.60% 1.50% 1.43% 1.31% Group Group (excluding UK Banking & NAB UK CRE) Total and specific provision coverage Coverage ratios (with and without GRCL top-up) 24.2% 26.8% 30.3% 1.71% 32.9% 1.73% 1.41% 0.31% Basel II Basel III 1.32% 1.30% 1.29% 1.22% 0.30% 0.25% 0.25% 0.23% 1.60% 1.56% 1.64% 1.10% 1.02% 1.05% 1.04% 0.99% Specific Provisions as % of Impaired Assets Total provisions as % of Credit Risk Weighted Assets (Basel III) Total provisions as % of Credit Risk Weighted Assets (Basel II) Mar 13 Collective Provisions as a % of Credit Risk Weighted Assets GRCL top-up (pre-tax) as a % of Credit Risk Weighted Assets 13 Business unit contributions Cash earnings attribution analysis by business (constant currency) (28) (3) 239 (229) (7) 2,605 2,780 2,915 Sep 12 ECA adjustment Sep 12 (ex ECA adjustment) Business Banking Personal Banking Wholesale Banking NZ Banking NAB Wealth pre IoRE UK Banking NAB UK CRE, FX, IoRE 1 Mar 13 Return on average RWAs for Banking Business Units (annualised) 1H12 2H12 1H13 1H13 Group (1.72%) 1.78% 1.62% 1.75% 2.31% 2.89% 2.71% 2.60% 2.73% 2.63% 1.93% 1.77% 1.88% (-ve) (-ve) 0.30% 2 BB PB WB NZ UK Banking (1) comprises SGA, Group Funding, Group Business Services, other supporting units and Great Western Bank (2) Wholesale Banking Mar 13 risk-weighted assets increased by $12.5bn due to the introduction of the Basel III regulatory capital framework 14

8 Business Banking Business lending volumes ($bn) Net interest margin (%) (0.5) (0.6) B&DD charge and B&DD as % GLAs 90+ DPD and GIAs as a % of GLAs SME All other B&DD/GLAs (annualised) (RHS) 0.60% 0.45% 0.30% 0.15% 0.00% (%) 2.29% 2.23% 2.19% 1.98% 15 (1) Corporate, Institutional and Specialised Banking (2) Asia transferred from Corporate Functions (3) SME business data reflects the nabbusiness segment of Business Banking which supports business customers with lending typically up to $25m, excluding the Specialised Businesses Personal Banking Cash earnings and RoRWA Sequential margin analysis 3.00% 2.50% (%) % Mar 10 Sep 10 Mar % Cash earnings RoRWA B&DD charge and B&DD as % GLAs Australian mortgages 1 - cumulative 30+ DPD Mar 10 Sep 10 Mar % 0.45% 0.30% 0.15% 0.00% 4.0% 3.0% 2.0% 1.0% 0.0% Months on books B&DD charge B&DD as % of GLAs (annualised) (1) Includes Business Banking and NAB Wealth 16

9 Wholesale Banking Cash earnings Customer and risk income 1,219 1,282 1, Customer 1 Risk 2 Customer income Mar 10 Sep 10 Mar 11 Fees & Sales Rates & Credit Sales FX Sales Specialised Finance, Asset Servicing & FIG Risk income Mar 10 Sep 10 Mar 11 FICC Treasury Avg traded market risk VaR (RHS) (1) Customer comprises Corporate and Business Risk Management Sales, Asset Servicing, Specialised Finance, Financial Institutions Group (FIG) and non- balance sheet related activities in Global Capital Markets (GCM) (2) Risk comprises Treasury, FICC, and GCM NAB Wealth Investments cash earnings and margin Insurance cash earnings and income to average PiF % 0.90% 0.80% 0.70% % 40% 35% 30% 0.60% 25% Sep 10 Mar % Sep 10 Mar 11 20% Cash earnings Net income to average FUM (RHS) Cash earnings Net income to average PiF (RHS) FUM 1 net funds flow Movement in total investments margin 2,286 (0.05%) 114 1, % (0.04%) (0.01%) 0.02% 0.78% (605) (871) (1,480) Sep 10 Mar 11 Sep 12 Annuity experience Reclass of Business mix adviser sales and pricing incentives MasterKey Custom to MLC Wrap migration costs 2H12 Mar (1) FUM on a proportional ownership basis

