National Australia Bank Limited · ASX:NAB
National Australia Bank — FY2020 Earnings Presentation
120 slides from National Australia Bank's earnings presentation, Nov 5, 2020
Slide 1: Full Year Results 2020
FULL YEAR RESULTS 2020 Investor Presentation 5 November 2020 Ross McEwan Chief Executive Officer Gary Lennon Chief Financial Officer © 2020 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
Slide 2: NAB 2020 Full Year Results Index
NAB 2020 FULL YEAR RESULTS INDEX This presentation is general background information about NAB. It is intended to be used by a professional analyst audience and is not intended to be relied upon as financial advice. Refer to page 120 for legal disclaimer. Financial information in this presentation i
Slide 3: Overview
OVERVIEW ROSS McEWAN Group Chief Executive Officer
Slide 4: Key Messages
KEY MESSAGES Financial results reflect challenging environment Balance sheet strength. Keep the bank safe Supporting customers and colleagues Strategic ambition is clear. Good progress made on execution Focused now on building momentum in our core businesses 4
Slide 5: Underlying Results Reflect Challenging Environment
UNDERLYING RESULTS REFLECT CHALLENGING ENVIRONMENT METRIC FY20 FY19 FY20 VS FY19 Statutory net profit ($m) 2,559 4,798 (46.7%) CONTINUING OPERATIONS (EX LARGE NOTABLE ITEMS1) Cash earnings2 ($m) 4,733 6,389 (25.9%) Underlying profit ($m) 9,640 10,056 (4.1%) Cash ROE 8.3% 12.4% (410 bps) Diluted Cash
Slide 6: Balance Sheet Strength
BALANCE SHEET STRENGTH CAPITAL INCLUDES SUBSTANTIAL BUFFER FUNDING & LIQUIDITY REMAINS STRONG CET1 Ratio (%) 11.82 + 35bps MLC Wealth + 98bps Metric (%) Mar 19 Sep 19 Mar 20 Sep 20 capital raising LCR (quarterly average) 130 126 136 139 11.47 10.20 10.40 10.38 10.39 NSFR 112 113 116 127 Sep 18 Mar 1
Slide 7: Supporting Customers and Colleagues
SUPPORTING CUSTOMERS AND COLLEAGUES OUR CUSTOMERS OUR COLLEAGUES Numerous COVID-19 support initiatives New roles created Added • Reduced minimum monthly repayments on cards and waived late payment fees >1,000 550 roles in • Waived certain merchant fees with extended support customer support roles B&
Slide 8: We Have a Clear Strategic Ambition
WE HAVE A CLEAR STRATEGIC AMBITION WHY WE ARE HERE To serve customers well and help our communities prosper WHO WE ARE HERE FOR Colleagues Customers Trusted professionals that are proud to be a part of NAB Choose NAB because we serve them well every day WHAT WE WILL BE KNOWN FOR Relationship-led Eas
Slide 9: Focused on Execution with Good Progress to Date
FOCUSED ON EXECUTION WITH GOOD PROGRESS TO DATE Implemented new customer-centric organisation structure with clear accountabilities Leadership team largely in place – clear understanding of key strategic priorities Investing in colleagues – launch of Career Qualified in Banking and single Lead
Slide 10: We Have Clear Growth Opportunities
WE HAVE CLEAR GROWTH OPPORTUNITIES CORPORATE & BUSINESS & PRIVATE PERSONAL BANKING INSTITUTIONAL BNZ UBANK BANKING BANKING Clear market leadership Simple & digital Disciplined growth Grow in personal & New customer SME acquisition • Industry-leading relationship bankers, enabled by data and • Flexib
Slide 11: Investment Is Focused on Our Key Strategic Priorities
INVESTMENT IS FOCUSED ON OUR KEY STRATEGIC PRIORITIES Planned FY21 Investment spend ~$1.3bn DISCRETIONARY INVESTMENT SPEND FOCUSED ON CORE PROJECTS TO SUPPORT GROWTH • Simplify business lending processes and policies Discretionary spend • Invest in bankers, processes and technology to improve custom
Slide 12: Leveraging Strong Technology Foundation
LEVERAGING STRONG TECHNOLOGY FOUNDATION CLOUD MIGRATION, APP REDUCTION & RESILIENCE CONTINUED FOCUS ON CYBER, FINANCIAL CRIME AND FRAUD • Continuing strategy of cloud migration and reduction in apps • Investment and continued focus on cyber security and fraud • Announced strategic partnership with M
Slide 13: Digital Tools Support Better Customer Outcomes
DIGITAL TOOLS SUPPORT BETTER CUSTOMER OUTCOMES SUPPORTING CUSTOMER INTERACTIONS INCREASING DIGITAL EXECUTION DEVELOPING INNOVATIVE SOLUTIONS Virtual chats >95% mortgage documents in broker Partnerships to provide enhanced channel executed digitally with e- analytics to business customers signatures
Slide 14: What Will Success Look Like?
