#1Shareholder Event XRBS 12 March 2015 Welcome#2Shareholder Event Ross McEwan Chief Executive XRBS#3Today's presentation Ambition to be #1 for customer service, trust and advocacy Strategy working – strong execution against 2014 targets 2014 creates the platform to go further, faster on strategy: ■Further reshaping of CIB ■CET1 ratio target raised to 13% for the period of CIB restructuring ■ Citizens deconsolidation and RCR completion targeted by end 2015 ■ Higher cost reduction targets Simplify the bank for customers and colleagues Significant net capital benefits from acceleration of strategy with intent to distribute capital above CET1 target ratio (1) Strong returns from a lower risk banking franchise (1) Subject to PRA approval. *RBS#42014 financial results Income FY13 FY14 £19.4bn £18.2bn Operating costs (excl. restructuring, conduct & £14.0bn £12.4bn litigation) Restructuring, conduct & litigation £4.5bn £3.5bn costs Impairment (losses) / recoveries Operating (loss) / profit £(8.4)bn £1.2bn £(7.5)bn £3.5bn Attributable (loss) RWAS £(9.0)bn £(3.5)bn £429bn £356bn CET1 ratio 8.6% 11.2% Leverage ratio 3.4% 4.2% XRBS#5Our blueprint for lasting success Our Ambition Our Purpose Our Values Our Brands Our Priorities Strength and sustainability Our long-term targets CET1 ratio 13% ROTE ≥12% Reduce RWAs Our 2015 Goals to <£300bn No.1 for customer service, trust and advocacy by 2020 Serve customers well XRBS Serving customers Working together right thing Doing the Thinking long term NatWest Royal Bank of Scotland Coutts **Ulster Bank Customer experience No.1 for service, trust and advocacy Improve NPS in every UK franchise Simplifying the bank Supporting growth Employee engagement Cost:income ratio <50% Leading market positions in every franchise Employee engagement ≥ our peers Reduce costs by £800m Lending growth in strategic segments UK GDP growth Raise employee engagement to within 7 points of our peers To Note: The cost reduction target excludes the costs of restructuring, conduct, litigation and intangible write-off charges, as well as the operating costs of Citizens Financial Group and Williams & Glyn. Employee engagement is measured against the Global Financial Services norm which currently stands at 83%. Version 1.0 2/03/15#6Shareholder Event XRBS Q&A