10 New Zealand Banking and Great Western Bank New Zealand Banking - Cash earnings New Zealand Banking - Net interest margin (NZ$m) 17.0% (7.5%) 8.7% (%) New Zealand Banking B&DD charge and B&DD as % of GLAs (NZ$m) 0.20% 0.12% 0.22% 0.19% Great Western Bank - Cash earnings (US$m) 10% 0% 16% B&DD charge B&DD as % of GLAs (annualised) UK Banking UK Banking proforma 1 Net interest margin ( m) 1H13 Result 2H12 Actual 2H12 Proforma Income % Customer margin up 4bps (0.11%) 0.06% 0.02% 0.07% 0.01% (0.06% ) (0.01% ) Expenses (345) (349) (342) B&DDs (91) (349) (100) Cash earnings 41 (114) % 2.06% CB Tier 1 ratio (%) 11.8% 9.6% 11.6% CB Assets ( bn) Sep 12 Transfer Lending to UK CRE Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix FSCS Levy Mar 13 Credit quality excluding CRE 2 matters ( m) 2.39% 1.80% 1.84% 1.64% 1.55% 1.28% Sep 09 Sep 10 IAS19 pension deficit was 72m at Mar 13 down from 301m at Sep 12 PPI claims reduced; provision of 51m remaining at Mar 13 ( 108m at Sep 12). Provision usage for month of March was 6m Charges taken for other customer redress issues in the half of 23m. Additional 15m taken for interest rate derivative products (reported in Corporate Centre) Total provision for non-ppi customer redress, including claims related to interest rate derivatives, amounts to 83m at 31 Mar 13 GIAs 90+DPD GIAs & 90+DPD to GLAs 20 (1) Proforma is unaudited and provided for illustrative purposes only. It has been prepared based on estimations and limitations and is not a full accounting restatement. See page 73 of the March 2013 Half Year Result for further details (2) Sep 09 to Sep 12 UK Banking excluding CRE. Mar 13 reflects UK Banking (ie excludes transferred NAB UK CRE portfolio)

11 NAB UK CRE UK CRE credit quality indicative comparisons ( m) 15.6% 44.7% 1, % 18.6% 1, , Sep 10 Sep 11 Mar 12 Sep 12 1 Mar 13 CRE GIAs CRE 90+DPD UK CRE B&DD charge indicative comparisons ( m) Sep 10 Mar 11 1 Provision coverage March 2013 NAB UK CRE run off 1 Specific provision to Impaired Assets 19% Total provision to GLAs 6.8% ( bn) % 51% 6.7% 4.7% 11.4% 18.2% Specific Provision coverage Mar 13 Partial writeoffs Implied CRE impaired coverage Specific Collective provision provision (inc overlay) Total provision Partial write-offs Implied CRE coverage 0.0 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Actual Run-off Contractual Maturity 21 (1) Represents CRE portfolio within UK Banking to September 2012 and the NAB UK CRE run-off portfolio for March 2013 Strong Basel III Common Equity Tier 1 Capital Position (%) 0.70 Business Capital Generation = 37bps (0.48) 0.08 (0.07) (0.20) 0.14 (0.08) (0.08) Sep 12 1 $27.4bn Cash Earnings $2.9bn Dividend (net of DRP) ($1.7bn) Net RWA reduction ($3.4bn) FCTR ($0.2bn) Additional Hybrid Operational conversion RWA $0.5bn $8.5bn EL-EP incl. NAB UK CRE transfer 2 ($0.3bn) Non-Cash earnings 3 ($0.3bn) WM Profits (net of div) $0.2bn APRA Basel III Common Equity Tier 1 target for the Group of >7.5% $500m hybrid converted to NAB ordinary shares on 30 November 2012 (+14bps) Higher Operational RWAs included in the December 2012 quarter due to increased regulatory requirements (-20bps) Final FY12 dividend paid was 90c. Interim FY13 dividend will be 93c paid in July 2013 All outstanding Tier 1 and Tier 2 securities as at 31 December 2012 are subject to transitional relief from 1 January 2013 (1) The Group s September 2012 proforma Common Equity Tier 1 ratio has been amended down by 1bps to 7.90% from the previously reported estimated position of 7.91%. This reflects minor refinements to NAB s interpretation of APRA s Basel III standards (2) The transfer of NAB UK CRE portfolio from Clydesdale Bank to NAB Ltd results in the portfolio s RWAs being calculated using an IRB approach. This has resulted in an increase in the Group s capital deduction relating to Expected Loss less Eligible Provisions (3) Non-cash earnings impact after adjusting for distributions, treasury shares and separately disclosed items not affecting regulatory capital (4) includes movements in the Deferred Tax Assets (DTA), Pension Deficit, Capitalised Software and other immaterial movements (5) The Group s March 2013 Common Equity Tier 1 ratio (BIS) is consistent with the Australian Bankers Association Fact Sheet Comparison of APRA and the Basel Committee on Banking Supervision Basel III Capital Ratios, released 14 December Mar 13 $28.9bn (APRA standards) WM NTAs, DTA, Equity Investments & RWA Adjustments Mar 13 $32.6bn (BIS) 5