WHAT WILL SUCCESS LOOK LIKE? KEY MEASURES OF SUCCESS OUR AMBITION OVER 3-5 YEARS Colleague engagement • Top quartile engagement Customer NPS • Strategic NPS positive and #1 of majors • Focus on growing share in target segments, while managing risk and pricing disciplines Cash EPS growth • Discipline
Slide 15: FY20 Financials
FY20 FINANCIALS GARY LENNON Group Chief Financial Officer
Slide 16: Group Financial Performance
GROUP FINANCIAL PERFORMANCE GROWTH BY KEY FINANCIAL INDICATORS (EX LARGE NOTABLE ITEMS) (4.1%) (25.9%) (410 bps) 5.6% (140 bps) 10,056 9,640 (8.8%) 6,389 12.4 4,688 4,952 4,733 8.3 9.1 7.7 2,475 2,258 FY19 FY20 1H20 2H20 FY19 FY20 1H20 2H20 FY19 FY20 1H20 2H20 Underlying profit ($m) Cash earnings ($
Slide 17: Remediation and Large Notable Items
REMEDIATION AND LARGE NOTABLE ITEMS CUSTOMER-RELATED REMEDIATION PROVISION CHARGES1 PAYROLL REMEDIATION ($m) 832 66 • Extensive review into payments to both current and 525 former Australian colleagues 314 46 • Range of potential payroll under and over payments issues; remediating under payments dat
Slide 18: Revenue
REVENUE NET OPERATING INCOME (EX LARGE NOTABLE ITEMS) ($m) HoH revenue up 5.3% (YoY down 1.5%) Excludes Markets & Treasury 19 672 (40) (116) (86) 8,792 8,884 8,435 Sep 19 Mar 20 Volumes Margin Fees & Markets & Other Sep 20 Commissions Treasury Income 18
Slide 19: Markets and Treasury Income
MARKETS AND TREASURY INCOME GROUP MARKETS & TREASURY INCOME $160m mark-to-market losses on the high quality liquids portfolio from 1H20 ($m) have fully reversed in 2H20 1,250 940 838 578 888 572 453 277 372 402 387 362 (4) (17) (86) 0 Mar 19 Sep 19 Mar 20 Sep 20 Derivative Valuation Adjustment1 Cust
Slide 20: Net Interest Margin
NET INTEREST MARGIN NET INTEREST MARGIN 0.04% (0.08%) 0.03% (0.02%) 0.06% (0.04%) 1.78% 1.78% 1.77% 1.75% Sep 19 Mar 20 Lending Funding Deposits Capital & Other Sep 20 Ex Higher Liquids Markets & Sep 20 Margin Markets & Treasury 1 Treasury KEY CONSIDERATIONS AVERAGE LONG TERM WHOLESALE FUNDING COSTS
Slide 21: Operating Expenses
OPERATING EXPENSES OPERATING EXPENSES (EX LARGE NOTABLE ITEMS) ($m) YoY expense growth 2.0% (HoH 4.9%) 419 (284) 103 141 (348) 120 Including $29m net benefit from Cumulative productivity capitalised software policy change savings of $1.2bn over FY17-20 7,679 7,528 FY19 Productivity Remuneration Tech
Slide 22: Higher Credit Impairment Charge and Provisions
HIGHER CREDIT IMPAIRMENT CHARGE AND PROVISIONS CREDIT IMPAIRMENT CHARGE 0.54% KEY CONSIDERATIONS 1H20 V 2H20 ($m) 0.38% • Underlying CIC2 of $573m or 19bps of GLAs, up 8bps from 1,601 1H20 reflecting net impact of re-ratings of performing exposures 0.16% 1,161 0.14% 0.15% 661 • Net increase in targe
Slide 23: Modest Asset Quality Deterioration but Watch Loans Higher
MODEST ASSET QUALITY DETERIORATION BUT WATCH LOANS HIGHER KEY CONSIDERATIONS NEW IMPAIRED ASSETS • 90+ DPD & GIA ratio uplift largely reflects increased ($m) delinquencies in Australian home loan portfolio where Small number of well-secured NZ customers not part of deferrals dairy exposures • Eligib
Slide 24: Expected Credit Losses Higher
EXPECTED CREDIT LOSSES (ECL) HIGHER EXPECTED CREDIT LOSS (ECL) PROVISIONING PROCESS AND MOVEMENTS1 ($m) 367 (7) 155 661 6,011 4,835 3,900 Probability weighted ECL Probability weighted ECL Underlying collective Forward looking Target sector forward Specific provision Probability weighted ECL Sep 19 M
Slide 25: ECL Assessment
ECL ASSESSMENT EXPECTED CREDIT LOSS (ECL) SCENARIOS KEY CONSIDERATIONS Total Provisions for Expected Credit Losses • Modest underlying CP uplift reflecting material levels of (ECL)1 support (e.g. deferrals, JobKeeper etc) and liquidity 2H20 $m 100% Base 100% (probability case Downside • Modest deter
Slide 26: Target Sector Forward Looking Adjustments Strengthened
TARGET SECTOR FORWARD LOOKING ADJUSTMENTS (FLAS) STRENGTHENED COLLECTIVE PROVISION TARGET SECTOR FLAS KEY CONSIDERATIONS ($m) 662 1,029 • FLAs capture risks incremental to that captured by broader EA top-up • New Aviation FLA reflects slower recovery 662 372 profile than broader economy given intern
Slide 27: Australian Home Loan Deferrals
AUSTRALIAN HOME LOAN DEFERRALS DEFERRAL BALANCES1 COMMENTS 12.3% • ~110k deferrals have been granted with ~75k no longer on deferral 9.6% • Home lending deferral extensions considered by NAB Assist on a case-by-case basis. Other options include 12 months Interest Only 92 Further $10bn or restructure
Slide 28: Australian Business Loan Deferrals
AUSTRALIAN BUSINESS LOAN (B&PB) DEFERRALS1 DEFERRAL BALANCES2 COMMENTS 17.3% • Deferral extensions considered by SBS/NAB Assist on a case- by-case basis. Other options include forbearance or restructure 12.2% • ~$0.8bn has been referred to SBS/NAB Assist and to date 39 ~30% of these have been grante
