National Australia Bank Limited · ASX:NAB
National Australia Bank — Investor Presentation (May 2022)
129 slides from National Australia Bank's investor presentation, May 5, 2022
Slide 1: Half Year Results 2022
Half Year Results 2022 Investor Presentation 5 May 2022 Ross McEwan Group Chief Executive Officer Gary Lennon Group Chief Financial Officer
Slide 2: NAB 2022 Half Year Results Index
NAB 2022 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 129 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 Strong financial results with momentum across all businesses Disciplined execution of our strategy Improved shareholder returns while retaining a strong balance sheet Well positioned in an evolving economic environment Investing to deliver sustainable growth while remaining focused on c
Slide 5: Strong Financial Results
STRONG FINANCIAL RESULTS METRIC 1H22 2H21 1H22 V 2H21 Statutory net profit ($m) 3,551 3,156 12.5% CONTINUING OPERATIONS Net operating income ($m) 8,828 8,367 5.5% Operating expenses ($m) 3,963 3,954 Flat Underlying profit ($m) 4,865 4,413 10.2% Cash earnings1 ($m) 3,480 3,215 8.2% Dividend (cents) 7
Slide 6: Improving Shareholder Returns While Retaining a Strong Balance Sheet
IMPROVING SHAREHOLDER RETURNS WHILE RETAINING A STRONG BALANCE SHEET STRONG PROVISIONING AND CAPITAL Proforma1 CET1 (%) 11.65% 1.56 13.00 12.48 1.35 1.31 11.47 0.96 10.38 Sep 19 Sep 20 Sep 21 Mar 22 Sep 19 Sep 20 Sep 21 Mar 22 CP/CRWAs CET1 Ratio IMPROVING SHAREHOLDER RETURNS Return on Equity Cents
Slide 7: We Have a Clear Strategic Ambition
WE HAVE A CLEAR STRATEGIC AMBITION WHY WE ARE HERE To serve customers well and help our communities prosper WHO WE ARE HERE FOR Colleagues Customers Trusted professionals that are proud to be a part of NAB Choose NAB because we serve them well every day WHAT WE WILL BE KNOWN FOR Relationship-led Eas
Slide 8: Focus on Customers and Colleagues
FOCUS ON CUSTOMERS AND COLLEAGUES OUR CUSTOMERS OUR COLLEAGUES NPS1 first or second Engagement levels improved over 12 months #1 in Consumer2 NPS, #2 in Business3 NPS Consumer2 NPS Business3 NPS +5 +5 4 +0 -1 0 +0 -3 -4 -5 -5 -6 -9 -10 -10 -10 79 76 -15 -15 73 Mar 21 Jul 21 Nov 21 Mar 22 Mar 21 Jul
Slide 9: Continued Momentum in Lending & Deposits in 1H22
CONTINUED MOMENTUM IN LENDING & DEPOSITS IN 1H22 GLA CHANGE HOH ($BN) DEPOSITS CHANGE HOH ($BN) % +7.3% +6.6% +4.2% +3.2% Growth +10.8% +5.8% +5.0% HoH 18.3 16.2 13.0 9.2 7.7 3.4 3.0 Aus Aus Aus New Zealand Aus Business 2 Aus 2 New Zealand Business Lending SME Lending 1 Home Lending (NZD) deposits (
Slide 10: Driving Balanced Growth in Business & Private Banking
DRIVING BALANCED GROWTH IN BUSINESS & PRIVATE BANKING BROAD BUSINESS LENDING GROWTH (HOH)1 INVESTING TO SUPPORT GROWTH Key industry drivers include: • Business services Of which Small Business lending Adding further bankers in FY22 including • Wholesale trade increased 14% transaction and payment sp
Slide 11: Our Ambition to Build Australia's Simplest Home Loan
OUR AMBITION TO BUILD AUSTRALIA’S SIMPLEST HOME LOAN SIMPLE HOME LOANS: A DIGITAL END-TO-END PLATFORM – WITH ‘INTERVENTION BY EXCEPTION’ Stage 1 – Application Stage 2 – to Unconditional Approval Stage 3 – to Settlement Lodge via Simple Home Loans Unconditional platform Submit approval Settlement RET
Slide 12: Accelerating Our Digital, Data & Analytics Plans
ACCELERATING OUR DIGITAL, DATA & ANALYTICS PLANS Strong outcomes on digital set us up for acceleration of our digital, data & analytics agenda #2 in Mobile NPS1 +8 pts increase over 3 yrs to +24, and from 3rd Key deliverables over medium to long-term • Personalised digital customer experiences #2 in
Slide 13: Acquisitions Support Our Strategic Objectives
ACQUISITIONS SUPPORT OUR STRATEGIC OBJECTIVES CITI AUSTRALIAN CONSUMER BUSINESS UBANK & 86 400 Supporting NAB’s strategic ambition to build a leading personal bank with a simpler, more digital Acquisition enables combination of UBank’s experience established customer base and name with 86 400’s
Slide 14: AUSTRAC Update
AUSTRAC UPDATE OVERVIEW OF ENFORCEABLE UNDERTAKING IMPLICATIONS FOR NAB • Following its investigation, AUSTRAC has accepted an • Continue to work closely with AUSTRAC to deliver agreed actions Enforceable Undertaking (EU) from NAB to lift its compliance with AML / CTF laws • Many activities under th
Slide 15: Investing for Growth and Shareholder Returns
INVESTING FOR GROWTH AND SHAREHOLDER RETURNS KEY MESSAGES STRONGEST BUSINESS CREDIT GROWTH3 SINCE GFC • Delivering Cash EPS growth is a core strategic ambition – underpinned by revenue growth and cost discipline 8.1% 6.6% • Current environment very different to the outlook in FY20 with change from l
Slide 16: Key Measures of Success and Our Ambition
KEY MEASURES OF SUCCESS AND OUR AMBITION KEY MEASURES OF SUCCESS OUR AMBITION Colleague engagement Top quartile engagement Customer NPS1 Strategic NPS positive and #1 of majors Focus on growing share in target segments, while managing risk and pricing disciplines Cash EPS growth Disciplined approach
Slide 17: 1H22 Financials
