TSB Banking Group Investor Presentation — October 2020

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October 30, 2020 1 Highlights

profile index 5 Balance sheet

remarks Highlights 4 Key highlights

New efficiency plan, fully funded with HTC portfolio

capital gains, to increase pre -provision profit 2

Large unrealised capital gains in HTC portfolio

remain 3 Solvency position

1 Capital position on track to outperform guidance

Better -than -expected asset quality trends support

a lower cost of risk guidance 5

TSB on track to return to underlying profitability 4

CET1 Sep-20 reported / pro forma

pre-provision profit1

1 Includes expected recurrent annual cost savings in Spain and the impact of the incremental benefit from accelerating the restructuring in UK (before absorbing cost inflation), and net of NII loss from ALCO bond sales.

2 Pre-tax and as at Oct. 26th. 3 On a stand -alone basis . 4 Performing loans excluding APS impact. TSB in local currency. €1.3bn2 / 116bps CET1

Unrealised capital gains

Break -even in 20213

Commercial activity has surpassed or is

approaching pre -Covid levels across products 6 Loan growth YoY4

Ex-TSB / TSB 85-90bps

2020E Group credit CoR guidance

(improving from 90 -95 bps) Efficiency initiatives in Spain and acceleration in UK will

improve Group pre -provision profit

Increased customer service

digitisation and process reengineering

Transfer of servicing activities to self -

Process reengineering and automation

of operational centre activities

Enabling self -servicing for certain call

Corporate centre simplification

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