Slide 29: Strong Capital Position
STRONG CAPITAL POSITION GROUP BASEL III COMMON EQUITY TIER 1 CAPITAL RATIO (%) Capital generation +29bps 0.17 (0.15) (0.07) 0.98 (0.14) (+27bps ex DRP) 0.50 (0.19) (0.02) 11.82 11.47 10.39 Mar 20 Cash earnings Dividend RWA $4.25bn Rates and FX Large Notable Sale of MLC Other Sep 20 Sep 20 pro 1 (net
Slide 30: CRWA and Sensitivity
CRWA AND SENSITIVITY CREDIT RWA Credit quality & portfolio mix +$1.8bn $12.2bn reduction (%) more than offsets 1H20 3.3 (8.2) increase 14.1 (4.8) (2.6) (3.7) (0.6) 0.4 (8.5) 364.6 354.0 Mar 20 Volume Model and Non retail SME overlay Non retail Other non Retail Derivatives Translation FX Sep 20 1 Met
Slide 31: Funding and Liquidity Profile
FUNDING & LIQUIDITY PROFILE KEY MESSAGES TERM FUNDING FACILITY • Liquidity remains strong with significant surpluses above TFF available November 2020 regulatory minimums 2H21 Term Additional Funding • Strong deposit inflows continued in line with system trends Allowance: $4.2bn2 Maturities: $14bn3
Slide 32: FY21 Key Considerations
FY21 KEY CONSIDERATIONS • Sustained low rate environments in Australia and New Zealand expected to impact Group NIM by ~6bps in FY21 Revenue • Subdued demand for credit until confidence returns headwinds • Australian business system growth expected to be ~2% in FY21 • Australian housing system growt
Slide 33: Priorities in FY21 to Build Momentum
PRIORITIES IN FY21 TO BUILD MOMENTUM Balance sheet strength for targeted growth opportunities Disciplined on costs Execution of strategic priorities with investment spend managed via clear governance principles Ongoing investment in our colleagues and support for our customer-facing teams Continue t
Slide 34: Additional Information: Divisional Performances
ADDITIONAL INFORMATION DIVISIONAL PERFORMANCES
Slide 35: Divisional Contributions
DIVISIONAL CONTRIBUTIONS Divisional cash earnings FY20 ($m) FY20 v FY19 2H20 ($m) 2H20 v 1H20 Business and Private Banking 2,489 (11.6%) 1,125 (17.5%) Personal Banking 1,380 9.5% 657 (9.1%) Corporate & Institutional Banking 1,469 (2.6%) 768 9.6% New Zealand Banking1 1,036 (1.8%) 474 (15.7%) (1) In l
Slide 36: Business and Private Banking
BUSINESS & PRIVATE BANKING CASH EARNINGS REVENUE AND MARGIN ($m) (11.6%) (5.4%) (17.5%) (5.2%) 2,817 6,638 6,278 2,489 2.94% 2.92% 2.90% 3,222 3,056 2.81% 1,364 1,125 FY19 FY20 1H20 2H20 FY19 FY20 1H20 2H20 Mar 19 Sep 19 Mar 20 Sep 20 Total revenue ($m) Net interest margin BUSINESS AND HOUSING LENDI
Slide 37: Personal Banking
PERSONAL BANKING CASH EARNINGS REVENUE AND MARGIN ($m) 2.7% 9.5% (2.8%) (9.1%) 4,412 4,531 1.84% 1.96% 2.06% 2.02% 1,260 1,380 2,298 2,233 723 657 FY19 FY20 1H20 2H20 Mar 19 Sep 19 Mar 20 Sep 20 FY19 FY20 1H20 2H20 Total revenue ($m) Net interest margin HOUSING LENDING VOLUME GROWTH1 CREDIT IMPAIRME
Slide 38: Corporate and Institutional Banking
CORPORATE & INSTITUTIONAL BANKING CASH EARNINGS MARGINS AND REVENUE BREAKDOWN2 ($m) ($m) Revenue Margins (2.6%) 0.6% ex CVA1 2.7% 4.6% ex CVA1 1.70% 1.72% 1.63% 1.59% 9.6% 16.4% ex CVA1 Markets 742 862 revenue up 16.2% (24.9% ex CVA1) 1,508 1,469 Non 0.81% 701 768 Markets 0.73% 0.69% 0.70% 2,624 2,5
Slide 39: New Zealand Banking
NEW ZEALAND BANKING CASH EARNINGS REVENUE AND MARGIN (NZ$m) (1.8%) 0.0% (15.7%) (3.5%) 1,055 1,036 2,537 2,537 2.30% 2.24% 562 1,291 1,246 2.20% 474 2.14% FY19 FY20 1H20 2H20 FY19 FY20 1H20 2H20 Mar 19 Sep 19 Mar 20 Sep 20 Total revenue (NZ$m) Net interest margin BUSINESS & HOUSING LENDING GLAs CRED
Slide 40: NAB and Our Community
ADDITIONAL INFORMATION NAB AND OUR COMMUNITY
Slide 41: NAB at a Glance
NAB AT A GLANCE >34,000 ~9 million 859 >160 years Employees Customers Branches/Business centres in operation CASH EARNINGS DIVISIONAL SPLIT1 Key Financial Data FY20 Corporate & Cash Earnings $3,710m Institutional Banking 31% New Zealand Banking 21% Cash Earnings1 $4,733m Update Cash ROE1 8.3% Person
Slide 42: Our Economic Value Distributed
OUR ECONOMIC VALUE DISTRIBUTED SUPPLIERS Payments made for the provision of utilities, goods and services. $5.1bn COMMUNITY Community partnerships, donations, grants, in kind support and volunteering. $42.8m INVESTMENT $3.3 billion dollars in dividend payments to more than 641,000 SHAREHOLDERS share
Slide 43: Our Strategy: Long Term Approach
OUR STRATEGY: LONG TERM APPROACH SUSTAINABILITY IS EMBEDDED EXPLICITLY IN THE LONG-TERM PILLAR OF OUR GROUP STRATEGY, FOCUSED ON COMMERCIAL RESPONSES TO SOCIETY’S RESILIENT AND SUSTAINABLE BUSINESS INNOVATING FOR THE FUTURE BIGGEST CHALLENGES PRACTICES Supporting a low-carbon economy, driving Managi
Slide 44: Commercial Responses – Climate Change
