ASX Announcement - APRA Monthly Banking Statistics - NAB reclassification

National Australia Bank has confirmed that the APRA Monthly Banking Statistics for June 2006, to be released today, contain a reclassification of approximately $3.0bn in NAB's deposits.

Funds collected by National Custodian Services (NCS) belonging mainly to Superannuation Funds, Fund Managers and Insurance Corporations were previously classified under the 'Non-Financial Corporations' sector. Following system enhancements at NCS, the majority of these deposits will now be classified  in the 'Financial Corporations' category to align NAB's reporting with industry practice and APRA reporting definitions.
 
As a result, APRA's latest Monthly Banking Statistics will show NAB as having negative growth in Non-Financial Corporations deposits of -2.5% in June 2006 and a growth in Financial Corporations deposits of 49.0%.

After adjustments are made to the May figures for the reclassification, Non-Financial Corporations deposit growth for June would be 3.5% and Financial Corporations deposit growth for June would be 11.8%.

This change has no impact on the volume of deposits held by the bank.

NAB has informed APRA of the reclassification and is working with APRA to restate deposit balances for previous months.

This reclassification relates to APRA reporting only, and there will not be an impact on NAB's other external disclosures.

For further information:

Brandon Phillips
Group Manager, External Relations
T  03 8641 3857
M  0419 369 058

Paul Manovella
Manager, Investor Relations
T  03 8641 3740
M  0409 799 180

Geoff Lynch
Head of Media Relations Australia
T  03 8634 1564
M  0405 319 819