12 Balance sheet strength remains a priority Group Stable Funding Index (SFI) Australian funding gap 1 ($bn) 78% 84% 85% 86% 86% 19% 20% 20% 20% 19% 59% 64% 65% 66% 67% Sep 09 Sep 10 Sep 11 Sep 12 Mar 13 Customer Funding Index Term Funding Index Term funding volume and tenor 2 of new issuance NAB Peer 1 Peer 2 Peer 3 Conservative liquid assets ($bn) $16.9bn $14.9bn $14.5bn $12.1bn Senior and Sub Debt Secured Funding FY13 Funding Task $20 - $25bn ($bn) Internal RMBS (contingent liquidity) Bank, Corporate & Government, Cash & Central Bank 23 Tenor 2 (1) Australian funding gap = total loans and acceptances less total deposits (excluding certificates of deposit and financial corporation deposits) Source: APRA Monthly Banking Statistics (Mar 2013) (2) Weighted average maturity (years) of term funding issuance (> 12 months) Remain focused on growing customer deposits Customer deposits growth less lending growth Mar 13 vs Sep 12 1 Group customer deposits by product Mar 13 ($bn) Total 3.7 WB Wealth UK (incl CRE) BB NZ PB (incl UBank) ($bn) Savings & Investments 2 year CAGR 4% Term deposits 2 year CAGR 10% Transaction 2 year CAGR 16% Household deposit growth Indexed Sep 09 = Sep 09 Mar 10 Sep 10 Mar 11 NAB Peer 1 Peer 2 Peer Business deposit growth Indexed Sep 09 = Sep 09 Mar 10 Sep 10 Mar 11 NAB Peer 1 Peer 2 Peer 3 24 (1) Sep 12 customer deposits and lending have been restated to reflect that other includes SGA and excludes Asia, which is reported under Business Banking and Wealth for Mar 13 (2) APRA Monthly Banking Statistics (Mar 2013). Business Deposits excludes financial corporation deposits and certificates of deposits

13 Summary Good momentum in the Australia and New Zealand franchises UK still challenging, but bad and doubtful debts declined Asset quality improved, especially in Business Banking Strong organic capital generation with Common Equity Tier 1 well above minimum 25 Questions

14 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook Business Banking Business lending 1 Customer deposits 1,2 Housing lending 1 ($bn) 1.5% 2.3% 1.5% ($bn) 10.9% 0.0% 5.8% ($bn) 1.7% 0.0% (1.7%) Costs Cash earnings on average assets % 28.7% 28.7% 29.2% 1.31% 1.29% 1.16% 1.25% % Cost to income ratio 28 (1) Average volumes (2) Includes retail and institutional deposits

15 Business Banking Business lending volumes Business lending market share 3 ($bn) (%) (0.5) (0.6) % 23.0% 22.6% 22.3% Enterprise cross-sell focus Total Customer Returns 4 Net interest margin 3.40% 3.28% 3.24% 1.05% 1.00% 0.96% 3.60% (%) % 2.28% 2.28% Mar 12 Sep 12 Mar 13 Target State TCR Lending TCR Non-Lending TCR 29 (1) Corporate, Institutional and Specialised Banking (2) Asia transferred from Corporate Functions (3) RBA Financial System / NAB (4) TCR is an internal management tool used to measure banker cross sell effectiveness. From March 2013 the calculation of TCR has been changed to reflect refinements to funding costs (improving comparability across periods), and the inclusion of Asia Business Banking: Net interest margin March 13 v September 12 Customer margin up 4bps 0.06% (0.03%) 0.00% 0.01% (0.01%) 2.50% 2.53% Sep 12 Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix Mar 13 March 13 v March 12 Customer margin down 2bps 0.15% (0.15%) (0.03%) 0.01% (0.01%) 2.56% 2.53% Mar 12 Lending Margin Deposits Funding & Liquidity Costs Liability Mix Mar 13 30

16 Business Banking Revenue Underlying profit (1.7%) (1.1%) 1.2% 3,101 3,047 3,015 3,052 (2.0%) (1.1%) 0.6% OOI 2,587 2,530 2,496 2,530 NII 2,216 2,172 2,149 2,161 B&DD charge Cash earnings 10.8% (40.1%) 23.0% 0.0% (9.4%) 8.3% ,264 1,264 1,145 1, Business Banking: Asset Quality Diverse assets 1 Portfolio quality 2 Housing 30% Business 70% Property & Business Services 39% Construction 4% 43% 45% 47% 47% Retail Trade 7% 20% Agriculture Forestry and Fishing 13% Wholesale Trade 5% Accommodation, Cafes, Pubs & Restaurants 5% Manufacturing 7% 57% 55% 53% 53% Investment grade equivalent Sub-Investment grade equivalent Well secured business products 3 B&DD charge and B&DD as % GLAs 14% 14% 13% 13% 25% 25% 25% 24% 61% 61% 62% 63% Fully Secured Partially Secured Unsecured % 0.60% 0.45% 0.30% 0.15% 0.00% B&DD charge B&DD/GLAs (annualised) (RHS) 32 (1) Based on product split (2) Portfolio quality on a probability of default basis (3) Based upon security categories in internal ratings systems