COMMERCIAL RESPONSES – CLIMATE CHANGE OUR COMMITMENTS Commitment Progress Achieving a Paris Agreement aligned net zero emissions lending Initial financed emissions estimate completed, pathway mapping under portfolio by 2050 way (next slide) Environmental financing target of $70bn by 2025 $42.5bn cum
Slide 45: Commercial Responses – Climate Change
COMMERCIAL RESPONSES – CLIMATE CHANGE SUPPORTING CUSTOMERS’ TRANSITION FINANCED EMISSIONS ESTIMATE1 • Completed initial financed emissions estimate for key Australian Emissions intensity customer segments: agribusiness, commercial real estate (office Industry sector EAD / tCO2-e and retail), NGER ex
Slide 46: Commercial Responses – Supporting Industry and Communities
COMMERCIAL RESPONSES – SUPPORTING INDUSTRY AND COMMUNITIES PROGRESS ON OUR COMMITMENTS FINANCIAL HEALTH AND RESILIENCE • >$1.2bn provided to support the growing fintech sector: part of • 26,621 Australian customers referred to NAB Assist for hardship 2020-2025 $2bn lending commitment to emerging tec
Slide 47: Resilient and Sustainable Business Practices
RESILIENT AND SUSTAINABLE BUSINESS PRACTICES INVESTING IN OUR COLLEAGUES CODE OF CONDUCT AND TURNOVER Breaches of Code Of Conduct Employee turnover rate (%) by exit • In partnership with the Financial Services Institute of Australasia (Australia) type (FINSIA), investing $50m over three years in NAB
Slide 48: Australian Customer Experience
ADDITIONAL INFORMATION AUSTRALIAN CUSTOMER EXPERIENCE
Slide 49: Customer Experience Improving but More Work to Do
CUSTOMER EXPERIENCE IMPROVING BUT MORE WORK TO DO STRATEGIC NPS1,2 -5 -10 -10 -11 -13 -15 -17 -20 -25 -30 May 16 Sep 16 Jan 17 May 17 Sep 17 Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 NAB Peer 1 Peer 2 Peer 3 BUSINESS3 CONSUMER4 -5 5 -10 -14 0 -15 -15 -6 -15 -5 -6 -20 -21 -10 -11
Slide 50: Corporate and Institutional Customer Metrics
CORPORATE & INSTITUTIONAL CUSTOMER METRICS LARGE CORPORATE & INSTITUTIONAL – INTEREST RATE HEDGING3 FOREIGN EXCHANGE4 RELATIONSHIP STRENGTH INDEX1 Relationship Strength Index Relationship Strength Index 620 (Index) (Index) 600 640 600 580 600 560 550 560 540 520 520 500 500 480 480 440 450 2016 2017
Slide 51: Enhancing Consumer Customer Experience
ENHANCING CONSUMER CUSTOMER EXPERIENCE NAB STRAIGHTUP CARD SIMPLE CONSUMER PRODUCT SALES VIA DIGITAL2 • Launched the NAB StraightUp Card, Australia’s first no- interest credit card, in response to customers wanting access to credit that is simple and easy to understand • Key card features include 65
Slide 52: UBank Highlights
UBANK HIGHLIGHTS CUSTOMERS & COLLEAGUES • 10% growth in customer numbers over FY20 • >5k new home loans provided to customers in FY20 • Re-introduced home loan offering to self-employed 596 610 applicants 554 508 • Won the Canstar Fixed Rate Home Loan of the year for the 3rd year in a row • Named in
Slide 53: NAB Connect Moved to Cloud and Enhancing Customer Experience
NAB CONNECT MOVED TO CLOUD AND ENHANCING CUSTOMER EXPERIENCE NAB CONNECT MOVED TO THE CLOUD NAB CONNECT NPS1 • Migration to Amazon Web Services (AWS) cloud enables secure Improvement in NAB Connect NPS and scalable compute capacity reducing operational risk and cost, while supporting platform resili
Slide 54: QuickBiz for Small Business Customers
QUICKBIZ FOR SMALL BUSINESS CUSTOMERS DIGITAL SMALL BUSINESS UNSECURED LENDING SMALL BUSINESS UNSECURED LENDING VIA QUICKBIZ • Access to unsecured finance for term loan, overdraft, business Proportion of new small business lending accounts generated cards, equipment loan and broker assisted customer
Slide 55: Reduction in Critical and High Priority Incidents
REDUCTION IN CRITICAL AND HIGH PRIORITY INCIDENTS ‘CRITICAL’ AND ‘HIGH’ PRIORITY INCIDENTS1 Investment in technology driving lower instance of technology incidents since 1H14 • 95% reduction in “High” priority incidents • 98% reduction in “Critical” priority incidents 45 600 40 500 35 30 400 25 300
Slide 56: Australian Business Lending
ADDITIONAL INFORMATION AUSTRALIAN BUSINESS LENDING
Slide 57: Key Metrics
KEY METRICS BUSINESS LENDING REVENUE BUSINESS LENDING NET INTEREST MARGIN ($m) (%) 2,275 2,248 2,223 2,204 369 351 343 329 1.92% 1.86% 1.82% 1.78% 1,906 1,897 1,880 1,875 Mar 19 Sep 19 Mar 20 Sep 20 Mar 19 Sep 19 Mar 20 Sep 20 NII OOI BUSINESS LENDING GLAs SMALL, MEDIUM AND AGRI BUSINESS LENDING MAR
Slide 58: Business and Private Banking – SME Business Lending Growth
BUSINESS & PRIVATE BANKING – SME BUSINESS LENDING GROWTH AUSTRALIAN SME BUSINESS LENDING GROWTH (YOY)1 8.3% 0.4% (0.4%) (1.3%) (1.7%) (4.0%) $31bn $8bn $28bn $42bn $109bn 2 Agri Health CRE Other NAB SME growth - average of B&PB ANZ, CBA, WBC 3 Denotes lending balance as at 30 September 2020 (1) Grow
Slide 59: Business Lending Asset Quality
BUSINESS LENDING ASSET QUALITY 600 BUSINESS LENDING CREDIT IMPAIRMENT CHARGE AND AS BUSINESS LENDING 90+ DPD AND GIAs AND AS % OF GLAs 500 % OF GLAs ($m) ($m) 0.33% 0.67% 0.66% 0.72% 0.62% 400 0.14% 0.07% 0.10% 0.0% 300 200 336 1,394 1,420 1,474 1,257 100 151 103 77 - -1.0% Mar 19 Sep 19 Mar 20 Sep
