National Australia Bank Limited · ASX:NAB
National Australia Bank — 1H25 Earnings Presentation
128 slides from National Australia Bank's earnings presentation, May 7, 2025
Slide 1: Half Year Results 2025 Investor Presentation
national australia bank Half Year Results 2029 Investor Presentation 7 May 2025 Andrew Irvine Group Chief Executive Officer Shaun Dooley Group Chief Financial Officer ©2025 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australien Credit Licence 230686
Slide 2: NAB 2025 Half Year Results Index
NAB 2025 Half 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 128 for legal disclaimer. Financial information in this presentation i
Slide 3: Overview
Overview Andrew Irvine Chief Executive Officer
Slide 4: Key messages
Key messages • Increased cash earnings and ROE in a challenging environment • Capital ratios, provisioning and liquidity remain strong • Execution of refreshed strategy delivering early, encouraging signs • Three key priorities to drive stronger returns: business banking, deposits and proprietary ho
Slide 5: 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 36 for definition of cash earnings and rec
Slide 6: 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 7: Balance sheet strength remains a key priority
Balance sheet strength remains a key priority Approach to capital management Strong provisioning1 • CET1 target increased by 25bps to >11.25% (at Level 1 and $5.1bn CP at Mar 25 includes $1.7bn of forward-looking provisions Level 2) to reflect APRA’s decision to phase out AT1 1.69% 1.67% 1.62% • Str
Slide 8: Continued focus on protecting customers against financial crime
Continued focus on protecting customers against financial crime Completed delivery of required activities Continue to invest in systems and controls to help under AUSTRAC Enforceable Undertaking protect the bank and our customers In April 2022, AUSTRAC accepted an Enforceable Real-time payment ale
Slide 9: Our long-term strategy
Our long-term strategy Why we are here To be the most customer-centric company in Australia and New Zealand national australia bank Who we are here for Customers Customers who trust us and choose us to be their bank ([<e2) Colleagues K@y Customer obsessed colleagues who are proud to work at NAB Who
Slide 10: Focus on improving customer advocacy
Focus on improving customer advocacy Initial rollout in Business Contact Centre showing encouraging results Customer interaction NPS1 • New frontline disciplines to capture and action customer feedback > 100 +36 points including: customer to 63 experiences • Reviewing customer NPS improved across su
Slide 11: Strategic NPS
Strategic NPS Net Promoter Score relative to major bank peers #2 Mass Consumer1 #4 High Net Worth & Mass Affluent2 +5 -1 +5 -3 +0 -2 +0 -6 -5 -4 -5 -9 -10 -10 -10 -10 -15 -15 -20 -20 -25 -25 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 NAB Peer 1 Peer 2 Peer 3 NAB Peer 1 Pee
Slide 12: “Customer obsessed” colleagues
“Customer obsessed” colleagues Who we are Colleague engagement remains top quartile1 77 77 78 77 86% Response rate Feb 23 Feb 24 Feb 25 Top Quartile Target Colleague strategy supported by investment in AI and GenAI-powered tools Call Analytics Knowledge Management Tool • Using an AI platform for ana
Slide 13: 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 14: 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 15: Business & Private Banking
Business & Private Banking (B&PB) Australia’s leading business bank servicing the business & personal banking needs of SME customers1 More bankers in Deep sector Integrated HNW Relationship-led Deep credit more places specialisations offering capability Agri, Health, CRE Increasingly enabled >6,000
Slide 16: Investing to grow deposits
Investing to grow deposits Strong growth in retail and business deposits Increased share of Retail new transaction 22% share of business B&PB new business household deposits with account openings deposits with 1.6x system transaction account openings 1.3x system growth in growth in 1H252 1H251 2
Slide 17: 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 18: 1H25 Financials
1H25 Financials Shaun Dooley Chief Financial Officer
Slide 19: Financial results
Financial results Underlying profit ($m) Cash earnings1 ($m) Statutory profit ($m) 1.9% 0.8% (1.7%) 5,362 5,463 3,554 3,583 3,466 3,407 2H24 1H25 2H24 1H25 2H24 1H25 P&L key financial indicators 2H24 ($m) 1H25 ($m) 1H25 v 2H24 Net operating income 10,112 10,281 1.7% ex Markets & Treasury 9,374 9,273
Slide 20: Divisional performance
Divisional performance Underlying profit ($m) Business & Private Banking Corporate & Institutional Personal Banking New Zealand Banking1 Banking 0.6% (-1.8% HoH) 9.1% (7.0% HoH) 2.8% (-2.6% HoH) -3% (0.5% HoH) 2,562 2,626 2,578 1,214 1,237 1,324 1,007 1,120 1,081 1,086 954 981 1H24 2H24 1H25 1H24 2H
Slide 21: 1H25 revenue
1H25 revenue Net operating income (HoH) ($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 22: 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 23: Operating expenses
Operating expenses Operating expenses (HoH) ($m) +1.4% (3) 71 (131) (24) 24 67 64 Includes uplift in 4,421 financial crime 4,750 related costs 4,818 Sep 24 Salary related Volume related Technology Depreciation & Productivity Other EU & Remediation1 Mar 25 & Investment Amortisation FY25 consideration
Slide 24: Asset quality
Asset quality Non-performing exposures (NPL) as a % of GLAs Key 1H25 impacts • Pace of NPL increase slowing as Australian mortgage arrears stabilise; B&PB business lending the key driver of 1H25 uplift 1.49% 1.39% • NPLs remain dominated by Default but not impaired exposures 1.13% 1.20% 0.22% 0.20%
Slide 25: Business & Private Banking business lending asset quality