1H22 FINANCIALS GARY LENNON Group Chief Financial Officer
Slide 18: Group and Divisional Performances
GROUP AND DIVISIONAL PERFORMANCES GROUP EARNINGS ($m) 10.2% 8.2% 12.5% 4,865 4,413 3,215 3,480 3,551 3,156 1 Underlying profit Cash earnings Statutory profit 2H21 1H22 UNDERLYING DIVISIONAL PROFIT2 ($m) 9.0% (1.3%) 20.9% 1,854 2,020 10.7% 1,115 1,100 1,035 856 859 951 Business & Private Banking Pers
Slide 19: Strong Revenue Growth
STRONG REVENUE GROWTH NET OPERATING INCOME ($m) HoH revenue increase 5.5% (PcP increase 4.6%) 173 (67) 57 11 287 8,828 8,655 8,439 8,367 HoH revenue increase 3.7% ex M&T (PcP increase 5.8%) Mar 21 Sep 21 Volumes Margin Fees & Other Mar 22 (ex M&T) Markets & Mar 22 Commissions Treasury Income MARKETS
Slide 20: Net Interest Margin
NET INTEREST MARGIN NET INTEREST MARGIN Includes: -3 bps HL competition -2 bps HL mix impact -2 bps Other lending 0.01% (0.02%) (0.07%) 0.03% (0.02%) 1.74% 0.01% 1.69% 1.67% 1.63% Mar 21 Sep 21 Lending Funding costs Deposits Capital & Mar 22 Higher Other Mar 22 margin other (Ex M&T) liquids Markets
Slide 21: Leverage to Rising Interest Rates in Australia
LEVERAGE TO RISING INTEREST RATES IN AUSTRALIA KEY CONSIDERATIONS DEPOSIT IMPACT OF 25BPS CASH RATE INCREASE ON NIM ($bn) 4242 • Key sources of expected NIM leverage to rising rates: Exposed to cash rates ~2bps NIM uplift from • Indicative impact of 25bps cash rate increase on Term deposits 94 25bp
Slide 22: Balancing Growth with Cost Discipline
BALANCING GROWTH WITH COST DISCIPLINE OPERATING EXPENSES ($m) HoH expenses flat (PcP up 2.6%) 19 40 44 (183) 45 44 Investment in growth $30m relates to additional 3,954 financial crime costs3 3,963 3,863 Mar 21 Sep 21 Remuneration Volume Technology Depreciation and Other Productivity Mar 22 and infl
Slide 23: Small Credit Impairment Charge, Provisions Modestly Lower
SMALL CREDIT IMPAIRMENT CHARGE, PROVISIONS MODESTLY LOWER CREDIT IMPAIRMENT CHARGE (CIC) KEY CONSIDERATIONS ($m) 0.54% • Underlying CIC write-back 1H22 of $65m, driven by 1,601 0.00% continued improvement in risk profile of loan portfolio (0.04%) (0.03%) and low level of specific charges 0.10% 661 3
Slide 24: Asset Quality Improved Again
ASSET QUALITY IMPROVED AGAIN KEY IMPACTS IN 1H22 NEW IMPAIRED ASSETS ($m) • 90+ DPD & GIA ratio reduced below pre COVID levels: Small number of well-secured NZ • Lower 90+ DPD ratio driven by improvement in 807 dairy exposures Australian home lending 276 • Lower GIA ratio with new impaired assets re
Slide 25: Australian Home Loan Portfolio Resilient
AUSTRALIAN HOME LOAN PORTFOLIO RESILIENT KEY CONSIDERATIONS APPROVED APPLICANTS BORROWING CAPACITY2,6 Overall portfolio well positioned for higher cost of living and rates: • Unemployment rate expected to remain <4% over medium term 10% 8% 7% 8% • Dynamic LVR1 down from 44.6% to 37.9% since Mar 203
Slide 26: Strong Capital Position
STRONG CAPITAL POSITION GROUP BASEL III COMMON EQUITY TIER 1 CAPITAL RATIO Target range Capital generation -24bps (-1bp ex Other RWA) 10.75 - 11.25% under current APRA capital framework 0.83 (0.53) (0.31) (0.23) (0.48) 0.20 13.00 12.48 11.65 Sep 21 Cash earnings Dividend Credit RWA 1 Other RWA Share
Slide 27: Funding and Liquidity Strong
FUNDING AND LIQUIDITY STRONG KEY MESSAGES LIQUIDITY POSITION WELL ABOVE REGULATORY MINIMUMS • Strong funding and liquidity position, well above regulatory (%) minimums. LCR excluding the CLF (quarterly average) was 100% 119% at March 2022 minimum • 1H22 saw increasing market volatility and widening
Slide 28: Update on Citi Acquisition
UPDATE ON CITI ACQUISITION KEY ACQUISITION METRICS UNCHANGED FINANCIAL PERFORMANCE • Based on the anticipated increase in RWAs of $8.8bn plus the 12 months to March 2022 $m premium to net assets to be paid on completion, the required Net Operating Income 690 equity to complete is approximately $1.2b
Slide 29: Closing Comments
CLOSING COMMENTS ROSS McEWAN Group Chief Executive Officer
Slide 30: Climate Action: Supporting Customers
CLIMATE ACTION: SUPPORTING CUSTOMERS PROGRESS ON NET ZERO PORTFOLIO BY 20501 A LEADER IN SUSTAINABLE FINANCE • Joined the Net Zero Banking Alliance • Progressing work to set 2030 science-based emissions #1 Australian bank for global renewables transactions2 reduction targets for key sectors, to publ
Slide 31: Our Priorities in FY22 Remain Largely Unchanged
OUR PRIORITIES IN FY22 REMAIN LARGELY UNCHANGED Continue to focus on execution of Group strategy Investing in growth while maintaining cost and capital discipline Delivering activities required under AUSTRAC Enforceable Undertaking Supporting customers in a period of rising inflation and higher rate
Slide 32: Additional Information
ADDITIONAL INFORMATION DIVISIONAL PERFORMANCES NAB At A Glance 33 We Have Clear Growth Opportunities 34 Divisional Contributions 35 Business & Private Banking 37 Personal Banking 40 Corporate & Institutional Banking 42 New Zealand Banking 45
Slide 33: NAB at a Glance
NAB AT A GLANCE >32,000 ~8.5 million 730 >160 years Employees Customers Branches/Business centres in operation CASH EARNINGS DIVISIONAL SPLIT1 Key Financial Data 1H22 % of 1H22 Cash Cash Earnings1 $3,480m Division Earnings Business & Private Banking 41% Cash ROE 11.3% Update Personal Banking 23% Gro
