European Banks 16 July 2012

Industry Update Mark Phin, CFA Analyst +44 2 7663 5279 mphin@kbw.com Andrew Stimpson Analyst +44 2 7663 3233 astimpson@kbw.com Vasco Moreno Analyst +44 2 7663 5282 vmoreno@kbw.com Luke Birtwistle Associate +44 27 663 5284 lbirtwistle@kbw.com European Banks 16 July 212 LIBOR - Sizing the potential damage The potential financial and reputational damage caused by Barclays' false LIBOR submissions has rightly raised company and sector concerns. Unequivocally, the LIBOR probes are a negative development and could have wide-ranging consequences. The direct financial penalties ( 29m for Barclays) are unhelpful, but likely to be very manageable. The far larger issue is the potential for (1) substantial civil damages, and/or (2) implications for senior management if found to be complicit. While we claim no legal expertise and acknowledge that estimates are necessarily speculative, we attempt to size potential industry damages. We arrive at U$35bn. Most impacted would be Barclays/RBS/Deutsche, where our estimated damages amount to 3.1bn/ 3.bn/ 3.4bn, accounting for 46%/18%/34% of 212-14E Basel 3 capital build, respectively. We take some comfort from (1) prior securities settlements, and (2) a likely elongated legal process, and our base case is that this situation does not bring with it external capital risk. Civil actions could be material... Direct damages (ie, fines) are likely to be very manageable, and we see greater financial risk from potential civil actions. We size the potential issue for the industry, but with inherent difficulty in estimation, we caveat that the list of assumptions in our methodology is long, the numbers large and the sensitivities high....we estimate U$35bn of industry settlements. We estimate U$35bn for the industry,.1-1.2% of 212E B2 RWAs across the European panel banks. We use the notional size of the (large) interest rate derivatives market as our base, adjusted for affected currencies and intra-dealer exposures. We then estimate the period affected, level of LIBOR suppression and the size of any settlement as a % of overall possible damages. We provide a sensitivity. Burden of proof will be high. We find little correlation between the average CDS of the panel banks and LIBOR-OIS, simplistically leaving some element of suppression from the panel banks as possible. However, correlations alone are not incontrovertible and we believe the burden of proof will be high. Recommendations intact. Large, class action lawsuits take a lot of time to complete, with 5-8 years between filing and settlement not uncommon, in turn allowing even the most impacted banks to increase capital ratios ahead of any potential settlement. We remain buyers of Barclays (tgt, 28p), RBS (tgt 33p), Credit Suisse (tgt CHF 27.2), UBS (CHF 16.8) and HSBC (tgt 64p). Please refer to important disclosures and analyst certification information on pages 22-25.

16 July 212 Figure 1: Summary valuation table Rec Price TP EPS PE NAV P/NAV 212E 213E 214E 212E 213E 214E 212E 213E 214E 212E Barclays (p) OP 162 28 3.2 3.8 35.5 5.4 5.3 4.6 356 38 49.46 Lloyds (p) MP 3 34 1.8 4.1 5.1 16.8 7.4 5.9 58 63 68.52 RBS (p) OP 26 33 8.8 24.4 43.6 23.5 8.5 4.7 48 499 539.43 HSBC (p) OP 56 64 44.3 61.9 74.4 12.6 9. 7.5 466 55 555 1.2 StanChart (p) MP 1474 1675 131.5 141.9 156.8 11.2 1.4 9.4 932 126 1128 1.58 Credit Suisse (CHF) OP 17.1 27.2 2.68 3.4 3.71 6.4 5. 4.6 21.2 24.1 27.1.81 Deutsche Bank (EUR) MP 26. 38.5 5.9 6.1 6.53 5.1 4.3 4. 45.4 5.7 56.8.57 UBS (CHF) OP 1.4 16.8 1.55 1.68 1.94 6.7 6.2 5.4 12.6 13.5 14.8.83 Source: KBW research estimates LIBOR basics Barclays settlement with the Financial Services Authority (FSA), US Commodity Futures Trading Commission (CFTC) and the US Department of Justice fraud section (DOJ) has understandably caused significant concern, not just for Barclays, but also for the other banks on the rate setting panels. We set out the basics and while not possible with any degree of accuracy given what we expect will be an elongated legal process attempt to frame the potential monetary risks. LIBOR/EURIBOR in a nutshell LIBOR and EURIBOR are short-term interest rate benchmarks intended to reflect unsecured borrowing costs in certain interbank markets, and are widely used as benchmarks to price OTC derivatives, bonds, loans, etc. Each bank on the panel submits rates daily, with different definitions between LIBOR and EURIBOR, as follows: LIBOR: The rate at which an individual contributor panel bank could borrow funds, were it to do so by asking for and then accepting interbank offers in reasonable market size just prior to 11: London time (http://.www.bbalibor.com/bbalibor-explained/definitions) EURIBOR: The rate at which euro interbank term deposits are being offered within the EMU zone by one prime bank to another at 11: am Brussels time. (http://.www.euribor-ebf.eu/euribor-org/abouteuribor.htmlbbalibor.com/bbalibor-explained/definitions) The submissions are then transmitted to Thomson Reuters, who collate the data from each bank and calculate the final average on behalf of the BBA (for LIBOR) and the EBF (for EURIBOR), on the following basis. LIBOR: The highest and lowest 25% of contributed rates are excluded from the calculation and the remaining submissions are then averaged to calculate the fixed rates. EURIBOR: The highest and lowest 15% are excluded and the remaining 7% are averaged to calculate the fixed rates. Please refer to important disclosures and analyst certification information on pages 22-25. 2

16 July 212 Figure 2: BBA LIBOR panel banks, 27 USD GBP EUR Bank of America Abbey National plc Bank of America Bank of Tokyo Mitsubishi UFJ Bank of America Barclays Bank plc Barclays Bank plc Bank of Tokyo Mitsubishi UFJ Bank of Tokyo Mitsubishi UFJ Citibank NA BNP Paribas Citibank NA Credit Suisse Barclays Bank plc Credit Suisse Deutsche Bank AG Citibank NA Deutsche Bank AG HBOS Deutsche Bank AG HBOS HSBC HBOS HSBC JP Morgan Chase HSBC JP Morgan Chase Lloyds TSB Bank plc JP Morgan Chase Lloyds TSB Bank plc Rabobank Lloyds TSB Bank plc Rabobank Royal Bank of Canada Rabobank Royal Bank of Canada The Norinchukin Bank Royal Bank of Canada Société Générale The Royal Bank of Scotland Group The Royal Bank of Scotland Group The Royal Bank of Scotland Group UBS AG UBS AG UBS AG West LB AG West LB AG West LB AG JPY CHF Bank of America Barclays Bank plc Bank of Tokyo Mitsubishi UFJ Bank of Tokyo Mitsubishi UFJ Barclays Bank plc Citibank NA Citibank NA Credit Suisse Deutsche Bank AG Deutsche Bank AG HSBC HSBC JP Morgan Chase JP Morgan Chase Lloyds TSB Bank plc Lloyds TSB Bank plc Mizuho Corporate Bank Société Générale Rabobank The Royal Bank of Scotland Group Société Générale UBS AG Sumitomo Mitsui Banking Corporation Europe West Ltd (SMBCE) LB AG The Norinchukin Bank The Royal Bank of Scotland Group UBS AG West LB AG Source: BBA, KBW Research. NB. KBW European coverage emboldened by KBW Research Barclays LIBOR-related settlement Simply put, at various times, Barclays input false LIBOR/EURIBOR submissions. There are, however, two very separate reasons leading to separate implications: Barclays traders not alone in manipulating LIBOR 1. Trading positions of its derivative traders: Employees responsible for LIBOR/EURIBOR submissions accommodated trader requests (in at least London, New York and Tokyo) on the level of those submissions. On occasion, that affected the overall LIBOR average. There was also coordination with traders at other financial institutions, including other panel members. There was a clear profit motive. Additionally, the FSA identifies systems and control failings at Barclays, as well as compliance failings (as LIBOR-related issues were escalated to the IB compliance function on three occasions in 27/8). It is very clear from the documentation that Barclays was not alone here, and we would fully expect other banks and individuals to be implicated. At this stage, though, we do not know exactly which ones. Please refer to important disclosures and analyst certification information on pages 22-25. 3

6/7 8/7 1/7 12/7 2/8 4/8 6/8 8/8 1/8 12/8 2/9 4/9 6/9 8/9 1/9 12/9 2/1 4/1 6/1 8/1 1/1 12/1 2/11 4/11 6/11 8/11 1/11 12/11 2/12 4/12 6/12 % 16 July 212 Bigger issue: were all banks suppressing the LIBOR average? 2. Concerns about negative media attention: In 28, Barclays relatively high USD LIBOR submissions were cited by the press as, perhaps, reflective of liquidity issues. As a result, Barclays senior management (now known to be Jerry del Missier, COO) directed that those submissions should be lowered, resulting in input rates that did not reflect the cost of obtaining interbank funding. There is no evidence that the intention of Barclays management was to affect official published LIBOR rates. We think this is potentially a far bigger issue for the industry given the magnitude of the possible suppression and subsequent damages. Being outside the banks means that judging this will always be a tricky exercise. However, we believe it is sensible to assume that there should be a correlation between the LIBOR-OIS spread and the average CDS spread of the LIBOR panel banks. While some periods do show an element of correlation (2H11, 2Q1, 1Q9), the majority does not tally: we note that LIBOR-OIS came down materially in 2H8 even as CDS continued rising until March 29. Figure 3: Panel-bank CDS correlates poorly with LIBOR-OIS 6. 5. 4. 3. 2. 1.. U$ 3 Mth LIBOR LIBOR/OIS spread Average CDS of U$ LIBOR panel Source: Bloomberg, BBA, KBW Research Three potential impacts Direct financial penalties: The combined financial penalties imposed on Barclays were 29m, following settlement with the DoJ (U$16m), US CFTC (U$2m) and FSA 59.5m (after a 3% discount for early settlement). While unhelpful, with a c 1m provision taken in 1Q12, the charge represents a modest c5bps of 1Q12 RWAs. In addition, Barclays was granted conditional leniency from the DoJ in connection with antitrust violations with respect to financial instruments that reference EURIBOR. Management implications: The fallout from the LIBOR case has already resulted in (1) the resignation of Marcus Agius (Chairman) on 2 nd July, (2) the resignation of Bob Diamond (CEO) on 3 rd July (with Marcus Agius named as interim full-time Chairman to lead the search for a new CEO), and (3) Jerry del Missier (COO) on 3 rd July (following disclosure that he passed direction to the LIBOR submitters to lower inputs). To date, none of the Please refer to important disclosures and analyst certification information on pages 22-25. 4