Business & Private Banking business lending asset quality Key 1H25 considerations Non-performing exposures (NPLs) as % of GLAs Security profile3 Mar 25 • Higher NPL ratio driven mainly by Default but Unsecured not impaired exposures including: Partially Secured • seasoning impact of FY22 and FY23 vi
Slide 26: Strong provisioning maintained
Strong provisioning maintained Total provision balances higher Key considerations ($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 27: Capital remains above operating target
Capital remains above operating target Group Basel III CET1 capital ratio (%) (0.63) L1: 11.84 L1: 11.92 0.86 (0.22) (0.08) (0.15) (0.12) 12.35 12.01 12.13 Sep 24 Cash earnings Dividend Credit RWA1 Other RWA Share buy-back Other2 Mar 25 Mar 25 Pro forma3 1H25 CET1 considerations Credit risk-weighted
Slide 28: Strong funding and liquidity metrics
Strong funding and liquidity metrics Key messages Liquidity position well above regulatory minimums (%) • Maintained strong funding and liquidity position with LCR and NSFR well above regulatory minimums • Positioned to manage through periods of market volatility 100 % Minimum • Well progressed on t
Slide 29: Closing comments
Closing comments Andrew Irvine Chief Executive Officer
Slide 30: Australian economy well positioned in volatile times
Australian economy well positioned in volatile times Australia enters this period of heightened geopolitical Cash rate expected to fall as inflation continues to risks and weaker global growth in good shape moderate1 (%) • Inflation moderating and economy continuing to grow 8 Forecasts2 7 7 • Househ
Slide 31: Key priorities
Key priorities • Execution of strategy to deliver improved customer advocacy, greater speed and simplification • Focus on business banking, proprietary lending and deposit franchises to drive strong sustainable returns • Maintain prudent balance sheet settings to support customers • Disciplined appr
Slide 32: Additional Group Information
Additional Group Information
Slide 33: 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 $756.3bn New Zealand Banking 20% Customer deposits
Slide 34: Markets & Treasury income
Markets & Treasury income Markets & Treasury income breakdown ($m) 1,008 911 856 808 753 762 738 622 602 580 478 445 392 369 345 343 262 206 71 26 29 8 3 8 345 366 401 397 407 388 403 410 403 (17) (37) (15) Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 NAB risk management1 Derivativ
Slide 35: Customer-related remediation
Customer-related remediation Customer-related remediation provision charges1 ($m) Continuing operations Discontinued operations 380 240 268 109 87 101 245 137 143 45 138 58 21 43 45 14 130 135 117 40 31 20 97 45 35 8 47 27 21 56 95 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 Customer-rela
Slide 36: 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 the Company) for its internal management reporting purposes and considers it a better reflection of the Group’s underlying performance. Accordingly, informa
Slide 37: Digital transformation, Technology and Innovation
Digital transformation, Technology and Innovation
Slide 38: Technology strategy
Technology strategy Ambition Enabling best in class banking experiences for our customers and colleagues through safe, simple and modern technology Improved customer & De-risk bank Accurate, available data Build resilience colleague experiences and protect customers & analytics • Reduced time to det
Slide 39: Customer Brain
Customer Brain Using data and AI to better understand customers and drive more personalised experiences Business & Private Bank Personal Bank Strengthen NAB’s business Deepen product experiences, banking position engagement and recognition Colleagues Customer Data Banker leads Managing account Busin
Slide 40: Investing in our digital banking channels
Investing in our digital banking channels Mobile app and Internet Banking supporting Retail and SME customers NAB Mobile app NAB Internet Banking • Integrated multi-offset capability that supports • Increased daily payment limits (up to $100k) enabling up to 10 offset accounts per home loan higher v
Slide 41: Manage business banking from anywhere
Manage business banking from anywhere NAB Connect supporting B&PB1 and C&IB customers • Customers can access the platform when needed with +99% service availability • Clients can customise NAB Connect to their business needs through self and assisted service functions • In-built fraud controls such
Slide 42: Investing to protect customers against scams and fraud
Investing to protect customers against scams & fraud and cyber security risks Real-time payment alerts 1H25 initiatives and outcomes included: Alert customers in real time to review payments in the NAB App and NAB Internet Banking to identify potential scams before proceeding • Prevented and recover
Slide 43: Innovating with NAB Ventures
Innovating with NAB Ventures NAB’s venture capital arm that makes investments to promote strategic priorities 23 2 The NAB Ventures team: Works alongside other parts of the bank to incubate and test innovative new customer propositions and 0 leverage new developments in technology Investments Manage
Slide 44: Additional Divisional Information
Additional Divisional Information Business & Private Banking 46 Personal Banking 50 ubank 54 Corporate & Institutional Banking 56 New Zealand Banking 60
Slide 45: Divisional contributions
Divisional contributions Cash Earnings Underlying Profit Divisional cash earnings1 1H25 ($m) 1H25 v 2H24 1H25 ($m) 1H25 v 2H24 Business & Private Banking 1,634 1.4% 2,578 (1.8%) Personal Banking 576 (6.8%) 981 (2.6%) Corporate & Institutional Banking2 909 4.1% 1,324 7.0% New Zealand Banking3 781 12.