17 Business Banking: SME Business 1 Asset Quality Diverse assets 2 Portfolio quality 3 Personal 35% Business 65% Property & Business Services 45% 38% 41% 41% 41% 14% Finance & Insurance 4% Wholesale Trade 7% Manufacturing 6% Construction 8% Retail Trade 8% Accommodation, Cafes, Pubs & Restaurants 8% 62% 59% 59% 59% Sub-Investment grade equivalent Investment grade equivalent Well secured business products 4 B&DD charge and B&DD as % GLAs 6% 5% 5% 5% 24% 23% 22% 22% 70% 72% 73% 73% % 0.45% 0.30% 0.15% 0.00% Fully Secured Partially Secured Unsecured B&DD charge B&DD/GLAs (annualised) (RHS) 33 (1) SME business data reflects the nabbusiness segment of Business Banking which supports business customers with lending typically up to $25m, excluding the Specialised Businesses (2) Based on customer split (3) Portfolio quality on a probability of default basis (4) Based upon security categories in internal ratings systems Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook

18 Personal Banking MFI customer satisfaction 1 Home loan multiple of system growth 2 (%) (x) Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Weighted average of three major bank peers NAB Mar 11 Net transaction account growth Jaws momentum (#) 79, , , , , , , % 5.0% +1.0% +2.1% 3.8% 2.9% Expense growth Revenue growth 4.7% +3.7% 0.2% 1.0% -1.1% -0.9% 6.0% +2.5% 3.5% 4.0% +4.1% -0.1% Mar 10 Sep 10 Mar 11 2H10 v 1H10 1H11 v 2H10 2H11 v 1H11 1H12 v 2H11 2H12 v 1H12 1H13 v 2H12 (1) 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) (2) RBA Financial System / NAB total Australian mortgages (includes Business Banking and NAB Wealth) 35 Personal Banking Cash earnings Revenue (7.2%) 25.2% (4.8%) (0.9%) 6.0% 4.0% ,747 1,731 1,835 1,908 Costs Net interest margin (%) % 52.1% 50.9% 48.9% % Cost to income ratio 36

19 Personal Banking: Net interest margin March 13 v September 12 Customer margin up 9bps 0.09% (0.04%) 0.04% 0.00% (0.04%) 2.04% 2.09% Sep 12 Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix Mar 13 March 13 v March 12 Customer margin up 15bps 0.31% (0.20%) 0.05% (0.01%) (0.05%) (0.03%) 2.02% 2.09% Mar 12 Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix Mar Personal Banking Housing loans 1 Customer deposits 1 ($bn) 6.4% 4.5% 5.0% ($bn) 8.3% 6.4% 7.2% Housing loan market share 2 Household deposits market share % 14.6% 15.0% 15.2% 14.1% 14.5% 14.7% 14.6% 38 (1) Average volumes (2) RBA Financial System / NAB (includes Business Banking and NAB Wealth) (3) APRA Banking System / NAB (includes Business Banking and NAB Wealth)

20 Personal Banking: Asset quality B&DD charge Cards and personal loans 90+ DPD and % to total cards and personal loans outstandings (22.5%) 56.8% (156.2%) 1.15% 1.24% 0.98% 0.97% Mortgage 90+ DPD and impaired and % to total mortgage outstandings Total 90+ DPD and impaired and % to total outstandings 0.53% 0.56% 0.52% 0.54% 0.57% 0.60% 0.55% 0.58% Personal Banking: Change in profile of mortgage approvals LVR breakdown of final approvals (Australian Region 1 ) Risk grade distribution of 90%+ LVR 100% 80% 60% 40% 20% 0% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 LVR 60% or less LVR 60.01% to 70% LVR 70.01% to 80% LVR 80.01% to 90% LVR >90% Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Very High High Medium Low Very Low Sep 12 Dec 12 Mar 13 LVR breakdown of Homeside final approvals Australian mortgages 1 cumulative 30+ DPD 100% 80% 60% 40% 20% 4.0% 3.0% 2.0% 1.0% 0% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 LVR 60% or less LVR 60.01% to 70% LVR 70.01% to 80% LVR 80.01% to 90% LVR >90% Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar % Months on books (1) Includes Business Banking and NAB Wealth 40

