National Australia Bank Limited · ASX:NAB
National Australia Bank — Debt Investor Presentation (February 2017)
24 slides from National Australia Bank's debt investor presentation, Feb 8, 2017
Slide 1: NAB Subordinated Notes 2 Investor Presentation
NAB SUBORDINATED For personal use only NOTES 2 INVESTOR PRESENTATION February 2017
Slide 2: Important Notice
IMPORTANT NOTICE This document has been prepared by National Australia Bank Limited ABN 12 004 044 937 (“NAB”) in relation to its proposed offer of NAB Subordinated Notes 2. A Prospectus in respect of the NAB Subordinated Notes 2 was lodged with ASIC on 8 February 2017. The Prospectus does not conta
Slide 3: NAB Subordinated Notes 2 Highlights
NAB SUBORDINATED NOTES 2 Highlights Offer Highlights NAB Highlights For personal use only A new investment in National Australia Bank Limited Top 20 ASX-listed financial services company (“NAB”), including a priority Reinvestment Offer for Eligible NAB Subordinated Notes (“NSN”) holders Market capit
Slide 4: Overview
NAB SUBORDINATED NOTES 2 Overview Issuer Issuer NAB A$750 million, with the ability to raise more or less For personal use only Size and The proceeds will be used to refinance NSN (NABHB.ASX) and for general corporate purposes Use of Proceeds The Offer includes a Reinvestment Offer to Eligible NSN H
Slide 5: Key Differences to NSN
NAB SUBORDINATED NOTES 2 Key Differences to NSN NAB Subordinated Notes (NSN) NAB Subordinated Notes 2 For personal use only Issue Date 18 June 2012 20 March 2017 Maturity 10 years 11.5 years (20 September 2028) First Optional Redemption 5 years 6.5 years (20 September 2023) Date Determined in the Bo
Slide 6: Ranking Upon Winding Up
NAB SUBORDINATED NOTES 2 Ranking Upon Winding Up Instruments Examples of existing NAB obligations and securities1 For personal use only Higher Ranking Liabilities preferred by Savings accounts and term deposits law and secured debt Secured liabilities and covered bonds Senior Unsubordinated Bonds an
Slide 7: Offer Summary
NAB SUBORDINATED NOTES 2 Offer Summary The Offer comprises: For personal use only the Reinvestment Offer2 – a priority offer to Eligible NSN Holders as at 3 February 2017 with an Australian registered address3. Applications can be made directly to NAB or through a Syndicate Broker Who can apply?1 th
Slide 8: Options Available to Eligible NSN Holders
NAB SUBORDINATED NOTES 2 Options Available to Eligible NSN Holders1 Alternative 1 Participating holders will have their NSN bought back early for $100 per NSN on 20 March 2017 and their buyback proceeds (i.e. $100 per NSN) will be applied as an application payment for NAB Subordinated Notes 2 For pe
Slide 9: Comparison to NAB instruments
NAB SUBORDINATED NOTES 2 Comparison to NAB instruments Feature Term deposit NAB Subordinated National Income NAB Capital Notes 2 Ordinary Shares Notes 2 Securities For personal use only Product Term deposit Subordinated Notes Hybrid security Hybrid security Ordinary shares Common Equity Tier 1 Capit
Slide 10: Comparison to NAB instruments (cont.)
