RBS Strategy

The story of a bank and its journey to renewal

Presentation to RBS

That which does not kill usmakes us stronger.

Friedrich Nietzsche

We’ve listened to our customers and have learnt some lessons the hard way. But what we have learnt is clear. We must bring about

a new approach to banking…

How should we communicate the positive story of the new RBS?

How should we position and structure the brands in our portfolio and leverage their

relationship with the holding group?

Old wOrld New wOrld

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“Strategic change from ‘pursuit of growth’ to ‘sustainability, stability and customer focus.”

Stephen Hester , Interim Results, 2009

Relationships

Relationships Build

Relationships Build Success

Relationships are built through two way communication.

It’s about dialogue not monologue.

The new RBS story

‘Relationships Build Success’

chapter 1state a clear

ambition

chapter 2co creating the future

chapter 3the future

bank

Act on our word

Demonstrate we have

listened and learnt

year 1-2

Create a bond

Achieve a critical mass

of confidence

year 2-3

Have cherished relationships

Deep trust

year 3-4

Chapter 1First for the customer

DIALOGUE

Over 40 brands... 40 million relationships...

1 unifying ambition...

Striving to be No.1 for customer service.

DIALOGUE

We put our customers first. We listen, learn and understand what customers value most.

This dialogue enables us to adapt pro actively, so we can better serve our customers.

DIALOGUE

Chapter 2People bank on us...

Our customers bank on us to provide security, support and growth opportunities.

Our people bank on us to provide a rewarding environment in which to flourish and grow.

Investors bank on us to deliver value and return.

Markets bank on us to provide insight and accurate reporting.

The economy banks on us to keep things moving.

Ultimately, people are banking on us to build the bank of the future.

“I bank on RBS”

Chapter 3The people bank

The bank that puts people first.

The bank that is shaped by people for people.

The bank that embraces human ideals of honesty, service and respect.

The bank of the future.

Brand architecture

Can we leverage the reputation of our customer franchises, to help restore

the reputation of the RBS Group?

Or do we risk destroying value in customer brands through contamination?

RBS GROUP

NatWest

Association with RBS makes the portfolio more

transparent to shareholders and builds

value in the group

New RBS adds value to customer franchises

through CSR, financial strength, shared ethos,

wider career opportunities and

complementary services

Brand architecture

Step 1 Step 2

NatWest is part of the RBS Banking Group.We are committed to helping enhance your financial wellbeing. Forty million customers around the world bank on us.

RBS. People bank on us.

Step 3 Step 4

Part of The people bank.

The people bank

Personal Banking (Scotland)

Personal Banking (England)

Personal Banking (US)

Commercial Banking Private Banking Insurance

1 Devolved

2 Low Key Endorsed

3 Endorsed

4 Monolithic

A member of RBS Banking Group

A member of RBS Banking Group A member of RBS Banking Group

A member of RBS Banking Group

A member of RBS Banking Group

A member of RBS Banking Group

A member of RBS Banking Group

A member of RBS Banking Group

A member of RBS Banking Group

BANKING GROUP

RBS BANKINGGROUP

1 Devolved

Pros

• Minimizesriskofcontamination

• Allowsfranchiseflexibilitytopositionitselftooptimumadvantage

• Minimizesdisruptiontobusinessasusual

• Avoidscostofre-branding

Cons

• HoldingcompanybrandreliantoncorporatecommunicationsandCSR to build profile – does not leverage power of consumer brands

• FullextentofGroupoperationshidden

• Long-termcostofsupportingmanybrands

• Potentialbarriertomigratingcustomersacrossbrands

1 Devolved

Personal Banking (Scotland)

Personal Banking (England)

Personal Banking (US)

Commercial Banking Private Banking Insurance

Pros

• Allowsholdingcompanytoleverageequityinconsumerbrands

• Makesportfoliomoretransparenttoshareholders

• Easesmigrationofcustomersbetweenbrands

• Providessteppingstonetounifiedbrandarchitecture

• StrategyalreadybeingimplementedoutsideUK

Cons

• Riskofcontaminationanddestructionofvaluesubsidiarybrands

• Involvescostofre-signing/re-branding

• Doesnotmaximizelong-termcostssavingsofcompleterationalization

3Endorsedbrand

Personal Banking (Scotland)

Personal Banking (England)

Personal Banking (US)

Commercial Banking Private Banking Insurance

3 EndorsedA member of RBS Banking Group A member of RBS Banking Group A member of RBS Banking Group

A member of RBS Banking Group

Pros

• Signalschangeandcommitmenttore-buildingthebrandaroundanewidea

• Signalsonecompanymentality

• Allowsinvestmenttobefocusedinbuildingasinglebrand

• Allowsfullsynergiestobeexploited

Cons

• Shorttermcostsofre-branding

• RequiressignificantinvestmentincorporatecommunicationsandCSR toexplaintherelationshipandoff-setpotentialnegativesofassociation

• Involvescostofre-signing/re-branding

4 Unified brand

4 Monolithic

Personal Banking (Scotland)

Personal Banking (England)

Personal Banking (US)

Commercial Banking Private Banking Insurance

A member of RBS Banking Group

Relationships

Relationships Build

Relationships Build Success

Thank you