Slide 60: Business and Private Banking Asset Quality
BUSINESS & PRIVATE BANKING (B&PB) ASSET QUALITY B&PB CREDIT IMPAIRMENT CHARGE AND AS % OF GLAs1 B&PB 90+ DPD AND GIAs AND AS % OF GLAs1 ($m) 0.22% ($m) 1.32% 0.20% 1.07% 0.95% 2,584 0.13% $340.0 0.83% 0.15% 0.12% 2,111 217 196 1,905 1,662 1,246 119 27 1,036 126 21 955 844 127 28 40 170 1,338 67 818
Slide 61: Australian Housing Lending
ADDITIONAL INFORMATION AUSTRALIAN HOUSING LENDING
Slide 62: Key Metrics
KEY METRICS HOUSING LENDING REVENUE HOUSING LENDING NET INTEREST MARGIN ($m) (%) 1,988 2,038 1,925 114 119 1,709 122 112 1.38% 1.37% 1.42% 1.27% 1.34% 1.30% 1.22% 1.16% 1,803 1,874 1,919 1,597 Mar 19 Sep 19 Mar 20 Sep 20 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 NII OOI HOUSING LENDING
Slide 63: Housing Lending Portfolio Profile
HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING BY CHANNEL1 HOUSING LENDING FLOW MOVEMENTS1 ($bn) ($bn) 37 (3) (16) (21) 104.0 103.8 101.9 111.6 112.5 113.0 302 299 88.3 86.1 84.2 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 Mar 20 New fundings Interest & Pre- External refinance
Slide 64: Housing Lending Portfolio Profile
HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING 90+DPD & GIAs AS % OF GLAs 90+ DPD & GIAs AS % OF TOTAL HOUSING LENDING GLAs – BY CHANNEL 2.5% 2.38% 1.6% 2.0% 1.42% 1.2% 1.5% 1.28% 1.24% 0.8% 1.0% 1.13% 1.11% 0.4% 0.5% 0.0% 0.0% Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 11 Sep 12 Sep 13
Slide 65: Housing Lending Portfolio Quality
HOUSING LENDING PORTFOLIO QUALITY DYNAMIC LVR BREAKDOWN OF DRAWN BALANCE LVR BREAKDOWN AT ORIGINATION 60% 60% Sep 20 Dynamic LVR 45.5% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% LVR LVR LVR LVR LVR LVR LVR >90% LVR LVR LVR ≤60% 60.01% - 70% 70.01% - 80% 80.01% - 90% 80.01% - 90% >90% ≤60% 60.01%
Slide 66: Housing Lending Practices and Requirements
HOUSING LENDING PRACTICES & REQUIREMENTS KEY ORIGINATION REQUIREMENTS LOAN-TO-VALUE RATIO (LVR) LIMITS • Income verified using a variety of documents including payslips Principal & Interest – Owner Occupier 95% and/or checks on salary credits into customers’ accounts Principal & Interest – Investor
Slide 67: Housing Lending Key Metrics
HOUSING LENDING KEY METRICS1 Australian Housing Lending Mar 19 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 2 Drawdowns Total Balances (spot) $bn 307 304 302 299 22 27 29 Average loan size $’000 307 308 309 309 369 389 383 - Variable rate 72.0% 73.5% 75.9% 71.9% 73.0% 78.5% 64.0% - Fixed rate 21.6% 20.
Slide 68: Other Australian Products
ADDITIONAL INFORMATION OTHER AUSTRALIAN PRODUCTS
Slide 69: Deposits and Transaction Accounts
DEPOSITS & TRANSACTION ACCOUNTS DEPOSIT REVENUE CUSTOMER DEPOSITS BY INTEREST RATE1 (%) ($m) 1,762 100 1,723 1,700 1,541 1,623 27 28 28 80 27 24 $175bn of deposits already at or near zero interest rate 60 1,696 1,733 1,672 1,596 40 1,517 $83.6bn $90.9bn $61.6bn $42.5bn 20 $34.0bn $55.6bn 0 Sep 18 Ma
Slide 70: Other Banking Products
OTHER BANKING PRODUCTS PERSONAL LENDING BALANCE AND MARKET SHARE1 CARDS BALANCE AND MARKET SHARE3,4 APRA ($bn) ($bn) methodology change2 13.4% 13.3% 13.2% 13.2% 10.3% 9.9% 2.7 9.3% 9.2% 11.00% 6.1 5.7 5.4 1.7 1.5 4.4 1.4 1.1 0.0 0.00% Mar 19 Sep 19 Mar 20 Sep 20 Mar 19 Sep 19 Mar 20 Sep 20 Personal
Slide 71: New Zealand Banking
ADDITIONAL INFORMATION NEW ZEALAND BANKING
Slide 72: Key Customer Metrics
KEY CUSTOMER METRICS BNZ SME NPS1,3 25 15 5 -5 -3 -17 -15 -19 -25 -20 -35 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 BNZ Peer 1 Peer 2 Peer 3 BNZ CONSUMER NPS2,3,4 40 39 35 35 30 32 25 20 22 15 14 10 5 0 -5 Mar 17 Jun 17 Sep 17 Dec 17 Mar
Slide 73: Housing Lending Key Metrics
HOUSING LENDING KEY METRICS New Zealand Housing Lending Mar 19 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 Portfolio Drawdowns1 Total Balances (spot) NZ$bn 41.3 43.0 44.8 46.0 5.8 5.8 5.1 By product - Variable rate 17.7% 15.9% 15.2% 14.1% 15.4% 15.4% 15.1% - Fixed rate 79.7% 81.7% 82.6% 84.1% 84.0% 84
Slide 74: New Zealand Lending Mix
NEW ZEALAND LENDING MIX PORTFOLIO BREAKDOWN – TOTAL NZ$88.1BN MORTGAGE PORTFOLIO BREAKDOWN BY GEOGRAPHY – TOTAL MORTGAGE NZ$46.0BN Wellington 11% Waikato 7% Canterbury 12% Bay of Plenty Commercial 6% Real Estate 9% Mortgages 52% Other 16% Agriculture, Forestry and Auckland 48% Fishing 17% AGRIBUSINE
Slide 75: NZ Customer Deposits by Interest Rate
NZ CUSTOMER DEPOSITS BY INTEREST RATE NZ CUSTOMER DEPOSITS BY INTEREST RATE (NZD) $28.9bn of deposits already at or near zero interest rate $27.0bn $14.0bn $14.9bn $7.9bn $0.9bn $0.7bn less than 0.01% between 0.01% to 0.25% between 0.26% to 0.50% between 0.51% to 0.75% between 0.76% to 1.00% more th
