Barclays Global Financial Services Conference

Non-Core - 2013 'rump' make-up £bn 2013 rump of c.£40bn TPAs is forecast 40 2013 rump assets Corporate 44% CRE Retail 34% 5% 7% Markets Other1 10% 2013 by asset class 2013 Non-Core 'rump' estimated at c.£40bn, including: Corporate and other assets of low yield but generally good credit quality. CRE of c.£15bn, c.60-65% in longer-term work-out Natural run-off pace for rump is c.50% by 2016 CRE portfolio make-up, H112 H1 2012 CRE portfolio attributes: Exposure dominated by Investment lending 50% of book classed as REIL, provisioned at 45% Ulster Bank Development provisioned at 60% Well balanced by geography; 2/3 non-Ireland, UK biased to London and South-East 1 includes SME lending. 2 Includes US and Row. *RBS Group £30bn £30bn % 35 UK Investment 70 34 Ireland Devt Ireland Devt non Ireland W. Europe 25 25 Other2 5 Lending Type Geography 20 20

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