National Australia Bank Limited · ASX:NAB
National Australia Bank — Debt Investor Presentation (August 2025)
54 slides from National Australia Bank's debt investor presentation, August 2025
Slide 1: Debt Investor Update August 2025
Debt Investor Update August 2025 This presentation is general background information about the Group. It 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.
Slide 2: Australia and NZ key economic indicators
Australia and NZ key economic indicators Australian economic indicators (%)1 NZ economic indicators (%)1 CY22 CY23 CY24 CY25(f) CY26(f) CY22 CY23 CY24 CY25(f) CY26(f) GDP growth2 2.6 1.5 1.3 1.7 2.2 GDP growth2 3.1 1.0 -1.3 3.0 2.3 Unemployment3 3.5 3.9 4.1 4.4 4.2 Unemployment3 3.4 4.0 5.1 5.2 4.8
Slide 3: Australian economy on track for soft landing
Australian economy on track for soft landing Economic growth is continuing to strengthen and is Cash rate expected to fall as inflation continues to expected to reach around trend in 2026 moderate1 • The RBA is expected to cut to 3.1% by early 2026, taking the (%) Forecasts cash rate to broadly neut
Slide 4: Businesses under pressure but resilient
Businesses under pressure but resilient Business conditions Conditions around the long run average; confidence remains soft and weakest in retail and wholesale1 • Business conditions and confidence have trended higher over recent months and are now both broadly around average (Net balance) • Input c
Slide 5: House prices and rents growth has slowed
House prices and rents growth has slowed House prices growth1 Rents growth has slowed in most capital cities2 (Index) Sydney Melbourne Brisbane 190 (%) Sydney Melbourne 180 Adelaide Perth Hobart 15 Brisbane Adelaide 170 Perth Hobart 160 10 150 140 5 130 0 120 110 -5 100 90 -10 2019 2020 2021 2022 20
Slide 6: Weaker Productivity Outlook
Weaker Productivity Outlook Productivity Measures of Productivity, 2022-2023=100 • The RBA in their latest SoMP downgraded their productivity outlook by 0.2ppts p.a • Productivity downgrades lower expected potential output growth • A slowdown in mining productivity and an increased share of the non-
Slide 7: 3Q25 Trading Update
3Q25 Trading Update1 As at 30 June 2025 Operating Performance Cash earnings were 1% lower compared with the 1H25 quarterly average, mainly reflecting underlying profit growth of 2% offset by higher credit impairment charges. Key drivers of underlying profit growth include: • Revenue grew 3%. Revenue
Slide 8: Asset quality
Asset quality As at 30 June 2025 Credit impairment charges (CIC) 3Q25 Key Considerations ($m) 0.14 0.14 • Credit impairment charge of $254m primarily reflects 0.11 0.13 0.13 0.09 0.09 0.06 individually assessed charges of $215m mainly relating to 0.04 247 business lending in Australia and New Zealan
Slide 9: Capital remains above target range
Capital remains above target range As at 30 June 2025 Level 2 Group CET1 capital ratio (%) Level 1: 11.84 Level 1: 11.97 0.41 (0.42) (0.02) 0.16 12.01 12.14 12.25 Mar 25 Cash earnings Credit RWA1 Other RWA Other capital Jun 25 Jun 25 movements2 Pro forma3 Level 2 Group CET1 ratio Credit risk-weighte
Slide 10: Strong funding and liquidity metrics
Strong funding and liquidity metrics As at 30 June 2025 Liquidity position well above regulatory minimums (%) 100 Minimum 140 139 137 139 135 116 118 117 119 116 Sep 23 Mar 24 Sep 24 Mar 25 Jun 25 Sep 23 Mar 24 Sep 24 Mar 25 Jun 25 LCR (quarterly avg.) NSFR Term funding issuance1 & maturity profile2
Slide 11: Loss Absorbing Capacity and Additional Tier 1
Loss Absorbing Capacity and Additional Tier 11 As at 30 June 2025 Key messages APRA changes to major banks’ capital minimums (%) • Based on the Group’s RWA and Total Capital position at 30 Jun 20.54% 25, NAB meets APRA’s 1 Jan 26 LAC requirement 18.25% 18.25% Tier 2, 6.21% • NAB has $1.3bn of existi
Slide 12: Diversified & flexible term wholesale funding portfolio
Diversified & flexible term wholesale funding portfolio As at 30 June 2025 YTD issuance by product type1 YTD issuance by currency1 AUD 37% Covered 19% Other 1% EUR 10% Subordinated 9% NZD 3% Senior 72% USD 49% Outstanding issuance by product type1, 2 Outstanding issuance by currency1 RMBS 2% JPY 1%
Slide 13: Additional information 1H25 Results: Strategy
Additional information 1H25 Results: Strategy
