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Corporate Affairs Australia 800 Bourke Street, Docklands Victoria 3008 Australia

News Release
2 May 2012

NAB reduces standard variable home loan rate to 6.99%p.a. continues to offer the lowest of the major banks, now for 34 months
National Australia Bank (NAB) today announced it would reduce its standard variable home loan interest rate by 0.32%p.a. to 6.99%p.a. the lowest of the major banks. The reduction will save NAB customers $80 per month in interest, on the average $300,000 home loan. Lisa Gray, Group Executive NAB Personal Banking, said NAB has offered the lowest standard variable home loan rate of the major banks for 34 months and has committed to staying the lowest of the majors for 2012. The European debt crisis is having an impact on the global and domestic economy. By maintaining the lowest standard variable rate of the major banks, we have sought to continue to shield our customers from current global economic instability. Decisions on lending rates are not taken lightly, but we are determined to provide our customers with certainty through our commitment to stay the lowest of the major banks for the rest of 2012. Our lowest SVR commitment builds on our fair value philosophy, under which NAB has led the industry in taking action to save our customers money, such as abolishing some of the most-complained-about fees and reforming our credit card payment hierarchies, she said. Standard variable home loan rates (at 3.30pm on 2 May 2012) 6.99%p.a. 7.41%p.a. 7.42%p.a. 7.46%p.a.

NAB CBA ANZ WBC

All Australian banks are paying more for both deposits and wholesale funding, as a result of global economic instability. In 2012, the premium NAB has been paying for wholesale and deposit funding has consistently been at least 1.45%p.a. higher than the RBA Cash Rate. This compares with 0.10%p.a. before the GFC. We will continue to offer a fair exchange of value, balancing rising funding costs, the needs of our existing customers and our ability to continue lending to home owners and businesses, Lisa said. The most recent verified figures show the average interest rate being paid by NAB for term deposits, was 1.68%p.a. higher than the RBA Cash Rate in March 2012. This compares with 0.32%p.a. before the GFC. The NAB iSaver variable rate will change to 3.65%p.a. An additional 1.35%p.a. bonus interest is payable on new iSaver accounts for the first four months, bringing the total rate to 5.00%p.a.

National Australia Bank Limited ABN 12 004 044 937

Corporate Affairs Australia 800 Bourke Street, Docklands Victoria 3008 Australia

News Release
NAB will also reduce its rate on standard variable business rate lending products and Homeside standard variable home loan rate by 0.32%p.a. The interest rate for purchases will be reduced by 0.50%p.a. on the NAB flybuys Rewards Card and by 0.25%p.a. on all other NAB consumer credit cards. The new NAB standard variable home loan rate and NAB iSaver rate will be effective from Friday, 4 May 2012. Ends. Media Contacts: Brian Walsh M: +61 (0) 411 227 585

Meaghan Telford M: +61 (0) 457 551 211

Notes to editor: The $80 monthly saving reflects interest savings resulting from the 0.32%p.a. reduction in standard variable rate on a $300,000 interest-only home loan (i.e. 300000 x 0.32 /12 = 80). NAB funding figures, including average NAB Term Deposit rate, are as at March 2012 - and remained elevated during April 2012. Average Term Deposit rate excludes wholesale and is Australian Term Deposits only.

National Australia Bank Limited ABN 12 004 044 937