Slide 34: We Have Clear Growth Opportunities
WE HAVE CLEAR GROWTH OPPORTUNITIES CORPORATE & BUSINESS & PRIVATE PERSONAL BANKING INSTITUTIONAL BNZ UBANK BANKING BANKING Clear market leadership Simple & digital Disciplined growth Grow in personal & New customer SME acquisition • Industry-leading relationship bankers, enabled by data and • Invest
Slide 35: Divisional Contributions
DIVISIONAL CONTRIBUTIONS Cash Earnings Underlying Profit Division 1H22 ($m) 1H22 v 2H21 1H22 ($m) 1H22 v 2H21 Business and Private Banking 1,429 13.1% 2,020 9.0% Personal Banking 788 (0.4%) 1,100 (1.3%) Corporate & Institutional Banking 806 89.6% 1,035 20.9% New Zealand Banking1 668 8.8% 951 10.7% (
Slide 36: Net Promoter Score
NET PROMOTER SCORE +5 Consumer ex HNW&MA NPS1,2 +5 Business NPS1,3 +4 +0 +0 -1 0 -3 -5 -4 -6 -5 -10 -9 -10 -15 -10 -20 -15 Jul 20 Nov 20 Mar 21 Jul 21 Nov 21 Mar 22 Jul 20 Nov 20 Mar 21 Jul 21 Nov 21 Mar 22 NAB Peer 1 Peer 2 Peer 3 NAB Peer 1 Peer 2 Peer 3 High Net Worth & Mass Affluent NPS1,4 +5 +0
Slide 37: Business & Private Banking
BUSINESS & PRIVATE BANKING CASH EARNINGS AND REVENUE NET INTEREST MARGIN ($m) 8.5% (4.8% HoH) 17.5% (13.1% HoH) 3,162 3,315 3,054 2.81% 2.83% 2.85% 2.82% 1,216 1,264 1,429 Mar 21 Sep 21 Mar 22 Mar 21 Sep 21 Mar 22 Sep 20 Mar 21 Sep 21 Mar 22 Cash earnings Total revenue BUSINESS AND HOUSING LENDING G
Slide 38: Business Lending Growth & Market Share
BUSINESS & PRIVATE BANKING BUSINESS LENDING GROWTH & MARKET SHARE AUSTRALIAN BUSINESS LENDING GROWTH (YOY)1 Denotes lending balance as at 31 March 2022 1.6x 18.7% 12.5% 13.0% 9.4% 8.5% 7.7% 4.7% 2 Agri Health CRE Other NAB NAB (RBA SME) 3 System (RBA SME) 3 3 B&PB $37bn $8bn $30bn $49bn $124bn SME A
Slide 39: Innovating in Payments
BUSINESS & PRIVATE BANKING INNOVATING IN PAYMENTS LAUNCH OF NAB HIVE IN 1H221 HICAPS ACQUIRES LANTERNPAY2 • A new one-stop-shop for Merchant Services customers • Integrating LanternPay’s digital healthcare claiming • Providing customers with a simpler and more flexible way technology with NAB’s heal
Slide 40: Personal Banking
PERSONAL BANKING CASH EARNINGS AND REVENUE NET INTEREST MARGIN ($m) -2.3% (-1.7% HoH) -8.3% (-0.4% HoH) 2,229 2,216 2,178 2.02% 2.05% 2.01% 1.93% 859 791 788 Mar 21 Sep 21 Mar 22 Mar 21 Sep 21 Mar 22 Sep 20 Mar 21 Sep 21 Mar 22 Cash earnings Total revenue HOUSING LENDING GLAs CREDIT IMPAIRMENT CHARG
Slide 41: Solid Growth Across Our Consumer Products
PERSONAL BANKING SOLID GROWTH ACROSS OUR CONSUMER PRODUCTS CONTINUED FOCUS ON TRANSACTION ACCOUNTS IMPROVED CREDIT CARD PROPOSITION New transaction accounts1 Transaction account balances Applications Market Share +22% +28% +36% +23bps 13.25% 13.48% 1H21 1H22 1H21 1H22 1H21 1H22 1H21 1H22 GROWTH IN P
Slide 42: Corporate & Institutional Banking
CORPORATE & INSTITUTIONAL BANKING CASH EARNINGS AND REVENUE MARGINS AND REVENUE BREAKDOWN1 ($m) ($m) 3.5% (11.8% HoH) Revenue Margin 3.1% (89.6% HoH) 11.8% 1.72% 1.68% 1.68% 1.65% 353 Markets 228 revenue up 1,673 1,732 1,549 54.8% 782 806 425 1,321 1,379 0.81% 0.73% 0.75% 0.74% Non Markets Mar 21 Se
Slide 43: Disciplined Growth in Corporate & Institutional Banking
CORPORATE & INSTITUTIONAL DISCIPLINED GROWTH IN CORPORATE & INSTITUTIONAL BANKING BANKING GLA GROWTH TILTED TO TARGET SECTORS REDUCING CAPITAL INTENSITY ($bn) YoY GLA Growth 130 126 • M&A-related deals across 122 116 a range of sectors • Significant activity by 113 105 25% target Investor sector 96
Slide 44: Customer Metrics
CORPORATE & INSTITUTIONAL CUSTOMER METRICS BANKING LARGE CORPORATE & INSTITUTIONAL – INTEREST RATE HEDGING3 FOREIGN EXCHANGE4 RELATIONSHIP STRENGTH INDEX1 Relationship Strength Index Relationship Strength Index 620 (Index) (Index) 600 640 650 580 600 600 560 560 540 550 520 520 480 500 500 480 440 4
Slide 45: New Zealand Banking
NEW ZEALAND BANKING CASH EARNINGS AND REVENUE NET INTEREST MARGIN (NZ$m) 10.4% (7.0% HoH) 8.4% (8.8% HoH) 2.38% 1,461 1,366 2.29% 2.29% 1,323 616 614 668 2.14% Mar 21 Sep 21 Mar 22 Mar 21 Sep 21 Mar 22 Sep 20 Mar 21 Sep 21 Mar 22 Cash earnings Total revenue BUSINESS & HOUSING LENDING GLAs CREDIT IMP
Slide 46: Key Customer Metrics
NEW ZEALAND BANKING KEY CUSTOMER METRICS BNZ CONSUMER NPS1,3,4,5 40 35 30 25 20 15 10 5 0 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 BNZ Peer 1 Peer 2 Peer 3 BNZ BUSINESS NPS2,3 25 15 5 -5 -15 -25 -35 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 De
Slide 47: Lending Mix
NEW ZEALAND BANKING LENDING MIX PORTFOLIO BREAKDOWN – TOTAL NZ$98.1BN MORTGAGE PORTFOLIO BREAKDOWN BY GEOGRAPHY – TOTAL MORTGAGE NZ$54.5BN Wellington 11% Waikato 8% Canterbury 11% Bay of Plenty 5% Commercial Real Estate Mortgages 8% 55% Other 17% Agriculture, Auckland 48% Forestry and Fishing 15% AG
Slide 48: New Zealand Housing Lending Key Metrics
NEW ZEALAND BANKING NEW ZEALAND HOUSING LENDING KEY METRICS New Zealand Housing Lending Sep 20 Mar 21 Sep 21 Mar 22 Mar 21 Sep 21 Mar 22 Portfolio Drawdowns1,4 Total Balances (spot) NZ$bn 46.0 49.5 52.7 54.5 9.6 9.6 7.4 By product - Variable rate 14.1% 12.9% 11.3% 10.6% 11.1% 10.1% 12.8% - Fixed rat
