delivering on our promises delivering on our promises

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2 Sir George Mathewson Executive Deputy Chairman 19 April 2000

3 Slide 3 May August RBS summary results 6 months to 31 March 2000 Enlarged RBS Group results Period to 30 June 2000 February Enlarged RBS Group results Period to 31 December 2000

4 Slide 4 May August October November February RBS summary results 6 months to 31 March 2000 Enlarged RBS Group results Period to 30 June 2000 Progress report Divisional presentation Divisional presentation Enlarged RBS Group results Period to 31 December 2000 Progress Report

5 1999 Profit & Loss Accounts Slide 5 RBSG Barclays Lloyds HSBC bn Proforma TSB Net interest income Non-interest income Total income Expenses Insurance claims Profit before bad debts Bad debts Profit before tax Market Capitalisation RBSG Proforma based on RBSG Report & Accounts for year to September 1999, NatWest Ongoing Business Profit & Loss Account for year to December 1999 and annualised funding costs of transaction from Prospectus Supplement dated 31 January 2000

6 Sir George Mathewson Executive Deputy Chairman 19 April 2000

7 Fred Goodwin Group Chief Executive 19 April 2000

8 Clear Business Plan Days 1-30 Slide 8 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management Alignment of internal control structure Delegated authorities Credit authorities Board reporting Finalisation of detailed 3 year operating plans for all units Base case Action plans Alignment of bonuses and incentives to budgets

9 Clear Business Plan Days 1-30 Slide 9 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions

10 Clear Business Plan Business Architecture Slide 10 CUSTOMERS Coutts Adam Coutts Offshore / RBSI DLI Privilege Green Flag Linea Directa RBS Advanta RBS Cards NatWest Cards Joint Ventures DLFS Direct Bank Personal Small Business RSA Personal Small Business NW Life Corporate - RBS & NW Treasury - RBS & NW Greenwich NW (UK) Lombard Specialist Businesses Personal Business Corporate Personal Business Corporate Wealth Management Direct Line Retail Direct RBS NatWest Corporate & Treasury Ulster Bank Citizens (USA) MANUFACTURING Operations Mail Payments Cash ATM Call Centres Mortgages Card Processing Services HR Support Finance Support Purchasing Property Consultancy Credit Technology Development Service Delivery Strategy & Architectures Group Corporate Functions Legal Finance Human Resources Risk Strategy Investor Relations Corporate Affairs Audit/Compliance

11 Slide 11 Retention or Disposal? Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US Ulster Bank

12 Slide 12 Retention or Disposal? Gartmore

13 Slide 13 Retention or Disposal? Gartmore NatWest Equity Partners

14 Slide 14 Retention or Disposal? Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US

15 Slide 15 Retention or Disposal? Gartmore NatWest Equity Partners Greenwich NatWest UK

16 Slide 16 Retention or Disposal? Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US

17 Slide 17 Retention or Disposal? Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US Ulster Bank

18 Clear Business Plan Days 1-30 Slide 18 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management

19 Slide 19 Corporate Banking & Financial Markets Iain Robertson Johnny Cameron Brian Crowe Stephan Harris Chief Executive, Corporate Banking & Financial Markets Deputy Chief Executive, Corporate Banking & Financial Markets Group Treasurer & Managing Director, Financial Markets Deputy Treasurer, Financial Markets

20 Slide 20 Corporate Banking & Financial Markets Iain Robertson Chief Executive Johnny Cameron Corporate Banking Brian Crowe Financial Markets Large Corporate Mid Market Structured Finance Leveraged Finance Asset Finance Private Equity Payment, Trade & Banking Services FX, Currency Options & Equity Index Derivatives Money Markets Interest Rate Derivatives Sovereign Trading Credit Products Securitisation & Debt Structuring Sales and Marketing

21 Slide 21 Retail Banking Gordon Pell Benny Higgins Chief Executive, Retail Banking Deputy Chief Executive, Retail Banking

22 Slide 22 Retail Banking Gordon Pell Chief Executive Benny Higgins Deputy Chief Executive NW Retail Banking RBS Retail Banking Network Support Royal Scottish Assurance NatWest Life NatWest Marketing RBS Marketing Retail Credit Strategy & Change Management Finance Human Resources

