National Australia Bank Limited · ASX:NAB

National Australia Bank — Debt Investor Presentation (February 2026)

50 slides from National Australia Bank's debt investor presentation, February 2026

  1. Slide 1: Debt Investor Update February 2026

    Debt Investor Update February 2026 This presentation is general background information about the NAB 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 inve

  2. Slide 2: Supportive Australian economic environment

    Supportive Australian economic environment • Economic growth has accelerated and is running The RBA to remain cautious amid slower progress on up against capacity constraints inflation1 (%) 8 • Private sector activity picked up more strongly Forecasts2 than expected and the labour market remains tig

  3. Slide 3: House prices and rents supported by supply and demand imbalance

    House prices and rents continue to be supported by the imbalance between supply and demand House price growth is slowing1 Rents growth remains elevated2 (Index) (%) Sydney Melbourne Brisbane Sydney Melbourne Brisbane Adelaide Perth Hobart 230 15 Adelaide Perth Hobart 210 10 190 170 5 150 0 130 -5 11

  4. Slide 4: Consumer spending growth has picked up

    Consumer spending growth has picked up Consumption growth has picked up1 The household savings rate looks to have stabilised2 (%) (%) 16 Quarterly Year-ended 16 20 12 12 Household savings rate 15 8 8 4 4 10 0 0 -4 -4 5 -8 -8 0 -12 -12 -16 -16 -5 2008 2012 2016 2020 2024 1994 1999 2004 2009 2014 2019

  5. Slide 5: Australia and NZ key economic indicators

    Australia and NZ key economic indicators Australian economic indicators (%)1 NZ Economic indicators (%)1 CY23 CY24 CY25 CY26(f) CY27(f) CY23 CY24 CY25(f) CY26(f) CY27(f) GDP growth2 1.4 1.3 2.2 2.0 2.1 GDP growth2 1.4 -1.6 1.7 2.9 2.2 Unemployment3 3.9 4.0 4.3 4.5 4.5 Unemployment3 4.0 5.1 5.4 4.8 4

  6. Slide 6: 1Q26 Trading Update

    1Q26 Trading Update1 As at 31 December 2025 Operating Performance Cash earnings were 15% higher compared with the 2H25 quarterly average, mainly reflecting underlying profit growth of 12% and lower credit impairment charges. Key drivers of underlying profit growth include: • Revenue rose 6%. Excludi

  7. Slide 7: Asset quality

    Asset quality As at 31 December 2025 Credit impairment charges (CIC) 1Q26 Key Considerations ($m) 0.14 • Credit impairment charge (CIC) of $170 million in 1Q26 0.11 0.13 0.13 0.12 0.09 0.06 0.08 primarily reflects individually assessed charges of $210 million 0.04 231 247 mainly relating to the Aust

  8. Slide 8: Capital remains above operating target

    Capital remains above operating target As at 31 December 2025 Group CET1 capital ratio (%) L1: 11.60 0.46 (0.59) L1: 11.50 (0.09) (0.09) 0.11 (0.02) 11.70 11.48 Sep 25 Cash earnings Dividend Credit RWA1 Other RWA2 MLC Life sale Other capital Dec 25 movements3 Level 2 Group CET1 ratio Credit risk-wei

  9. Slide 9: Strong funding and liquidity metrics

    Strong funding and liquidity metrics Liquidity position well above regulatory minimums As at 31 December 2025 (%) 100 Minimum 139 137 139 135 136 118 117 119 116 117 Mar 24 Sep 24 Mar 25 Sep 25 Dec 25 Mar 24 Sep 24 Mar 25 Sep 25 Dec 25 LCR (quarterly avg.) NSFR Term funding issuance1 & maturity prof

  10. Slide 10: Loss Absorbing Capacity and Additional Tier 1

    Loss Absorbing Capacity and Additional Tier 11 Key messages APRA changes to major banks’ capital minimums (%) • Based on the Group’s RWA and Total Capital position at 31 20.09% December 2025, NAB meets APRA’s 1 January 2026 LAC 18.25% 18.25% requirement Tier 2, 6.59% LAC, 4.50% LAC, 4.50% • NAB rema