Slide 49: New Zealand Housing Portfolio Quality
NEW ZEALAND BANKING NEW ZEALAND HOUSING PORTFOLIO QUALITY 2 NZ HOUSING BOOK IN GOOD SHAPE RECENT PRICE APPRECIATION PROVIDES BUFFER Overall portfolio well positioned for higher cost of living & rates: • Unemployment rate expected to remain <4% over medium term • Serviceability interest rate increase
Slide 50: NZ Customer Deposits by Interest Rate
NEW ZEALAND BANKING NZ CUSTOMER DEPOSITS BY INTEREST RATE NZ CUSTOMER DEPOSITS BY INTEREST RATE (NZD)1 ($bn) $28.8bn of deposits at or Sep 21 Mar 22 near zero interest rate 24.2 22.5 16.8 18.4 10.4 10.6 11.3 10.5 6.7 2.4 0.9 0.9 less than 0.01% between 0.01% to 0.25% between 0.26% to 0.50% between 0
Slide 51: Digital Transformation and Technology
ADDITIONAL INFORMATION DIGITAL TRANSFORMATION AND TECHNOLOGY
Slide 52: Digital Enabling Self Service and Mobile a Key Focus
DIGITAL ENABLING SELF SERVICE AND MOBILE A KEY FOCUS CUSTOMERS INCREASINGLY SELF SERVICING MOBILE APP USAGE AND NPS INCREASING • ~2 million virtual chats and ~80,000 online home loan Mobile App users Mobile only customers Mobile App NPS1 appointment bookings in past 12 months +5% +10% OTC transactio
Slide 53: Innovating with NAB Ventures
INNOVATING WITH NAB VENTURES NAB Ventures is NAB’s venture capital arm that makes investments to promote strategic priorities • The Ventures team work alongside other parts of the bank, incubating and testing innovative new customer propositions and leveraging new developments in technology • NAB Ve
Slide 54: Continued Solid Progress on Our Technology Transformation
CONTINUED SOLID PROGRESS ON OUR TECHNOLOGY TRANSFORMATION KEY AREAS OF FOCUS ACHIEVEMENTS1 Leverage the Cloud, • 62% of applications now running on the cloud – more reliable and sustainable Microservices and APIs • Built >380 microservices and >3,200 APIs – increasing speed of new feature delivery •
Slide 55: Australian Business Lending
ADDITIONAL INFORMATION AUSTRALIAN BUSINESS LENDING
Slide 56: Key Metrics
KEY METRICS BUSINESS LENDING REVENUE ($m) 2,591 2,428 2,204 2,205 362 326 329 334 2,102 2,229 1,875 1,871 Sep 20 Mar 21 Sep 21 Mar 22 NII OOI BUSINESS LENDING GLAs ($bn) 220.8 237.1 205.2 207.1 0.1 0.1 0.1 0.1 104.2 112.7 95.6 97.1 109.4 109.9 116.6 124.3 Sep 20 Mar 21 Sep 21 Mar 22 Business & Priva
Slide 57: Business Lending Asset Quality
BUSINESS LENDING ASSET QUALITY 600 BUSINESS LENDING CREDIT IMPAIRMENT CHARGE AND AS BUSINESS LENDING 90+ DPD AND GIAs AND AS % OF GLAs 500 % OF GLAs 0.25% ($m) 0.74% ($m) 0.04% 0.72% 0.62% 0.57% 0.33% (0.01%) 400 300 Includes $248m 200 of Aviation sale 336 related CICs 1,474 1,528 1,362 1,343 100 27
Slide 58: Business & Private Banking Asset Quality
BUSINESS & PRIVATE BANKING ASSET QUALITY B&PB CREDIT IMPAIRMENT CHARGE AND AS % OF GLAs1 B&PB 90+ DPD AND GIAs AND AS % OF GLAs1 0.20% ($m) 1.53% 0.15% 1.32% 1.25% 0.07% 3,025 1.07% 196 $250.0 0.04% 2,584 2,596 21 2,382 70 39 (0.02%) 1,611 170 7 1,246 1,351 6 (27) 1,168 5 84 13 40 (21) (1) (39) -0.1
Slide 59: Australian Housing Lending
ADDITIONAL INFORMATION AUSTRALIAN HOUSING LENDING
Slide 60: Housing Lending Portfolio Profile
HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING REVENUE HOUSING LENDING VOLUME GROWTH1 ($m) ($bn) Owner Occupier Investor 2,085 2,150 2,044 2,038 108 113 11.9% (4.8% HoH) +2.6% (+2.9% HoH) 119 106 172.7 181.0 161.7 1,919 1,977 2,037 1,938 100.6 100.4 103.2 Sep 20 Mar 21 Sep 21 Mar 22 Mar 21 Sep 21
Slide 61: Housing Lending Portfolio Profile
HOUSING LENDING PORTFOLIO PROFILE HOUSING LENDING VOLUME BY BORROWER AND AUSTRALIAN MORTGAGES STATE PROFILE2 REPAYMENT TYPE1,2 Owner VIC/TAS 32% Investor Occupier Interest Interest Investor Only, 10.9% Only, 3.1% Principal & QLD 14% Interest, Owner 25.3% Occupier Investor 63.8% 36.2% Owner Occupier
Slide 62: Housing Lending Portfolio Profile
HOUSING LENDING PORTFOLIO PROFILE PAYMENTS IN ADVANCE1 DYNAMIC LVR BREAKDOWN OF DRAWN BALANCE2 60% 70% 50% 37% 37% 60% Mar 22 Dynamic LVR 37.9% 40% 30% 50% 17% 18% 20% 13% 13% 12% 12% 12% 12% 40% 7% 6% 10% 2% 2% 30% 0% > 1-2 3-12 1-3 <1 On time Behind 20% 2 years years months months month 10% Sep 21
Slide 63: Australian Home Lending - Fixed Rate Portfolio Profile
AUSTRALIAN HOME LENDING - FIXED RATE PORTFOLIO PROFILE1 FIXED RATE (FR) LENDING BOOK FR HOUSING LENDING VOLUME BY BORROWER AND • $120bn FR book, rolls to VR loan at expiry REPAYMENT TYPE1 Owner Investor • ~72% of fixed rate loans expire over the next two years, with Occupier Interest Interest Only,
Slide 64: Housing Lending Practices & Policies
HOUSING LENDING PRACTICES & POLICIES 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 90%
Slide 65: Housing Lending Key Metrics
HOUSING LENDING KEY METRICS1 Australian Housing Lending Sep 20 Mar 21 Sep 21 Mar 22 Mar 21 Sep 21 Mar 22 Portfolio Drawdowns2 Total Balances (spot) $bn 299 300 309 322 32 49 49 Average loan size $’000 309 310 315 324 401 427 468 By product type - Variable rate 71.9% 67.8% 61.3% 58.7% 53.2% 41.9% 53.
