RESULTS PRESENTATION For the year to 31 March 2016 Unless otherwise - PowerPoint PPT Presentation

RESULTS PRESENTATION For the year to 31 March 2016

Unless otherwise stated, all information on this slide relates to the ongoing business Highlights for the year Enhanced our client We deepened our core franchise and grew the client base  offering Decent levels of We experienced strong loan and deposit growth across our specialisations  activity Solid net There were strong net inflows into the Asset Management and Wealth & Investment  inflows businesses Positioned Internally, we made progress on a number of fronts to position the group for future success  for future success 2

Unless otherwise stated, all information on this slide relates to the ongoing business As a result … Statutory operating profit showed steady growth  Statutory results showed steady % change on % growth , despite average Rand Mar-16 Mar-15 neutral currency change depreciation of 16.3% basis Snapshot  Sale of certain businesses during the Operating profit* (£’ mn) 505.6 493.2 2.5% 13.5% of statutory previous financial year distorts the results comparability of the group’s financial Adjusted earning per position 41.3 39.4 4.8% 15.7% share^ (pence)  Solid performance from the ongoing Total dividend per share 21.0 20.0 5.0% na business which is what we focus on (pence) for the rest of the presentation *Before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests ^Before goodwill, acquired intangibles and non-operating items 3

Unless otherwise stated, all information on this slide relates to the ongoing business Difficult operating environment Results impacted by macro uncertainty and volatility 140 Closing rate Average rate % change % change 130 Since Since Since Since Mar-15 Sep-15 Mar-15 Sep-15 120 Exchange Rebased to 100 £ / Euro -7.9% -7.1% 7.1% -3.5% rates 110 100 £ / A$ -2.6% -13.4% 11.0% -0.2% 90 £ / ZAR 17.6% 0.9% 16.3% 7.2% 80 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 £ / US$ -3.2% -4.9% -6.5% -4.3% £/Rand £/Euro £/A$ £/US$ 120 Closing rate % change 110 Since Since Mar-15 Sep-15 Equity 100 Rebased to 100 Euro -18.7% -3.1% markets 90 JSE 0.6% 4.3% 80 DJIND -0.3% 8.6% 70 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 FTSE -7.0% 1.8% JSE FTSE Euro Stoxx 50 DJINDUS Source: Datastream 4

Unless otherwise stated, all information on this slide relates to the ongoing business Diversified business model Operating profit* % contribution to group by geography Increased contribution from UK  100% and Other businesses 80% UK and Other Geographic — Combined UK and Other business up 60% 12.8% in Pounds diversity Southern Africa 40% — Combined SA business up 8.0% in Rands despite difficult operating 20% environment 0% Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Operating profit* % contribution to group by business Consistent contribution from all  100% businesses 80% Business — The asset and wealth management Specialist Banking businesses contributed 35.0% to the diversity 60% group’s results Wealth & Investment 40% 20% Asset Management 0% Mar-10 Mar11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 *Before tax, goodwill, acquired intangibles, non-operating items, taxation, unallocated group costs and after other non-controlling interests 5

Unless otherwise stated, all information on this slide relates to the ongoing business Continued growth in key earnings drivers Third party assets under  £’bn 140 management of £121.7bn: 120 Asset Management Third party — Up 3.8% on a currency neutral basis 100 assets under 80 Wealth & Investment management^ 60 Other 40 20 - Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Customer accounts of £24.0bn:  £’bn 25 120% — Up 16.6% on a currency neutral basis Customer Customer accounts 100% 20 accounts (deposits) 80% Core loans and advances of  15 Core loans and and loans^ 60% advances to £17.5bn: customers 10 40% — Up 17.3% on a currency neutral basis Loans and 5 20% advances to customer deposits - 0% Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 ^The trend in this graph is done on a currency neutral basis using the Rand:Pound exchange rate applicable at 31 March 2016 6