21 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook Wholesale Banking Customer sales performance Delivering value to Financial Institutions Best advice on Use of Interest Rate Risk Management 1 Current ranking #1 Previous ranking #1 ($bn) 800 Assets under custody & administration 600 Lead Interest Rate provider where the relevant bank is lead credit provider 1 Lead Interest Rate Derivatives Bank 1 #1 #1 #1 # Best Bank-delivered Industry Analysis 2 Provider of Interest Rate Swaps (% of primary relationships Corporate) 3 Provider of Spot Foreign Exchange (% of primary relationship Corporate) 3 Best Domestic Provider of FX Services as voted by Corporates Australia 4 #=2 #1 #2 #1 #3 #1 #2 na 0 Sep 08 Sep 09 Sep 10 Market leading positions #1 #1 Largest Asset Servicing business 5 in Australia with ~28% market share (by volume) Foreign Exchange Survey of FI s: Market Penetration, Market Share and Relationship Strength Index 6 Interest Rate Swaps and Short Dated Securities Market Share 7 60,000 NAB Traveller Card customers have loaded $200m for their travel spend since the April 2012 launch #1 AUD Repurchase Agreements, with 29.4% market share 8 42 (1) Peter Lee Associates Large Corporate & Institutional Relationship Banking Australia Survey 2012 (Users of Interest Rate Derivatives). Ranking against the four major domestic banks; (2) Peter Lee Associates Large Corporate & Institutional Relationship Banking Australia Survey Ranking against the four major domestic banks; (3) East & Partners Australian Corporate Banking Markets Report, Jan 2013; (4) Asiamoney FX Poll 2012; (5) Australian Custodial Services Association, Total Assets Under Custody for Australian Investors, December 2012; (6) Peter Lee Associates Foreign Exchange Survey Australia 2012, Financial Institution Respondents. Ranking against the four major domestic banks; (7) Peter Lee Associates Debt Securities Investor Survey Australia Ranking against the four major domestic banks; (8) AFMA, 2012 Australian Financial Markets Report

22 Wholesale Banking Originate to distribute funding solutions Key transactions Wholesale Banking capabilities assist NAB s clients with direct access to funding markets as well as providing funding and investment products to: NabWealth (MLC) JBWere and NAB Private Wealth Nab Health Corporate Business Bank Private Bank Wholesale Banking s market leading debt capital raising and distribution capabilities has raised US$6.3bn in distributions (volume) in the March 2013 half year exclusive of NAB deals of US$13.3bn Peel Ports GBP 1.05bn Term Loan & RCF Loan Bookrunner US$515m USPP Joint Lead Agent December MW Musselroe Wind Farm A$275m Project Finance Facilities Sole ECA Arranger Mandated Lead Arranger and Bookrunner February 2013 Origin Energy A$2.4bn Syndicated Loan Facility Mandated Lead Arranger and Bookrunner October 2012 Market leading positions Infrastructure and Natural Resources #1 Infrastructure Bank of the Year, Asia 1 MLA in Australian Project Finance 2 REDS Trust Series E A$1bn Australia Pacific LNG US$8.5bn Ichthys Project US$20bn #1 MLA in Project Finance in Australian Power and Renewable sectors 2 Australian RMBS Issue Project Finance Facilities Commercial Bank and ECA Covered Facilities Debt Capital Solutions #1 Australian Securitisation House of the Year 3 Arranger and Joint Lead Manager November 2012 Mandated Lead Arranger Commercial Bank Facility September 2012 Mandated Lead Arranger January 2013 Top amongst the Australian banks in US Private Placements 4 (1) Infrastructure Investor Awards, 2012; (2) Infrastructure Journal Online League Tables Project Finance Mandated Lead Arranger, Full Year 2012; (3) Kanganews, Australian Market Awards 2012; (4) Thomson Reuters US Private Placement Review, Full Year 2012 Traditional Private Placements 43 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook

23 NAB Wealth: Cash earnings Investments cash earnings inclusive of Private Wealth 8 (12) 9 13 (2) 24 (1) 16 (24) Mar 12 FUM/volumes Investment Margins (Business mix & pricing) Private Wealth volumes & margins Annuity experience (incl MtM invest. profits) Sep 12 FUM/volumes Investment Margins (Business mix & pricing) Private Wealth volumes & margins and inclusion of PB Asia Annuity experience (incl MtM invest. profits) Brokerage and equity lending income Mar 13 Insurance cash earnings 1 (8) (6) 5 (4) 2 (33) (2) 48 Mar 12 PiF Policyholder mix & lapses Earnings on assets backing the insurance portfolio Sep 12 PiF Earnings on assets backing the insurance portfolio Claims Policyholder mix & lapses Mar NAB Wealth: FUM Movement in FUM 1 FUM by product group ($bn) 67% 66% (0.9) 3 (0.9) Mar 12 Net flows Investment Earnings % Retail FUM Sep 12 Net flowsinvestment Earnings 67% (0.7) M ar 13 ($bn) MasterKey on sale MasterKey off sale MLC Wrap Navigator Plum, Business Super & Wholesale Net Funds Flow by product group 1H13 Net Funds Flow by product group Product group 1H13 NFF NFF as % of Opening FUM 2H12 NFF MasterKey on sale 385 2% 333 ($bn) MasterKey off sale (1,023) (7%) (1,162) MLC Wrap 309 3% 238 Navigator (642) (5%) (639) Plum, Business Super & 3,065 10% (380) Wholesale (771) (2%) 739 Total Net Funds Flow 1,323 1% (871) MasterKey on sale MasterKey off sale MLC Wrap Navigator Plum, Bus ine ss Super & Wholesale Total 46 (1) FUM on a proportional ownership basis