Slide 76: Group Asset Quality
ADDITIONAL INFORMATION GROUP ASSET QUALITY
Slide 77: Group Credit Impairment Charge
GROUP CREDIT IMPAIRMENT CHARGE CREDIT IMPAIRMENT CHARGE AS % OF GLAs 1.4% GFC 1.2% 1.0% 0.8% 0.6% 0.46% 0.4% 0.2% Late 80’s / Early 90’s Recession 0.0% Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 87 88 89 90
Slide 78: Group Estimated Long Run Loan Loss Rate 1985 to 2020
GROUP ESTIMATED LONG RUN LOAN LOSS RATE 1985 TO 2020 GROUP BUSINESS MIX – GLAs BY CATEGORY ESTIMATING LONG RUN LOAN LOSS RATE Personal lending 8% NAB Australian geography net write off rates as a Long run 1985 % of GLAs 1985 - 20202 average Home lending3 0.03% Home Commercial1 lending 16% 76% Person
Slide 79: Group Lending Mix
GROUP LENDING MIX GROSS LOANS AND ACCEPTANCES BY PRODUCT GROSS LOANS AND ACCEPTANCES BY GEOGRAPHY1 Other International 3% Australia Other term 83% lending 38% New Zealand 14% Asset & lease financing 2% GROSS LOANS AND ACCEPTANCES BY BUSINESS UNIT Overdrafts 1% Other Housing loans New Zealand 1% 58%
Slide 80: Group Provisions
GROUP PROVISIONS COLLECTIVE PROVISION BALANCE SPECIFIC PROVISIONS ($m) ($m) 5,536 299 46 1,500 50.00% 45.8% 45.0% 44.4% 45.00% 1,300 39.7% 40.6% 4,401 40.00% 337 1,100 35.00% 56 900 827 840 782 30.00% 3,360 717 3,249 125 115 5,191 675 98 3,054 177 700 25.00% 87 161 87 134 65 73 20.00% 80 4,008 500 7
Slide 81: ECL Provisioning by Stages
ECL PROVISIONING BY STAGES LOANS AND ADVANCES1 PROVISIONS BY STAGE2 PROVISION COVERAGE BY STAGE3 (%) ($bn) ($m) 0.77 0.47 0.51 6,011 751 771 783 6 6627 9 1,644 115 120 3,900 19.0 205 3,513 19.2 17.4 1,064 1,305 3,897 630 644 569 2,125 2,227 1.90 1.85 1.85 0.34 0.56 0.33 324 368 470 0.05 0.06 0.08 Se
Slide 82: Probability of Default Analysis
PROBABILITY OF DEFAULT (PD) ANALYSIS NON RETAIL CORPORATE EAD1 BY PROBABILITY OF DEFAULT ($bn) Investment grade Sub investment grade Default 58% Sep 20 41% Sep 20 1% Sep 20 120 100 80 60 40 20 0 0<0.03% 0.03<0.11% 0.11<0.55% 0.55<2.00% 2.00<5.01% 5.01<99.99% 100% Sep 19 Mar 20 Sep 20 AUSTRALIAN AND
Slide 83: Business Lending Considerations
BUSINESS LENDING CONSIDERATIONS NON RETAIL EAD BY INDUSTRY1 - $490BN Performing2 Finance & insurance 27% 99.96% Commercial property 15% 99.57% Govt & public utilities 13% 100.00% Agri, forestry & fishing 10% 98.90% Transport & storage 6% 99.49% Other inc Health, Education, Community 5% Includes asse
Slide 84: Group Agriculture, Forestry and Fishing Exposures
GROUP AGRICULTURE, FORESTRY & FISHING EXPOSURES GROUP EAD $47.7BN SEPTEMBER 2020 AUSTRALIAN DROUGHT CONSIDERATIONS • Most drought-affected regions have seen good rainfall throughout 2020, which has improved the outlook for the sector New • Asset quality remains sound, noting that the sector faces so
Slide 85: COVID-19 Sectors of Interest
COVID-19 SECTORS OF INTEREST KEY CONSIDERATIONS SECTORS OF INTEREST VS TOTAL BOOK • Continued close monitoring of exposures to sectors 90+ DPD & GIA % of EAD Sector of interest FLAs % of total FLAs significantly impacted by COVID-19 81% • EAD broadly stable vs 1H20 • Asset quality deterioration wors
Slide 86: Retail Trade
RETAIL TRADE1 EXPOSURE AT DEFAULT KEY CONSIDERATIONS EAD $14.6bn EAD $14.5bn • ~3% of non retail EAD EAD $14.5bn • Retail Trade portfolio experience is mixed: ~46% is non- 2.2 2.1 discretionary retail and likely to be less impacted 3.9 6.6 3.8 • Household consumption growth was already at slowest pa
Slide 87: Tourism, Hospitality and Entertainment
TOURISM, HOSPITALITY AND ENTERTAINMENT1 EXPOSURE AT DEFAULT KEY CONSIDERATIONS EAD $13.6bn EAD $14.1bn • ~3% of non retail EAD 1.9 2.0 • Industry outlook uncertain, with credit outcomes likely to be dependant on specific client-level circumstances including location and target market. 5.5 6.1 Indust
Slide 88: Air Travel and Related Services
AIR TRAVEL AND RELATED SERVICES EXPOSURE AT DEFAULT KEY CONSIDERATIONS • ~2% of non retail EAD EAD $11.7bn EAD $11.3bn • Ongoing disruption caused by COVID-19 related travel restrictions, with length 0.5 0.7 and severity unknown • Portfolio comprises of airlines which are usually national carriers a
Slide 89: Group Office, Retail, Tourism and Leisure Commercial Real Estate
GROUP OFFICE, RETAIL, TOURISM & LEISURE COMMERCIAL REAL ESTATE1 GLA PROFILE Limit utilisation ~85% KEY CONSIDERATIONS $36.5bn $35.5bn 1.8 1.9 • Office, Retail and Tourism & Leisure CRE viewed as most 17.5 16.7 impacted parts of the Group CRE portfolio by COVID-19 • Borrower breakdown: Investor 96%,
Slide 90: Group Commercial Real Estate
GROUP COMMERCIAL REAL ESTATE1 GROSS LOANS & ACCEPTANCES ASSET QUALITY New Other Aust Total Zealand International Trend Mar 19 Sep 19 Mar 20 Sep 20 TOTAL CRE (A$bn) 51.2 7.5 0.1 58.8 Increase/(decrease) on Impaired loans ratio 0.22% 0.25% 0.26% 0.32% (2.0) (0.7) - (2.7) September 2019 (A$bn) % of geo