Slide 46: Business & Private Banking
Business & Private Banking Cash earnings and revenue Net interest margin ($m) -0.7% (1.4% HoH) 0.8% (-1.0% HoH) 3.18% 3.08% 3.03% 2.98% 4,113 4,186 4,146 1,646 1,611 1,634 1H24 2H24 1H25 1H24 2H24 1H25 2H23 1H24 2H24 1H25 Cash Earnings Total Revenue Business and housing lending GLAs and deposits Cre
Slide 47: Business & Private Banking business lending
Business & Private Banking business lending Diversified Australian business lending growth (YoY)1 Denotes lending balance as at 31 March 2025 9.0% 9.3% 7.8% 7.0% 6.1% 2.7% Agri Health CRE2 Other NAB B&PB3 NAB Small business3 $44bn $10bn $41bn $63bn $158bn $12bn SME lending market share (RBA)4,5 Busi
Slide 48: Private Wealth
Private Wealth Delivering banking, investments and advice to high net worth (HNW) customers via an integrated offer combining JBWere, NAB Private Investments, nabtrade and Private Banking • Good growth in deposits and housing lending along with • Continued strong uptake of Global Bond Service launch
Slide 49: Building an end-to-end digital business lending platform
Building an end-to-end digital business lending platform Delivering faster, more seamless business lending experiences across small to complex customers Increasing digital fulfillment, Simple, digital application Fast, automated verification settlement & management & decisioning Digital documentatio
Slide 50: Personal Banking
Personal Banking Cash earnings and revenue Net interest margin ($m) 1.4% (-1.0% HoH) 3.6% (-6.8% HoH) 1.82% 1.74% 1.75% 1.73% 2,262 2,317 2,293 556 618 576 1H24 2H24 1H25 1H24 2H24 1H25 Sep 23 Mar 24 Sep 24 Mar 25 Cash earnings Total Revenue Housing lending GLAs and deposits Credit impairment charge
Slide 51: Personal Banking
Personal Banking Deepening customer Growth in proprietary Sustainably grow Market leading in relationships lending deposits unsecured lending • 31 Saturday branch • Uplifting banker capability • Target growth segments • Building a modern platform openings1 and support incl. mass affluent to drive to
Slide 52: Unsecured lending
Unsecured lending Key considerations Balance and market share1 ($bn) • Strong customer acquisition and spend performance across 26.7% 27.5% 27.6% NAB and Citi portfolios • Portfolio quality remains sound 0.22 • Arrears increased in 1H25 but remain below pre-COVID levels 6 9.0 8.7 8.7 0.11 • Revolve
Slide 53: Migration of Citi Consumer Business is a key priority
Migration of Citi Consumer Business is a key priority Integration and migration timeline Key milestones delivered Timeline Jun 22 Sep 22 Mar 24 Oct 24 Mar 25 Dec 251,2 High Net Worth Mortgages, Diners Migrated first colleagues deposits and Target date to Acquisition customers white label integrate
Slide 54: Branchless Banking & Smart Technology
BRANCHLESS BANKING & SMART TECHNOLOGY HELPING YOUNG AUSTRALIANS DO BETTER WITH MONEY Continue to build momentum in executing core strategy #2 NPS1 across peers2 >65% Of onboarded 41% Increase in average • Growing customer base with a clear focus on customers under weekly transaction younger demograp