Slide 14: Our long-term strategy
national Our long-term strategy australia bank Why we are here To be the most customer-centric company in Australia and New Zealand Who we are here for Customers @2 Colleagues Customers who trust us and choose us to be their bank <@>y Customer obsessed colleagues who are proud to work at NAB We are
Slide 15: Focus on improving customer advocacy
Focus on improving customer advocacy Deliver sustainable returns through deeper customer relationships, improved retention and referrals Design and rollout customer Identified 20 “Must Win Battles” Track performance using granular feedback loops to drive – key customer experiences that customer expe
Slide 16: Three key priorities to drive strong sustainable returns
Three key priorities to drive strong sustainable returns Business • Consistent execution of long term strategy to drive growth Leading business bank in B&PB banking for SMEs Growing share in SME lending in 1H251 • Investing in innovative payment solutions for businesses Consistent focus in • Impro
Slide 17: Growing share of business lending in target segments
Growing share of business lending in target segments #1 SME lending market share1 #1 Business lending market share2 Key 1H25 growth drivers • #1 bank with increasing share in 1.3x system growth in 1H25 0.8x system growth in 1H25 SME, driven by B&PB and corporates in C&IB • Strongest share gains in M
Slide 18: Investing to grow deposits
Investing to grow deposits Strong growth in retail and business deposits Increased share of household Retail new transaction 22% share of business B&PB new business deposits with 1.3x system account openings deposits with 1.6x system transaction account openings growth in 1H251 growth in 1H252 2
Slide 19: Improving performance in proprietary home lending
Improving performance in proprietary home lending Home lending strategy 1H25 actions • Deliver seamless customer, banker and broker • Dedicated team for proprietary home lending experiences supported by simplification of • Uplifted banker capability and support processes and policies and investment
Slide 20: Additional information 1H25 Results: Financials
Additional information 1H25 Results: Financials
Slide 21: Financial results
Financial results Underlying profit ($m) Cash earnings1 ($m) Statutory profit ($m) 1.9% HoH 0.0% PcP 0.8% HoH (1.7%) HoH 1.0% PcP (2.5%) PcP 5,461 5,362 5,463 3,548 3,554 3,583 3,494 3,466 3,407 1H24 2H24 1H25 1H24 2H24 1H25 1H24 2H24 1H25 (1) Refer to page 53 for definition of cash earnings and rec
Slide 22: Increased cash ROE and EPS
Increased cash ROE and EPS Cash return on equity Basic cash EPS (cents) 130 114 117 114 115 117 12.9% 102 107 98 11.7% 11.6% 11.7% 10.7% 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 Dividends per share and payout ratio (cents) 78 83 84 84 85 85 67 73 60 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 D
Slide 23: 1H25 revenue
1H25 revenue Net operating income (HoH) ($m) HoH revenue increase 1.7% (ex M&T 1.1% decrease ) 67 (117) 270 (57) 6 10,138 10,112 10,011 10,281 Mar 24 Sep 24 Volumes Margin Fees & Other Mar 25 Markets & Mar 25 Commissions (ex M&T) Treasury Markets & Treasury (M&T) income breakdown Key revenue drivers
Slide 24: Net interest margin
Net interest margin Net interest margin (HoH) Flat (-3bps ex M&T) (0.01%) +4bps from replicating portfolio (0.02%) 0.03% (0.02%) 0.02% Aust HL -1bp Term -1bp Mix -2bps NZ HL +1bp Short term -1bp Costs -2bps BL -1bp 1.72% 1.70% 1.70% Mar 24 Sep 24 Lending Margin Funding Costs Deposits Capital & Other
Slide 25: Operating expenses
Operating expenses Operating expenses (HoH) ($m) +1.4% (3) 71 (131) (24) 24 67 64 Includes uplift in 4,421 financial crime 4,750 related costs 4,818 Sep 24 Salary related Volume related Technology Depreciation & Productivity Other EU & Remediation1 Mar 25 & Investment Amortisation FY25 consideration
Slide 26: Additional information 1H25 Results: Asset quality
Additional information 1H25 Results: Asset quality
Slide 27: Asset quality
Asset quality Non-performing exposures (NPL) as a % of GLAs Key 1H25 impacts • Pace of NPL increase slowing as Australian mortgage arrears stabilise; B&PB business lending the key driver of 1H25 uplift 1.49% 1.39% • NPLs remain dominated by Default but not impaired exposures 1.13% 1.20% 0.22% 0.20%