16 July 212 divisional managers have been affected, nor implicated, but it is impossible to dismiss further fallout. The position of other banks and respective management teams will only become clear in time, although we note press reports of several trader suspensions at multiple banks (e.g. Reuters 9 Feb 212). Civil actions: As the results of the investigations are placed into the public domain, we would expect claims to grow (class action litigation has been forming for some time, with one US judge having already consolidated cases). We explore the costs of potential civil action cases in the next section, which we believe could be meaningful. Civil damages could reach ~U$35bn We make an initial industry estimate of potential damages from the LIBOR case of cu$35bn, with Barclays, RBS and Deutsche most affected in absolute terms within our European coverage universe. We set out our methodology below, which we apply equally across all affected banks on the US$ LIBOR panel. We expect the details on which banks are likely to be more affected by such litigation to become clear over the next few months and years, rather than weeks. Given the difficulties in calculating litigation losses, we acknowledge that our estimates are speculative and include a sensitivity table. Figure 4: KBWe LIBOR litigation loss estimation U$tr Industry Barclays RBS HSBC Lloyds DBK CS UBS* Notional rate derivatives (21), all currencies 465.3 64.9 61.8 18.1 3.5 58.8 41.2 35.2 % U$ and combined 7% 7% 7% 7% 7% 7% 7% 7% Notional rate derivatives (21), U$ and (estimate) 327.7 45.7 43.5 12.8 2.5 41.4 29. 24.8 % customer business 71% 71% 71% 71% 71% 71% 71% 71% Notional customer derivatives (estimate) 232.7 32.5 3.9 9.1 1.8 29.4 2.6 17.6 Number of years 4 % of time LIBOR suppressed 25% LIBOR supression.2% Settlement % of 'damages' 1% Potential settlement (U$bn) taxed (@25%) 34.9 4.9 4.6 1.4.3 4.4 3.1 2.6 Potential settlement (Local currency) taxed 3.1 3. 1.4.2 3.4 2.9 2.5 % of 212 B2 RWA (%).8%.7%.1%.1% 1.2% 1.3% 1.3% % of 212 B3 RWA (%).7%.5%.1%.%.7% 1.%.8% Current 212-14E B3 capital build 1.5% 3.% 1.8% 3.% 2.1% 3.9% 4.8% Settlement estimate % capital build 46% 18% 6% 2% 34% 26% 16% Note: *Damages may be reduced by 2/3 for UBS to allow for DOJ leniency agreement benefit. We use a standard 25% tax rate across all banks. Source: Bank of International Settlements, Company reports, KBW Research estimates Our estimates by bank are dictated by outstanding notional interest rate derivatives at end-21, and we make no attempt to differentiate or apportion blame. We see Barclays ( 3.1bn net), RBS ( 3.bn net) and Deutsche ( 3.4bn net) as potentially most impacted in absolute terms, with Lloyds (.2bn) and HSBC (U$1.4bn) least. Damages of this magnitude would clearly be unhelpful as banks look to increase capital levels in advance of Basel 3 implementation, but crucially, our estimates of potential damages are equivalent to 2-46% of our 212-14E Basel 3 capital build estimates, rather than moving capital ratios down from those at end-212. As noted below, we also think that any settlement could well occur beyond our forecast period, in turn allowing a further period to build capital. Please refer to important disclosures and analyst certification information on pages 22-25. 5

1H98 2H98 1H99 2H99 1H 2H 1H1 2H1 1H2 2H2 1H3 2H3 1H4 2H4 1H5 2H5 1H6 2H6 1H7 2H7 1H8 2H8 1H9 2H9 1H1 2H1 1H11 2H11 U$trillion 16 July 212 Figure 5: Sensitivity of industry losses to changes in: Increase of: losses (U$bn) Affected assets +/-$1bn 15. % time LIBOR suppressed +/-5% 7. LIBOR suppression size +/-.1% 17.5 Settlement % damages +/-1% 3.5 Source: Bloomberg, BBA, KBW Research Estimating the damages and settlements Given the difficulties in estimating potential legal costs, we acknowledge that our estimates are subjective, and almost all our assumptions used here could be open to debate. However, we explain our thinking and methodology in estimating damages and likely settlement amounts below: Size of affected securities In judging the size of the potential affected securities, we establish our start point as the notional amount of interest rate derivatives: we believe this forms a reasonable proxy for the size of the potential Libor-related market. This market has grown from U$42bn in 1998 to U$54bn at end-211, according to BIS data, with ~7% in US$ and EUR. Figure 6: Interest rate derivatives outstanding (notional), 1H98-2H11 6 5 4 3 2 1 Canadian $ Euro Jap yen Sterling Swed krona Swiss franc US $ Other Source: Bank of International Settlements, KBW Research BIS data also helps us to eliminate the amount of notional derivatives that exist between the reporting dealers, which by BIS definitions is essentially investment banks and securities houses which we assume will not sue each other (i.e. zero sum between dealers). On the 21 BIS data, this is ~29% of the total volume. The notional value of customer interest rate derivatives at risk of applying for damages is therefore reduced to $233tr. Please refer to important disclosures and analyst certification information on pages 22-25. 6

Settlement (U$bn) Median Settlemnt % of 'estimated damages' 16 July 212 Figure 7: Interest rate derivatives counterparty split U$bn Dec-9 Jun-1 Dec-1 Dec-11 Total contracts 449,875 451,831 465,26 553,24 54,98 o/w Reporting dealers 138,58 132,128 134,483 159,222 157,33 o/w Other financial institutions 275,688 282,31 293,49 354,281 39,362 o/w Non-financial customers 35,67 37,673 37,286 39,737 37,46 "Reporting dealers" 31% 29% 29% 29% 31% Non "reporting dealers" 69% 71% 71% 71% 69% Source: Bank of International Settlements, KBW Research Estimating the size of the damages sought The Schwab case highlights a period of 4 years where LIBOR was potentially suppressed from 27-211. However, we would also assume that LIBOR was not suppressed at all times through that period. Also, even during the prolonged crisis there were times when the market was working and things calmed slightly (e.g. in mid-29, European banks equity rallied to 1.6x 12m forward NAV). We therefore assume that LIBOR was suppressed for ~25% of those 4 years. The size of the suppression itself is difficult to measure. Clearly the plaintiffs in the Schwab case will argue it is high (they cite various sources showing estimates of 3-4bp), while, should a case get to this stage, the banks will argue the suppression is smaller. In our scenario we assume a 2bps average suppression, in turn bringing potential damages down to U$349bn. Settlement % typically a fraction of potential damages Estimating the size of potential settlements While it is difficult to predict any settlement amount with any degree of accuracy, we find a study of securities class action settlements by Cornerstone Research informative. Based on a research sample of common stock fraud cases (ie, excluding cases with alleged classes comprising only bondholders, preferred stockholders, etc), they make a number of interesting observations, but most importantly that settlements as a % of estimated damages ranges from 1% in small cases to 1% for large cases and an average of 3%. Figure 8: Securities settlement (22-211) and Median Settlement as % of estimated damages * by damage range (1996-211) 2 18 16 14 12 1 8 6 4 2 22 23 24 25 26 27 28 29 21 211 12% 1% 8% 6% 4% 2% % Settlement (ex large cases) WorldCom Enron Tyco 1996-21 211 Source: Cornerstone Research 211 Review and Analysis. Charts reproduced by KBW Research from http://www.cornerstone.com/files/publications/ae54ba8-283-4c-9481-1828ec4ed8/presentation/publicationattachment/f3e4174-ec8a-4eb3-ba22-19bd5162f9e/cornerstone_research_settlements_211_analysis.pdf *Cornerstone Research uses as a simplified approach to calculate estimated damages and do not intend for any damages estimate to be indicative of actual economic damages borne by shareholders. Please refer to important disclosures and analyst certification information on pages 22-25. 7

16 July 212 Clearly, each case has to be taken in isolation, and the numbers related to LIBOR are potentially larger than anything that we know of, but we observe the following with regard to prior securities class actions: The typical duration between filing date and settlement hearing date is around 3.5 years, but can be substantially longer. Credit-crisis related cases have settled at a slower rate than traditional cases, and while those have settled for higher U$ amounts (than non credit-crisis related cases), they have settled at a lower % of estimated damages (c3% on average 29-11). Settlements generally increase as estimated damages increase, but also settlements as a percentage of estimated damages typically decrease as damages increase. The burden of proof We expect the burden of proof on the part of plaintiffs to be high, something which is very apparent even in the Schwab case. We expect some of the challenges to be: Establishing whether LIBOR was incorrectly stated in the first place. With some firms acting as whistleblower and co-operating fully with investigations, along with the Barclays fines and evidence, we think the trader element should be straightforward to prove for at least some of the defendant banks where trader emails and instructions/requests exist. However, this is a small part of the case, and we think LIBOR will only have been marginally impacted and not in the same direction. The more difficult part of the case will be to prove that LIBOR rates were suppressed for an extended period, which we expect to be the substantive part of the potential damages claim. If LIBOR is proven to have been incorrectly stated, the plaintiffs will need to prove that a loss has actually taken place. Nearly all counterparties will have some element of borrowing costs themselves, so saying that they lose out on purchasing a LIBOR-based instrument ignores the economic profit from being able to refinance oneself with cheaper funds as well. Please refer to important disclosures and analyst certification information on pages 22-25. 8

Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 16 July 212 Appendix 1 Figure 9: Panel bank LIBOR submissions vs LIBOR & relative CDS (27-12) 1 16 1 16 HSBC Barclays US LIBOR delta, bps (LHS) 5 CDS Delta 8 5 8-5 -8-5 -8-1 -16-1 -16 1 Lloyds 16 1 RBS 16 5 8 5 8-5 -8-5 -8-1 -16-1 -16 1 UBS 16 1 Credit Suisse 16 5 8 5 8-5 -8-5 -8-1 -16-1 -16 1 Deutsche Bank 16 1 16 5 8 5 8-5 -1-8 -16-5 -1 Bank of America -8-16 Note: CDS delta = Bank CDS versus average CDS for panel banks Source: Bloomberg, BBA, KBW Research Please refer to important disclosures and analyst certification information on pages 22-25. 9

Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 Jun-7 Jun-8 Jun-9 Jun-1 16 July 212 Figure 1: Panel bank LIBOR submissions vs LIBOR & relative CDS (27-12) 1 16 1 16 5 US LIBOR delta, bps (LHS) CDS Delta 8 5 8-5 -8-5 -8-1 Bank of Tokyo Mitsubishi UFJ -16-1 Citibank NA -16 1 HBOS 16 1 JP Morgan Chase 16 5 8 5 8-5 -8-5 -8-1 -16-1 -16 1 Rabobank 16 1 Royal Bank of Canada 16 5 8 5 8-5 -8-5 -8-1 -16-1 -16 1 The Norinchukin Bank 16 1 16 5 8 5 8-5 -8-5 -8-1 -16-1 West LB AG -16 Note: CDS delta = Bank CDS versus average CDS for panel banks Source: Bloomberg, BBA, KBW Research Please refer to important disclosures and analyst certification information on pages 22-25. 1

16 July 212 Appendix 2: Report & Accounts extracts (211) Barclays The FSA, the US Commodity Futures Trading Commission, the SEC, the US Department of Justice Fraud Section of the Criminal Division and Antitrust Division and the European Commission are amongst various authorities conducting investigations into submissions made by Barclays and other panel members to the bodies that set various interbank offered rates. Barclays is co-operating in the relevant investigations and is keeping regulators informed. In addition, Barclays has been named as a defendant in a number of class action lawsuits filed in US federal courts involving claims by purported classes of purchasers and sellers of LIBOR-based derivative products or Eurodollar futures or options contracts between 26 and 29. The complaints are substantially similar and allege, amongst other things, that Barclays and other banks individually and collectively violated US antitrust and commodities laws and state common law by suppressing LIBOR rates during the relevant period. Barclays has been informed by certain of the authorities investigating these matters that proceedings against Barclays may be recommended with respect to some aspects of the matters under investigation, and Barclays is engaged in discussions with those authorities about potential resolution of those aspects. It is not currently possible to predict the ultimate resolution of the issues covered by the various investigations and lawsuits, including the timing and the scale of the potential impact on the Group of any resolution. Lloyds Several government agencies in the UK, US and overseas, including the US Commodity Futures Trading Commission, the US SEC, the US Department of Justice and the FSA as well as the European Commission, are conducting investigations into submissions made by panel members to the bodies that set various interbank offered rates. The Group, and/or its subsidiaries, were (at the relevant time) and remain members of various panels that submit data to these bodies. The Group has received requests from some government agencies for information and is co-operating with their investigations. In addition, recently the Group has been named in private lawsuits, including purported class action suits in the US with regard to the setting of London interbank offered rates (LIBOR). It is currently not possible to predict the scope and ultimate outcome of the various regulatory investigations or private lawsuits, including the timing and scale of the potential impact of any investigations and private lawsuits on the Group. RBS Certain members of the Group have been named as defendants in a number of class actions and individual claims filed in the US with respect to the setting of LIBOR. The complaints are substantially similar and allege that certain members of the Group and other panel banks individually and collectively violated US commodities and antitrust laws and state common law by manipulating LIBOR and prices of LIBOR based derivatives in various markets through various means. The Group considers that it has substantial and credible legal and factual defences to these and prospective claims. The Group continues to receive requests from various regulators investigating the setting of LIBOR and other interest rates, including the US Commodity Futures Please refer to important disclosures and analyst certification information on pages 22-25. 11

16 July 212 Trading Commission, the US Department of Justice, the European Commission, the FSA and the Japanese Financial Services Agency. The authorities are seeking documents and communications related to the process and procedures for setting LIBOR and other interest rates, together with related trading information. In addition to co-operating with the investigations as described above, the Group is also keeping relevant regulators informed. It is not possible to estimate with any certainty what effect these investigations and any related developments may have on the Group. HSBC Various regulators and competition and enforcement authorities around the world including in the UK, the US and the EU, are conducting investigations related to certain past submissions made by panel banks in connection with the setting of London interbank offered rates ( LIBOR ) and European interbank offered rates. As certain HSBC entities are members of such panels, HSBC and/or its subsidiaries have been the subject of regulatory demands for information and are cooperating with their investigations. In addition, HSBC and other panel banks have been named in putative class action lawsuits filed by private parties in the US with respect to the setting of US dollar LIBOR. Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of these regulatory investigations or putative class action lawsuits, including the timing and potential impact, if any, on HSBC. Deutsche Deutsche Bank AG has received various subpoenas and requests for information from certain regulators and governmental entities in the United States and abroad, including the U.S. Department of Justice, the U.S. Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and the European Commission, in connection with setting interbank offered rates for various currencies. These inquiries relate to various periods between 25 and 211. Deutsche Bank is cooperating with these investigations. In addition, a number of civil actions, including putative class actions, have been filed in federal courts in the United States against Deutsche Bank AG, an affiliate and numerous other banks on behalf of certain parties who allege that they transacted LIBOR-based financial instruments and that the defendants manipulated, through various means, the U.S. dollar LIBOR rate and prices of U.S. dollar LIBOR-based derivatives in various markets. Claims for damages are asserted under various legal theories, including violations of the Commodity Exchange Act and the antitrust laws. The civil actions have been consolidated for pre-trial purposes in the United States District Court for the Southern District of New York. The litigations are in their early stages. UBS Several government agencies, including the SEC, the US Commodity Futures Trading Commission, the DOJ and the FSA, are conducting investigations regarding submissions with respect to British Bankers Association LIBOR rates. We understand that the investigations focus on whether there were improper attempts by UBS (among others), either acting on our own or together with others, to manipulate LIBOR rates at certain times. In addition, the Swiss Competition Commission (WEKO) has commenced an investigation of numerous banks and financial intermediaries concerning possible collusion relating to LIBOR and TIBOR reference rates and certain derivatives transactions. Please refer to important disclosures and analyst certification information on pages 22-25. 12

16 July 212 UBS has been granted conditional leniency or conditional immunity from authorities in certain jurisdictions, including the Antitrust Division of the DOJ and WEKO, in connection with potential antitrust or competition law violations related to submissions for Yen LIBOR and Euroyen TIBOR. WEKO has also granted UBS conditional immunity in connection with potential competition law violations related to submissions for Swiss franc LIBOR and certain transactions related to Swiss franc LIBOR. The Canadian Competition Bureau has granted UBS conditional immunity in connection with potential competition law violations related to submissions for Yen LIBOR. As a result of these conditional grants, we will not be subject to prosecutions, fines or other sanctions for antitrust or competition law violations in the jurisdictions where we have conditional immunity or leniency in connection with the matters we reported to those authorities, subject to our continuing cooperation. However, the conditional leniency and conditional immunity grants we have received do not bar government agencies from asserting other claims against us. In addition, as a result of the conditional leniency agreement with the DOJ, we are eligible for a limit on liability to actual rather than treble damages were damages to be awarded in any civil antitrust action under US law based on conduct covered by the agreement and for relief from potential joint-and-several liability in connection with such civil antitrust action, subject to our satisfying the DOJ and the court presiding over the civil litigation of our cooperation. The conditional leniency and conditional immunity grants do not otherwise affect the ability of private parties to assert civil claims against us. On 16 December 211, the Japan Financial Services Agency (JFSA) commenced an administrative action against UBS Securities Japan Ltd (UBS Securities Japan) based on findings by the Japan Securities and Exchange Surveillance Commission (SESC) that (i) a trader of UBS Securities Japan engaged in inappropriate conduct relating to Euroyen TIBOR (Tokyo Interbank Offered Rate) and Yen LIBOR, including approaching UBS AG, Tokyo Branch, and other banks to ask them to submit TIBOR rates taking into account requests from the trader for the purpose of benefiting trading positions; and (ii) serious problems in the internal controls of UBS Securities Japan resulted in its failure to detect this conduct. Based on the findings, the JFSA issued a Business Suspension Order requiring UBS Securities Japan to suspend trading in derivatives transactions related to Yen LIBOR and Euroyen TIBOR from 1 January to 16 January 212 (excluding transactions required to perform existing contracts). The JFSA also issued a Business Improvement Order that requires UBS Securities Japan to (i) develop a plan to ensure compliance with its legal and regulatory obligations and to establish a control framework that is designed to prevent recurrences of the conduct identified in the JFSA s administrative action, and (ii) provide periodic written reports to the JFSA regarding the company s implementation of the measures required by the order. On the same day the JFSA also commenced an administrative action against UBS AG, Tokyo Branch, based on a finding that an employee of the Tokyo branch continuously received approaches from an employee of UBS Securities Japan regarding Euroyen TIBOR rate submissions, which was determined to be an inappropriate practice that was not reported to the branch s management. Pursuant to this administrative action, the JFSA issued an order under the Japan Banking Act which imposes requirements similar to those imposed under the Business Improvement Order directed to UBS Securities Japan. A number of putative class actions and other actions have been filed in federal courts in the US against UBS and numerous other banks on behalf of certain parties who transacted in LIBOR based derivatives. The complaints allege manipulation, through Please refer to important disclosures and analyst certification information on pages 22-25. 13