24 NAB Wealth: Investments margin Investments net income to average FUM % 0.80% 0.60% 0.40% 0.20% Sep 10 Mar % Investments net income Net income to average FUM (RHS) Movement in total investments margin 0.03% (0.02%) (0.05%) 0.85% 0.86% (0.04%) (0.01%) 0.83% 0.02% 0.78% Mar 12 Annuity experience Migration of MasterKey Custom to MLC Wrap Sep 12 Annuity experience Reclass of adviser sales incentives Business mix and pricing MasterKey Custom to MLC Wrap migration costs 2H12 Mar NAB Wealth: Insurance Premiums inforce PiF and Insurance sales as % of PiF 1.8% 2.1% 0.8% 1,407 1,436 1,466 1,493 1,524 1,536 30% 25% 1,466 1,493 1,524 1,536 20% 15% Sep 10 Mar 11 PiF Sales to PiF (RHS) 10% Insurance net income to average PiF % 35% % 15% Sep 10 Mar 11 5% Insurance net income Net income to average PiF (RHS) 48

25 NAB Wealth: Operating Expenses Movements in operating expenses 5 (6) (26) (1) Mar 12 New products & services Integration benefits Seasonality & other Sep 12 New products & services Compliance & regulatory expenses Reclass JBWere incentives Mar 13 Movements in FTEs Cost to Income trends (#) 5,909 5,635 5,777 5, ,695 4,510 4,577 4,717 BAU FTEs Project FTEs Salaried adviser FTEs 63.0% 61.4% 61.6% 60.7% 60.4% 59.1% Sep 10 Mar NAB Wealth: Channel and adviser growth Investment sales by channel Insurance sales by channel 36% 34% 33% 35% 30% 32% 33% 31% 34% 34% 34% 34% 39% 35% 33% 31% 20% 22% 22% 22% 41% 43% 45% 47% 1 Bank Aligned IFA 1 Bank Aligned IFA Wealth aligned adviser movement analysis Wealth salaried adviser movement analysis (#) 120 (88) 140 (90) 82 (89) (#) 53 (107) 70 (64) 52 (75) 1,014 1,046 1,096 1, (1) IFA includes sales in other channels

26 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook New Zealand Banking Cash earnings Net interest margin (NZ$m) (%) 17.0% (7.5%) 8.7% Revenue v expense growth B&DD charge and B&DD as % of GLAs (NZ$m) (NZ$m) 0.20% 0.12% 0.22% 0.19% 41.5% 39.7% 41.4% 40.3% Revenue Expenses B&DD charge B&DD as % of GLAs (annualised) % Cost to income ratio 52

27 New Zealand Banking: Net interest margin March 13 v September 12 Customer margin up 1bp (0.02%) 0.00% 0.02% 0.01% 0.01% 2.38% 2.40% Sep 12 Lending margin Deposits Funding & Liquidity Costs Liability Mix Mar 13 March 13 v March 12 Customer margin up 2bps 0.01% (0.05%) 0.04% 0.02% (0.03%) 2.41% 2.40% Mar 12 Lending margin Deposits Funding & Liquidity Costs Liability Mix Mar New Zealand Banking: Volumes and market share Business lending 1 Retail lending 1 (NZ$bn) 2.6% 2.1% 2.1% (NZ$bn) % 0.7% 2.0% Housing Unsecured Personal Retail deposits 1 New Zealand market share 2 (NZ$bn) 5.3% 5.7% 4.8% 22% % 18% 16% 14% 12% Sep 11 Mar 12 Sep 12 Feb 13 BNZ Partners BNZ Retail Housing Agribusiness Retail deposits 54 (1) Average volumes (2) RBNZ (historical market share rebased with latest revised RBNZ published data)

28 New Zealand Banking: Asset quality Total 90+ DPD as % GLAs (NZ$m) Sep 09 Mar 10 Sep 10 Mar % 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Gross impaired assets and 90+ DPD to GLAs were 1.13% at Mar 13, lower than 1.21% at Sep 12 Impairments continue to fall in business and retail due to favourable interest rate environment and improving economic conditions 90+DPD assets to GLAs ratio flat on prior half Exposures in the commercial property, dairy farming and kiwifruit sectors are the main industry concerns 90+ DPD Total 90+ DPD as % GLAs (RHS) Gross impaired assets as % GLAs Net write-offs (NZ$m) (%) % % 0.9% 0.6% 0.3% Sep 09 Mar 10 Sep 10 Mar 11 Gross impaired assets (including FV) Gross impaired assets (including FV) as % of GLAs (RHS) 0.0% Sep 09 Mar 10 Sep 10 Mar 11 Net write-offs to GLAs (annualised) 55 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook

