Financial Performance Update H1'23

Mortgage activity to remain subdued amid ongoing squeeze in buyer affordability + Total loans (£bn¹) 2,255 2,278 2,286 2,293 2,303 3.6% 3.0% 3.5% YOY (%) 2.5% 2.1% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23(e) 2,512 Total customer funds (£bn²) 2,534 2,542 2,524 2,533 Secured lending growth to slow rapidly in 2023 as demand hit by sharp rises in mortgage rates Unsecured lending growth to remain robust as households use credit cards to manage expenditure during the period of high inflation ▸ Corporate borrowing growth to weaken in response to declining investment intentions and higher interest rates Retail deposit flows expected to fall back as cost of living pressures bite YOY (%) 3.8% 3.6% 2.9% 1.5% 0.8% Corporate deposit growth weakens as firms use deposits to navigate through the challenging high inflation environment Jun-22 Sep-22 Dec-22 Mar-23 Jun-23(e) Santander Source: Bank of England Bankstats (Monetary and Financial Statistics) published at end-June 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. UT 5

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