1H24 Financial Results

Regulatory expected loss1 For non-defaulted exposures, eligible provisions in excess of regulated expected losses added back to Tier 2 capital $m Dec 22 Jun 23 Dec 23 Defaulted Non-defaulted Defaulted Non-defaulted Defaulted Non-defaulted 1,361 3,122 1,253 2,377 1,506 2,399 Regulatory expected loss (EL) Eligible provisions (EP) Collective and specific provisions² 1,481 4,249 1,466 4,598 1,623 4,681 Less: ineligible provisions (standardised portfolio) (126) (159) (118) (145) (87) (119) Total eligible provisions 1,355 4,090 1,348 4,453 1,536 4,563 Shortfall (excess) of regulatory EL to EP (968) (95) (2,076) (30) (2,164) Common equity tier 1 deduction 6 Tier 2 capital add-back N/A 968 N/A 2,011 N/A 2,043 1. Represents the shortfall between the calculated Regulatory EL and Eligible Provisions (EP) with respect to credit portfolios which are subject to the AIRB approach. The adjustment is assessed separately for both defaulted and non-defaulted exposures. Where there is an excess of EL over EP in either assessments, the difference must be deducted from CET1. For non-defaulted exposures where the EL is lower than the EP, this may be included in Tier 2 capital up to a maximum of 0.6% of total Credit RWA. 2. Defaulted provisions comprises of specific provisions, including accounting collective provisions relating to defaulted exposures, and partial write offs. 130

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