16 July 212 various means, of the US dollar LIBOR rate and prices of US dollar LIBOR based derivatives in various markets. Claims for damages are asserted under various legal theories, including violations of the US Commodity Exchange Act and antitrust laws. Credit Suisse On February 3, 212, following related investigations in the US and in the UK by the respective authorities, the Swiss Competition Commission commenced an investigation involving twelve banks and certain other financial intermediaries, including the Group, concerning alleged collusive behaviour among traders to affect the bid ask spread for derivatives tied to the LIBOR and TIBOR reference rates fixed with respect to certain currencies. The investigation also relates to alleged collusive agreements to influence these reference rates. Credit Suisse is not a panel bank for Yen LIBOR, Yen TIBOR or Euroyen TIBOR. Credit Suisse is cooperating fully with these investigations. Please refer to important disclosures and analyst certification information on pages 22-25. 14

16 July 212 Figure 11: Barclays summary estimates, 211-14E GROUP P&L ( m) 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 Net Interest Income 1221 12198 12546 13125 Fees & Commissions 8622 8924 92 963 Principal Transaction 9965 4367 7219 7691 Premiums from Insurance 154 381 398 414 Income (net of claims) 32292 2587 29364 386 7399 7931 9883 779 5518 Own credit 278-262 -351 44 2882-263 -262 Income (ex own credit) 29584 2849 29364 386 775 7491 71 7342 8138 Expenses -1918-18783 -19323-24 -4842-494 -4659-4739 -4949 Trading Surplus 13112 787 141 182 2557 2991 5224 234 569 Impairment charge -382-3416 -3541-3474 -921-97 -123-951 -778 Share of Associates/dividends 6 66 65 65 17 19 18 6 34 Underlying PBT 937 3737 6566 7411 1653 213 4219 1395-175 Exceptionals -3491-29 2-1114 -1797-582 -3 Profit Before Tax 5879 3447 6566 7411 1655 989 2422 813-475 Tax -1928-911 -177-1927 -414-247 -156-211 138 Profit after tax 3951 2537 4859 5484 1241 742 1366 62-337 M inority interests (Absa mainly) -43-352 -376-395 -219-211 M inority interests (non-equity) -514-535 -545-556 -229-37 -213-35 -213 Attributable Profit 37 165 3937 4533 112 486 1153 356-55 Underlying attributable 5512 3846 3933 4529 111 1194 2952 355 1659 Balance sheet ( m) Net loans 431934 438451 451871 46886 434963 441983 451345 431934 438451 Assets 1563527 1581286 167562 163533 1492 1492922 1528225 1563527 1581286 Shareholders equity 55589 53227 56285 59911 5465 51572 53529 55589 53227 Per share (p) Basic EPS 25.1 13.4 31.2 35.9 8.5 4. 9.7 2.9-4.5 Underlying EPS 44. 3.2 3.8 35.5 7.1 1.4 23.4 3. 13. DPS 6. 6.5 7. 7.5 1. 1. 1. 3. 1. Key ratios Cost/income 59.4% 72.6% 65.8% 64.9% 65.4% 62.3% 47.1% 66.9% 89.7% Impairment charge (bps) 8 71 71 68 76 76 81 7 64 NPLs (bps) 445 4 3 25 54 47 46 445 4 NPL coverage 5% 47% 51% 57% 52% 49% 48% 5% 47% LDR 118% 116% 115% 115% 121% 118% 122% 118% 116% Equity/Assets 3.6% 3.4% 3.5% 3.7% 3.4% 3.5% 3.5% 3.6% 3.4% Tangible equity/assets 3.1% 2.9% 3.% 3.2% 3.% 2.9% 3.% 3.1% 2.9% RoNAV 12.7% 8.6% 8.5% 9.1% 9.5% 11.1% 28.1% 3.3% 14.6% ROE 1.7% 7.3% 7.3% 7.9% 8.1% 9.4% 23.4% 2.8% 12.4% RWA return 1.4%.97%.97% 1.8% 1.3% 1.22% 3.1%.36% 1.69% Key data Core capital (B2) 4366 43214 46547 5365 4364 43537 429 4366 43214 RWAs (B2/2.5) 39999 39912 411425 425552 389951 39557 39 39999 39912 Core tier 1 ratio (Basel 2/2.5) 11.% 1.8% 11.3% 11.8% 11.% 11.% 11.% 11.% 1.8% Core tier 1 ratio (Basel 3) 7.8% 8.3% 9.1% 9.9% n/a n/a n/a 7.8% n/a NAVPS (p) 369 354 379 47 367 354 349 369 354 BVPS (p) 434 417 441 47 412 417 41 434 Source: Company reports, KBW Research estimates 417 Please refer to important disclosures and analyst certification information on pages 22-25. 15

16 July 212 Figure 12: HSBC summary estimates, 211-14E PROFIT & LOSS (U$m) 21 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 Net interest income 39441 4662 376 37671 39981 9911 1324 137 157 187 Fee income 17355 1716 17947 18949 264 4371 4436 4257 496 431 Trading income 721 656 8317 8739 9329 2556 2256 16 1588 2882 Other income 4241 7952 91 3452 3645 22 1638 5214 898-178 Non-interest income 2886 31618 27174 31141 3338 7129 833 9577 6582 6114 Total income 68247 7228 64774 68812 7319 174 18654 19947 16639 1621 o/w own debt fair value -63 3933-2644 -589 446 4114-38 -2644 Total income (ex FVOD) 6831 68347 67418 68812 7319 17629 1828 15833 16677 18845 Expenses -37688-41545 -3882-37843 -38628-1369 -1141-9869 -11166-1353 Pre-impairment profit 3559 3735 25972 3969 34392 6671 8513 178 5473 5848 Pre-impairment profit (ex FVOD) 3622 2682 28616 3969 34392 726 867 5964 5511 8492 Impairment -1439-12127 -1571-9823 -8816-2384 -2882-389 -2971-2366 Profit after impairment 1652 1868 1541 21146 25575 4287 5631 6188 252 3482 Associates/JV's 2517 3264 3779 4272 4831 619 937 967 741 84 Underlying PBT 1937 21872 19181 25417 346 496 6568 7155 3243 4322 Exceptionals 29 PBT 1937 21872 2281 25417 346 496 6568 7155 3243 4322 o/w own debt fair value -63 3933-2644 -589 446 4114-38 -2644 PBT before fair value 191 17939 24725 25417 346 5495 6122 341 3281 6966 Attributable 12746 16224 1593 18474 22414 41 4919 579 2216 2438 Balance Sheet Gross loans 978449 95794 18251 146119 196162 116417 15662 982148 95794 97886 Assets 2454689 2555579 2614855 2685336 2793354 2627728 269987 2747732 2555579 2637218 Deposits 1227725 1253925 1316621 1382452 1451575 127482 1318987 127144 1253925 1284428 Per share (U$) Basic EPS.72.91.87 1. 1.2.22.28.28.12.13 Underlying EPS.72.91.71 1. 1.2.23.27.28.12.13 DPS.36.41.45.5.54.9.9.9.14.9 BVPS 7.9 8.3 9.1 9.7 1.5 8.2 8.5 8.2. 8.6 ROE 9.7% 11.3% 8.3% 1.7% 12.% 11.3% 13.2% 13.6% 6.% 6.4% NAV 6.2 6.7 7.5 8.1 8.9 6.5 6.7 6.4. 7. RoNAV 12.5% 14.2% 1.2% 12.9% 14.2% 14.3% 16.7% 17.3% 7.6% 8.% Key ratios Margin (bps) 268 251 228 218 221 Cost/income (ex FVO) 55% 61% 58% 55% 53% 59% 56% 62% 67% 55% Impairment charge (bps) 143 119 18 96 82 NPLs (bps) 479 434 43 4 35 492 434 NPL coverage 43% 42% 38% 41% 45% 73% 42% Equity/assets 6.% 6.2% 6.7% 7.% 7.3% 5.8% 6.% 5.8% 6.2% 6.2% Tangible equity/assets 4.8% 5.1% 5.5% 5.9% 6.2% 4.7% 4.8% 4.6% 5.1% 5.1% Core tier 1 ratio (Basel 2/2.5) 1.5% 1.1% 11.6% 12.3% 13.% 1.7% 1.8% 1.6% 1.1% 1.5% Core tier 1 ratio (B3) 7.5% 8.% 9.5% 1.6% 11.4% n/a n/a n/a 8.% n/a GEOGRAPHIC SUMMARY Europe 432 4671 739 4532 5486 652 1495 2955-431 -997 Hong Kong 5692 5823 6388 6654 7385 1562 1519 1288 1454 1897 Rest of Asia Pacific 592 7471 8187 915 1262 1634 218 28 1721 224 M iddle East 892 1492 1485 1698 1893 335 412 45 34 332 North America 454 1 39 635 231 181 425-265 -241 462 Latin America 1795 2315 272 2748 38 542 69 764 4 64 Total 1937 21872 19181 25417 346 496 6568 7155 3243 Source: Company reports, KBW Research estimates 4322 Please refer to important disclosures and analyst certification information on pages 22-25. 16