Slide 55: Experience and feature innovation in app and online
EXPERIENCE AND FEATURE INNOVATION IN APP AND ONLINE We’re not like other banks We are helping young Australians do better with money by using smart technology to deliver tailored, relevant, and easy-to-understand insights – creating a simple and engaging customer experience Money System: Split Incom
Slide 56: Corporate & Institutional Banking
Corporate & Institutional Banking1 Cash earnings and underlying profit Net interest margin ($m) (%) 2.14 2.14 2.12 9.1% (7.0% HoH) 2.08 1.1% (4.1% HoH) 1,214 1,237 1,324 0.97 1.04 1.05 1.07 899 873 909 1H24 2H24 1H25 1H24 2H24 1H25 Sep 23 Mar 24 Sep 24 Mar 25 Cash earnings Underlying profit C&IB Ex
Slide 57: Disciplined growth in Corporate & Institutional Banking
Disciplined growth in Corporate & Institutional Banking1 GLA outcomes Higher corporate and Deposits2 infrastructure lending ($bn) ($bn) combined with disciplined portfolio management and 137 132 132 134 FX translation 7 5 3 1 54 47 51 49 23 24 26 29 104 108 111 116 53 56 52 55 Sep 23 Mar 24 Sep 24 M
Slide 58: Corporate & Institutional Banking
Corporate & Institutional Banking Deep expertise & Tech-enabled solutions Ongoing simplification & leading capabilities making doing business easier disciplined balance sheet usage Mar 21 EAD Mar 25 EAD Seamless domestic/ Asset distribution Transition planning, AUD & NZD currencies, international pa
Slide 59: Corporate & Institutional Banking customer metrics
Corporate & Institutional Banking customer metrics Large Corporate & Institutional – NPS1 Large Corporate & Institutional RSI1 Transactional Banking – RSI2 50 630 580 40 550 580 30 520 20 490 530 10 460 0 480 430 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 20
Slide 60: New Zealand Banking
New Zealand Banking Cash earnings and revenue Net interest margin (NZ$m) 2.88 2.84 4.1% (12.5% HoH) -0.4% (1.7% HoH) 2.79 2.76 750 781 1,761 1,725 1,754 2.36% 2.37% 2.34% 2.37% 694 1H24 2H24 1H25 1H24 2H24 1H25 Sep 23 Mar 24 Sep 24 Mar 25 Cash earnings Total Revenue Net interest margin Net interest
Slide 61: New Zealand Banking
New Zealand Banking Customer Enhanced digital Good balance Focus on obsession capability sheet momentum returns • Strong customer growth • 57% customers onboarded • Above system growth in • Strong focus on returns with ~100k customers through digital channels household deposits and given increased c
Slide 62: New Zealand Banking customer metrics
New Zealand Banking customer metrics #1 BNZ Consumer NPS1 #3 BNZ Business NPS2 20 50 10 40 34 2 2 0 30 31 -4 -10 23 -6 20 -20 19 -23 10 13 -30 0 -40 Mar 21 Mar 22 Mar 23 Mar 24 Mar 25 Mar 21 Mar 22 Mar 23 Mar 24 Mar 25 BNZ Peer 1 Peer 2 Peer 3 Peer 4 BNZ Peer 1 Peer 2 Peer 3 Peer 4 (1-2) Refer to so
Slide 63: New Zealand housing lending key metrics
New Zealand housing lending key metrics New Zealand housing lending Sep 23 Mar 24 Sep 24 Mar 25 Mar 24 Sep 24 Mar 25 Drawdowns1 Total Balances (spot) NZ$bn 57.7 58.8 60.1 62.1 5.4 6.7 7.7 By product - Variable rate 8.4% 8.9% 9.6% 12.1% 11.1% 11.4% 15.5% - Fixed rate 90.1% 89.5% 88.7% 86.2% 86.9% 86.
