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FIRST QUARTER TRADING UPDATE 2021 National Australia Bank The December 2020 quarter results are compared with the quarterly average of the September 2020 half year results for continuing operations ( excluding large notable items ) unless otherwise stated . Cash and statutory earnings are rounded to the nearest $ 50 million . Revenue , expenses and asset quality are expressed on a cash earnings basis . 1021 FINANCIAL HIGHLIGHTS $ 1.70BN Unaudited statutory net profit 1.0 % Cash earnings growth Vs 1Q20 ( cash earnings before tax and credit impairment charges down 6 % ) $ 1.65BN Unaudited Cash earnings¹ 11.7 % Group Common Equity Tier 1 ratio ( CET1 ) Improving economic trends have been a key driver of our 1Q21 result , with cash earnings 47 % higher than the 2H20 quarterly average primarily driven by low credit impairment charges . At an underlying level , performance has been sound in the current competitive , low interest rate environment . Improving economic and health outcomes in Australia and New Zealand are encouraging , as are the reductions we are seeing in deferral balances . However , there are still a number of uncertainties requiring further clarity . These include the impact on customers of ongoing health alerts and measures put in place to contain the spread of COVID - 19 , and the wind - down of deferral and JobKeeper programs . Supporting customers and keeping the bank safe through this period remain our priorities . Implementation of our strategy is proceeding well as we invest for the long term and focus on initiatives that make a real difference to our customers and colleagues . While there is still much to do , it is pleasing to see momentum building in our core businesses as we simplify and streamline our processes and policies and enhance our digital offerings . ROSS MCEWAN - NAB CEO OPERATING PERFORMANCE • Compared with the 2H20 quarterly average and excluding large notable items , cash earnings rose 47 % and cash earnings before tax and credit impairment charges fell 5 % : Revenue declined 3 % reflecting lower Markets & Treasury income mainly due to the non - repeat of mark- to - market loss reversals in 2H20 . Excluding Markets & Treasury , revenue grew 1 % with higher fees and commissions income benefitting from increased levels of business activity ; • Net interest margin declined but was stable excluding the impact of Markets & Treasury and higher liquids . Competition and the impact of low interest rates were offset by home loan repricing and lower funding and deposit costs ; Expenses fell 1 % with productivity benefits and lower restructuring related costs , partly offset by provisions for higher performance - based compensation . We continue to target FY21 expense growth² limited to 0-2 % . SUPPORTING OUR CUSTOMERS & COMMUNITIES • • • Strategic Net Promoter Score ( NPS ) ³ for December up 1 point from September to -10 , with NAB ranked second of the major banks Investing to serve customers better with approximately 440 new roles added in our Business & Private Banking division , and a further 110 targeted over the remainder of FY21 Assisted more than 4,000 NAB customers buy their first home as a partner of the Federal Government's First Home Loan Deposit Scheme • Providing specialist support via our NAB Assist and SBS teams to deferral customers in need with balances of approximately $ 6 billion • All Australian branches ' energy needs to be fully met via renewable sources by the end of 2021 under an agreement with energy provider ENGIE for the supply of renewable electricity certificates until 2023 1 Refer note on cash earnings on page 3 . 2 Excluding large notable items 3 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 . Sourced from DBM Consultants Business and Consumer Atlas , measured on 6 month rolling average . Definition has been updated to give all customers in the Business and Consumer segments equal voice . The overall Strategic NPS result combines the Consumer ( 18+ ) and Business segment results using a 50 % weighting for each . History has been restated . National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 , 16 February 2021 < 1 >