16 July 212 Figure 13: Lloyds summary estimates, 211-14E GROUP P&L 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 Net interest income 12233 157 1292 962 333 363 351 2816 2645 Other income 9111 8736 8716 8915 2391 254 1952 2228 2194 Effects of liability mge, volatility & asset sales 122-24 -775-146 159 884-24 Operating income 21466 1966 198 18534 4919 5457 5162 5928 4599 Insurance claims -343-347 -344-34 -114-84 -87-58 -18 Non-interest income 8768 8389 8373 8574 2277 2456 1865 217 286 Income (net of claims) 21123 18719 18665 18194 485 5373 575 587 4491 Underlying income (net of claims) 211 18959 18665 18194 558 5519 4916 4986 4731 Expenses -1621-1224 -9994-9614 -2751-2581 -2577-2712 -2564 Operating profit 152 8495 8671 858 254 2792 2498 3158 1927 Impairment charge -9787-6697 -4343-312 -268-2814 -1956-249 -1657 Associates/joint ventures 27 21 16 11 9 3 5 1 3 PBT (before FV unwind) 742 1818 4344 5489-545 -19 547 759 273 FV unwind 1943 75-5 -3 829 839 97 178 355 PBT (pro-forma) 2685 2568 4294 5189 284 82 644 937 628 Exceptionals -6227-155 -418-5 -3754-61 -1251-621 -34 PBT -3542 118 3875 4689-347 219-67 316 288 Attributable -2787 436 2746 211-2439 134-519 37 Underlying attributable 1984 1211 2859 3519 189 558 514 165 12 Balance sheet Gross loans ( bn) 584 534 47 466 n/d 67 596 584 557 Assets ( bn) 971 941 886 897 n/d 979 984 971 967 Shareholders equity ( bn) 45.9 46.6 49.3 52.1 n/d 44.9 45.7 45.9 46.1 AIEA ( bn) 585.4 547. 59.9 453.6 Per share (p) Basic EPS -4.1.6 4. 4.5-3.6.2 -.8.1. o/w Core 7.4 5.5 5.6 6.1.. 1.8 2.4 2. o/w Non-Core -11.5-4.9-1.7-1.6.. -2.6-2.4-2. Basic diluted EPS -4.1.6 4. 4.5-3.6.2 -.8.1. Diluted underlying EPS 2.9 1.8 4.1 5.1.3.8.8.2. DPS... 1.5..... Key ratios Cost/income 5.3% 54.6% 53.5% 52.8% 57.3% 48.% 5.8% 46.2% 57.1% Margin (bps) 27 193 199 29 216 29 25 197 195 Impairment charge (bps) 164 12 87 66 13 163 116 NPLs (bps) 131 85 756 356 148 131 NPL coverage 46% 56% 61% 89% 45% 45% 46% 46% 47% LDR 139% 122% 111% 16% 15% 149% 146% 139% 131% Tangible equity/assets 4.% 4.3% 4.9% 5.2% 3.7% 3.9% 4.% 4.% 4.1% Key data Core tier 1 ratio (Basel 2.5) 1.8% 11.7% 13.4% 14.7% 1.% 1.1% 1.3% 1.8% 1.9% Tier 1 ratio (Basel 2.5) 12.5% 13.5% 15.4% 16.8% 11.4% 11.6% 11.9% 12.5% 12.6% Core tier 1 ratio (Basel 3) 7.% 7.5% 9.% 1.5% n/a n/a n/a 7.% n/a NAVPS (p) 57 58 63 68 54 56 57 57 57 DIVIS IONAL S UMMARY Retail 2,797 2,25 2,215 2,21 Wholesale -1,346-24 532 1,116 Commercial 446 457 5 549 Wealth & International -4,13-2,31-672 -247 Insurance 1,465 1,484 1,544 1,617 Group & Central 1,51 169 226 243 Source: Company reports, KBW Research estimates Please refer to important disclosures and analyst certification information on pages 22-25. 17

16 July 212 Figure 14: RBS summary estimates, 211-14E GROUP P&L ( m) 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 Net interest income 12689 11738 11292 11642 332 3233 378 376 37 Non-interest income (ex premiums) 1764 9948 9822 11274 3662 3459 1979 1664 3186 Insurance premiums (net of claims) 1288 1166 1158 237 297 32 452 289 Non-interest income 1252 11114 198 11274 3899 3756 2281 2116 3475 Total income (net of claims) 24741 22852 22273 22917 721 6989 5359 5192 6482 Operating Expenses -15478-14862 -13766-12988 -4121-3892 -3821-3644 -3984 Pre-impairment profit 9263 799 856 9929 38 397 1538 1548 2498 Impairment charges -7439-4989 -3817-2617 -1947-2264 -1536-1692 -1314 Operating Profit 1824 3 4689 7312 1133 833 2-144 1184 Exceptionals -259-3472 -692-492 -1249-1511 22-1832 -2588 PBT -766-472 3997 682-116 -678 24-1976 -144 Attributable profit -1997-173 2124 443-528 -897 1226-1798 -1524 Balance sheet Loans 454112 424267 38981 381298 494148 489572 485573 454112 4446 Assets 156867 1333514 123554 1172971 1413253 1445969 167728 156867 14321 Funded balance sheet 977249 9982 875363 866851 15225 15197 135384 977249 949667 S/hers equity (incl B Shares) 775 68866 799 75392 69332 7 72699 775 68672 Per share (B share diluted) Basic EPS (p) -18.1-15.8 19.1 39.7-4.9-8.3 1.4-16.2-14.1 Adjusted EPS (p) 2.1 8.8 24.4 43.6 3.9 2.9-1.9-2.5 4.2 Core adjusted EPS (p) 38.9 36.5 42.7 47.5 15.2 11.4 6.7 5.7 11.7 Key ratios Cost/income 62.6% 65.% 61.8% 56.7% 57.2% 55.7% 71.3% 7.2% 61.5% Margin (bps) 192 183 186 199 2 196 184 184 189 Impairment charge (bps) 151 113 94 68 152 181 119 141 116 NPLs (bps) 862 8 7 4 799 83 844 862 864 NPLs ( m) 4845 33941 27287 15252 4141 4235 42726 4845 398 NPL coverage 49% 58% 54% 74% 47% 49% 49% 49% 51% RoNAV.4% 1.8% 5.% 8.4% 3.1% 2.3% -1.7% -2.1% 3.5% RoE.3% 1.4% 3.9% 6.7% 2.5% 1.8% -1.3% -1.6% 2.8% Key data Basel II Core tier 1 ratio (Basel 2) 1.6% 11.4% 11.9% 13.5% 11.2% 11.1% 11.3% 1.6% 1.8% Core tier 1 ratio (Basel 3) 6.8% 8.% 9.5% 11.% n/a n/a n/a 6.8% 7.2% Tier 1 ratio (Basel 2) 13.% 13.9% 14.2% 15.9% 13.5% 13.5% 13.8% 13.% 13.2% NAVPS (p) 477 48 499 539 493 493 499 477 48 BVPS (p) 612 613 632 672 625 625 633 612 614 Tangible equity/assets 3.5% 4.% 4.5% 5.2% 3.9% 3.5% 3.5% 3.5% 3.8% Tangible equity/assets (ex derivs) 5.5% 5.9% 6.4% 7.% 5.2% 5.4% 5.4% 5.5% 5.7% DIVISIONAL SUMMARY M arkets 899 1683 243 2156 129 327-348 -19 824 International Banking 755 485 548 619 226 149 228 152 97 UK Retail 221 189 1834 195 518 535 51 458 477 UK Corporate 1924 184 1761 1879 617 472 429 46 492 Wealth 248 312 364 41 7 6 45 73 45 Ulster Bank -984-11 -36-35 -365-178 -28-233 -31 US Retail & Commercial 537 61 76 819 94 143 123 177 12 RBS Insurance 454 388 452 n/a 67 139 123 125 84 Central items 191-144 -32 56 78 89-144 Total Core 645 654 743 7798 2224 173 98 1138 1667 Non-Core -4221-353 -2714-486 -191-87 -978-1282 -483 Underlying PBT 1824 3 4689 7312 1133 833 2-144 Source: Company reports, KBW Research estimates 1184 Please refer to important disclosures and analyst certification information on pages 22-25. 18

