Page 1

Third Quarter Trading Update 2026 17 August 2026 © 2026 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 national australia bank The June 2026 quarter results are compared with the quarterly average of the March 2026 half year results for continuing operations unless otherwise stated . Revenue , expenses and asset quality are expressed on a cash earnings basis . 3Q26 FINANCIAL HIGHLIGHTS $ 1.81bn Unaudited statutory net profit Up 32 % v 1H26 qrtly avg ( ) Up 2 % v 1H26 qrtly avg Up 4 % v 3Q25 $ 1.83bn 2 % 11.93 % Unaudited cash earnings ( ii ) ( !!! ) * Revenue growth v 1H26 qrtly avg Up 5 % v 3Q25 Group Common Equity Tier 1 ratio ( CET1 ) ( iv ) ( i ) Growth rate including large notable item in 1H26 . ( ii ) Refer to note on cash earnings and underlying profit on page 6 . ( iii ) Growth rate excluding large notable item in 1H26 . ( iv ) CET1 capital ratio is on a Level 2 basis . " NAB's 3Q26 cash earnings increased 2 % compared with the 1H26 quarterly average excluding the impact of the Large Notable Item ( LNI ) in 1H26 , primarily driven by lower credit impairment charges ( CICS ) . Underlying profit was stable over the period with good volume growth and well managed margins offset by higher costs which were impacted by seasonality and the flow - on impacts of changes to our software capitalisation policy in 1H26 . We have made further progress this quarter across our key priorities of growing business banking , driving deposit growth and strengthening proprietary home lending . Australian business lending rose 2 % including 4 % growth from Business & Private Banking ( B & PB ) . Australian home lending grew in line with system excluding the Advantedge run - off ( 2 ) , with drawdowns via proprietary channels improving from 47.7 % in 1H26 to 50.9 % in 3Q26 ( 3 ) . Deposit balances rose 2 % including 3 % growth in B & PB transaction account balances ( excluding offsets ) . The combined impacts of the Middle East conflict , higher domestic interest rates and recent tax changes in the Federal Budget are creating challenges and uncertainties for our customers . While the ratio of non - performing loans declined over 3Q26 , watch loans were higher reflecting current and potential stress impacting performing customers . Business credit growth has remained robust at this stage , but the Australian home lending market softened in 3Q26 with our applications down 15 % compared with 2Q26 . NAB is well placed to manage through this period and support our customers . Our ratio of collective provisions ( CP ) to credit risk weighted assets ( CRWA ) sits at 1.36 % including almost $ 2 billion of forward - looking provisions for potential stress in the outlook . Our CET1 ratio of 11.93 % compares with NAB's operating target of greater than 11.25 % . We continue to target productivity savings of more than $ 450 million for FY26 and for operating expense growth in FY26 to be less than FY25 growth of 4.6 % ( 4 ) . Our long term strategy remains focused on achieving much stronger customer advocacy , greater speed and simplicity , and ongoing technology modernisation . This is expected to deliver sustainable growth and attractive shareholder returns . " - Andrew Irvine NAB CEO NAB recognised as the leading Australian Corporate & Institutional relationship bank ( ) Supporting our customers & communities Helping Australian customers protect their families and homes with free access to the Bushfire Resilience Rating App , to better understand and manage bushfire risks and potentially lower home insurance premiums Supporting more accessible face - to - face banking and removing communication barriers for deaf customers with NAB the first bank in Australia to offer in - branch Auslan interpreting nationally Protecting customers and our bank in an environment of rising Al - enabled threats through NAB Nexus , a 24/7 integrated operations hub enabling faster information sharing and real - time threat identification ( i ) # 1 RSI - Coalition Greenwich 2026 Australia Large Corporate Relationship and Transactional Banking Studies . ( 1 ) 1H26 operating expenses included $ 1,347 million as an LNI related to the accelerated amortisation charge following a change in the Group's software capitalisation policy . ( 2 ) System refers to APRA Monthly Authorised Deposit - taking Institution statistics . Latest data as at Jun 26. Including Advantedge , 3Q26 growth versus system was 0.7x . ( 3 ) Refers to proprietary home lending drawdowns in Personal Banking and B & PB divisions . Excludes ubank . ( 4 ) Refer to key risks , qualifications and assumptions in relation to forward looking statements on page 6. FY26 guidance excluding any large notable items . 1