  11. Slide 11: Diversified & flexible term wholesale funding portfolio

    Diversified & flexible term wholesale funding portfolio As at 31 January 2026 YTD issuance by product type YTD issuance by currency GBP 19% EUR 19% Covered 21% Other 2% NZD 5% Senior 56% Subordinated 23% AUD 31% USD 24% Outstanding issuance by product type1, 2 Outstanding issuance by currency1 RMBS

  12. Slide 12: Additional information: FY25 Results: Strategy

    Additional information FY25 Results: Strategy

  13. Slide 13: NAB at a glance

    NAB at a glance Cash earnings divisional splits 1 % of Cash earnings Key financial data FY25 Business & Private Banking 47.0% Cash earnings1 $7,091m Personal Banking 17.7% Cash ROE 11.4% Corporate & Institutional Banking 26.1% Gross loans & acceptances (GLAs) $781.5bn New Zealand Banking 19.1% Custo

  14. 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 (<e@ Colleagues Customers who trust us and choose us to be their bank K@)y customer obsessed colleagues who are proud to work at NAB We ar

  15. Slide 15: Ambition to be the most customer-centric company in Australia and NZ

    Ambition to be the most customer-centric company in Australia and NZ NAB Customer Voices - a three pillar approach to deepen relationships and improve advocacy Identified 20 “Must Win Battles” – Design and rollout customer Track performance using key customer experiences that feedback loops to drive

  16. Slide 16: Three key priorities to drive strong sustainable returns

    Three key priorities to drive strong sustainable returns Strategic focus Grow • Clear market leadership in Business & Private Banking business • Disciplined growth in Corporate & Institutional Banking banking • More seamless experiences for customers and bankers Successful Drive • Grow transaction a

  17. Slide 17: Leveraging scale to support Australian business growth

    Leveraging scale to support Australian business growth Largest Australian business lender with 22% market share1 Business & Private Banking (B&PB) Corporate & Institutional Banking (C&IB) • Strong SME business lending market share 28%2 • Disciplined growth focus and portfolio management • Servicing

  18. Slide 18: Driving deposit growth

    Driving deposit growth Growing deposits with increasing skew to transaction accounts Retail deposits Business deposits • 9% growth in Personal Banking deposits in FY25 • 1.4x system growth in business deposits since FY202 • Growing customers in our target segments • 14% growth in transaction a/c bal

  19. Slide 19: Strengthening proprietary home lending performance

    Strengthening proprietary home lending performance Continued focus on executing our home lending strategy FY25 actions • Deliver seamless customer and broker experiences supported by • Uplift in capability including 2701 new bankers simplification of processes, policies and systems recruited in FY25

  20. Slide 20: Leveraging evolving AI tools and solutions

    Leveraging evolving AI tools and solutions Embedding AI solutions and opportunities in our long-term strategic planning AI today – Enabling colleagues to deliver better AI tomorrow – Accelerating value through customer experiences Agentic AI Focused on foundational requirements • Evolving to busines

  21. Slide 21: Additional information: FY25 Results: Financials

    Additional information FY25 Results: Financials

  22. Slide 22: Financial results

    Financial results Underlying profit ($m) Cash earnings1 ($m) Statutory profit ($m) 0.7% (2.1%) (1.6%) 5,463 5,502 3,583 3,508 3,407 3,352 1H25 2H25 1H25 2H25 1H25 2H25 P&L key financial indicators 1H25 ($m) 2H25 ($m) 2H25 v 1H25 Net operating income 10,268 10,545 2.7% ex Markets & Treasury2 9,298 9,

  23. Slide 23: Net interest margin

    Net interest margin Net interest margin (HoH) HoH increase 8bps 0.02% 0.02% 0.04% 0.00% 0.01% (0.01%) Largely revenue neutral Aust HL -1bp Deposits +3bps Aust BL -1bp Capital +1bp NZ +1bp Other +1bp 1.78% 1.70% 1.70% Sep 24 Mar 25 Lending Margin Funding Costs Deposits Replicating Liquid Assets M&T S

  24. Slide 24: 2H25 revenue

    2H25 revenue Net operating income (HoH)1 ($m) HoH increase 2.7% (ex M&T 4.3% increase ) 9 (27) (124) 216 203 10,106 10,268 10,669 10,545 Sep 24 Mar 25 Volumes Margin Fees & Other Sep 25 Markets & Sep 25 Commissions (ex M&T) Treasury2 Markets & Treasury (M&T) income breakdown2 Key revenue drivers HoH

