National Australia Bank : NAB releases 2021 Supplemental Information

For personal use only

395 Bourke Street Melbourne VIC 3000 AUSTRALIA

www.nab.com.au

Tuesday, 16 November 2021

ASX ANNOUNCEMENT

NAB RELEASES 2021 SUPPLEMENTAL INFORMATION

National Australia Bank Limited (NAB) today releases its 2021 Supplemental Information report which provides certain statistical information regarding NAB. The Supplemental Information voluntarily continues the disclosure of some of the information NAB previously disclosed to the U.S. market in its U.S. periodic reports filed with the U.S. Securities Exchange Commission (SEC) when NAB was an SEC registrant.

For further information:

Media

Mark Alexander	Jessica Forrest
M: [phone]	M: [phone]

Investor Relations

Sally Mihell	Natalie Coombe
Mob: [phone]	M: [phone]

The release of this announcement was authorised by Gary Lennon, Group Chief Financial Officer.

National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686

For personal use only

SUPPLEMENTAL

INFORMATION REGARDING NATIONAL AUSTRALIA BANK LIMITED 2021

National Australia Bank Limited ABN 12 004 044 937

CONTENTS

OVERVIEW

SECTION A: LIQUIDITY AND FUNDING

onlySECTION B: U.S. STATISTICAL BANK DISCLOSURES

B1: Average balance sheet and related interest

B2: Investment portfolio

B3: Loan portfolio

B4: Summary of loan loss experience

2

4

8

8

13

14

19

B5: Deposits and other borrowings

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For personal use

Supplemental Information regarding National Australia Bank Limited 2021

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OVERVIEW

OVERVIEW

The information in this report has been prepared in conjunction with the Group's US debt funding disclosures. Sections A and B provide detail in relation to the Group's liquidity and funding resources and certain statistical bank

onlydisclosures. This document should be read in conjunction with the Group's 2021 Annual Financial Report published on November 9, 2021. The 2021 Annual Financial Report is prepared in accordance with the Corporations Act 2001 (Cth) a d contains the Group's consolidated financial statements.

A reference in this report to the 'Group' is a reference to Nati nal Australia Bank Limited (NAB) and its controlled entities. All currency amounts in this report are expressed in Australian dollars unless otherwise stated. References in this document to the September 2021 full year are references to

usethe twelve months ended September 30, 2021. Other twelve month periods are referred to in a corresponding manner.

Pre entation of information

The financial information presented in this report has been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and

personalInternational Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. Certain differences exist between Australian Accounting Standards, IFRS and the Generally Accepted Accounting Principles applicable in the United States of America (US GAAP) which might be material to the financial information herein.

The Group has not prepared a reconciliation of its

c nsolidated financial statements and related footnote di closures between Australian Accounting Standards, IFRS and US GAAP. In making an investment decision, potential investors must rely upon their own examination of the Group, the terms of the offering and the financial information. Potential investors should consult th ir own professional advisors for an understanding

of these differences, and if they affect the financial information herein.

All amounts have been rounded to the nearest million dollars, except where indicated. The abbreviations $m and $bn represent millions and thousands of millions

For(i.e. billions) of Australian dollars respectively. Any discrepancies between total and sums of components in tables contained in this report are due to rounding. This report contains translation of certain Australian dollar amounts into US dollars at specified rates. These translations should not be construed as representations that the Australian dollar amounts actually represent such US dollar amounts or could be converted into US dollars at the

rate indicated. Unless otherwise stated, the translation of Australian dollars into US dollars have been made at the rate of US$0.7228 = A$1.00, the noon buying rate in New York City for cable transfers in Australian dollars as certified for customs purposes by the Federal Reserve Bank of New York on September 30, 2021.

Other information herein has been derived from the Group's Annual Financial Report (the financial report), including the

Group's audited consolidated financial statements, for each financial year. Where certain items are not shown in the Group's Annual Financial Report, it has been prepared for the purpose of this report. Accordingly, this information should be read in conjunction with and is qualified in its entirety by reference to the Group's financial report for the relevant financial year.

Information in this report is presented on a continuing operations basis, unless otherwise stated. Continuing operations are the components of the Group which are not discontinued operations.

Discontinued Operations

On August 31, 2020, the Group entered into an agreement for the sale of 100% of MLC Wealth, including the advice, platforms, superannuation and investments, and asset management businesses, to IOOF Holdings Limited (IOOF). The total consideration for the sale was $1,440 million, comprising $1,240 million in cash and $200 million in equity- linked subordinated notes issued by IOOF. Management concluded that MLC Wealth met the criteria to be classified as a discontinued operation as at September 30, 2020. An impairment of the goodwill attributable to MLC Wealth

of $199 million was recognised within the 'net loss from discontinued operations' for the year ended September 30, 2020.

The transaction was completed on May 31, 2021 and a loss on the sale based on the net assets at completion of $50 million was recognised within the "net loss from discontinued operations". The final financial outcome of the sale remains subject to the finalisation of the completion accounts process and other contingencies associated with the sale. Refer to Note 30 Commitments and contingent liabilities in the Group's 2021 Annual Financial Report for further information.

Amounts presented in the life insurance discontinued operation related to the Group's life insurance business. The Group disposed of 80% of its investment in MLC Life to Nippon Life Insurance Company in 2016. The amounts presented in September 2021 and 2020 relate to

1. re-assessmentof customer-related remediation provisions associated with the MLC Life business.

Information about average balances

Average balances, including average equity (adjusted), total average assets and average interest earning assets are based on daily statutory average balances.

This methodology produces numbers that more accurately reflect seasonality, timing of accruals and restructures (including discontinued operations), which would otherwise not be reflected in a simple average.

2 National Australia Bank

OVERVIEW

OVERVIEW (CONTINUED)

Forward-looking statements

This report contains statements that are, or may be deemed to be, forward looking statements. These forward looking

onlystatements may be identified by the use of forward looking terminology, including the terms "believe", "estimate", "plan", "project", "anticipate", "expect", "target", "intend", "likely", "may", "will", "could" or "should" or, in each case, their negative or other variations or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and financial position and performance are also forward looking statements. Potential investors are cautioned not to place undue reliance on

usesuch forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

There are many factors that could cause actual results to personaldiffer materially from those projected in such statements, including (without limitation) the risks and uncertainties

ssociated with the ongoing impacts of COVID-19, changes to the Australian and global economic environment and capital market conditions, changes to the operating and regulatory environment of the Group and changes to

the financial position or performance of the Group. Further information is contained in the Group's Annual Financial Report for the 2021 financial year, available at www.nab.com.au.

For

Supplemental Information regarding National Australia Bank Limited 2021

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