Annual Review 2019 - NAB
ANNUAL REVIEW 2019National Australia Bank Limited ABN 12 004 044 937
ABOUTTHISREPORTOur 2019 Annual Review provides an overview of our financial and non-financial performanceand shows how we create value for our customers, people, shareholders and community.OUR COMMITMENTTO INTEGRATED REPORTINGA key part of our engagement withstakeholders is our annual materiality review.2It identifies the important environmental,social and governance (ESG) themes that shapeour business and impact our community.The review involves four stages:OUR SCOPE AND CONTENTThese prioritised material themes, explored in detail in ourSustainability Report, are listed below. They represent bothchallenges and opportunities for our business.Click on an icon to find out moreOUR MATERIALITY REVIEWThe preparation of this report is guided by theIntegrated Reporting Framework (IRF).1 We arecommitted to the principles outlined in theIRF as they align with long-term value creationand our role as a bank in society.This year we engaged with more than 470 stakeholders,including customers, industry associations, consumer advocates,the investment community and NAB leaders to help determineand validate the ESG issues we should focus our attention on.2Unless otherwise stated, all the informationincluded in this report refers to the yearended 30 September 2019 and covers theNAB Group operations’ financial and nonfinancial performance.IntroductionContentsPurpose, visionand strategy2019 at a ageThe content of this report was shaped byconsulting a range of stakeholders, includingour customers, people, shareholders andcommunity, as well as the Integrated ReportingBusiness Network and International IntegratedReporting Council (IIRC).Refer to page 3 to see how this report interactswith and is different from, the rest of ourannual reporting suite.Our businessDISCLOSUREAND REVIEWVALIDATIONRead more about our materiality process inthe Sustainability Report and on our website.Our operatingenvironmentOur strategyOur foundations2019 PRIORITISED THEMESGovernanceOur performanceGOVERNANCE, CONDUCTAND CULTURECUSTOMER SUPPORTAND EXPERIENCESWhat we have learnedfrom the Royal Commissionstakeholder feedback,and how we are respondingand driving cultural change.This means behaving andacting in a way that putscustomers’ needs first.Ensuring we get it rightfor customers every time,delivering fair customeroutcomes. This includesbuilding financial health,lending responsiblyand providing fit-forpurpose products andgreat service.ADDRESSING CLIMATECHANGE ANDENVIRONMENTALSUSTAINABILITYHow we take action onclimate change and showleadership in environmentalsustainability. We recognisethat carbon risk and ourrole in the transition to alow-carbon economy areincreasingly importantto our stakeholders andthe community.ENGAGINGOUR PEOPLETRANSFORMATIONAND TECHNOLOGYSTRONGERCOMMUNITIESHow we manage, carefor, listen to and developour people. A happy,engaged and diverseworkforce is essential inserving our customerswell and delivering resultsfor our business.How we are transformingthe way we use technologyto achieve better customeroutcomes, bolster datasecurity and privacy andensure our success in anincreasingly digital future.Our role in buildinga stronger economy,supporting communitiesand driving innovation.This includes backingsmall to mediumbusinesses, rural andregional Australia andthe for-purpose sector,as well as investing incritical infrastructure.1 The Integrated Reporting Framework, developed by the International Integrated Reporting Council (IIRC), aims to establish guiding principles and content elements that govern the overall content of an integrated report.2 More information on the materiality process, including how we conduct the annual materiality review and assessment, is available in our 2019 Sustainability Report.Shareholderinformation andContact detailsAssurance reportAdditionalinformationGlossary anddefinitions
HOW TOREAD THISREPORTOur 2019 Corporate Governance Statement describes NAB’sapproach to corporate governance and complies with the ASXCorporate Governance Council’s Principles and Recommendations(3rd edition). NAB’s vision is to be Australia’s leading bank, trustedby customers for exceptional service. NAB’s purpose, vision andvalues guide and motivate our Board, our leaders and our peopleto deliver industry leading, sustainable outcomes for our customers,shareholders and the broader community. NAB’s purpose, visionand values are supported by good corporate governance.3IntroductionCORPORATE GOVERNANCE AT NABNAB 2019 CorporateGovernance StatementContentsPurpose, visionand strategyNational Australia