Achieve further significant cost efficiency Adjusted operating costs (£bn)  £3.1bn cost reduction achieved over 3 8.4(1) years to 2016; 2017 cost reduction 0.4 W&G target of £750m 0.8 Capital Resolution  Significant further cost efficiency 1.3 NWM across PBB and CPB through PBB+CPB digitisation, process simplification and Central items & other automation  NatWest Markets are currently in the middle of a substantial investment programme which will equip the franchise for new regulatory 6.1 requirements and provide opportunity to reduce back office support costs  NWM adjusted costs expected to reduce to ~£800m over the next four Excluding years, as we continue to take out £227m VAT organic costs and the currently (0.1) recovery expensed investment spend goes away by 2018 FY 2016 26 (1) Numbers may not cast due to rounding