Slide 64: New Zealand customer deposits
New Zealand customer deposits Customer deposits balances by product (NZ) Customer deposits percentage by product (NZ) ($bn) (%) $82.3bn $85.4bn $80.0bn 3% 3% 3% 3% 3% $74.6bn $78.5bn 3 3 3 3 3 41% 44% 46% 46% 47% 39 35 37 39 31 21% 21% 20% 19% 21% 16 16 16 18 16 35% 32% 31% 31% 30% 25 25 24 25 26 Ma
Slide 65: Additional product information: Australian Housing Lending
Additional product information Australian Housing Lending
Slide 66: 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 $’000 per account 358 371 381 394 564 564 599 By product type - Variable rate 76.8% 84.7% 89.6% 93.2% 97
Slide 67: Housing lending practices & policies
Housing lending practices & policies Key origination requirements Loan-to-value (LVR) limits • Income verified using a variety of documents including Principal & Interest – Owner Occupier 95% payslips and/or checks on salary credits into customers’ accounts Principal & Interest – Investor 90% • 10%
Slide 68: Housing lending volume and flow movements
Housing lending volume and flow movements Housing lending flow movements1 ($bn) (5) (12) 52 (29) 353 359 Sep 24 New fundings Interest Pre- External Mar 25 & & payments refinance redraw2 repayments & closures Housing lending by division2 ($bn) 242.1 243.0 247.0 107.7 103.6 105.2 13.5 13.4 15.1 Mar 24
Slide 69: Housing lending portfolio profile
Housing lending portfolio profile Housing lending volume by borrower and repayment Australian mortgages profile1 type1 VIC/TAS 33% Owner Occupier Owner Interest Only, 3.1% Occupier Line of Credit, 2.3% Principal & QLD 14% Interest, Investor 61.1% Interest Only, 12.3% WA 7% NSW/ACT 42% SA/NT 4% Inves
Slide 70: Housing lending portfolio profile
Housing lending portfolio profile Owner occupied lending volume growth1 Investor lending volume growth1 ($bn) ($bn) 2.9% (1.9% HoH) 2.3% (1.9% HoH) 225.6 227.7 232.1 118.8 119.2 121.5 Mar 24 Sep 24 Mar 25 Mar 24 Sep 24 Mar 25 Owner Occupier monthly growth2 Investor monthly growth2 1.0% 1.0% 0.8% 0.8
Slide 71: Housing lending arrears profile
Housing lending arrears profile1 Arrears slowing as % of GLAs but limited impairment 2.45% 1.82% 1.87% 1.63% 1.75% 1.75% 1.79% 1.65% 1.61% 1.42% 1.41% 1.18% 1.24% 1.15% 1.22% 1.15% 0.98% 1.04% 1.08% 0.93% 0.90% 0.73% 0.67% 0.76% 0.11% 0.12% 0.10% 0.10% 0.10% 0.06% 0.05% 0.05% 0.08% 0.06% 0.06% 0.05%
Slide 72: Housing lending arrears profile
Housing lending arrears profile1 90+ DPD2 & Impaired assets as a % of GLAs by purpose 2.5% 2.0% 1.26% 1.5% 1.12% 1.0% 1.11% 0.5% 0.0% Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Investor First Home Buyer Owner Occupier 30+ DPD as a % of GLAs by purpose 2.5% 1.98% 2.0
Slide 73: Housing lending offset and redraw balances
Housing lending offset and redraw balances1 Offset & redraw balances Offset & redraw balances distribution by number of ($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 74: 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 75: 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 $8.4bn still to expire after Sep 25 • ~85% retention for
Slide 76: Additional product information: Australian Deposits
Additional product information Australian Deposits
Slide 77: Deposits & transaction accounts
Deposits & transaction accounts Customer deposit mix by product Customer deposit percentage by product ($bn) (%) 560 537 29 5% 4% 5% 514 523 5% 5% 505 26 23 24 52 8% 9% 9% 9% 9% 25 48 45 47 42 172 29% 31% 31% 31% 170 32% 148 159 160 23% 23% 115 126 143 24% 25% 26% 119 133 175 35% 33% 31% 168 166 160
Slide 78: Deposits & transaction accounts
Deposits & transaction accounts Business & Private Banking1 Personal Banking1 Corporate & Institutional Corporate Functions & ($bn) Banking Other2 233 171 137 134 163 132 132 221 7 1 214 19 157 5 3 207 17 151 32 17 30 16 29 28 49 54 47 51 88 35 81 85 34 75 32 30 24 29 23 26 45 49 43 44 74 59 64 69 2
Slide 79: Additional information: Group Asset Quality
Additional information Group Asset Quality
Slide 80: Group credit impairment charge
Group credit impairment charge Credit impairment charge as % of GLAs Global 1.4% Financial Crisis 1.2% 1.0% 0.8% 0.6% 0.4% 0.09% Late 80’s / Early 90’s 0.2% Recession -0.1% Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
Slide 81: Individually assessed provisions and charges
