Barclays Capital 2010 Global Financial Services Conference

Key H1 2010 financial highlights H1 results led by recovery in NIM, R&C businesses XRBS Core Business: Operating profit Return on Equity R&C NIM £4.5bn, (£4bn underlying 1) 15%, (11% underlying 1) 3.04%, +23bps y-o-y C:l Ratio 53% (adjusted²) Impairments £2.1bn Loan to deposit ratio 102% Group Balance Sheet Progress: Driven by strong Retail & Commercial performance Full Retail & Commercial recovery delivers target Driven by ongoing asset re-pricing Good cost management, trend favourable Funded assets 4 -2% (£26bn) vs FY09 Non-Core run-off £27bn reduction in TPAs 5 Capital strength Core Tier 1 of 10.5% Generally stable/improving 3 Close to long-run target of 100% ³ Demonstrating Non-Core reduction and subdued loan demand Tracking slightly ahead of plan, possible acceleration in H210 RBS is a well capitalised bank 1 Excluding Fair Value of Own Debt 2 Adjusted cost:income ratio is calculated based on income after the cost of insurance claims. Cost:income ratio before insurance claims is 46%. 3 Group target 4 Funded assets as at 30 June 2010 £1,058bn 5 Third party assets excluding derivatives 6

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