16 July 212 Figure 15: Credit Suisse summary estimates, 29-14E Group 29 21 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E 2Q12 / 2Q12 / CHF mn 1Q12 2Q11 Net interest income 6,891 6,541 6,433 7,592 8,68 9,94 1,753 1,377 1,646 1,657 1,884 1,87-4% 31% Fee and commission income 13,75 14,78 12,952 13,489 15,29 16,666 3,671 3,463 3,61 2,757 3,172 3,427 8% -1% Net trading income 12,151 9,338 5,2 2,379 4,256 3,853 2,11 1,116 1,92-27 189 88 366% -21% Other income 52 1,429 1,82 1,252 1, 1, 721 936 62 11 82 15-81% -84% Revenues 33,294 31,386 26,225 24,712 28,532 3,613 8,156 6,892 6,689 4,488 6,47 6,264 4% -9% Loan loss charge -56 79-187 -218-316 -32 7-13 -84-97 -34-57 66% Personnel expense -15,13-14,599-13,213-12,39-11,955-12,81-4,29-3,96-3,67-3,21-3,711-2,8-25% -1% Other expense -9,698-9,379-9,364-8,186-8,55-9,137-2,168-2,143-2,694-2,359-2,14-2,76-1% -3% Operating profit 8,77 7,487 3,461 3,999 7,756 8,347 1,966 1,64 844-989 198 1,332 572% -19% Intangible effects Extraordinary items, net Accounting changes, net Discontinued operations, net 169-19 Pre-tax profit 8,246 7,468 3,461 3,999 7,756 8,347 1,966 1,64 844-989 198 1,332 572% -19% Tax -1,835-1,548-671 -879-1,788-1,941-465 -271-332 397 16-315 -269% 16% Minorities 313-822 -837-56 -959-948 -362-61 171-45 -17-13 -24% -78% Net profit [before pref dividend] 6,724 5,98 1,953 2,56 5,9 5,457 1,139 768 683-637 44 887 1915% 15% Preferred dividend -131-162 -216-2 -2-2 -12-114 -1 Net profit [after pref dividend] 6,593 4,936 1,737 2,36 4,89 5,257 1,139 666 683-751 44 787 1688% 18% Deduct: unvested share awards -388-39 -195-142 -28-36 -65-91 -39-3 -47 Net profit [for basic EPS] 6,25 4,627 1,542 2,218 4,529 4,951 1,74 575 644-751 41 739 173% 29% Net profit [for basic EPS] reported 6,25 4,627 1,542 2,218 4,529 4,951 1,74 575 644-751 41 739 173% 29% Deduct: disposal gains, net -188-146 -146 Add: intangible effects Add: restructuring charges, net 1,284 272 94 29 981 47 75 Add: litigation charges etc 62 183 453 428 25 Deduct: own-debt gains [FVOD, stand-alone & DVA] 1,88-162 -1,194 1,11 467-69 -1,245-348 1,11 Deduct: other -61-522 Net profit adjusted 7,15 4,126 2,85 3,454 4,529 4,951 1,541 6 36-93 1,52 814 36% LLC / net loans.21% -.4%.8%.1%.14%.14% -.1%.2%.15%.17%.6%.1% Cost / income 74% 76% 86% 83% 72% 72% 76% 76% 86% 12% 96% 78% Tax rate [effective] 22% 21% 19% 22% 23% 23% 24% 17% 39% 4% -8% 24% Op. RoNAV 31.9% 17.2% 9.1% 14.4% 15.5% 15.1% 26.% 1.3%.6% -1.7% 18.4% 13.8% Shares outstanding [basic] 1,169 1,174 1,22 1,268 1,311 1,311 1,21 1,199 1,23 1,22 1,225 1,268 Ø shares outstanding [FD] 1,21 1,21 1,27 1,29 1,333 1,333 1,188 1,28 1,224 1,27 1,257 1,31 EPS [diluted] 5.13 3.85 1.28 1.72 3.4 3.71.9.48.53 -.62.3.57 Operating EPS [diluted] 5.87 3.44 1.73 2.68 3.4 3.71 1.3.5.3 -.8.84.63 Book per share [basic] 32.1 28.4 27.6 27.9 3.7 33.7 28.4 26. 27.9 27.6 27.4 26.7 NAV per share [basic] 23.9 2.8 2.32 21.17 24.13 27.13 21.1 19.2 2.7 2.3 2.4 2. -2% 4% ANAV per share [basic] 2.8 19.6 18.15 2.1 23. 27.13 2.3 18.4 18.7 18.2 19.2 18.8-2% 2% Buy-back per share [basic]...... Dividend per share [basic] 2. 1.3.75.75 1. 1.5 Group AUM 1,229, 1,253, 1,229,5 1,29,669 1,355,22 1,422,962 1,282,4 1,233,3 1,196,8 1,229,5 1,249,6 1,244,434 AUM growth 4.7% 2.% -1.9% 5.% 5.% 5.% 2.3% -3.8% -3.% 2.7% 1.6% -.4% Group inflows 44,2 69, 4,9 21,82 38,649 54,234 19,1 14,3 7,1 4-7,1 7,84 'Headline' tier 1 capital 36,27 37,725 36,844 38,728 38,18 43,99 38,514 37,76 37,124 36,844 36,668 37,674 Deduct: 'hybrid capital' [CS basis] -12,198-11,98-1,888-9,46-9,46-9,46-1,948-1,364-1,564-1,888-9,46-9,46 Deduct: perpetual notes -1,742-3,35-3,365-3,417-3,417-3,417-3,492-3,526-3,435-3,365-3,417-3,417 'Equity' tier 1 capital 22,267 23,277 22,591 26,265 25,645 3,636 24,74 23,186 23,125 22,591 24,25 25,211 Risk-weighted assets 221,69 218,72 241,753 216,211 279,2 282,221 212,196 23,741 21,138 241,753 234,39 227,594 Ø RWA 239,39 227,478 214,76 228,162 247,616 28,62 215,449 27,969 26,94 225,946 238,72 23,992 'Headline' tier 1 ratio 16.3% 17.2% 15.2% 17.9% 13.7% 15.3% 18.2% 18.2% 17.7% 15.2% 15.6% 16.6% 'Equity' tier 1 ratio 1.% 1.6% 9.3% 12.1% 9.2% 1.9% 11.3% 11.4% 11.% 9.3% 1.3% 11.1% Basel 3 common tier 1 capital (KBWe) 11,674 18,26 13,546 19,561 25,645 3,636 16,964 16,959 16,197 13,546 15,24 17,132 Basel 3 RWA [no phasing] (KBWe) 371,857 393,185 335,69 282,651 279,2 282,221 387,966 372,93 369,731 335,69 293,768 296,95 Basel 3 common tier 1 ratio (KBWe) 3.1% 4.6% 4.% 6.9% 9.2% 1.9% 4.4% 4.6% 4.4% 4.% 5.2% 5.8% Tier 1 leverage ratio [FINMA style] 4.2% 4.4% 4.6% 4.9% 4.8% 5.4% 4.7% 4.7% 4.9% 4.6% 4.7% 4.8% Source: KBW estimates Please refer to important disclosures and analyst certification information on pages 22-25. 19

16 July 212 Figure 16: Deutsche Bank summary estimates, 29-14E Group 29 21 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E 2Q12 / 2Q12 / mn 1Q12 2Q11 Net interest income 12,46 15,582 17,444 14,953 15,849 16,355 4,167 4,492 4,274 4,511 4,193 3,98-7% -13% Commissions 8,915 1,67 11,544 11,35 11,997 12,597 3,81 3,47 2,86 2,61 2,849 2,854 % -6% Trading revenues, net 2,581 3,353 3,59 6,229 6,553 6,867 2,653 71-422 118 2,399 1,319-45% 86% Other -527-1,39 1,181 61 416 4 573 291 657-34 -248 12-141% -65% Revenues 23,429 28,566 33,228 32,263 34,815 36,219 1,474 8,54 7,315 6,899 9,193 7,858-15% -8% Loan loss charge -2,63-1,273-1,84-1,569-1,394-1,294-373 -464-463 -54-314 -419 34% -1% Compensation and benefits -11,31-12,672-13,135-13,175-13,82-14,58-4,278-3,365-2,694-2,798-3,656-3,135-14% -7% Other expenses -8,949-1,616-12,863-11,123-11,38-11,52-2,82-2,933-3,216-3,912-3,334-2,565-23% -13% Operating profit 54 4,5 5,39 6,396 8,293 9,365 3,21 1,778 942-351 1,889 1,739-8% -2% Intangible effects 134-29 -1-1 Accounting changes, net Pre-tax profit 674 3,976 5,39 6,386 8,293 9,365 3,21 1,778 942-351 1,879 1,739-7% -2% Tax -243-1,646-1,64-1,97-2,654-2,997-891 -545-165 537-478 -557 16% Minority Interest 14-2 -194-11 -12-12 -68-35 -52-39 -2-3 Net profit 445 2,31 4,132 4,368 5,52 6,248 2,62 1,198 725 147 1,381 1,153-4% Net profit reported 445 2,31 4,132 4,368 5,52 6,248 2,62 1,198 725 147 1,381 1,153 Add: restructuring charges, net 296 293 34 225 59 3 31 173 68 83 Deduct: disposal gains, net -87 47 193 47 193 Provisions/releases, net -74 285 285 Other, net 2,338 259 259 Add: intangible effects -134-179 Tax releases etc -1,159 Net profit adjusted -1,433 4,469 5,375 4,865 5,745 6,248 2,38 1,228 756 1,12 1,642 1,235-25% 1% Cost / income 86% 82% 78% 75% 72% 71% 68% 74% 81% 97% 76% 73% LLC / net loans 1.2%.31%.45%.4%.37%.33%.38%.47%.45%.52%.31%.42% Pre-tax return on Ø 'active equity' 2.% 9.7% 1.7% 11.5% 13.9% 14.5% 24.8% 14.4% 7.5% -2.7% 14.% 12.6% Tax rate [effective] 36.1% 41.4% 19.7% 29.9% 32.% 32.% 29.5% 3.7% 17.5% 153.% 25.4% 32.% ROE 1.3% 5.6% 8.2% 7.9% 9.3% 9.6% 16.7% 9.6% 5.7% 1.1% 1.2% 8.4% Op. RONAV -6.% 15.8% 15.2% 12.2% 13.% 12.7% 27.9% 14.% 8.4% 1.9% 17.1% 12.5% # shares outstanding [basic] 697 932 919 914 914 914 94 928 914 919 916 923 Ø # shares [diluted] 714 773 959 955 957 957 969 968 951 949 96 958 EPS [diluted].62 2.99 4.31 4.57 5.77 6.53 2.13 1.24.76.15 1.44 1.2 Operating EPS [diluted] -2.1 5.79 5.6 5.9 6.1 6.53 2.46 1.27.79 1.7 1.71 1.29 Book per share [basic] 52.6 52.4 58.1 62.6 67.9 74. 53.2 53.9 56.8 58.1 6. 6. NAV per share [basic] 38. 35.6 4.9 45.4 5.7 56.8 37.1 37.9 39.8 4.9 42.8 43. Dividend per share [basic].68.75.75.75.75 1. Group AUM 88, 1,179, 1,116, n/a n/a n/a 1,112, 1,19, 1,83, 1,116, 1,128, n/a Group AUM growth 7.8% 34.% -5.3% n/a n/a n/a n/a -.3% -2.3% 3.% 1.1% n/a Group inflows 13, -1, -2, n/a n/a n/a 5, -1, 3, -2, n/a Group inflows / AUM 1.6% -.1% -.2% n/a n/a n/a.4%.% -.9%.3% -.2% n/a B2.5 B2.5 B3 B3 B2 B2 B2.5 B2 'Headline' tier 1 capital 34,46 42,565 49,47 51,852 52,249 59,11 43,82 44,658 46,638 49,47 49,419 5,4 Deduct: hybrid capital -1,616-12,593-12,734-12,416-12,416-12,416-12,222-12,141-12,548-12,734-12,416-12,416 Add: unrealised gain on industrial holdings n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 'Equity' tier 1 capital 23,79 29,972 36,313 39,436 39,833 46,685 31,58 32,517 34,9 36,313 37,3 37,984 B2.5 B2.5 B3 B3 Credit RWA 217,3 285,218 258,398 224,779 364,385 369,356 266,361 261,83 278,498 258,398 251,775 232,38 Market RWA 24,88 23,66 68,123 82, 82, 82, 24,553 21,49 22,423 68,123 64,929 82, Operational RWA 31,593 37,326 5,697 5,7 5,7 5,7 36,96 36,376 36,697 5,697 51,718 5,7 Risk-weighted assets (RWA) 273,476 346,24 381,2 357,479 497,85 52,56 327,874 319,669 337,618 381,2 368,422 364,738 RWA growth -11% 27% 1% -6% 39% 1% -5% -3% 6% 13% -3% -1% 'Headline' tier 1 ratio 12.6% 12.3% 12.9% 14.5% 1.5% 11.8% 13.4% 14.% 13.8% 12.9% 13.4% 13.8% 'Equity' tier 1 ratio [no transition] 8.7% 8.7% 9.5% 11.% 8.% 9.3% 9.6% 1.2% 1.1% 9.5% 1.% 1.4% Basel 3 common tier 1 capital (KBWe) 31,419 34,849 39,833 46,685 31,393 3,815 31,399 31,419 32,444 33,294 Basel 3 RWA [no phasing] (KBWe) 525,38 482,466 497,85 52,56 616,436 592,85 591,459 525,38 57,69 499,217 Basel 3 common tier 1 ratio (KBWe) 6.% 7.2% 8.% 9.3% 5.1% 5.2% 5.3% 6.% 6.4% 6.7% Level 3 assets 58,22 46,656 47,573 n/a n/a 44,89 45,521 49,533 47,573 42,49 n/a Level 3 liabilities 18,169 13,3 13,421 n/a n/a 11,673 11,866 15,14 13,421 11,883 n/a Level 3 assets & liabilities 76,389 59,659 6,994 n/a n/a 55,762 57,387 64,673 6,994 54,292 n/a Level 3 assets & liabilities / tier 1 2.2x 1.4x 1.2x n/a n/a.x 1.3x 1.3x 1.4x 1.2x 1.1x n/a Total assets [IFRS] 1,5,664 1,96, 2,164, 1,912,428 1,768,67 1,678,541 1,842, 1,85, 2,282, 2,164, 2,13, 2,29,823 Deduct: derivative netting / other -69,664-695, -897, -656,428-512,67-422,541-64, -641, -986, -897, -847, -773,823 Total assets [US GAAP style] 891, 1,211, 1,267, 1,256, 1,256, 1,256, 1,22, 1,29, 1,296, 1,267, 1,256, 1,256, Adjusted sh' equity [DBK style] 39,269 52,368 59,16 61,163 65,997 71,56 53,29 53,278 57,68 59,16 58,95 59,368 Leverage multiple [DBK style] 22.7x 23.1x 21.4x 2.5x 19.x 17.6x 22.6x 22.7x 22.5x 21.4x 21.3x 21.2x Source: KBW estimates Please refer to important disclosures and analyst certification information on pages 22-25. 2