Individually assessed provisions and charges Individually assessed provision (IAP) Net write-offs ($m) ($m) 0.06% 0.06% 0 55.2% 55.8% 0.05% 0 50.6% 51.4% 0.05% 920 0 756 0 55 30.0% 539 546 59 0 60 59 237 225 865 190 180 0 697 479 487 0 0 0% -20.0% 0 Sep 23 Mar 24 Sep 24 Mar 25 Sep 23 Mar 24 Sep 24 M
Slide 82: Group estimated long run loan loss rate
Group estimated long run loan loss rate Group business mix – GLAs by category Estimating long run loan loss rate NAB Australian Long run Long run Sep 1985 Personal geography net write average average lending 8% off rates as a % of GLAs (1985 – 20242) (2005 – 20242) Home lending3 0.03% 0.03% Home Com
Slide 83: Group lending mix
Group lending mix Gross loans and acceptances by product - $756.3bn Gross loans and acceptances by geography1 Other International 3% Asset Overdrafts 1% & lease financing 3% New Zealand 13% Credit card outstandings 1% Australia 84% Housing loans 56% Housing loans 57.00% Gross loans and acceptances b
Slide 84: Provisions
Provisions Movement in provisions1 $116m change in provisions for expected credit losses Sep 24 – Mar 25 ($m) 146 (164) 164 (30) Net $194m release from forward looking provisions Sep 24 – Mar 25 6,037 5,767 5,921 Mar 24 Sep 24 Underlying Forward Looking Target sector Individually Mar 25 collective p
Slide 85: Expected Credit Losses 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 $m 100% Base 100% (probability weighted) case Downside rele
Slide 86: Group non-retail lending industry sector analysis
Group non-retail lending industry sector analysis Non-performing exposures (NPLs) as % of lending EAD by regulatory industry categories1 4% Target sectors with FLAs2 Mar 24 Sep 24 Mar 25 NPLs as a % of EAD (Mar 25) NPLs (ex F&I) as a % of EAD (Mar 25) 3% 2% 1% 0% Accomodation Agri, forestry & Busine
Slide 87: Target sector forward looking adjustments
Target sector forward looking adjustments (FLAs) Non retail target sectors non-performing exposures as % of non-retail lending EAD1 3.0% Commercial Property Retail Trade 2.0% Construction 1.0% Tourism, Hospitality and Entertainment Total non retail lending 0.0% Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Col
Slide 88: ECL provisioning by stages
ECL provisioning by stages Loans and advances by stage1 Provisions by stage2 Provision coverage by stage3 ($bn) ($m) (%) 0.60 0.61 0.60 974 1,000 5,767 5,921 6,037 959 10 11 9 1,639 1,855 2,196 195 192 195 18.9 18.1 19.5 756 772 794 3,588 3,400 3,190 1.84 0.43 1.77 0.42 1.64 0.39 540 666 651 0.09 0.
Slide 89: Probability of default analysis
Probability of default (PD) analysis Group non-retail IRB EAD1 by probability of default ($bn) Non-performing Investment grade Sub investment grade 1.06% Mar 25 60% Mar 25 (61% Sep 24 ) 39% Mar 25 (38% Sep 24) (0.92% Sep 24) 250 200 150 100 50 0 0 to <0.15% 0.15 to <0.25% 0.25 to <0.50% 0.50 to <0.7
Slide 90: 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 91: Australian Business & Private Banking asset quality
Australian Business & Private Banking asset quality B&PB credit impairment charge and as % of GLAs1 B&PB non-performing exposures and as % of GLAs1 ($m) ($m) 0.25% 0.24% 0.16% 0.18% 2.41% 2.12% 1.72% 1.79% 314 322 6,485 12 5,580 237 4,260 4,588 201 1,648 37 1,439 281 308 1,177 1,142 209 165 4,141 4,
Slide 92: Business & Private Banking business lending
Business & Private Banking business lending Non-performing exposures (NPLs) as % of GLAs Aligned to revised APS 220 3.04% 2.66% 2.14% 2.30% 0.67% 1.75% 0.60% 1.66% 0.37% 0.39% 0.51% 0.33% 2.06% 2.37% 0.73% 1.77% 1.91% 0.65% 0.66% 0.58% 0.51% 1.24% 1.33% 0.23% 0.21% 0.22% 0.35% 0.45% Sep 16 Sep 17 Se
Slide 93: Agriculture, forestry & fishing exposures
Agriculture, forestry & fishing exposures1 Group EAD $61.8bn March 2025 Key Australian considerations Weather conditions have been mixed, with favourable conditions on most of the East Coast and rains in Western Australia, but dry conditions in Western Victoria and South Australia Sentiment gene
Slide 94: Commercial real estate
Commercial real estate (CRE)1 Gross loans & acceptances (GLAs) Breakdown by total GLAs By sector By geography New Australia Total2 Zealand Residential QLD Retail 17% WA Total CRE (A$bn) 69.9 7.2 77.1 10% VIC 27% 6% SA Industrial 25% 6% Increase/(decrease) from 21% 2.8 0.2 3.0 Sep 24 (A$bn) Tourism O
