Barclays Capital 2010 Global Financial Services Conference

R&C franchise gaining momentum – UK Retail sustaining NIM development Robust mortgage lending & sustainably improved margins XRBS Strong growth in deposits % 4.0 3.5 3.0 2.5 INIM - Mortgage Lending £bn £bn 90 90 85 80 80 70 75 2.0 60 70 Q109 Q209 Q309 Q409 Q110 Q210 Q109 Q209 Q309 Q409 Q110 Q210 Restoring profitability – Improving operating leverage - Growing customer numbers Q-o-Q1 Y-0-Y² Income growth 6% 5% Cost growth 3% (3%) Pre impairment profit 9% 18% Y-o-Y² Current accounts growth +2% Saving accounts growth +5% Mortgage account growth +8% ■Margin rebuild driving higher divisional revenues ■ Cost initiatives gaining traction 1 Q210 versus Q110 2 Q210 versus Q209 ■Retail franchise gains are increasing customer numbers ■Competitive products continue to grow RBS market share in focused areas 12

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