Improve RWA efficiency across PBB, CPB and NWM Core Bank RWAs (£bn)  Target gross £20bn RWA reduction by end 183(1) (20) Q4 2018, with some offsetting volume UK PBB 33 163 growth  Improving RWA efficiency underpins Ulster Bank 18 improved returns and mitigates potential impact of RWA regulatory tightening from 2019 onwards Commerical 79  Expect income loss to be relatively modest given much of the reduction is from: Private - The exiting of low ROE lending pools Banking 9 - Improving risk metrics in certain RBSI 10 portfolios including Ireland NWM 35 - Continuing benefits from data clean-up 2016 Target FY 2018 - Improvement in the quality of our risk reduction (pre-growth) models 27 (1) Numbers may not cast due to rounding