29 UK Banking Business lending 1 Personal lending 1 Consumer deposits 1 ( bn) 0.0% (4.5%) (38.0%) ( bn) 3.3% 3.2% 3.1% ( bn) 1.6% 2.0% (2.3%) business Commercial property Housing Unsecured Costs Net interest margin ( m) (%) 56.4% 58.8% 63.1% 70.4% % Cost to Income Ratio 57 (1) Average volumes UK Banking: Net interest margin March 13 v September 12 Customer margin up 4bps 0.11% 0.06% (0.11%) 0.02% 0.07% 0.01% (0.01%) (0.06%) 1.97% 2.06% Sep 12 Transfer to NAB UK CRE Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix FSCS Levy Mar 13 March 13 v March % Customer margin down 15bps (0.26%) 0.12% (0.09%) 0.02% 0.02% 0.01% (0.03%) 2.09% 2.06% Mar 12 Transfer to NAB UK CRE Lending Margin Deposits Funding & Liquidity Costs Liability Mix Lending Mix FSCS Levy Mar 13 58

30 UK Banking: Funding cost components and swap rates Clydesdale Bank PLC funding costs since Pre- Crisis Funding cost over BoE rate (bps) Avg 3m LIBOR / Base Spread Liquidity Portfolio Costs Customer Deposits Wholesale Funding Costs Nov 07 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 Interest rate earned on ~ 8bn of free funds 1 (bps) 5 year average rolling swap rate year average rolling swap rate Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar (1) Free funds are shareholders equity and non-interest bearing deposits. These flows are hedged over a 2 and 5 year period to reduce volatility from movements in benchmark interest rates UK Banking: Funding mix Clydesdale Bank PLC Stable Funding Index 110.8% 108.2% 87.0% 13.0% 89.4% 13.4% 92.3% 14.3% 17.2% 16.6% 74.0% 76.0% 78.0% 93.6% 91.6% Sep 11 Mar 12 Sep 12 Pro forma Sep 12 Mar 13 CFI TFI Stable funding index (SFI) based on spot balances 60

31 UK Banking: operating income and expenses March 13 v March 12 operating income ( m) March 13 v September 12 operating income ( m) (14) 142 (8) (11) (6) 122 Mar 12 Fees and commissions Profit share Mar 13 Sep 12 Fees and commissions Mar 13 March 13 v March 12 Operating expenses March 13 v September 12 Operating expenses ( m) ( m) 24 (23) 2 (23) (2) Mar 12 Restructuring related benefits Customer redress Mar 13 Sep 12 Restructuring benefits Customer redress Sep 12 Bank Levy and nonlending losses Mar UK Banking: Portfolio composition March 2013 Total portfolio composition March 2013 Mortgage portfolio composition Business 38% 27.0bn Mortgages 58% Investment Home Loans 20% 15.7bn Unsecured 4% Owner Occupied 80% March 2013 Business portfolio composition March 2013 Unsecured portfolio composition Business Services 11% Utilities, Post & Telecommunications 2% Entertainment 5% Finance 2% Construction & 7% CRE 3% Transport and Storage 4% Soft Commodities 19% Government, Health & Education 10% Hospitality 12% Manufacturing 10% Resources 2% Retail & Wholesale 13% Cards 36% 9% 1.1bn Personal Loans 55% 62

32 UK Banking: Asset quality 90+ DPD and GIAs as a % of GLAs UK Credit quality (comparatives excluding CRE) (%) Sep 10 Mar 11 GIA as % of GLAs 90+ DPD as % of GLAs (%) Sep 10 Mar DPD (ex CRE) as % of GLAs (ex CRE) GIA (ex CRE) as % of GLAs (ex CRE) 90+ DPD as a % of total GLAs by product Coverage ratio (%) % % % % Mortgages Business Loans Personal 0.0 Sep 10 Mar 11 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Coverage ratio (Total Provisions to GLAs) Coverage ratio (Proforma) 1 (1) Proforma coverage ratio is UK Banking excluding CRE for the period Sep 10 to Sep UK Banking: Restructure improves CB balance sheet structure ( bn) Sep 2012 Actual Mar Liquid assets 7.1 Total equity Business lending 16.5 Parent 6.5 Liquid assets 5.9 Business lending 10.2 Total equity 2.6 Parent 1.9 Deposits Home lending Home lending 15.7 Deposits 24.7 Assets Liabilities Assets Liabilities (1) is net of provision for bad and doubtful debts and includes 1.3bn of unsecured personal lending 64

33 Restructuring provision utilisation and benefits profile m Restructuring provisions Restructuring costs Utilised Provision Remaining m of the original 139m provision utilised to date Timing of provision utilisation currently lags restructuring activity. Particularly surplus lease costs for property exit Software write-off 36 Total 175 Benefits profile Cost benefits delivered of 24m in 1H13 ( 64m on an annual run-rate basis) Represents an incremental benefit on 2H12 of 18m Including other initiatives FTEs were reduced 1,110 between Sep 2011 and March 2013 (plan of 1,400 in total by 2015) m Actual 1H13 Expected FY13 Expected FY14 Expected FY15 1 Actual Annualised run rate Total Cumulative FTE (1) 1H13 actual incorporates benefits related to pre-existing restructuring programs in Business & Private Bank UK Banking: Payment Protection Insurance (PPI) 57m utilised since 30 September 2012 leaving provisions of 51m at 31 March 2013 Complaints experience accelerated in 1H12 but have now reduced Pattern of recent claims is broadly consistent with modelling used to determine provisions. Provision usage during the month of March was 6m CB PLC complaints experience by month Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 New complaints As at 31 March Cumulative charge ( m) Redress paid ( m) Utilisation (%) Barclays Bank 2,600 1,900 73% Lloyds Banking Group 6,775 4,930 73% RBS 2,175 1,470 67% HSBC (US $m) 2,397 1,076 45% Clydesdale Bank % (1) HSBC is at 31 December 2012 and is not directly comparable. banks based on 2013 first quarter results announcements. CB PLC based on management accounts 66