Slide 66: Other Australian Products
ADDITIONAL INFORMATION OTHER AUSTRALIAN PRODUCTS
Slide 67: Deposits & Transaction Accounts
DEPOSITS & TRANSACTION ACCOUNTS DEPOSIT REVENUE CUSTOMER DEPOSITS BY INTEREST RATE1 (%) ($m) 1,541 100 1,407 1,399 $298.3bn of deposits already 24 1,303 80 at or near zero interest rate 22 22 22 60 40 $152.6bn $145.7bn 1,517 1,385 1,376 1,281 20 $74.3bn $24.0bn $12.7bn $3.6bn 0 Sep 20 Mar 21 Sep 21
Slide 68: Other Banking Products
OTHER BANKING PRODUCTS PERSONAL LENDING BALANCE AND MARKET SHARE1 CARDS BALANCE AND MARKET SHARE2,3 ($bn) ($bn) 13.2% 13.3% 13.4% 13.5% 2.7 9.0% 9.0% 9.5% 11.00% 6 8.8% 11.00% 4.4 4.6 4.2 4.4 1.1 1.0 1.0 1.0 0 0.00% 0 0.00% Sep 20 Mar 21 Sep 21 Mar 22 Sep 20 Mar 21 Sep 21 Mar 22 Personal Lending Mar
Slide 69: Group Asset Quality
ADDITIONAL INFORMATION GROUP ASSET QUALITY
Slide 70: Group Credit Impairment Charge
GROUP CREDIT IMPAIRMENT CHARGE CREDIT IMPAIRMENT CHARGE AS % OF GLAs GFC 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% Late 80’s / Early 90’s 0.00% 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 Sep Sep Sep Mar 87
Slide 71: 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 Personal Long run Long run lending 8% NAB Australian geography net write off rates as a % of average average 1985 GLAs (1985 – 20212) (2002 – 20212) Home lending3 0.03% 0.03% Home Commerc
Slide 72: Group Lending Mix
GROUP LENDING MIX GROSS LOANS AND ACCEPTANCES BY PRODUCT - $660BN GROSS LOANS AND ACCEPTANCES BY GEOGRAPHY1 Other International 3% Australia 83% Other term lending 39% New Zealand 14% Asset & lease financing 2% Overdrafts 1% Credit card GROSS LOANS AND ACCEPTANCES BY BUSINESS UNIT outstandings Housi
Slide 73: Group Provisions
GROUP PROVISIONS COLLECTIVE PROVISIONS SPECIFIC PROVISIONS ($m) ($m) 1.56% 1.50% 1.35% 1.31% 1,500 52.8% 54.9% 5,536 45.0% 47.6% 5,209 4,715 299 4,634 191 840 46 794 43 155 173 $5,000.0 30.00% 115 664 622 39 38 108 100 93 5,191 4,975 4,521 4,423 725 686 564 529 -1% $1,000.0 -100 Sep 20 Mar 21 Sep 21
Slide 74: Provisions
PROVISIONS MOVEMENT IN PROVISIONS1 ($m) 126 (64) (46) 5,745 (160) 5,171 5,027 Total Provisions Total Provisions Underlying collective Forward looking Target sector Specific provision Total Provisions Mar 21 Sep 21 provision Economic forward looking Mar 22 Adjustment adjustments UNDERLYING CP ECONOMI
Slide 75: ECL Assessment
ECL ASSESSMENT ECL SCENARIOS & WEIGHTINGS KEY CONSIDERATIONS Total Provisions for ECL1,2 1H22 100% Base 100% • Reduction in ECL vs Sep 21 includes underlying CP $m (probability case Downside release for Australian mortgage (impact of house price weighted) movements and improved delinquencies) and bu
Slide 76: Target Sector FLAs
TARGET SECTOR FLAS COLLECTIVE PROVISION TARGET SECTOR FLAS ($m) 1,250 662 1,029 845 458 781 662 372 182 155 168 133 147 232 202 128 81 160 135 89 95 180 139 136 127 115 134 170 177 190 179 91 25 25 25 59 58 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Other Commercial Property Australian Retail Trade Australi
Slide 77: ECL Provisioning by Stages
ECL PROVISIONING BY STAGES LOANS AND ADVANCES BY STAGE1 PROVISIONS BY STAGE2 PROVISION COVERAGE BY STAGE3 ($bn) ($m) (%) 0.62 0.58 872 0.72 793 833 5,745 8 7 5,171 5,027 10 1,594 268 249 1,539 1,388 19.5 18.7 238 16.8 597 3,879 3,376 3,375 545 577 1.63 1.36 1.26 0.53 0.44 0.42 272 256 264 0.05 0.04
Slide 78: Probability of Default (PD) Analysis
PROBABILITY OF DEFAULT (PD) ANALYSIS NON RETAIL CORPORATE EAD1 BY PROBABILITY OF DEFAULT Investment grade Sub investment grade Default ($bn) 61% Mar 22 38% Mar 22 1% Mar 22 120 100 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 20 Mar 21 Sep 21 Mar 22 AUSTRALI
Slide 79: Non Retail Industry Sector Analysis
NON RETAIL INDUSTRY SECTOR ANALYSIS NON RETAIL EAD BY INDUSTRY1 - $618BN % Non performing2 Mar 21 Sep 21 Mar 22 Finance & insurance 39% 0.03% 0.02% 0.02% Commercial property 13% 0.43% 0.34% 0.33% Govt & public utilities 10% 0.00% 0.00% 0.00% Agri, forestry & fishing 9% 0.89% 0.56% 0.47% Other inc He
Slide 80: Group Agriculture, Forestry & Fishing Exposures
GROUP AGRICULTURE, FORESTRY & FISHING EXPOSURES GROUP EAD $55.8BN MARCH 2022 KEY CONSIDERATIONS • Sector outlook is broadly positive in terms of main agricultural New commodity prices, but headwinds exist in terms of elevated energy Australia Zealand and fertiliser costs as a result of the recent ri
Slide 81: Group Commercial Real Estate
GROUP COMMERCIAL REAL ESTATE1 GROSS LOANS & ACCEPTANCES ASSET QUALITY New Aust Total2 Trend Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Zealand TOTAL CRE (A$bn) 57.3 7.4 64.8 Impaired loans ratio 0.25% 0.26% 0.32% 0.30% 0.19% 0.17% Increase/(decrease) from 4.1 (0.2) 4.0 Sep 21 (A$bn) % of geographical
Slide 82: Group Commercial Real Estate
GROUP COMMERCIAL REAL ESTATE1 BREAKDOWN BY TOTAL GROSS LOANS & ACCEPTANCES ($64.8BN) Geographic breakdown Borrower breakdown Sector breakdown QLD Retail 14% Residential 28% VIC WA 11% 25% 5% SA Investor 5% 91% Industrial Tourism 18% Other & Leisure Australia Developer 3% 4% Other 9% 7% New Zealand O
Slide 83: Construction