  25. Slide 25: Operating expenses

    Operating expenses Operating expenses (YoY)1 ($m) YoY increase 4.6% (ex payroll review +3.2%) 42 213 (420) 143 (71) 130 131 267 Includes uplift in financial crime related costs of $62m and lower 4,421 restructuring costs 9,848 of $22m 9,413 Sep 24 Salary related Volume related Technology Depreciatio

  26. Slide 26: Balance sheet strength remains a key focus

    Balance sheet strength remains a key focus Well positioned balance sheet Appropriate provisioning2 • CET1 ratio comfortably above target of >11.25% $5.0bn CP at Sep 25 includes $1.6bn of forward-looking provisions 1.69% 1.64% • Pro forma CET1 ratio of 11.81% reflects sale of 20% of MLC 1.62% Life wh

  27. Slide 27: Divisional contributions

    Divisional contributions Divisional cash earnings1 FY25 ($m) FY25 v FY24 2H25 ($m) 2H25 v 1H25 Business & Private Banking2,3 3,330 1.6% 1,683 2.2% Personal Banking2,3 1,253 9.9% 698 25.8% Corporate & Institutional Banking2,4 1,854 4.7% 946 4.2% New Zealand Banking5 1,485 2.8% 704 (9.9%) (1) Refer to

  28. Slide 28: Additional information: FY25 Results: Asset Quality

    Additional information FY25 Results: Asset Quality

  29. Slide 29: Asset quality

    Asset quality Non-performing exposures (NPL) as a % of GLAs 2H25 outcomes • CICs and total NPLs higher, but a number of key asset quality ratios improved for the first time in several periods: 1.49% 1.55% • Watch loans down 9bps 1.39% 1.13% 1.20% 0.22% 0.29% • Default but not impaired ratio down 1bp

  30. Slide 30: Provisioning

    Provisioning Total provision balances higher Key considerations ($m) 1.80% • Total provisions of $6.2bn (or 1.64% of CRWA) 1.69% 1.67% represent 1.6x 100% base case scenario3 1.62% 1.64% 1.55% 1.56% • IAP of $1.2bn, $0.2bn higher than Mar 25 1.46% 1.47% 1.47% 1.42% reflecting higher business lending

  31. Slide 31: Group non-retail lending industry sector analysis

    Group non-retail lending industry sector analysis Non-performing exposures (NPLs) as % of lending EAD1 by regulatory industry categories2 4% Target sectors with FLAs3 Sep 24 Mar 25 Sep 25 NPLs as a % of EAD (Sep 25) NPLs (ex F&I) as a % of EAD (Sep 25) Deterioration Sep 25 v Mar 25 mainly reflects s

  32. Slide 32: Expected Credit Losses (ECL) assessment

    Expected Credit Losses (ECL) assessment ECL scenarios & weightings Key considerations Total Provision for ECL1,2 • Increase in ECL vs Mar 25 primarily reflects increased IAP 2H25 balances, deterioration in asset quality and volume growth, $m 100% Base 100% (probability weighted) case Downside partia

  33. Slide 33: Australian business lending asset quality

    Australian business lending asset quality Business lending credit impairment charge and as a % Business lending non-performing exposure and as a % of GLAs of GLAs ($m) ($m) 600 2.04% 1.87% 0.26% 0.24% 1.66% 500 0.14% 0.20% 1.43% 400 1,615 1,206 300 995 641 200 339 276 351 3,910 4,298 100 3,012 3,410

  34. Slide 34: Target sector forward looking adjustments (FLAs)

    Target sector forward looking adjustments (FLAs) Collective provision target sector FLAs ($m) 543 New Zealand Agri 47 58 450 Construction 42 39 Australian Energy 62 80 334 304 Tourism, Hospitality and 76 58 29 Entertainment 92 20 20 49 Australian Mortgages 50 52 68 59 40 42 Retail Trade 119 7 166 33

  35. Slide 35: Agriculture, forestry & fishing exposures

    Agriculture, forestry & fishing exposures1 Group EAD $63.2bn September 2025 Key Australian considerations • Weather conditions have been mixed, with favourable conditions across East Coast, but dry conditions in Western Victoria and South Australia • Improved confidence and performance with strong c