34 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook NAB UK CRE NAB UK CRE run-off 1 UK commercial property capital values ( bn) Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 ( bn) NAB UK CRE RWAs ( bn) Actual Run-off Contractual Maturity Supervisory category Risk weight Good 90% Shopping C - Rest of UK Shopping C - London & South East Office Scotland Office Midlands & Wales Office Rest of London Office West End Office City Retail Scotland Retail West Midlands Retail East Midlands Retail Rest of London Satisfactory 115% Dec 12 Mar Weak % Good Satisfactory Weak Dec 12 Mar 13 2 Good 2 Satisfactory 2 Weak Basel III CVA Overlay Source: IPD Retail Central London March 2012 to August 2012 (%) September 2012 to February 2013 (%) 68 (1) Represents CRE portfolio within UK Banking to September 2012 and the NAB UK CRE run-off portfolio for March 2013 (2) Based on supervisory slotting categories, the criteria of which are based on APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (see pg 35 NAB Group September 2012 Risk and Capital Report)

35 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook Great Western Bank Cash earnings (US$m) Gross loans & acceptances 1 (US$bn) GLAs (ex acq workout) Acquired workout loans Loan portfolio composition B&DD charge and asset quality metrics (US$bn) 25% (US$m) 4.0% % 15% 10% % 2.0% % 0% % 0.0% Agri Agri as % of total (RHS) B&DD GIA as % of GLAs (ex covered loans) 70 (1) GWB acquired First Federal Savings Bank of Iowa on 22 June The acquisition contributed approximately US$0.3bn of gross loans and acceptances

36 Additional Information Business Banking Personal Banking Wholesale Banking NAB Wealth NZ Banking UK Banking NAB UK CRE Great Western Bank Asset Quality Capital and Funding Economic Outlook Group portfolio Gross loans and acceptances by product as at March 2013 Gross loans and acceptances by business unit as at March 2013 Housing Loans 55% Term Lending 30% 1% Acceptances 6% Overdrafts 3% Leasing 3% Credit Cards 2% MLC, NAB Wealth 4% Wholesale Banking 3.5% UK Banking 8% NAB UK CRE 1% Personal Banking 32% GWB 1% Business Banking 40% NZ Banking 10% Corporate Functions (includes SGA) 0.5% 90+ DPD & gross impaired assets as a % of gross loans and acceptances by product 2.0% 1.5% 1.0% 0.5% Impaired 90+ DPD 0.0% Sep 09 Mar 10 Sep 10 Mar 11 Mortgages Impaired Business Impaired Business 90+ DPD Retail Unsecured 90+ DPD Mortgages 90+ DPD 72

37 Group gross loans and acceptances Group asset composition growth by product segment ($bn) Non Retail Retail portfolio outstandings volume ($bn) % 14% Retail - secured % 6% Retail - unsecured 50-2% -2% Mar 13 Sep 12 Mar 12 Sep 11 Mar 11 Sep 10 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Group Retail Outstandings Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec Month Rolling Growth Rate Mar-13 Industry balances Gross loans and acceptances by geography ($bn) Government and public authorities Real estate - construction Manufacturing Mar 12 Personal lending Mar 13 Asset and lease financing Financial, investment and insurance Agriculture, forestry, fishing & mining commercial and industrial Commercial property services Real estate - mortgage United States 1.4% New Zealand 9.7% Asia 1.2% Europe 10.5% Australia 77.2% 73 Note: These charts use spot exchange rates. Changes in exchange rates relative to the Australian dollar since 2008 have partly affected growth rates Group portfolio change over three year period March 2013 Gross loans and acceptances by product March 2013 Gross loans and acceptances by geography Term Lending 30% Asia 1.2% Housing Loans 55% 1% Acceptances 6% Overdrafts 3% Leasing 3% Credit Cards 2% United States 1.4% New Zealand 9.7% Europe 10.5% Australia 77.2% March 2010 Gross loans and acceptances by product March 2010 Gross loans and acceptances by geography Term Lending 27% Acceptances 12% Overdrafts 4% United States 1.4% Asia 0.6% Australia 73.5% Leasing 4% New Zealand 9.8% Housing Loans 49% Credit Cards 2% 2% Europe 14.7% 74