Slide 95: 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 96: 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 97: 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 98: 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 99: 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 $21.5bn limited ability to pass these on to customers, particularly for those manufacturers within the fo
Slide 100: Additional information: Capital, Funding & Liquidity
Additional information Capital, Funding & Liquidity
Slide 101: Risk-weighted assets
Risk-weighted assets Risk-weighted assets ($bn) 1.9 0.7 (0.9) 1.2 9.6 413.9 426.4 Sep 24 Credit Operational Market IRRBB Capital Floor Mar 25 risk risk risk Adjustment Risk-weighted assets Credit risk-weighted assets ($bn) • CRWA mostly driven by business lending growth. Model and (3.3) (0.3) 1.8 me
Slide 102: Capital & Deposit hedges
Capital & Deposit hedges NAB replicating portfolios NAB replicating portfolios1 (%) Replicating portfolio 5 Avg return of replicating portfolio Mar 25 balance Invested out to term of 1H24 2H24 1H25 4 Capital AUD $40bn 3 years 2.14% 2.54% 2.92% Deposits AUD $73bn 5 years 3 BNZ replicating portfolios
Slide 103: Internationally comparable capital ratios
Internationally comparable capital ratios 28.4% 29.5% 29.6% 20.2% 21.1% 20.6% 17.5% 18.1% 17.6% 20.3% 20.3% 20.9% 14.1% 21.0% 12.1% 14.1% 12.4% 14.7% 12.1% 14.3% 12.0% Mar 24 Sep 24 Mar 25 Equivalent internationally comparable ratios1 APRA Common Equity Tier 1 ratios APRA Tier 1 ratios APRA Total ca
Slide 104: Key regulatory changes impacting capital and funding
Key regulatory changes impacting capital and funding Change 2025 2026 2027 Additional Tier 1 (AT1) Capital Consultation Implementation Loss-Absorbing Capacity Implementation1 Interest Rate Risk in the Banking Book Implementation (APS 117) Public Disclosures (APS 330) Implementation Liquidity (APS 21
Slide 105: 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 21.02% March 25, NAB meets APRA’s Jan 26 LAC requirements 18.25% 18.25% Tier 2, 6.76% • NAB has $0.6bn of existing AT1 and $2.4bn
Slide 106: Asset Funding
Asset Funding Funded balance sheet Group sources and uses of funds, 6 months to 31 March 25 ($bn) $1,000bn $1,000bn 20 15 Short Term Wholesale, 10% Term Funding Liquid Assets1, 4 15 <12 months, 3 1 23% Other Deposits3, 5% 3% 6 Other Short 25 17 Term Assets2, 2% Customer Other Equity Other Term Term
Slide 107: Liquidity
Liquidity Liquidity coverage ratio (quarterly average) Net stable funding ratio composition ($bn) Group NSFR 119% as at 31 Mar 25 140% LCR 139% LCR 137% LCR 139% LCR $703bn Wholesale funding $592bn Other Liquids and Non- Financial 150 149 157 152 Other Assets Corporate Deposits 1 2 3 3 Other Loans R
Slide 108: Term wholesale funding profile
Term wholesale funding profile Historical term funding issuance1 ($bn) 6.7 8.1 5.0 4.3 5.0 5.0 years years years years years years 39 40 1 1 37 33 29 3 14 29 30 30 20 18 13 18 10 9 9 2 2 7 2 FY20 FY21 FY22 FY23 FY24 1H25 Tenor2 RBNZ Funding Facilities RBA Term Funding Facility Senior Unsecured and S
Slide 109: Diversified & flexible term wholesale funding portfolio
Diversified & flexible term wholesale funding portfolio 1H25 Issuance by product type1 1H25 Issuance by currency1 Covered 8% AUD 44% Other 1% Subordinated 14% EUR 9% NZD 4% Senior 78% USD 42% Outstanding issuance by product type1, 2 Outstanding issuance by currency1 RMBS 2% JPY 1% Other 4% GBP 4% Co
Slide 110: Funding costs
Funding costs Indicative term wholesale funding issuance costs1 Average term wholesale funding portfolio costs2 (bps) (bps) 350 130 300 250 125 200 120 150 100 115 50 0 110 Mar Sep Mar Sep Mar Sep Mar Sep Mar Mar Sep Mar Sep Mar Sep Mar Sep Mar 21 21 22 22 23 23 24 24 25 21 21 22 22 23 23 24 24 25 3
Slide 111: Additional information: Sustainability
Additional information Sustainability
Slide 112: Sustainability is embedded in our Group Strategy
Sustainability is embedded in our Group Strategy Prioritising support for customers in three areas: Climate action Access to affordable housing First Nations economic advancement First Nations business and Environmental Affordable and specialist community organisation finance ambition housing lendin
Slide 113: Energy generation exposures
Energy generation exposures Energy generation EAD by fuel source1,2 (AUD$bn) 8.87 8.58 0.21 8.09 0.49 0.00 0.00 0.24 7.35 7.39 0.00 1.44 • 81.4% of total energy generation financing to 1.47 0.54 0.48 1.38 renewables (increase from 77% at 1H24) 0.00 0.00 • Renewable portfolio represents a mix of wind