CONSTRUCTION EXPOSURE AT DEFAULT KEY CONSIDERATIONS • Challenges include COVID-related completion delays, fixed price contracts, rising input costs, supply chain issues EAD $12.0bn EAD $12.4bn • ~2% non retail EAD including subcontractors & developers 1.8 1.8 2.4 2.3 • Highly diversified and secured
Slide 84: Group Office, Retail, Tourism & Leisure Commercial Real Estate
GROUP OFFICE, RETAIL, TOURISM & LEISURE COMMERCIAL REAL ESTATE1 GLA PROFILE KEY CONSIDERATIONS Limit utilisation ~87% Limit utilisation ~87% • Office, Retail and Tourism & Leisure (T&L) viewed as most $36.9bn $38.2bn impacted by COVID-19 across Group CRE portfolio, however asset 1.9 2.0 quality metr
Slide 85: Retail Trade
RETAIL TRADE1 EXPOSURE AT DEFAULT KEY CONSIDERATIONS • Notwithstanding challenges pre COVID-19, the Retail Trade sector EAD $14.6bn EAD $15.1bn EAD $15.1bn has continued to perform relatively well during and post-lockdowns (including Omicron in early 2022), as consumers continued 2.3 2.2 spending 3.
Slide 86: Tourism, Hospitality and Entertainment
TOURISM, HOSPITALITY AND ENTERTAINMENT1 EXPOSURE AT DEFAULT KEY CONSIDERATIONS EAD $13.6bn EAD $13.8bn • Industry outlook for Hospitality & Entertainment sectors continues to 1.9 1.9 improve, reflecting growing confidence in COVID-19 tracking, controls and immunisation levels 5.4 5.5 • Tourism and A
Slide 87: Air Travel and Related Services
AIR TRAVEL AND RELATED SERVICES EXPOSURE AT DEFAULT KEY CONSIDERATIONS • Portfolio comprises airlines which are usually national carriers and sovereign owned, airports, lessors and service companies supporting EAD $8.8bn EAD $8.0bn the aviation industry 0.7 0.7 • Partial recovery as travel restricti
Slide 88: Capital & Funding
ADDITIONAL INFORMATION CAPITAL & FUNDING
Slide 89: Credit Risk Weighted Assets
CREDIT RISK WEIGHTED ASSETS CREDIT RWA ($bn) 16.9 (1.6) (2.3) 1.0 (2.3) (1.5) (3.1) Credit quality & portfolio mix -$3.6bn 355.1 348.0 1 Sep 21 Volume Model and Net non-retail Other non-retail Retail Derivatives and Translation FX Mar 22 Methodology Upgrades/ Repurchase Downgrades Agreements (1) Inc
Slide 90: Group Basel III Capital Ratios
GROUP BASEL III CAPITAL RATIOS 25.54% 26.02% 23.98% 19.07% 20.05% 20.01% 17.01% 17.95% 17.88% 17.90% 18.91% 18.55% 14.01% 13.00% 14.64% 14.07% 12.37% 12.48% Mar 21 Sep 21 Mar 22 APRA Common Equity Tier 1 ratios APRA Tier 1 ratios APRA Total Capital ratios Equivalent Internationally Comparable ratios
Slide 91: Key Regulatory Changes Impacting Capital and Funding
KEY REGULATORY CHANGES IMPACTING CAPITAL AND FUNDING Change 1HCY22 2HCY22 CY23 CY24 CY25 CY26 Capital Adequacy (APS 110) Implementation Measurement of Capital (APS 111) Implementation Credit Risk (APS 112/113) Implementation 1 Operational Risk (APS 115) Implementation Market Risk (APS 116) Consult F
Slide 92: APRA Basel III Changes – 'Unquestionably Strong'
APRA BASEL III CHANGES – ‘UNQUESTIONABLY STRONG’ SUMMARY • APRA has finalised the revised ADI capital framework, with the aim to: – improve flexibility via increasing regulatory capital buffers. – implement more risk-sensitive risk-weights. – enhance competition via a capital floor for IRB ADIs. – i
Slide 93: Loss-Absorbing Capacity
LOSS-ABSORBING CAPACITY • Based on the Group’s RWA and Total Capital position as at 31 March APRA CHANGES TO MAJOR BANKS' CAPITAL STRUCTURES3 2022, the incremental Group Total Capital requirement prior to January 2024 is $2.2bn, and $8.7bn prior to January 2026 • $1.7bn of surplus provisions are eli
Slide 94: Asset Funding
ASSET FUNDING FUNDED BALANCE SHEET1 SOURCE AND USE OF FUNDS ($bn) $877bn $877bn Source of funds Use of funds Short Term Wholesale, 13% Liquid Assets2, 23% Term Funding <12 Months, 3% Other Deposits4, 4% Other Short Term 16 Assets, 2% 21 Business and 8 Other Lending3, 32% Stable Customer Deposits5, 5
Slide 95: Funding
FUNDING AUSTRALIAN CORE FUNDING GAP1,2 ($bn) 250 230 210 190 170 150 130 110 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 NAB Peer 1 Peer 2 Peer 3 (1) Australian core funding gap = Gross loans and advances plus Acceptances less Total deposits (excluding financial institution deposits and certifi
Slide 96: Liquidity
LIQUIDITY LIQUIDITY COVERAGE RATIO (QUARTERLY AVERAGE) NET STABLE FUNDING RATIO COMPOSITION Group NSFR 123% as at 31 March 2022 139% LCR 136% LCR 128% LCR 134% LCR $607bn Wholesale $495bn 126 Funding & Other - and Liquids 137 163 173 Non-Financial Other Assets Corporate 73 Deposits 47 28 25 Other Lo
Slide 97: Liquidity
LIQUIDITY COMMITTED LIQUIDITY FACILITY REDUCES TO ZERO IN 20231 ($bn) 51 38 31 23 23 15 17 17 8 8 6 0 Sep 20 Sep 21 Mar 22 May-22 Sep 22 Jan-23 External Securities RMBS Forecast CLF LIQUID ASSETS2,3 ($bn) 252 266 234 234 64 82 64 40 32 32 34 34 162 170 136 136 Sep 20 Mar 21 Sep 21 Mar 22 Internal RM
Slide 98: Term Wholesale Funding Profile
TERM WHOLESALE FUNDING PROFILE HISTORICAL TERM FUNDING ISSUANCE1 ($bn) 5.4 4.8 5.2 5.7 6.7 8.1 5.2 yrs yrs yrs yrs yrs yrs yrs 37 33 36 28 26 29 3 22 30 32 14 18 1 23 21 13 16 10 6 5 5 5 5 2 5 FY16 FY17 FY18 FY19 FY20 FY21 1H22 5 Secured Senior and Sub Debt RBA Term Funding Facility RBNZ Funding Fac
Slide 99: Diversified and Flexible Term Wholesale Funding Portfolio
DIVERSIFIED AND FLEXIBLE TERM WHOLESALE FUNDING PORTFOLIO 1H22 ISSUANCE BY PRODUCT TYPE1 1H22 ISSUANCE BY CURRENCY1 AUD 21% Senior 66% USD 46% Covered 24% Other 8% GBP 14% Subordinated EUR 11% 10% OUTSTANDING ISSUANCE BY PRODUCT TYPE1 OUTSTANDING ISSUANCE BY CURRENCY1 AUD 28% USD 31% RMBS 2% Senior