16 July 212 Figure 17: UBS summary estimates, 29-14E Group [incl. indu hldgs] 29 21 211 212E 213E 214E 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E 2Q12E / 2Q12E / CHF mn 1Q12 2Q11 Net interest income 6,445 6,215 6,827 6,149 6,26 6,592 1,781 1,44 1,861 1,745 1,591 1,6 1% 11% Net fee and commission income 17,711 17,16 15,236 15,341 16,685 17,918 4,24 3,879 3,557 3,56 3,843 3,7-4% -5% Net trading income -324 7,471 4,342 5,842 7,714 8,19 2,23 1,724-28 443 961 1,569 63% -9% Other income 599 1,214 1,468 193 117 112 1,111 128 93 1 8% -11% Total revenues 24,431 32,6 27,873 27,526 3,659 32,53 8,341 7,155 6,51 5,876 6,488 6,969 7% -3% Loan loss charge -1,832-66 -84-119 -28-269 3 16-89 -14 37-52 -241% -425% Personnel expense -16,542-16,92-15,591-14,86-16,191-16,78-4,47-3,925-3,758-3,51-3,643-3,685 1% -6% Other expense -7,296-7,53-6,721-6,159-6,28-6,284-1,679-1,569-1,623-1,85-1,556-1,564 1% % Operating profit -1,239 7,571 5,477 6,442 8,51 9,268 2,258 1,677 1,31 511 1,326 1,668 26% -1% Amort. of intangibles -1,324-117 -126-92 -92-133 -24-22 -51-29 -23-23 % 5% Discontinued operations, net -7 2 Pre-tax profit -2,57 7,456 5,351 6,35 7,959 9,135 2,234 1,655 98 482 1,33 1,645 26% -1% Tax 443 38-923 -1,111-1,393-1,599-426 -377 4-16 -476-329 -31% -13% Minorities -611-34 -268-271 -26-26 -2-262 -2-2 -1-27 269% 3% Net profit -2,738 7,532 4,16 4,968 6,36 7,277 1,86 1,16 1,18 32 826 1,46 27% 3% Net profit, reported -2,738 7,532 4,16 4,968 6,36 7,277 1,86 1,16 1,18 32 826 1,46 27% 3% Deduct: disposal gains, net 311-392 -578-578 Add: intangible effects 1,324 117 126 92 92 133 24 22 51 29 23 23 Add: restructuring charges, net 575 15 317 11 31 7 11 Add: litigation charges etc 173 Deduct: own-debt & MCN gains 1,725 558-1,536 1,164 133 25-1,765 71 1,164 Deduct: other -1,24-388 -388 Operating profit, net -43 8,93 2,489 5,937 6,398 7,41 1,963 1,63-964 427 1,726 1,69-38% 1% Cost / income 98% 76% 8% 76% 73% 71% 73% 77% 83% 91% 8% 75% LLC / net loans.6%.2%.3%.4%.7%.9%.% -.2%.11%.2% -.5%.7% Tax rate [effective] 17.2% -5.1% 17.2% 17.5% 17.5% 17.5% 19.1% 22.8% -4.1% 33.2% 36.5% 2.% ROE -7.8% 16.7% 8.5% 9.1% 1.8% 11.6% 15.4% 8.7% 8.2% 2.4% 6.2% 7.8% Op. RoNAV -.2% 23.6% 6.3% 13.2% 13.% 13.8% 21.2% 11.3% -9.5% 4.% 15.7% 9.7% Shares outstanding [basic] 3,794 3,793 3,747 3,776 3,776 3,776 3,84 3,768 3,741 3,747 3,776 3,776 Ø shares outstanding [diluted] 3,669 3,837 3,834 3,819 3,819 3,819 3,849 3,869 3,815 3,8 3,819 3,819 EPS [diluted] -.75 1.96 1.9 1.3 1.65 1.91.47.26.27.8.22.27 Operating EPS [diluted] -.1 2.11.65 1.55 1.68 1.94.51.27 -.25.11.45.28 Book per share [basic] 1.81 12.35 14.29 15.9 15.96 17.24 12.28 12.54 13.85 14.29 14.1 14.27 NAV per share [basic] 7.91 9.76 11.7 12.64 13.53 14.84 9.74 1.19 11.34 11.7 11.62 11.8 2% 16% Buy-back per share............ Dividend per share...1.4.65.8 Group AUM 2,233, 2,152, 2,167, 2,138,92 2,27,183 2,426,976 2,198, 2,69, 2,25, 2,167, 2,88, 2,76,515 Group AUM growth 2.7% -3.6%.7% -1.3% 6.2% 6.9% 2.1% -5.9% -2.1% 7.% -3.6% -.6% Group inflows -147,3-14,4 41,4 29,79 44,531 66,5 22,3 8,7 5,2 5,2 2,7 7,278 Group inflows / AUM -6.8% -.6% 1.9% 1.4% 2.1% 2.9% 1.%.4%.3%.3%.1%.3% 'Headline' tier 1 capital 31,798 35,272 38,37 42,579 46,431 49,437 36,379 37,387 38,121 38,37 39,57 4,238 Deduct: hybrid capital -7,224-4,93-4,356-4,286-4,286-3,36-4,561-4,252-4,327-4,356-4,286-4,286 'Equity' tier 1 capital 24,574 3,369 34,14 38,293 42,145 46,41 31,818 33,135 33,794 34,14 35,284 35,952 Credit RWA 14,494 119,919 126,84 111,988 183,716 187,511 121,854 115,986 123,543 126,84 116,654 115,97 Non-counterparty 7,26 6,195 6,5 6,51 6,51 6,51 6,153 5,862 5,924 6,5 6,51 6,51 Market RWA 12,861 2,813 49,241 4,87 4,87 38,453 25,389 34,832 28,462 49,241 34,387 4,87 Operational RWA 46,144 51,948 58,867 53,999 53,999 49, 49,964 49,544 49,328 58,867 53,999 53,999 Risk-weighted assets 26,525 198,875 24,962 212,125 283,853 281,14 23,361 26,224 27,257 24,962 211,92 216,44 Ø RWA 247,71 26,244 29,19 216,946 291,477 282,434 21,118 24,793 26,741 224,11 226,27 213,568 RWA growth -32% -4% 21% -12% 34% -1% 2% 1% 1% 16% -12% 2% 'Headline' tier 1 ratio 15.4% 17.7% 15.9% 2.1% 16.4% 17.6% 17.9% 18.1% 18.4% 15.9% 18.7% 18.6% 'Equity' tier 1 ratio 11.9% 15.3% 14.1% 18.1% 14.8% 16.5% 15.6% 16.1% 16.3% 14.1% 16.7% 16.6% Basel 3 RWA (KBWe) 35,594 389,68 38, 317,171 283,853 281,14 47,44 42,231 4, 38, 35, 333,438 Basel 3 common tier 1 capital (KBWe) 14,4 19,19 25,4 29,32 34,798 39,554 21,18 24,11 24,6 25,4 26,1 26,644 B3 CET1 ratio 4.1% 4.9% 6.7% 9.2% 12.3% 14.1% 5.2% 6.% 6.2% 6.7% 7.5% 8.% Level 3 assets, net 37,6 24,5 25,2 n/a n/a n/a 23,5 2,8 24,5 25,2 21,2 n/a Level 3 liabilities, net 27,7 24,7 23,5 n/a n/a n/a 22,2 2,1 2,8 23,5 2,4 n/a Level 3 assets & liabilities 65,3 49,2 48,7 n/a n/a n/a 45,7 4,9 45,3 48,7 41,6 n/a Level 3 assets & liabilities / tier 1 2.1x 1.4x 1.3x n/a n/a n/a 1.3x 1.1x 1.2x 1.3x 1.1x n/a Tier 1 leverage ratio [FINMA style] 3.9% 4.4% 5.4% 6.2% 6.9% 7.5% 4.8% 4.9% 5.5% 5.4% 5.6% 5.8% Source: KBW estimates Please refer to important disclosures and analyst certification information on pages 22-25. 21