Slide 28: Strong provisioning maintained
Strong provisioning maintained Total provision balances higher Key considerations ($m) 1.56% 1.47% 1.47% • Total provisions of $6.0bn (or 1.67% of CRWA) 1.42% 1.35% represent 1.7x 100% base case scenario3 1.31% • CP of $5.1bn representing 1.42% CRWA 6,376 0.96% 5,921 6,037 • Deteriorating asset qual
Slide 29: Group non-retail lending industry sector analysis
Group non-retail lending industry sector analysis Non-performing exposures (NPLs) as % of lending EAD by regulatory industry categories1 4% Target sectors with FLAs2 Mar 24 Sep 24 Mar 25 NPLs as a % of EAD (Mar 25) NPLs (ex F&I) as a % of EAD (Mar 25) 3% 2% 1% 0% Accomodation Agri, forestry & Busine
Slide 30: Expected Credit Losses (ECL) assessment
Expected Credit Losses (ECL) assessment ECL scenarios & weightings Key considerations Total Provision for ECL1,2 • Increase in ECL vs Sep 24 primarily reflects deterioration in 1H25 asset quality and volume growth, partially offset by a net $m 100% Base 100% (probability weighted) case Downside rele
Slide 31: Australian business lending asset quality
Australian business lending asset quality Business lending credit impairment charge and as a % Business lending non-performing exposure as % of of GLAs GLAs ($m) ($m) 600 1.87% 500 0.24% 0.26% 0.20% 1.66% 0.14% 1.43% 400 1.33% 1,206 300 995 611 641 200 295 339 3,910 100 276 2,679 3,012 3,410 181 0 -
Slide 32: Target sector forward looking adjustments (FLAs)
Target sector forward looking adjustments (FLAs) Non retail target sectors non-performing exposures as % of non-retail lending EAD1 3.0% Commercial Property Retail Trade 2.0% Construction 1.0% Tourism, Hospitality and Entertainment Total non retail lending 0.0% Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Col
Slide 33: Agriculture, forestry & fishing exposures
Agriculture, forestry & fishing exposures1 Group EAD $61.8bn March 2025 Key Australian considerations Weather conditions have been mixed, with favourable conditions on most of the East Coast and rains in Western Australia, but dry conditions in Western Victoria and South Australia Sentiment gene
Slide 34: Commercial real estate (CRE)
Commercial real estate (CRE)1 Gross loans & acceptances (GLAs) Breakdown by total GLAs By sector By geography New Australia Total2 Zealand QLD Residential Retail 17% WA Total CRE (A$bn) 69.9 7.2 77.1 10% 27% VIC 6% SA Industrial 25% 6% Increase/(decrease) from 21% 2.8 0.2 3.0 Sep 24 (A$bn) Tourism O
Slide 35: Commercial real estate
Commercial real estate1 Key asset quality considerations Sector considerations • Non-performing exposures above low levels of recent years but • Increased activity in the Development sector (particularly remain below longer term historical levels; current experience Residential) is supporting lendin
Slide 36: Construction
Construction1 Exposure at default Key considerations • While NPL trends have stabilised, challenges persist around labour availability and subcontractor issues (availability and completion risk); EAD $13.9bn EAD $14.8bn ~4% non retail lending EAD including subcontractors and construction 1.9 service
Slide 37: Retail Trade
Retail Trade1 Exposure at default Key considerations • NPL trends have stabilised EAD $15.8bn EAD $16.4bn • Total consumer spending is improving, benefitting from tax 2.1 cuts and easing of ‘cost of living’ pressures, with further 2.2 3.5 support expected from interest rate reductions 3.1 • However
Slide 38: Tourism, hospitality and entertainment
Tourism, hospitality and entertainment1 Exposure at default Key considerations • Consumer spending is improving, benefitting from tax cuts, EAD $15.3bn EAD $16.2bn easing of ‘cost of living’ pressures, and continued recovery in inbound tourism, with further support expected from interest 1.8 1.9 rat
Slide 39: Manufacturing
Manufacturing1 Exposure at default Key considerations • Manufacturing sector remains challenged by the impacts of interest rate and input cost increases over recent years and the EAD $20.3bn EAD $21.5bn limited ability to pass these on to customers, particularly for those manufacturers within the fo
Slide 40: Additional information 1H25 Results: Housing Lending
Additional information 1H25 Results: Housing Lending
Slide 41: Housing lending portfolio profile