Bank Limited ABN 12 004 044 9372019 at a glanceFINANCIAL PERFORMANCEChairman’smessageANNUAL FINANCIAL REPORT 2019ANNUAL REVIEW 2019Our 2019 Annual FinancialReport includes theReport of the Directors,together with the financialstatements of the Groupfor the year ended 30September 2019. TheReport contains informationprepared on the basis ofthe Banking Act 1959 (Cth),Corporations Act 2001 (Cth),Accounting Standardsand interpretationsissued by the AustralianAccounting StandardsBoard and FinancialReporting Standards andinterpretations issued by theInternational AccountingStandards Board.Our 2019 Annual Reviewprovides information onthe Group’s activities andperformance during 2019.It aims to show how weare creating value throughour strategy, operatingenvironment, governanceand financial and nonfinancial activities.Our businessGOVERNANCE PRACTICESOur operatingenvironmentOur strategyOur foundationsGovernanceTHISREPORTOur performanceNational Australia Bank Limited ABN 12 004 044 937SUSTAINABILITY REPORT 2019NON-FINANCIAL PERFORMANCEShareholderinformation andContact detailsAssurance reportOur 2019 Sustainability Report outlines oursustainability performance over the past year.The report shows how we have engaged stakeholdersto identify, prioritise and manage environmental,social and governance themes to continue to createvalue for our customers, our people, our communitiesand make a positive impact on the environment inwhich we operate.SUSTAINABILITY REPORT 2019DATAOur SustainabilityData Pack contains ournon-financial data inspreadsheet form, as wellas mapping content to theGRI Standards and otherkey sustainability indicesand frameworks.AdditionalinformationGlossary anddefinitions
4CONTENTSIntroductionContentsPurpose, visionand strategy2019 at a glancePURPOSE, VISION AND STRATEGY52019 AT A GLANCE6CHAIRMAN’S MESSAGE7OUR BUSINESS9What we doOur executive leadership teamHow we create valueOUR OPERATING ENVIRONMENTOUR STRATEGY1418Best business bankGOVERNANCEOUR PERFORMANCENew and emerging growth2019 Group financial performanceGreat leaders, talent and culture2019 Group non-financial performanceSimpler and fasterOUR FOUNDATIONSTechnologyRisk managementBalance sheet strength2634Board of Directors36SHAREHOLDER INFORMATIONAND CONTACT DETAILS38ASSURANCE REPORT39ADDITIONAL INFORMATION40Glossary and definitionsChairman’smessageOur businessOur operatingenvironmentOur strategyOur foundationsGovernanceOur performanceOur customers need to be at theheart of everything we do.Shareholderinformation andContact detailsAssurance reportAdditionalinformationGlossary anddefinitions
PURPOSEVISIONSTRATEGYOUR VISION IS TO BE AUSTRALIA’SLEADING BANK, TRUSTED BY CUSTOMERSFOR EXCEPTIONAL SERVICE.By definition, a vision is aspirationalin nature and must be seen that way.We need to have our customers at theheart of everything we do. This ambitionis reflected in our purpose – to back thebold who move Australia forward.To truly live our purpose, we should beour customers’ trusted and experiencedpartner.We know it will take a lot of workto get there.The Royal Commission into Misconductin the Banking, Superannuation andFinancial Services Industry (RoyalCommission) highlighted a gap betweenwhere we are today and where weneed to be to meet customer andcommunity expectations.We recognise there has been a loss ofconfidence and trust in our industry andin our bank concerning the treatmentof customers.To realise our vision, we must have yourtrust. We will do this through the actionswe take to fix our mistakes and the choiceswe make moving forward.This requires us to live our values throughour actions every day. Our values are:Passion for customersBe boldWin togetherRespect for peopleDo the right thingPage 15 outlines how we are changing inresponse to recommendations made bythe Royal Commission and the findingsof our Self-Assessment into governance,accountability and culture.Our strategy, governance andperformance against our objectivesin the context of our operatingenvironment is measured and exploredin this report.We are building a bank that is simpler andfaster. We must do this to become thebank our customers, people, shareholdersand community want us to be.5IntroductionContentsWe are building a bank that issimpler and faster for ourcustomers and our people.Purpose, visionand strategy2019 at a glanceChairman’smessageUnderpinning our long-term strategyare four key objectives:1. Net Promoter Score (NPS) positiveand #1 of major Australian banks(priority segments)2. Top quartile employee engagement3. Cost to income ratio towards 35%4. #1 Return on equity of majorAustralian banksIn 2017, we announced the accelerationof