Santander Financial Results

Mortgage market activity to fall as borrowing rates remain elevated 2,217 Total loans (£bn¹) 2,243 2,257 2,280 2,294 3.4% 3.4% 3.1% 3.6% 3.7% YOY (%) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22(e) 2,469 Total customer funds (£bn²) 2,485 2,510 2,532 2,543 YOY (%) 6.1% 4.9% 3.6% 3.8% 3.0% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22(e) Mortgage lending growth to slow sharply in 2023 as buyer demand hit by further Base Rate increases Unsecured lending to ease slightly as the fall in household consumption reduces demand for credit Corporate borrowing growth set to be weaker in response to declining investment intentions and higher interest rates 米 Retail deposit flows are expected to fall back as cost of living pressures bite Corporate deposit growth stabilises on account of firms having built up adequate buffers from the substantial government support provided and to help pay down debt Santander Source: Bank of England Bankstats (Monetary and Financial Statistics) published at early-January 2023, internal estimates for latest month. Annual growth rates are calculated using Bank of England methodology. (1) Total loans includes household (mortgages and consumer credit) plus corporate loans. (2) Total deposits include household deposits (with banks and NS&I) and corporate deposits, excluding cash holdings. 5

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