Slide 91: Group Commercial Real Estate
GROUP COMMERCIAL REAL ESTATE1 BREAKDOWN BY GROSS LOANS & ACCEPTANCES Geographic breakdown Borrower breakdown Sector breakdown QLD Retail 13% 29% Residential WA 11% VIC 6% Other 25% Investor Australia 90% 10% Tourism Industrial & Leisure 17% New Developer 3% Zealand 10% 13% Other 7% Other Office Land
Slide 92: Australian Commercial Real Estate
AUSTRALIAN COMMERCIAL REAL ESTATE AUSTRALIAN COMMERCIAL REAL ESTATE (CRE) PORTFOLIO1 AUSTRALIAN CRE RESIDENTIAL DEVELOPER ($bn) • Developer drawn balance includes $1.1bn for land development and $2.0bn for residential development 10.6% 10.5% 10.2% 9.9% 9.9% • Residential development apartment exposu
Slide 93: Capital and Funding
ADDITIONAL INFORMATION CAPITAL & FUNDING
Slide 94: Capital and RWA Movements
CAPITAL AND RWA MOVEMENTS GROUP RWA CREDIT RWA ($bn) ($bn) 1.8 (3.7) (0.6) 0.4 (8.5) (10.6) (0.6) 2.6 1.0 432.7 425.1 364.6 354.0 Mar 20 Credit Operational Market IRRBB Sep 20 Mar 20 Volume Model and Credit Derivatives Translation Sep 20 Risk Risk Risk Methodology Quality and FX and Repurchase Portf
Slide 95: Group Basel III Capital Ratios
GROUP BASEL III CAPITAL RATIOS 22.25% 19.77% 19.66% 17.97% 16.84% 16.33% 15.80% 14.34% 14.35% 16.62% 14.68% 14.61% 13.20% 12.36% 11.96% 11.47% 10.38% 10.39% Sep 19 Mar 20 Sep 20 APRA Common Equity Tier 1 ratios APRA Tier 1 ratios APRA Total Capital ratios Equivalent Internationally Comparable ratios
Slide 96: Key Regulatory Changes Impacting Capital and Funding
KEY REGULATORY CHANGES IMPACTING CAPITAL AND FUNDING REGULATORY CHANGE DATES DEFERRAL OF REGULATORY CHANGE Change Original Amended • APRA has deferred its scheduled implementation of the Basel date date III reforms in Australia by one year, consistent with international implementation APS 110 Capita
Slide 97: Loss Absorbing Capacity
LOSS ABSORBING CAPACITY LOSS ABSORBING CAPACITY APRA CHANGES TO MAJOR BANKS' CAPITAL STRUCTURES • In July 2019, APRA announced a 3% increase to the Total Capital requirement for all domestic systemically important Total Capital 17.5% Total Capital 16.6% banks (D-SIBs) by 1 January 2024 Capital surpl
Slide 98: Funding Profile
FUNDING PROFILE GROUP STABLE FUNDING INDEX (SFI) AUSTRALIAN CORE FUNDING GAP21 APRA ($bn) Methodology Change1 260 101% 240 90% 91% 93% 93% 86% 23% 220 20% 20% 22% 24% 23% 200 78% 180 66% 70% 69% 69% 70% 160 Sep 12 Sep 14 Sep 16 Sep 18 Sep 19 Sep 20 140 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 2
Slide 99: Asset Funding
ASSET FUNDING FUNDED BALANCE SHEET1 SOURCE AND USE OF FUNDS ($bn) $782bn $782bn Use of funds Source of funds 16 Short Term Wholesale, 11% Liquid Assets4, Term Wholesale 31 22% Funding <12 Months, 5% 14 Other Deposits3, 5% Other Short Term Assets 5, 2% 6 4 6 Business and Other Lending6, 32% Stable Cu
Slide 100: Liquidity
LIQUIDITY LIQUIDITY COVERAGE RATIO (QUARTERLY AVERAGE) NET STABLE FUNDING RATIO COMPOSITION ($bn) Group NSFR 127% as at 30 September 2020 130% LCR 126% LCR 136% LCR 139% LCR $555bn Wholesale Funding & Other $438bn 126 - and Liquids Non-Financial Other Assets 88 98 Corporate 85 Deposits 73 55 55 54 O
Slide 101: Term Wholesale Funding Profile
TERM WHOLESALE FUNDING PROFILE HISTORIC TERM FUNDING ISSUANCE1 ($bn) 5.4 4.8 5.2 5.7 6.7 yrs yrs yrs yrs yrs 36 37 29 28 26 30 32 14 23 21 13 6 5 5 5 2 FY16 FY17 FY18 FY19 FY20 Tenor2,3,4 Secured Senior and Sub Debt Term Funding Facility TERM FUNDING MATURITY PROFILE3 WAM 3.2 yrs4 41 30 28 14 25 21
Slide 102: Diversified and Flexible Term Wholesale Funding Portfolio
DIVERSIFIED AND FLEXIBLE TERM WHOLESALE FUNDING PORTFOLIO FY20 ISSUANCE BY PRODUCT TYPE FY20 ISSUANCE BY CURRENCY Subordinated AUD 31% Public 31% Senior Private Placements 2% Subordinated Private GBP 13% Placements 5% Secured Public Offshore 13% USD 40% Senior Public Other 16% Senior Public Offshore
Slide 103: Funding Costs and Replicating Portfolio
FUNDING COSTS AND REPLICATING PORTFOLIO INDICATIVE TERM WHOLESALE FUNDING ISSUANCE COSTS1 TERM DEPOSIT PORTFOLIO COSTS2 (bps) 400 80 300 70 200 60 100 50 0 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 40 3 yr senior 5 yr senior 10yr senior 10NC5 Tier 2 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 J
Slide 104: Economics
ADDITIONAL INFORMATION ECONOMICS
Slide 105: Australia and NZ Key Economic Indicators
AUSTRALIA AND NZ KEY ECONOMIC INDICATORS AUSTRALIAN ECONOMIC INDICATORS (%)1 NZ ECONOMIC INDICATORS (%)1 CY18 CY19 CY20(f) CY21(f) CY22(f) CY18 CY19 CY20(f) CY21(f) CY22(f) GDP growth2 2.2 2.3 -4.7 4.6 2.9 GDP growth2 3.3 1.8 -5.7 3.2 4.2 Unemployment3 5.0 5.2 7.6 6.9 5.9 Unemployment3 4.4 4.1 6.6 6
Slide 106: Activity Impacts of COVID-19