our strategy to enable us to grow andbe more productive. After laying solidfoundations in 2018, implementation ofour three-year transformation programremains on track.Our transformation strategy involvesa targeted 1.5 billion increase ininvestment over the three years toSeptember 2020, taking total investmentspend to approximately 4.5 billionover that period. As at 30 September2019, investment spend was 1.7 billion,bringing the cumulative total sinceSeptember 2017 to 3.2 billion.The focus of our increased investmentover three years is on four key areas toreach our objectives. We are seekingto be: The best business bankOur businessOur operatingenvironment A bank that is seeking out new andemerging growth opportunitiesOur strategy An organisation that is known forgreat leaders, talent and cultureOur foundations Making our bank simpler and fasterfor our people and our customersGovernanceAs part of our transformation, we expectto deliver cumulative cost savings,currently targeted at greater than 1 billion by 30 September 2020, aswe significantly simplify and automateprocesses, reduce procurement andthird-party costs and become closerto our customers with a flatterorganisational structure.As at 30 September 2019 full year, weachieved cost savings of 480 million,bringing our cumulative cost savingssince September 2017 to 800 million.For more information refer to ourChairman’s message and the ‘Our strategy’section of this report on page 18.Our performanceShareholderinformation andContact detailsAssurance reportAdditionalinformationGlossary anddefinitions
2019 AT A GLANCE6IntroductionKEY PERFORMANCE MEASURES19.9%Cash return on equity10.38%2—180 basis points decrease from 2018Common equity tier 1—18 basis points increase from 201854%-14Employeeengagement score 3Priority segmentsnet promoter score 4—Compared to top quartilebenchmark of 69%—2 point increase from 2018,ranked equal #1 amongst major banksContentsPurpose, visionand strategy2019 at a glanceChairman’smessageOur business 4.80bnStatutory net profit5.10bn Cash earnings 2—10.6% decrease from 20186.55bn Cash earnings 2, 5ex large notables of 1,448m—0.8% increase from 2018Our operatingenvironmentOur strategyOur foundationsGovernanceOur performanceOTHER KEY PERFORMANCE MEASURES71,817 1.6619,673Shareholderinformation andContact detailsAustralians assisted withmicrofinance productsand services6—Dividend per share(for the full year)—Number of customers assistedexperiencing financial hardship—Assurance report32 cents lower than 20187% increase from 2018Additionalinformation1% increase from 2018Glossary anddefinitions1 For more information on how we have performed and created value for our stakeholders this year, refer to How we create value on page 13 and Our performance on pages 36-37.2 Cash earnings is not a statutory financial measure, is not presented in accordance with Australian Accounting Standards, and is not audited or reviewed in accordance with Australian Auditing Standards. NAB’s audited financial statements, prepared in accordance withthe Corporations Act 2001 (Cth) and Australian Accounting Standards, are set out in NAB’s 2019 Annual Financial Report. Full detail on how cash earnings is defined, a discussion of non-cash earnings items and a full reconciliation of statutory net profit attributable toowners of NAB is set out in Note 2 of NAB’s 2019 Annual Financial Report. A reconciliation of cash earnings to statutory net profit attributable to the owners of NAB is also set out on page 36 of this 2019 Annual Review.3 Source: Employee Engagement Survey conducted by Aon (now known as Kincentric). The engagement result indicates the percentage of employees at NAB that are strong advocates (SAY), demonstrate a commitment to the Bank (STAY) and exert discretionaryeffort (STRIVE). Benchmark is for companies in Australia and New Zealand.4 Net Promoter and NPS are registered trademarks and Net Promoter Score and Net Promoter Systems are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. Priority Segments Net Promoter Score (NPS) is a simple average of the NPS scores offour priority segments: NAB defined Home Owners (HL@bank) and Investors, as well as Small Business ( 0.1m- 5m) and Medium Business ( 5m- 50m). The Priority Segments NPS data is based on six month moving averages from DBM Atlas & BFSM Research for theSeptember 2019 full year.5 Cash earnings large notable items after tax: customer-related remediation of 1,100 million (2018: 261 million), capitalised software policy change of 348 million (2018: nil), restructuring-related costs of nil (2018: 530 million).6 Delivered in partnership with Good Shepherd.