Slide 114: Resources exposures
Resources exposures Resources EAD by type1,2,3 (AUD$bn) 7.51 7.49 7.54 0.50 0.46 0.48 6.87 0.21 0.18 6.69 0.22 0.20 0.30 0.24 0.53 0.51 … 0.25 1.20 1.17 0.27 0.14 1.13 0.16 Gold Ore Mining • Exposure to thermal coal on track to be 0.91 effectively zero4 by 2030 excluding 0.83 Metallurgical Coal Mini
Slide 115: Thermal coal mining and oil and gas limits
Thermal coal mining and oil and gas limits Thermal coal mining (AUD$bn) exposure1 Oil and gas extraction - (USD$bn) exposure2 0.30 0.24 0.20 0.16 0.14 35% 42% 59% 1.70 1.66 1.68 43% 51% 1.38 1.20 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Thermal coal EAD % Thermal coal re
Slide 116: Additional information: Economic data
Additional information Economic data
Slide 117: 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 3.1 1.5 1.3 2.0 2.3 GDP growth2 3.1 0.9 -1.1 2.0 2.6 Unemployment3 3.5 3.9 4.0 4.4 4.3 Unemployment3 3.4 4.0 5.1 5.4 4.9
Slide 118: Consumer spending expected to be supported by real income growth
Consumer spending expected to be supported by real income growth Consumption growth has started to pick-up1 The household savings rate has risen from post- pandemic lows2 (%) (%) 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
Slide 119: House price and rents growth has slowed
House price and rents growth has slowed House price growth has slowed1 Rents growth has eased 2 (Index) (%) Sydney Melbourne Brisbane Sydney Melbourne Brisbane Adelaide Perth Hobart 190 15 180 Adelaide Perth Hobart 170 10 160 150 5 140 130 0 120 110 -5 100 90 -10 2019 2020 2021 2022 2023 2024 2025 2
Slide 120: The business sector has remained cautious
The business sector has remained cautious Confidence and conditions remain weak1 Capacity utilisation remains above average1 (Net Bal.) (%) 85 20 0 80 -20 Business Confidence -40 75 Capacity utlilisation Business Conditions -60 Long-run average -80 70 2007 2010 2013 2016 2019 2022 2025 2007 2010 201
Slide 121: Inflation pressures continue to ease
Inflation pressures continue to ease Underlying inflation has moderated1 Services inflation is now also easing2 (%) (%) (%) 7 7 8 Goods Services 6 6 6 5 Quarterly Year-ended 5 4 4 4 3 3 2 2 2 0 1 1 0 0 -2 2004 2007 2010 2013 2016 2019 2022 2025 2004 2007 2010 2013 2016 2019 2022 2025 The exchange ra
Slide 122: New Zealand economy
New Zealand economy Economy started growing again from the end of Commodity prices up strongly over last 12 months, reaching calendar 2024 but unemployment rate was still rising1 new highs in $NZ terms2 (GDP, $NZ bn, chain prices) (Unemployment rate, %) (Index, January 2019 = 100) 6 200 75 180 70 16
Slide 123: New Zealand housing
New Zealand housing House prices broadly stable1 Sales volumes have shown some gradual improvement2 (Index) (‘000s) 4,500 10 4,000 8 3,500 6 3,000 4 Auckland 2,500 2 National ex Auckland 2,000 0 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 New residential mortgage lending ha
Slide 124: US tariffs and Australian-US trade
US tariffs and Australian-US trade Australian goods exports to the US by commodity Country share of Australian goods exports2 ($AUD bn)1 40% 30% Beef Gold 20% Pharm Products (Ex Medicaments) 10% Meat (Ex. Beef) 0% Confidential Items of Trade Aircraft, Spacecraft & Parts Medical Instruments (Inc. Vet
Slide 125: Abbreviations and disclaimers
Abbreviations and disclaimers
Slide 126: Abbreviations
Abbreviations ALA Alternative Liquid Assets HQLA High Quality Liquid Assets CET1 Common Equity Tier 1 Capital IRB Internal Ratings Based approach CIC Credit impairment charge LCR Liquidity Coverage Ratio CP Collective Provision LGD Loss given default CTI Cost to income ratio LVR Loan to Value Ratio
Slide 127: Sources and notes
Sources and notes Slide 11 (1) Sourced from RFI Global – Atlas, measured on 6 month rolling average. Based on all consumers, 18+ and excludes consumers with personal income of $260k+ and/or investible assets $2.5m+ and/or footings of over $850k. Ranking based on absolute scores, not statistically si
Slide 128: Disclaimer
Disclaimer The material in this presentation is general background information about the NAB Group current at the date of the presentation on 7 May 2025. 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 conj