Capital and Funding
The Group’s capital management is focused on adequacy, efficiency and flexibility whilst maintaining balance sheet strength to support the overall Group strategy. The Group’s key objectives in relation to capital management are to optimise the returns to shareholders, support the Group’s growth and ensure that capital levels appropriately cover the Group’s risks. This involves ensuring an efficient mix of Tier 1 and Tier 2 capital, maintaining sufficient capital resources to satisfy regulatory requirements and meeting rating agency expectations.
The Group maintains a well-diversified wholesale funding portfolio by accessing a range of funding across senior, subordinated and secured debt markets (both offshore and domestic), as well as the domestic retail hybrid market. The prudent mix across maturity profiles, geographies and investors funds the Group’s business activity and growth.
NAB issues covered bonds backed by Australian residential mortgages. The cover pool is regularly monitored.
Securitisation is an alternative source of funding used by the Group to assist in achieving its overall funding objectives. The Group issues residential backed mortgage securities secured over high quality Australian residential mortgage loans.
Monthly investor reports for covered bonds and residential backed mortgage securities are available on the ‘Securitisation and Covered Bond Investor Reports’ section of the website.
NAB is proud to have been the first bank in the world to issue a Climate Bonds Standard certified green bond. The Climate Bonds Standard is a benchmark that assists investors in prioritising investments that finance climate change solutions. For more details on NAB Green and SRI bonds please refer to the ‘Green and SRI’ section of this site.