NAB SUBORDINATED NOTES 2 Comparison to NAB instruments (cont.) NAB Subordinated National Income NAB Capital Feature1 Term deposit Ordinary Shares Notes 2 Securities Notes 2 Yes – applies to Ordinary For personal use only Yes – applies to Ordinary Dividend restriction if Shares and equally ranking N/
Slide 11: Non-Viability Trigger Event
NAB SUBORDINATED NOTES 2 Non-Viability Trigger Event1 A Non-Viability Trigger Event may occur where NAB encounters severe financial difficulty. In these circumstances holders may lose a significant amount of their investment in NAB Subordinated Notes 2 For personal use only Non- Non -Viability A Non
Slide 12: Key Dates for the Offer
NAB SUBORDINATED NOTES 2 Key Dates for the Offer Important Dates Date For personal use only Record Date for Securityholder Offer 3 February 2017 Announcement of the Offer 8 February 2017 Lodgement of Prospectus with ASIC 8 February 2017 Bookbuild 15 February 2017 Announcement of Margin 15 February 2
Slide 13: Key Dates for NSN Holders
NAB SUBORDINATED NOTES 2 Key Dates for NSN Holders Important Dates Date Record date for determining Eligible NSN Holders for the Reinvestment Offer For personal use only 3 February 2017 (relevant NSN must also be held on the Closing Date for the Reinvestment Offer) Opening Date for the Reinvestment
Slide 14: About NAB
For personal use only ABOUT NAB NAB SUBORDINATED NOTES 2 INVESTOR PRESENTATION
Slide 15: Our Strategic focus
ABOUT NAB Our Strategic focus VISION AUSTRALIA AND NEW ZEALAND’S MOST RESPECTED BANK For personal use only OBJECTIVES TARGETS Our customers are NPS – #1 vs major bank peers advocates Generating attractive TSR1 – #1 vs major bank peers returns ROE – #1 for ROE improvement vs major bank peers Engaged
Slide 16: Financial Results Summary
ABOUT NAB Financial Results Summary Dec 16 FY161 FY151 Financial Results For personal use only Q1 ($bn) $m $m Cash earnings2 1.6 6,483 6,222 Net profit attributable to owners of NAB 1.6 352 6,338 Key statistics Dec 16 FY16 FY15 CET1 ratio (APRA) 9.5% 9.8% 10.2% LCR (quarterly average) 124% 121%3 115
Slide 17: Group Capital Levels and Earnings
ABOUT NAB Group Capital Levels and Earnings GROUP BASEL III CAPITAL RATIOS For personal use only 14.2% 13.2% 14.1% 13.8% 12.4% 11.8% 12.2% 11.9% 10.2% 9.7% 9.8% 9.5% Sep 15 Mar 16 Sep 16 Dec 16 APRA Common Equity Tier 1 ratios APRA Tier 1 ratios APRA Total Capital ratios EARNINGS AND CAPITAL Solid c
Slide 18: Strong Capital and Funding Position FY16
ABOUT NAB Strong Capital and Funding Position FY16 GROUP BASEL III COMMON EQUITY TIER 1 CAPITAL RATIOS For personal use only (%) Capital generation 25bps (17bps ex DRP) 0.90 4.23 (0.64) (0.01) (0.69) 0.45 0.07 14.00 9.69 9.77 Mar 16 Cash earnings Dividend net of RWA growth1 Mortgage risk 80% sale of
Slide 19: Asset Quality Remains Sound FY16
ABOUT NAB Asset Quality Remains Sound FY16 B&DDs AND AS A % OF GLAs 90+ DPD & GIAs, AND WATCH LOANS AS A % OF GLAs ($m) For personal use only 0.16% 0.14% 0.16% 0.12% 0.13% 1.11% 0.77% 0.63% 0.78% 0.85% 399 425 299 349 49 53 100 1.47% 349 350 296 375 325 1.16% 1.22% 1.15% 1.13% (50) Sep 14 Mar 15 Sep
Slide 20: Key Risks
For personal use only KEY RISKS NAB SUBORDINATED NOTES 2 INVESTOR PRESENTATION
Slide 21: Summary of Key Risks
NAB SUBORDINATED NOTES 2 Summary of Key Risks1 NAB Subordinated NAB Subordinated Notes 2 do not constitute deposit liabilities of NAB, are not Protected Accounts for the Notes 2 are not purposes of the Banking Act or any other accounts with NAB and are not guaranteed or insured by any person For per
Slide 22: Summary of Key Risks (cont.)
NAB SUBORDINATED NOTES 2 Summary of Key Risks1 (cont.) Liquidity and price of Where NAB Subordinated Notes 2 are Converted, the market for Ordinary Shares may be less liquid than that Ordinary Shares for comparable securities issued by other entities at the time of Conversion, or there may be no liq
Slide 23: Summary of Key Risks (cont.)
NAB SUBORDINATED NOTES 2 Summary of Key Risks1 (cont.) Conversion or NAB must convert a number of NAB Subordinated Notes 2 into Ordinary Shares if a Non-Viability Trigger Event Write- Write- Off following a occurs. A Non-Viability Trigger Event may occur where NAB encounters severe financial difficu
Slide 24: Key Contacts
NAB SUBORDINATED NOTES 2 Key Contacts Issuer – NAB Arranger and Joint Lead Manager – NAB Shaun Dooley For personal use only Nicholas Chaplin Group Treasurer Head of Hybrid and Structured Capital Origination Phone: +61 (03) 8641 4089 Phone: +61 (02) 9237 9518 Mobile: +61 (0) 411 406 468 Email: Nichol
National Australia Bank — Debt Investor Presentation (February 2017) on 6ix