ACTIVITY IMPACTS OF COVID-19 • COVID-19 has caused significant disruptions to economic activity and weighed on household and business confidence. The weakness CONSUMPTION DRIVEN FALL IN OUTPUT1 (Ppt) (Ppt) in activity has been broad-based across the private sector – with an 4 4 outsized impact on se
Slide 107: Australia Has Passed the Trough in Activity
AUSTRALIA HAS PASSED THE TROUGH IN ACTIVITY GDP TO GRADUALLY RECOVER FROM HERE1 (%) Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 0.0 -0.3 1H20 forecasts Current forecasts -0.4 0.0 -1.1 0.0 -2.1 -0.3 -0.6 -2.0 -3.0 -1.4 -2.3 -4.4 -4.0 -4.6 -3.3 -4.7 -6.0 -7.3 -8.0 -7.2 -8.4 -10.0 CO
Slide 108: Although Areas of Stress Remain
ALTHOUGH AREAS OF STRESS REMAIN CHANGE IN CONSUMPTION SPEND BY INDUSTRY1 (%) 15 20 9 7 0 0 -1 -2 -20 -11 -13 -13 -40 -60 -47 -80 -75 -100 Arts and Construction Retail Trade Health Care and ALL Other Services Education and Rental, Hiring Electricity, Gas, Transport, Postal Administrative Recreation S
Slide 109: Labour Market Impacts of COVID-19
LABOUR MARKET IMPACTS OF COVID-19 UNEMPLOYMENT AND UNDERUTILISATION HAVE RISEN1 UNEMPLOYMENT HAS DETERIORATED ACROSS STATES1 (%) (%) 20 9 8 15 7 10 6 5 5 4 Unemployment Rate Underutilisation Rate NSW VIC QLD 0 SA WA TAS 3 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 Jan-19 Apr-19
Slide 110: Housing Market Has Softened
HOUSING MARKET HAS SOFTENED HOUSE PRICE GROWTH HAS SLOWED1 RENTS GROWTH CONTINUES TO BE WEAK2 (%, 6MEA) Sydney Melbourne Brisbane Perth (%) 25 20 10 15 10 5 5 0 0 -5 -5 Sydney Melbourne -10 Brisbane Perth -15 -10 2013 2014 2015 2016 2017 2018 2019 2020 2004 2007 2010 2013 2016 2019 DWELLING INVESTME
Slide 111: Significant Policy Support During the Pandemic
SIGNIFICANT POLICY SUPPORT DURING THE PANDEMIC LARGE BUDGET DEFICITS EXPECTED IN THE NEAR TERM1 AUSTRALIA GOVERNMENT DEBT IS AT A LOW STARTING POINT2 ($B) Japan (%) Forward Italy Estimates United States 0 0 France Canada -3 -50 United Kingdom India Germany -6 -100 Malaysia $ Levels (RHS) China -9 -1
Slide 112: Global Recovery Underway
GLOBAL RECOVERY UNDERWAY CHINA’S RECOVERY OVER Q2 AND Q31 BROADER GLOBAL RECOVERY ALSO UNDERWAY1 (% yoy) (Net balance) 20 China total GDP and selected sectors 65 JP Morgan/Markit Global PMI 15 60 55 10 50 5 45 40 0 35 -5 30 Manufacturing Services 25 -10 Manufacturing and construction Services GDP 20
Slide 113: New Zealand Recovery Underway
NEW ZEALAND BIG FALL IN NZ GDP IN FIRST HALF OF CALENDAR 2020, RBNZ EXPECTED TO MOVE TO NEGATIVE RATES2 RECOVERY UNDERWAY1 $NZ billion (chain prices) $NZ billion (%) OCR 12 2.50 70 Thousands NZ GDP Electronic card 2.00 66 transactions 10 Actual NAB Fcst, end qtr Mkt pricing 1.50 62 8 1.00 0.50 58 6
Slide 114: Other Information
OTHER INFORMATION
Slide 115: Operating Expenses – Half on Half
OPERATING EXPENSES – HALF ON HALF OPERATING EXPENSES (EX LARGE NOTABLE ITEMS) ($m) HoH expense growth 4.9% (PCP 3.7%) YoY expense growth 2.0% FY19: $7,528m FY20: $7,679m 19 Including $57m net impact of capitalised software policy change 141 (58) 119 (84) 48 3,932 3,792 3,747 Sep 19 Mar 20 Productivi
Slide 116: FTE
FTE FTE CHANGE YOY1 518 186 398 134 31,372 30,776 2 Sep 19 Productivity Upskilling/ Temporary Insourcing Sep 20 Growth/ Project Compliance FTE CHANGE HOH1 197 37 294 271 31,555 31,372 2 Mar 20 Productivity Upskilling/ Temporary Insourcing Sep 20 Growth/ Project Compliance (1) Restated for MLC FTE im
Slide 117: Investment Spend and Capitalised Software
INVESTMENT SPEND AND CAPITALISED SOFTWARE INVESTMENT SPEND – OPEX AND CAPEX CAPITALISED SOFTWARE ($m) ($m) 915 696 2,688 654 655 56% 46% 47% 39% 54% 44% 53% 61% 1,955 Mar 19 Sep 19 Mar 20 Sep 20 Opex Capex INVESTMENT SPEND – TYPE Spot implied useful ($m) life of software 5.7 years1 915 696 654 254 6
Slide 118: Group Cash Earnings Reconciliation to Statutory Net Profit
GROUP CASH EARNINGS RECONCILIATION TO STATUTORY NET PROFIT • NAB uses cash earnings (rather than statutory net profit attributable to owners of NAB) for its internal management reporting purposes and considers it a better reflection of the Group’s underlying performance. Accordingly, information is
Slide 119: Abbreviations
ABBREVIATIONS CET1 Common Equity Tier 1 Capital LCR Liquidity Coverage Ratio CIC Credit impairment charge LGD Loss given default CLF Committed Liquidity Facility LVR Loan to Value Ratio CP Collective Provision MTM Mark to market CTI Cost to income ratio NBI Non Bearing Interest DPD Days Past Due NGE
Slide 120: Disclaimer
DISCLAIMER The material in this presentation is general background information about the NAB Group current at the date of the presentation on 5 November 2020. The information is given in summary form and does not purport to be complete. It is intended to be read by a professional analyst audience in
National Australia Bank — FY2020 Earnings Presentation on 6ix