  36. Slide 36: 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 Residential QLD Retail 17% WA Total CRE (A$bn) 74.0 7.0 81.0 11% VIC 27% 6% SA Industrial 25% 6% Increase from 21% 6.9 - 6.9 Sep 24 (A$bn) Tourism Other % of geo

  37. Slide 37: Commercial real estate

    Commercial real estate1 Key asset quality considerations Sector considerations • Outlook becoming more positive with recent interest rate • Increased activity in Development sector (particularly reductions and rental growth supporting serviceability (ICR) and Residential) supporting lending growth w

  38. Slide 38: Construction

    Construction1 Exposure at default Key considerations • Project margins generally recovering; pipeline demand being supported by increased spending in government, infrastructure and defence sectors EAD $14.8bn EAD $15.1bn • ~4% non-retail lending EAD including subcontractors and construction 1.9 1.8

  39. Slide 39: Tourism, hospitality and entertainment

    Tourism, hospitality and entertainment1 Exposure at default Key considerations • While consumer spending is improving, the Hospitality sector EAD $16.2bn EAD $17.7bn continues to be challenged by elevated operational costs (e.g. 1.9 input, wage and energy expenses), labour shortages and 1.9 competit

  40. Slide 40: Additional information: FY25 Results: Housing Lending

    Additional information FY25 Results: Housing Lending

  41. Slide 41: Housing lending portfolio profile

    Housing lending portfolio profile Housing lending volume by borrower and repayment Australian mortgages profile1 type1 VIC/TAS 32% Owner Occupier Owner Interest Only, 3.2% Occupier Line of Credit, 2.0% QLD 14% Principal & Investor Interest, Interest Only, 60.8% 12.9% WA 7% NSW/ACT 43% SA/NT 4% Inves

  42. Slide 42: Housing lending LVR

    Housing lending LVR1 LVR breakdown at origination Dynamic LVR breakdown of drawn balance2 60% 60% Sep 25 Dynamic LVR 38.3% 40% 40% 20% 20% 0% 0% LVR LVR LVR LVR LVR LVR LVR LVR LVR LVR ≤60% 60.01% - 70% 70.01% - 80% 80.01% - 90% ≤60% 60.01% - 70% 70.01% - 80.01% - LVR >90% 90.01% - 80% 90% >100% 100

  43. 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% 95 14 90 25% 35% 12 85 10 20% 80 25% 75 8 15% 70 15% 6 10% 65 4 5% 60 5% 55 2 0% -5% 50 0 0 up to 5k 5k to 50k 25k to 50k 50k to 100k 100k to 250k to

  44. Slide 44: Australia housing lending arrears profile

    Australia housing lending arrears profile1 Arrears declining as % of GLAs and limited impairment 2.45% 1.82% 1.87% 1.63% 1.75% 1.75% 1.79% 1.65% 1.68% 1.61% 1.42% 1.41% 1.18% 1.24% 1.15% 1.22% 1.15% 0.98% 1.04% 1.08% 1.07% 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%

  45. Slide 45: Australian housing lending arrears profile

    Australian housing lending arrears profile1 90+ DPD2 & Impaired assets as a % of GLAs by purpose 2.5% 2.0% 1.5% 1.19% 1.0% 1.09% 1.06% 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 Sep 25 Investor First Home Buyer Owner Occupier 30+ DPD as a % of GLAs by purp

  46. Slide 46: Housing lending key metrics

    Housing lending key metrics1 Australian housing lending Mar 24 Sep 24 Mar 25 Sep 25 Sep 24 Mar 25 Sep 25 Portfolio2 Drawdowns4 Total Balances (spot) $bn 339 3483 355 364 37 41 47 Average loan size $’000 per account 374 384 397 413 564 599 604 By product type - Variable rate 84.9% 89.7% 93.2% 95.3% 9

  47. Slide 47: 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%

  48. Slide 48: 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

  49. Slide 49: Disclaimer

    Disclaimer There are many factors that could cause actual results to differ materially from those projected in such statements, including (without limitation) a significant change in the NAB Group’s financial performance or operating environment; a material change to law or regulation or changes to

  50. Slide 50: Disclaimer

    Disclaimer The information contained in this presentation does not constitute or form part of any (i) offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any member of the NAB Group or any other securities or (ii) invit

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