Housing lending portfolio profile Housing lending volume by borrower and repayment Australian mortgages profile1 type1 VIC/TAS 33% Owner Occupier Owner Interest Only, 3.1% Occupier Line of Credit, 2.3% Principal & QLD 14% Interest, Investor 61.1% Interest Only, 12.3% WA 7% NSW/ACT 42% SA/NT 4% Inves
Slide 42: Housing lending LVR
Housing lending LVR1 LVR breakdown at origination Dynamic LVR breakdown of drawn balance2 60% 60% Mar 25 Dynamic LVR 39.1% 40% 40% 20% 20% 0% 0% LVR LVR LVR LVR LVR LVR LVR LVR LVR LVR LVR ≤60% 60.01% - 70% 70.01% - 80% 80.01% - 90% >90% 60.01% - 70.01% - 80.01% - 90.01% - ≤60% >100% 70% 80% 90% 100
Slide 43: Housing lending offset and redraw balances
Housing lending offset and redraw balances1 Offset & redraw balances Offset & redraw balances distribution by number of ($bn) accounts 100 16 30% 45% 14 40% 90 25% 12 35% 10 20% 30% 80 25% 8 15% 20% 70 6 10% 15% 4 10% 60 5% 5% 2 0% 0% 50 0 0 up to 5k 5k to 50k 25k to 50k 50k to 100k 100k to 250k 250
Slide 44: Housing lending arrears profile
Housing lending arrears profile1 Arrears slowing as % of GLAs but limited impairment 2.45% 1.82% 1.87% 1.63% 1.75% 1.75% 1.79% 1.65% 1.61% 1.42% 1.41% 1.18% 1.24% 1.15% 1.22% 1.15% 0.98% 1.04% 1.08% 0.93% 0.90% 0.73% 0.67% 0.76% 0.11% 0.12% 0.10% 0.10% 0.10% 0.06% 0.05% 0.05% 0.08% 0.06% 0.06% 0.05%
Slide 45: Housing lending arrears profile
Housing lending arrears profile1 90+ DPD2 & Impaired assets as a % of GLAs by purpose 2.5% 2.0% 1.26% 1.5% 1.12% 1.0% 1.11% 0.5% 0.0% Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Investor First Home Buyer Owner Occupier 30+ DPD as a % of GLAs by purpose 2.5% 1.98% 2.0
Slide 46: Housing lending fixed rate portfolio profile
Housing lending fixed rate portfolio profile1 Fixed rate (FR) lending book FR home loan contractual expiry profile ($bn) • $16bn FR book at Mar 25, rolls to variable rate (VR) loan at expiry • ~$7bn (~42%) has customer rates below 3%, and only $8.4bn still to expire after Sep 25 • ~85% retention for
Slide 47: Housing lending key metrics
Housing lending key metrics1 Australian housing lending Sep 23 Mar 24 Sep 24 Mar 25 Mar 24 Sep 24 Mar 25 Portfolio Drawdowns3 Total Balances (spot) $bn 338 344 3532 359 38 37 41 Average loan size $’000 per account 358 371 381 394 564 564 599 By product type - Variable rate 76.8% 84.7% 89.6% 93.2% 97
Slide 48: Housing lending practices & policies
Housing lending practices & policies Key origination requirements Loan-to-value (LVR) limits • Income verified using a variety of documents including Principal & Interest – Owner Occupier 95% payslips and/or checks on salary credits into customers’ accounts Principal & Interest – Investor 90% • 10%
Slide 49: Additional information 1H25 Results
Additional information 1H25 Results
Slide 50: NAB at a glance
NAB at a glance Cash earnings divisional splits 1 % of Cash earnings Key financial data 1H25 Business & Private Banking 46% Cash earnings1 $3,583m Personal Banking 16% Cash ROE 11.7% Corporate & Institutional Banking 25% Gross loans and acceptances $756.3bn New Zealand Banking 20% Customer deposits
Slide 51: Divisional contributions
Divisional contributions Cash Earnings Underlying Profit Divisional cash earnings1 1H25 ($m) 1H25 v 2H24 1H25 ($m) 1H25 v 2H24 Business & Private Banking 1,634 1.4% 2,578 (1.8%) Personal Banking 576 (6.8%) 981 (2.6%) Corporate & Institutional Banking2 909 4.1% 1,324 7.0% New Zealand Banking3 781 12.
Slide 52: Disclaimer
Disclaimer This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any “U.S. person” (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”)) or any other jurisdiction
Slide 53: Disclaimer
Disclaimer The Group’s results are presented on a cash earnings basis unless otherwise stated. Cash earnings is a key financial performance measure used by the Group and the investment community. The Group also uses cash earnings for its internal management reporting, as it better reflects what NAB
Slide 54: Disclaimer
Disclaimer The presentation is not being distributed to and must not be passed on to persons in the United Kingdom, except for persons (1) who are not UK retail investors* and (2) who: (i) are investment professionals in accordance with Article 19(5) of the Financial Services and Markets Act 2000 (F
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