Barclays Capital 2010 Global Financial Services Conference

Action plans for lagging units - Ulster Bank Initiatives Direct expense reduction of 31% Q109 to Q210 ■ Asset margins driving NIM improvements - 1.74% trough in Q309 returned to 1.92% Q210 Balance sheet reshaped FY09 Total UB, £56bn 21% 5% Increasing market shares 1: Stock Flow 34% Personal Current A/C 15% 20% Business Main A/C 19% 23% XRBS H110 Core UB £37bn 5% 27% 39% 54% 12% Mortgages CRE Other Corporate Other Tight cost management - reduced direct expenses £m ■Staff expenses ☐ Other direct expenses 120 100 Down £34m 80 60 40 20 20 0 Q109 Q210 1 As at December 2009, market shares relate to combined Northern Ireland and Republic of Ireland. 2 Post transfer of commercial property portfolio into Non-Core and Ulster Bank mortgages out of Non-Core Closing the funding gap – improving loan-to-deposit ratio Funding gap reduced by £7bn 250% 203% 200% 177% 154% 150% 150% 100% 50% 0% Q209 FY09 Q210 2013 Target 21

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