23 Slide 23 Manufacturing Mark Fisher Peter Hayes Martin Webb John White Chief Executive, Manufacturing Director, Manufacturing Support Director, IT Development and Services Director, IT Integration

24 Slide 24 Manufacturing Mark Fisher Chief Executive Payment Operations Lending Operations Account Management Operations Telephony Operations Manufacturing Support IT Development and Services IT Integration Property Services Central Services

25 Slide 25 Other Divisions Norman McLuskie Cameron McPhail Ian Chippendale Martin Wilson Larry Fish Chief Executive, Retail Direct Chief Executive, Wealth Management Chief Executive, Direct Line Chief Executive, Ulster Bank Chairman, President & Chief Executive Officer, Citizens Financial Group

26 Slide 26 Group Finance Grahame Whitehead Bill Martin Richard Gossage Finlay Williamson Group Chief Financial Officer Head of Group Risk Head of Group Internal Audit Head of Group Corporate Finance & acting Head of Investor Relations

27 Slide 27 Group Finance Grahame Whitehead Group Chief Financial Officer Group Financial Control Accounting Services Group Financial Systems Group Financial Integration Group Corporate Finance Group Risk Group Internal Audit

28 Slide 28 Other Central Functions Miller McLean Iain Allan Howard Moody Neil Roden Group Director, Legal & Regulatory Affairs & Group Secretary Group Director, Strategy Group Director, Communications Group Director, Human Resources

29 Clear Business Plan Days 1-30 Slide 29 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management

30 Clear Business Plan Days 1-30 Slide 30 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management Alignment of internal control structure Delegated authorities Credit authorities Board reporting

31 Clear Business Plan Days 1-30 Slide 31 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management Alignment of internal control structure Delegated authorities Credit authorities Board reporting Finalisation of detailed 3 year operating plans for all units Base case Action plans

32 Slide 32 Action Plans - Cost Savings Annualised Cost Savings m Number of Initiatives Bid document 1, Improved initiatives Reduced initiatives (150) - Initiatives removed (70) (14) New initiatives Total 1, Inflation Total plus inflation 1,

33 Cost Savings Annualised amount implemented in each period Slide 33 m Dec-00 Dec-01 Dec-02 Mar-03

34 Cost Savings Impact on Profit Before Tax Slide 34 m 1, ,200 1, Dec-00 Dec-01 Dec-02 Dec-03

35 Staff Reductions Cumulative total Slide 35 20,000 15,000 14,000 16,000 18,000 10,000 9,000 5,000 0 Dec-00 Dec-01 Dec-02 Mar-03

36 Slide 36 Integration Costs m Dec-00 Dec-01 Dec-02 Mar-03

37 Slide 37 Action Plans - Cost Savings Annualised Cost Savings m Number of Initiatives Bid document 1, Improved initiatives Reduced initiatives (150) - Initiatives removed (70) (14) New initiatives Total 1, Inflation Total plus inflation 1,

38 Slide 38 Action Plans - Revenue Benefits Annualised Revenue Benefits m Number of Initiatives Bid document Improved initiatives 95 - Reduced initiatives (30) - Initiatives removed (25) (5) New initiatives Total Inflation 40 - Total plus inflation

39 Revenue Benefits Annualised amount implemented in each period Slide 39 m Dec-00 Dec-01 Dec-02 Mar-03

40 Revenue Benefits Impact on Profit Before Tax Slide 40 m Dec-00 Dec-01 Dec-02 Dec-03

41 Clear Business Plan Days 1-30 Slide 41 Application of new Group architecture Clustering of business units Creation of separate manufacturing division Creation of single treasury function Combination of head office functions Confirmation of all key appointments and responsibilities Make new appointments Redeploy or remove surplus management Alignment of internal control structure Delegated authorities Credit authorities Board reporting Finalisation of detailed 3 year operating plans for all units Base case Action plans Alignment of bonuses and incentives to budgets

42 Actual v Expected? Days 1-30 Slide 42 Good Surprises Co-operation Bureaucracy Greenwich NatWest Internet Bad Surprises Budget Property Remuneration Avoidance behaviour Wine cellar Cricket sponsorship

43 Objectives Days Slide 43 Communication Commence revitalisation of NatWest brand London business and property strategy Select IT platform Complete sale of RSA, NatWest Life, UBIM, UBIS, NWEP EGM - Additional Value Shares