Unless otherwise stated, all information on this slide relates to the ongoing business Supporting growth in operating income Series 1 £'mn Total operating income up 2.5%  2200 Trading income — Net interest income up 6.1% 2000 — Net fee and commission income 1800 Investment income down 2.9% 1600 — Investment income up 11.9% Other fees and other — Trading income from customer flow 1400 operating income up 30.9% Total 1200 operating Annuity fees and 1000 income commissions 800 Net interest income 600 Total operating 400 income on a currency neutral 200 basis^ 0 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 ^The trend for this line is done on a currency neutral basis using the Rand:Pound exchange rate applicable at 31 March 2016 7

Unless otherwise stated, all information on this slide relates to the ongoing business Fixed costs marginally up Cost to income down to 65.8% from 66.5% last year £’mn Operating income increased  2 500 2.5% to £1,935mn 2 000 Operating income Operating costs were up 1.4% to  Jaws ratio for 1 500 £1,272mn the group^ 1 000 Operating costs 500 - Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 10000 Headcount increased across all  businesses in line with growth 8000 Asset Management aspirations 6000 Total Wealth & Investment The acquisition of Blue Strata  permanent 4000 employees added 176 to the Specialist Specialist Banking 2000 Banking headcount 0 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 ^The trend in this graph is done on a currency neutral basis using the Rand:Pound exchange rate applicable at 31 March 2016 8

Unless otherwise stated, all information on this slide relates to the ongoing business Total impairments continued to decline £’ mn  Total impairments on loans and 350 advances decreased to £109.5mn (2015: £128.4mn) 300 250 Total impairment 200 charge (including Legacy and Sales* 150 legacy) by geography 100 South Africa 50 UK and Other 0 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 *Refers to the remaining UK legacy business and group assets that were sold in the 2015 financial year 9

Unless otherwise stated, all information on this slide relates to the ongoing business Resulting in a solid group performance % change currency neutral POUND EARNINGS Mar-16 Mar-15 % change basis Operating profit* before tax (£’ mn) 583.9 580.7 0.6% 9.9% Attributable earnings**^ (£’ mn) 423.1 409.9 3.2% 12.4% Adjusted EPS**^ (pence) 48.6 47.5 2.3% 11.4% Total shareholders’ equity (£’ mn) 3 859 4 040 (4.5%) 4.4% Customer accounts (deposits) (£’ bn) 24.0 22.6 6.3% 16.6% Net core loans and advances to customers (£’ bn) 17.5 16.5 6.3% 17.3% RAND EARNINGS Mar-16 Mar-15 % change Operating profit* before tax ( R’mn ) 12 114 10 374 16.8% Adjusted attributable earnings**^ ( R’mn ) 8 773 7 325 19.8% Adjusted EPS**^ (cents) 1 008 849 18.7% *Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests; **Before goodwill, acquired intangibles, non-operating items and after non- controlling interests; ^ After deducting preference dividends; ^^Amounts represented on a currency neutral basis assume that the closing and average exchange rates of the group’s relevant exchange rates relative to Pounds Sterling remain the same as at 31 March 2016 when compared to 31 March 201 5 10

Unless otherwise stated, all information on this slide relates to the ongoing business Progress made on our financial targets Statutory Ongoing Target Mar-16 Mar-15 Mar-16 Mar-15 ROE (post tax) 12%-16% over a rolling 5-yr period 13.9% 13.8% 11.5% 10.6% Summary of financial Adjusted* EPS growth Target: 10% > UKPRI 2.3% 10.2% 4.8% 4.0% targets Cost to income Target: < 65% 65.8% 66.5% 66.4% 67.6% Target: 1.7 – 3.5 times Dividend cover (times) na na 2.0x 2.0x Post- tax return on adjusted average shareholders’ equity 16 14.2 13.9 Target range 13.8 13.1 12.1 11.5 12 Returns 10.6 10 9.4 steadily 7.9 8 improving 4 0 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Ongoing Statutory Note: These are medium to long-term targets which we aim to achieve through varying market conditions *Adjusted EPS is before goodwill, acquired intangibles and non-operating items and after non-controlling interests and after deducting preference dividends 11