Investor Presentaiton

Appendix Assumptions and basis of preparation Strategy Results ◆ Medium term is defined as 3-4 years; long term is defined as 5-6 years ⚫ 'Wholesale' refers to CMB plus GBM ◆ Assumed no changes from 2020 in IFRS accounting rules, and excludes the potential impact of IFRS17 ◆ Losses on asset disposals expected to be reported as a revenue significant item ◆ Costs to achieve expected to be reported as a cost significant item Bank levy forecast based upon levy rates effective 31 December 2020. From 2021, the bank levy will be chargeable only on the UK balance sheet equity and liabilities of banks and building societies. The bank levy is forecast to reduce from $0.8bn to c.$0.3bn Group effective reported tax rate of c.25% is assumed in 2021. Assumed Group adjusted effective tax rate of 19-20% in the medium-term. Note the tax rates are highly sensitive to the overall profitability of the UK group entities ◆ Assumed that where targeted reduction on RWAs require regulatory approvals (e.g. model changes), these will be received ◆ Absolute targets presented in this document will be restated for prevailing foreign exchange rates in subsequent updates to the market Basel III Reform assumed implementation date is on 1 January 2023, including the capital requirements of the new FRTB, CVA and Operational Risk rules. Other regulatory changes assumes UK and EU maintain broad equivalence Macro planning assumptions 2021e 2022e 2023e 2024e 2025e World GDP growth 3.96 3.37 3.06 2.72 2.80 US Fed. funds upper bound rate (year-end) 0.25 0.25 0.25 0.50 0.75 Bank of England base rate (year-end) 0.00 0.00 0.00 0.00 0.25 1 month HIBOR (year-end) 0.43 0.47 0.60 0.78 0.95 45 45

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