CHAIRMAN’SMESSAGE7The release of National Australia Bank’s Annual Review coincides with my first day asChairman. I have taken this position after eight months as interim Group CEO, morethan three years as a Director and more than 37 years working in financial services.This has been an extraordinarilychallenging year for the organisation,in which it was clear that significantchanges were necessary. We requireda different approach.The Board understands what hasgone wrong within the bank and thatwe can only move forward if we dealwith the past. We are determined tomake things right, earn trust andbuild confidence in the future ofour business.We are pleased with the calibre of theincoming Group CEO, Ross McEwan,who is commencing on 2 December2019. Ross is an experiencedand proven CEO with a strongreputation for customer fairness,cost management, reputationrecovery and leading industry reform.The Board stands ready to help Rosstake the organisation forward tobecome the bank you want us to be.At no stage will we seek to brushpast the events and findings ofthe Royal Commission. We wererightly called out for failing to meetcustomer expectations and, in somecases, breaching their trust. Wefaced challenges and revelationsthat ultimately led to our outgoingChairman and former Group CEOresigning.The shareholders’ first strike againstour 2018 Remuneration Report atour AGM last year also sent a clearmessage. We needed to reshapeour remuneration framework,including how we applied outcomesfor executives.Along the way, we lost trust withcustomers and the broader community.As interim CEO, I have responded tothese disappointments by being clearon accountability and driving rigourand discipline in the way NAB operates.LIFTING PERFORMANCEWe are addressing the issues of thepast and preparing the bank for thefuture. We have taken clear actionsdesigned to ensure we meet customerand community expectations.The Board has increased rigour inassessing performance, with a clearfocus to reward longer-term, sustainablecustomer and shareholder outcomes.While 2019 underlying businessperformance was solid, NAB did notachieve some financial and nonfinancial targets. The RemunerationReport reflects the Board’s decisionthat the Executive Leadership Teamwill receive no short-term variablereward and no fixed remunerationincrease for the financial year.We have strengthened our financialsettings. We have increased customerrelated remediation provisions. Wehave lowered our dividend payout,by 16% from financial year 2018, andwe have raised a significant amountof capital to ensure we are on track tomeet APRA’s ‘Unquestionably Strong’requirements for 1 January next year.Our transformation, which hasbeen underway for over two years,is delivering real benefits in terms ofproductivity and supporting businessgrowth in a challenging, low-rateenvironment. It is also improving theresilience of our technology andenabling us to adapt to a new digitalfuture. Our focus on becoming simpler,faster and less complex for customersand employees has resulted in 30%fewer products, 30% fewer overthe counter transactions and a 17%decrease in calls to our call centres.We are making things right wherewe have made mistakes. We haveimproved processes to remediatecustomers fairly, consistently andmore quickly, with a dedicatedremediation team of more than950 people driving this work.A comprehensive program of workis well underway to improve nonfinancial risk management at NAB.We are focused on driving effectivechange to improve outcomes forcustomers and achieve sustainable,long-term performance.We have begun an extensive andconsidered reform program to achievecultural and risk transformation,arising out of the Self-Assessmentand sitting alongside our RoyalCommission response.We take full accountability for ourfailings and have been transparenton our progress to address them.Intensive effort is underway tocontinue to overhaul processes andpractices, but it is early days and thereis more work to be done to achievesustainable change.IntroductionContentsPurpose, visionand strategy2019 at a glanceChairman’smessageOur businessOur operatingenvironmentOur strategyOur foundationsGovernanceOur performanceShareholderinformation andContact detailsAssurance reportAdditionalinformationGlossary anddefinitions