Slide 100: Funding Costs
FUNDING COSTS INDICATIVE 1 INDICATIVE TERM TERM WHOLESALE WHOLESALE FUNDING FUNDING ISSUANCE ISSUANCE COSTS COSTS1 AVERAGE TERM WHOLESALE FUNDING COSTS2 (bps) 400 140 300 120 200 100 100 80 0 60 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 3 yr senior 5 yr seni
Slide 101: Capital & Deposit Hedges
CAPITAL & DEPOSIT HEDGES NAB REPLICATING PORTFOLIOS NAB – REPLICATING PORTFOLIOS1 (%) Replicating portfolio Ave return of replicating portfolio 3.0 31 Mar 22 balance Invested out to term of 1H21 2H21 1H22 2.5 Capital AUD $42bn 3 years 0.95% 0.75% 0.75% 2.0 Low rate deposits AUD $72bn 5 years 1.5 BNZ
Slide 102: Long-Term: A Sustainable Approach
ADDITIONAL INFORMATION LONG-TERM: A SUSTAINABLE APPROACH
Slide 103: Sustainability Is Embedded in Our Group Strategy
SUSTAINABILITY IS EMBEDDED IN OUR GROUP STRATEGY COMMERCIAL RESPONSES TO RESILIENT AND SUSTAINABLE INNOVATING FOR THE SOCIETY’S BIGGEST CHALLENGES BUSINESS PRACTICES FUTURE Embedding sustainability means doing Getting the basics right and managing our Driving investment in new, emerging and good thr
Slide 104: Our Group Climate Strategy
OUR GROUP CLIMATE STRATEGY GOAL OF ALIGNING OUR LENDING PORTFOLIO TO NET ZERO EMISSIONS BY 20501 • First Australian bank to have signed the Collective Commitment to Climate Action and have joined the Net Zero Banking Alliance • Progressing work to set 2030 science-based emissions reduction targets f
Slide 105: FY22 Climate Priorities and Progress
FY22 CLIMATE PRIORITIES AND PROGRESS INTERIM DECARBONISATION TARGETS CUSTOMER TRANSITION PLANS • Working to publish, in our 2022 annual reporting suite, interim sector- • Progressing against our target to work with 100 of our largest specific decarbonisation targets, applying the following principle
Slide 106: Considerations as Australia's Largest Agribusiness Bank
CONSIDERATIONS AS AUSTRALIA’S LARGEST AGRIBUSINESS BANK CLIMATE-RELATED CONSIDERATIONS AGRI MARKET LEADER AND DIVERSE CUSTOMERS • Understanding the climate-related risks and opportunities facing Australian Agriculture, Forestry & Fishing EAD $40.0bn Mar 22 our diverse range of customers NAB Agri Oth
Slide 107: Providing Commercial Solutions for Agri Customers
PROVIDING COMMERCIAL SOLUTIONS FOR AGRI CUSTOMERS NAB AGRI GREEN LOAN CASE STUDY: LEATHER CATTLE COMPANY, QLD • Supporting agribusiness customers investing in eligible • Rob and Melinee Leather produce cattle in Banana, Qld, on activities that improve sustainability outcomes, such as 14,000ha with ~
Slide 108: We Are a Leader in Sustainable Financing
WE ARE A LEADER IN SUSTAINABLE FINANCING PRODUCT INNOVATION TO SUPPORT THE TRANSITION ACCESS TO INSIGHTS, RESEARCH & PARTNERSHIPS • #1 Australian bank for global renewables transactions1 • Our Bank for Transition series supports our customers in their journey to net zero emissions with strategic ins
Slide 109: Climate Metrics and Targets
CLIMATE METRICS AND TARGETS ENVIRONMENTAL FINANCING1 RENEWABLES EAD AS A % OF ENERGY GENERATION2 (cumulative $bn) 31% 29% 27% 29% 25% 70 56 61 48 69% 71% 73% 71% 75% 38 43 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 2025 Target Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Renewables Gas, coal & mixed fuel NAB GROUP EL
Slide 110: Our Exposures to the Energy Generation and Resource Sector
OUR EXPOSURES TO THE ENERGY GENERATION AND RESOURCE SECTOR ENERGY GENERATION EAD BY FUEL SOURCE1 RESOURCE EAD BY TYPE (AUD$bn) (AUD$bn) 7.54 7.37 7.18 Gas 6.83 0.68 Gold Ore Mining 9.33 9.15 9.11 0.98 0.78 0.00 0.08 0.78 0.09 1.23 1.08 8.41 0.79 0.81 Coal 0.08 Metallurgical Coal 0.60 0.35 0.38 1.04
Slide 111: NAB Ready Together
NAB READY TOGETHER NAB READY TOGETHER IS SUPPORTING AUSTRALIANS BEFORE, DURING AND AFTER NATURAL DISASTERS We’re building resilience to natural disasters by funding efforts to make Australia more ready, going above and beyond for customers when disasters hit and helping to fund the recovery. Partner
Slide 112: Progressing Our Priorities – Commercial Responses to Society's Biggest Challenges
PROGRESSING OUR PRIORITIES – COMMERCIAL RESPONSES TO SOCIETY’S BIGGEST CHALLENGES INDIGENOUS BUSINESS Exploring new ways to deliver innovative and sustainable capital flow into Indigenous businesses, including the Building a team of specialised Indigenous business agriculture sector. development ban
Slide 113: ESG Governance & Performance
ESG GOVERNANCE & PERFORMANCE BOARD COMMITTEES: Audit Committee Customer Committee Nomination & People & Remuneration Risk & Compliance Chair: David Armstrong Chair: Ann Sherry Governance Committee Committee Committee Chair: Philip Chronican Chair: Anne Loveridge Chair: Simon McKeon Updates on ESG ri
Slide 114: Economics
ADDITIONAL INFORMATION ECONOMICS
Slide 115: Australia and NZ Key Economic Indicators
AUSTRALIA AND NZ KEY ECONOMIC INDICATORS AUSTRALIAN ECONOMIC INDICATORS (%)1 NZ ECONOMIC INDICATORS (%)1 CY20 CY21 CY22(f) CY23(f) CY24(f) CY20 CY21 CY22(f) CY23(f) CY24(f) GDP growth2 -0.8 4.2 3.4 2.1 2.2 GDP growth2 0.3 3.1 3.6 1.4 3.0 Unemployment3 6.7 4.7 3.5 3.5 3.7 Unemployment3 4.9 3.2 3.3 3.