16 July 212 IMPORTANT DISCLOSURES RESEARCH ANALYST CERTIFICATION: We, Mark Phin, CFA, Andrew Stimpson, Vasco Moreno and Luke Birtwistle, hereby certify that the views expressed in this research report accurately reflect our personal views about the subject companies and their securities. We also certify that We have not been, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation in this report. Analysts Compensation: The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking. 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Rating Count Percent Count Percent Outperform [BUY] 197 29.58 55 27.92 Market Perform [HOLD] 324 48.65 78 24.7 Underperform [SELL] 61 9.16 9 14.75 Restricted [RES].. Suspended [SP] 84 12.61 17 2.24 Covered -Not Rated [CNR] 2.3 1 5. * KBW maintains separate research departments; however, the above chart, "Distribution of Ratings/IB Services," reflects combined information related to the distribution of research ratings and the receipt of investment banking fees globally. Explanation of Ratings: KBW Research Department provides three core ratings: Outperform, Market Perform and Underperform, and three ancillary ratings: Suspended, Restricted, and Covered - Not Rated. For purposes of New York Stock Exchange Rule 472 and FINRA Rule 2711, Outperform is classified as a Buy, Market Perform is classified as a Hold, and Underperform is classified as a Sell. 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16 July 212 represents a total rate of return of 15% or greater. Market Perform represents a total rate of return in a range between -5% and +15%.Underperform represents a total rate of return at or below -5%. European and Asian Stocks are rated based on the share price upside to target price relative to the relevant sector index performance on a 12-month horizon. Outperform rated stocks have a greater than 1 percentage point ( pp ) relative performance versus the sector, Market Perform rated stocks between +1pp to -1pp relative performance versus the sector, and Underperform rated stocks a lower than 1pp relative performance versus the sector. The 12-month price target may be determined by the stock s fundamentally driven fair value and/or other factors (e.g., takeover premium or illiquidity discount). 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OTHER DISCLOSURES Indices: The following indices: U.S.: KBW Bank Index (BKX), KBW Insurance Index (KIX), KBW Capital Markets Index (KSX), KBW Regional Banking Index (KRX), KBW Mortgage Finance Index (MFX), KBW Property & Casualty Index (KPX), KBW Premium Yield Equity REIT Index (KYX); KBW Financial Sector Dividend Yield Index (KDX); Europe: KBW Large-Cap Banks Index (KEBI), KBW Mid/Small Cap Banks Index (KMBI), KBW Large-Cap Insurance Index (KEII), KBW Miscellaneous Financials Index (KMFI), KBW Emerging Europe Financials Index (KEEI); and Global: KBW Global ex-u.s. Financial Sector Index (KGX), are the property of KBWI. KBWI does not guarantee the accuracy and/or completeness of the Indices, makes no express or implied warranties with respect to the Indices and shall have no liability for any damages, claims, losses or expenses caused by errors in the index calculation. KBWI makes no representation regarding the advisability of investing in options on the Index. 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16 July 212 The information relating to any company herein is derived from publicly available sources and KBW makes no representation as to the accuracy or completeness of such information. Neither KBW nor any of its officers or employees accept any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this report or its content. This communication has been prepared as of the date of the report. KBW does not undertake to advise clients of any changes in information, estimates, price targets or ratings, all of which are subject to change without notice. The recipients should assume that KBW will not update any fact, circumstance or opinion contained in this report. COPYRIGHT: This report is produced for the use of KBW customers and may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose without the prior consent of KBW. Please refer to important disclosures and analyst certification information on pages 22-25. 25

Keefe, Bruyette & Woods, Inc. Keefe, Bruyette & Woods Limited Frederick Cannon, CFA Vasco Moreno Director of Research Director of Research 1 212 887 3887 +44 2 7663 5282 Keefe, Bruyette & Woods Asia Limited David Threadgold, CFA Director of Research +813 577 2551 Banks Equity REITs European Banks Asian Asset Managers Julianna Balicka 1 415 591 578 Kristin Brown 1 212 887 7738 Luke Birtwistle +44 2 7663 5284 Stanley Tsai, CFA +852 3973 8328 John Barber 1 212 887 7747 Smedes Rose 1 212 887 3696 Jean-Pierre Lambert +44 2 7663 5292 Frank Barlow 1 44 231 6542 Robert Simone, CFA 1 212 887 259 Vasco Moreno +44 2 7663 5282 Asian Banks Timur Braziler 1 86 722 5935 Taylor Schimkat 1 212 887 7729 Mark Phin, CFA +44 2 7663 5279 Jean Bao +852 3973 8331 Jacquelynne Chimera, CFA 1 415 591 574 Antonio Ramirez +44 2 7663 5283 Sam Hilton +852 3973 833 Matthew Dinneen 1 212 887 3862 Diversified Financials Ronny Rehn +44 2 7663 3214 Brian Hunsaker +852 3973 8324 Andrew Del Medico 1 212 887 368 Tai DiMaio 1 212 887 7719 Marta Sanchez Romero +44 2 7663 5288 Steven Lam +852 3973 8326 Damon DelMonte 1 86 722 598 Bose George 1 212 887 3843 Andrew Stimpson +44 2 7663 3233 Udith Sikand +852 3973 8334 Brian Finneran 1 212 887 6751 Steven Kwok, CFA 1 212 887 7713 David Threadgold, CFA +813 577 2551 Brady Gailey, CFA 1 44 231 6546 Ryan O'Steen 1 212 887 7736 European Emerging Markets David Gong 1 415 591 1634 Jade J. Rahmani 1 212 887 3882 Ekaterina Isaeva +44 2 7663 3213 Asian Exchanges Jefferson Harralson, CFA 1 44 231 654 Sanjay Sakhrani 1 212 887 7723 Ronny Rehn +44 2 7663 3214 Sam Hilton +852 3973 833 Derek Hewett 1 44 231 6549 Catherine Klinchuch 1 415 591 575 Equity Strategy European Insurance Asian Insurance Brian Klock 1 415 591 572 Frederick Cannon, CFA 1 212 887 3887 Paris Hadjiantonis +44 2 7663 312 Stanley Tsai, CFA +852 3973 8328 David J. Konrad, CFA 1 212 887 6719 Brian Kleinhanzl 1 212 887 3699 William Hawkins +44 2 7663 5294 David Threadgold, CFA +813 577 2551 Christopher McGratty, CFA 1 212 887 774 Ralph Hebgen +44 2 7663 3221 Catherine Mealor 1 44 231 6548 Index Research Chris Hitchings +44 2 7663 3232 Asian Securities Companies Stephen Scouten 1 44 231 6547 Marcantonio Ramos 1 212 887 3691 Karl Morris +44 2 7663 5296 Jean Bao +852 3973 8331 Greig Paterson, CFA, FFA +44 2 7663 5289 Bill Stacey +852 3973 8332 Capital Markets Quantitative Analysis Niamh Alexander 1 212 887 3695 Kelly Motta 1 212 887 7717 European Miscellaneous Financial Asian Strategy Alison Heffernan 1 212 887 3692 Melissa A. Roberts 1 212 887 382 Chris Hitchings +44 2 7663 3232 Bill Stacey +852 3973 8332 Joel Jeffrey 1 212 887 3865 Tom Mills +44 2 7663 5295 Robert Lee 1 212 887 7732 Washington Research Karl Morris +44 2 7663 5296 Alim Shaikh 1 212 887 773 Brian Gardner 1 22 45 3576 Andrew Stimpson +44 2 7663 3233 Jacob Troutman 1 212 887 3688 Insurance William T. Clark 1 86 722 5936 Neil Cybart 1 86 722 5933 Robert Farnam 1 86 722 591 Cliff Gallant, CFA 1 212 887 775 Frank Lee 1 212 887 779 Matthew Rohrmann 1 212 887 3677 Jeffrey Schuman 1 86 722 592 Brett Shirreffs 1 212 887 4713 Keefe, Bruyette & Woods, Inc. 787 Seventh Avenue, 4th Floor One Constitution Plaza 3455 Peachtree Road NE 225 Franklin Street New York, NY 119 17th Floor Suite 45 Suite 172 1 212 887 7777 Hartford, CT 613 Atlanta, GA 3326 Boston, MA 211 1 8 966 1559 1 86 722 59 1 44 231 6565 1 617 848 2777 32 Southwest Freeway 11 California Street, Suite 37 Two James Center 1 South Wacker Drive, Suite 34 Suite 225 San Francisco, CA 94111 121 East Cary Street, Suite 195 Chicago, IL 666 Houston, Texas 7727 1 415 591 56 Richmond, VA 23219 1 312 423 82 1 832 214 18 1 877 778 533 1 84 643 425 1 8 929 6113 Keefe, Bruyette & Woods Limited Keefe, Bruyette & Woods Asia Limited One Broadgate 18 Harbour Rd Moto-Akasaka MI Building 4F 7th Floor Central Plaza, Suite 311 1-3-26 Moto-Akasaka, Minato-ku London EC2M 2QS Wanchai, Hong Kong Tokyo 17-51, Japan +44 2 7663 526 +852 3973 83 +813 577 255