CHAIRMAN’SMESSAGE8IntroductionContentsWe are determined to ensure NABmeets the highest standards and tobuild a culture that puts customers atthe centre of everything we do.SUPPORTING CUSTOMERS ANDTHE BROADER COMMUNITYNAB exists to serve customers, tokeep their money safe and to facilitateborrowing and enable investment. Indoing so, our core banking activitiesplay an important role in the economyand the broader community –including 5 billion paid in dividendsto our mostly Australian-basedshareholders and 3.1 billion paidin taxes this year.We are absolutely committed todoing our part to support growthfor business and households.We know that increased prosperityin Australia relies heavily on businessinvestment and the current cautionin the private sector reflects broaderglobal uncertainty.The RBA cash rate is sitting at historiclows, which presents new challengesfor our industry. We are determinedto address the needs of depositors,borrowers and our shareholders inthis dynamic environment – andremain very much open for business.This year we provided 61 billion innew lending for our Australian andNew Zealand customers to buy orrenovate their homes.This year we enhanced our standingas Australia’s largest business bank,growing market share in the small tomedium sector. With NAB financingone in three dollars lent to Australianfarmers, we are also the leadingagribusiness bank.We also want to make a positiveimpact on the lives of our customers,people, shareholders, communitiesand the environment in whichwe operate. Our employees took13,464 volunteer days to supportthe community this year and in our16th year of partnership with GoodShe
the Corporations Act 2001 (Cth) and Australian Accounting Standards, are set out in NAB’s 2019 Annual Financial Report. Full detail on how cash earnings is defined, a discussion of non-cash earnings items and a full reconciliation of statutory net profit attributable to owners of NAB is set out in Note 2 of NAB’s 2019 Annual Financial Report.
NAB EFTPOS Mobile Terminal Guide – Version 0.7 3 TABLE OF CONTENTS Getting to know your NAB EFTPOS terminal 6 Contactless – Tap & Go 8 Understanding your NAB EFTPOS Mobile terminal Integrated with your POS 9 Understanding your NAB EFTPOS Mobile terminal 10 NAB EFTPOS Mobile Multi-Merchant Terminals 11 N
NAB ANNUAL SOCIAL BOND REPORT Page 2 1. INTRODUCTION 1.1 Purpose National Australia Bank Limited ABN 12 004 044 937 (NAB), is pleased to present its third NAB Annual Social Bond Report (Report), for the financial year ended 30 andSeptember 2019. This Report relates to our NAB Social Bonds outstanding as
NAB ANNUAL GREEN BOND REPORT Page 1 INTRODUCTION National Australia Bank Limited ABN 12 004 044 937 (‘NAB’), is pleased to present its Annual Green Bond Report (‘Report’), for the financial year ended 30 September 2019. This report relates to our Green Bond Portfolio (four NAB Green Bonds1 and our
Commercial Card purpose Requested credit limit Annual sales turnover NAB Rewards Business Signature Card NAB Qantas Business Signature Card NAB Low Rate Business Card NAB Business Card Email Address The first mentioned email address may be used to provide your credit card contract and other impo
3 Includes a Visa scheme fee charged to NAB and on charged to you. This fee is a percentage of the converted AUD amount shown on your statement. 4 Includes a Visa scheme fee charged to NAB and on charged to you. 5 This fee will not apply to purchases made using a NAB Platinum Visa Debit card. Transaction verification
The issuer of NAB Equity Builder is National Australia Bank Limited (ABN 12 004 044 9 7) (NAB). NAB is a financial services organisation providing products, advice and services through our major Au
The directors of National Australia Bank Limited (NAB) present their report, together with the financial statements of the Group, being NAB and its controlled entities, for the year ended 30 September 2019. Certain definitions The Group’s financial year ends on 30 September. The financial year ended 30 September 2019 is referred to as 2019 .
Andreas Wagner, Karlsruhe Institute of Technology, Germany MIT Symposium - May 6, 2013 Andreas Wagner with acknowledgement to all contributions of researchers from the different universities and research institutions involved in the research programs to be presented here . Content German research programs on building energy efficiency Innovative building technologies and performance of .