Slide 116: GDP Has Rebounded Quickly
GDP HAS REBOUNDED QUICKLY GDP HAS REBOUNDED QUICKLY FROM A SHARP DOWNTURN1 ALMOST ALL COMPONENTS OF GDP STRENGTHENED IN 20212 (%) 2020 Y/Y % Growth Index 1980s Drought + Recession 1990s "Recession we had to (Q3 1981 = 100) have" (Q1 1990 = 100) 4 2021 Y/Y % Growth 110 Global Financial Crisis COVID C
Slide 117: The Labour Market Is Increasingly Tight
THE LABOUR MARKET IS INCREASINGLY TIGHT EMPLOYMENT HAS RECOVERED IN ALL STATES1 UNEMPLOYMENT HAS FALLEN TO VERY LOW LEVELS2 Index (Jan 2020 = 100) (%) % Unemployment Rate NSW VIC QLD % Underutilisation Rate 20 105 SA WA TAS 15 100 10 95 5 90 0 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 Mar-82
Slide 118: The Housing Market Has Been Resilient Through the Pandemic
THE HOUSING MARKET HAS BEEN RESILIENT THROUGH THE PANDEMIC HOUSE PRICE GROWTH HAS DIVERGED ACROSS THE STATES1 RENTS GROWTH HAS STAYED WEAK IN SYD AND MELB2 (%) Sydney Melbourne (%) 35 Brisbane Adelaide Perth Hobart 10 25 5 15 0 5 Sydney Melbourne -5 -5 Brisbane Adelaide Perth Hobart -15 -10 2013 201
Slide 119: Policy Stimulus Will Begin to Reduce
POLICY STIMULUS WILL BEGIN TO REDUCE THE CASH RATE EXPECTED TO RISE IN 20221 THE RBA BALANCE SHEET WILL BEGIN TO NORMALISE2 (%) ($B) Forecasts 7.0 600 6.0 500 5.0 Cash Rate Target RBA Assets 400 4.0 300 3.0 2.0 200 1.0 100 0.0 0 Feb 07 Feb 09 Feb 11 Feb 13 Feb 15 Feb 17 Feb 19 Feb 21 Feb 23 2006 200
Slide 120: New Zealand Economy
NEW ZEALAND ECONOMY ECONOMY REBOUNDED FROM LOCKDOWN AT THE END OF STRONG DAIRY FARM VIABILITY 2021; UNEMPLOYMENT RATE VERY LOW1 ($NZ billion, chain prices) (%) 9.60 70 6.0 Unemployment rate NZ GDP 5.0 7.74 66 4.0 6.45 62 5.85 3.0 58 2.0 54 1.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5
Slide 121: New Zealand Housing
NEW ZEALAND HOUSING HOUSING MARKET HAS SOFTENED – HOUSE PRICES FLATTENING OUT, AS SALES VOLUMES DOWN1 (Index) ('000s) House prices Dwelling sales transacted 4500 12 4000 10 3500 Auckland 3000 8 2500 National ex Auckland 6 2000 1500 4 1000 2 500 0 0 Mar 14 Mar 16 Mar 18 Mar 20 Mar 22 Mar 14 Mar 16 Ma
Slide 122: Other Information
national australia bank OTHER INFORMATION
Slide 123: Markets & Treasury Income
MARKETS & TREASURY INCOME MARKETS & TREASURY INCOME BREAKDOWN ($m) 1,250 940 838 808 753 578 888 572 580 453 392 369 277 206 402 387 345 366 401 372 362 (4) (17) 0 71 8 (17) (86) Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Derivative valuation adjustment 1 Customer risk management 2 NAB risk ma
Slide 124: Operating Expenses – Prior Comparative Period
OPERATING EXPENSES – PRIOR COMPARATIVE PERIOD OPERATING EXPENSES PcP expenses up 2.6% (HoH flat) ($m) 42 (15) 138 (260) 112 83 3,963 3,863 Mar 21 Remuneration Volume related Technology and Depreciation and Other Productivity Mar 22 and inflation investment Amortisation 124
Slide 125: Remediation Work Progressing
REMEDIATION WORK PROGRESSING CUSTOMER-RELATED REMEDIATION PROVISION CHARGES1 ($m) 1,189 749 1,011 380 654 268 137 245 58 138 31 117 95 178 130 135 27 20 21 1H19 2H19 1H20 2H20 1H21 2H21 1H22 Continuing Operations Discontinued Operations CUSTOMER-RELATED REMEDIATION PROVISIONING AND UTILISATION ($m)
Slide 126: 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 127: Abbreviations
ABBREVIATIONS ALA Alternative Liquid Assets KYC Know Your Customer AML Anti Money Laundering LCR Liquidity Coverage Ratio CET1 Common Equity Tier 1 Capital LGD Loss given default CIC Credit impairment charge LVR Loan to Value Ratio CLF Committed Liquidity Facility MTM Mark to market CP Collective Pr
Slide 128: Key Footnote References
KEY FOOTNOTE REFERENCES Page 8 (1) Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld (2) Sourced from DBM Consultants Business and Consumer Atlas, measured on 6 month rolling average.
Slide 129: Disclaimer
DISCLAIMER The material in this presentation is general background information about the NAB Group current at the date of the presentation on 5 May 2022. 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
National Australia Bank — Investor Presentation (May 2022) on 6ix