NATIONAL AUSTRALIA BANK: BUSINESS BANKING & DIGITAL EXCELLENCE

The 2030 Report | CEO Memo | June 2030

FROM: Macro Intelligence Unit TO: CEO, Board of Directors RE: Strategic Focus: Business Banking Expansion, Digital Cost Discipline DATE: June 2030 CLASSIFICATION: Confidential - C-Suite

EXECUTIVE SUMMARY

NAB is positioned between CBA (larger scale, premium valuation) and ANZ (weaker execution, discount valuation). Strategic imperatives are: (1) expand business banking share, (2) maintain digital transformation discipline, (3) manage housing risk.

STRATEGIC PRIORITY 1: BUSINESS BANKING EXPANSION

NAB's SME banking is 15-20% of earnings but growing faster than retail (3-4% annual growth vs. 0-1% for mortgages).

Target: Grow business banking from 15% to 20-22% of earnings by FY2032

Strategies: - Hire experienced SME relationship managers (offer above-market compensation) - Develop specialized financing products for high-growth sectors (AI, green energy, construction) - Integrate APIs into accounting software (Xero, MYOB) for seamless loan origination

Expected impact: +$300-400M incremental earnings by FY2032

STRATEGIC PRIORITY 2: DIGITAL COST DISCIPLINE

Maintain cost-to-income ratio at 43-44% (vs. 45%+ for ANZ, 41% for CBA).

Actions: - Continued migration to cloud (AWS, Azure) - Automation of back-office (target: 10-15% headcount reduction over 3 years) - Rationalization of branch network (target: 50-80 branch closures)

Expected impact: -50-75bps EBITDA cost improvement by FY2032

STRATEGIC PRIORITY 3: HOUSING RISK MANAGEMENT

Like peers, NAB has mortgage concentration (40% of earnings). Proactive provisioning needed.

Actions: - Build loan loss provisions conservatively (1.2-1.5x default rate) - Maintain disciplined underwriting (LTV caps, serviceability tests) - Communicate housing risk management to market

The 2030 Report — Macro Intelligence