1 1

United Kingdom

First Quarter 2015

April 28, 2015

2 2 Disclaimer

Santander UK Group Holdings plc (“Santander UK Group Holdings”) is a subsidiary of Banco Santander, S.A. (“Santander”).

Santander UK Group Holdings and Santander both caution that this presentation may contain forward-looking statements. Such forward-looking statements are found in various places

throughout this presentation. Words such as “believes”, “anticipates”, “expects”, “intends”, “aims” and “plans” and other similar expressions are intended to identify forward-looking

statements, but they are not the exclusive means of identifying such statements. Forward-looking statements include, without limitation, statements concerning our future business

development and economic performance. Forward-looking statements involve known and unknown risks and uncertainties, they are based on management’s current expectations,

estimates and projections and both Santander UK Group Holdings and Santander caution that these statements are not guarantees of future performance. We also caution readers that a

number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.

We have identified certain of these factors on pages 321 to 340 of the Santander UK Group Holdings Annual Report for 2014. Investors and others should carefully consider the foregoing

factors and other uncertainties and events. Undue reliance should not be placed on forward-looking statements when making decisions with respect to Santander UK, Santander and/or

their securities. The information in this presentation, including any forward-looking statements, speak only as of the date on which they are made, and we do not undertake any obligation

to update or revise any of them, whether as a result of new information, future events or otherwise. Statements as to historical performance, historical share price or financial accretion are

not intended to mean that future performance, future share price or future earnings for any period will necessarily match or exceed those of any prior quarter. Nothing in this presentation

should be construed as a profit forecast.

No representation or warranty of any kind is made with respect to the accuracy, reliability or completeness of any information, opinion or forward-looking statement, any assumptions

underlying them, the description of future operations or the amount of any future income or loss contained in this presentation or in any other written or oral information made or to be made

available to any interested party or its advisers by Santander UK Group Holdings or Santander’s advisers, officers, employees or agents. It does not purport to be comprehensive and has

not been independently verified. Any prospective investor should conduct their own due diligence on the accuracy of the information contained in this presentation.

This presentation does not constitute an offer to sell, or a solicitation of an offer to subscribe for, any securities, it does not constitute advice or a recommendation to buy, sell or otherwise

deal in any securities of Santander UK Group Holdings or Santander or any other securities and should not be relied on for the purposes of an investment decision. This presentation has

not been filed, reviewed or approved by any regulator, governmental regulatory body or securities exchange in any jurisdiction or territory.

To the fullest extent permitted by law, neither Santander UK Group Holdings nor Santander accept any liability whatsoever for any direct or consequential loss arising from any use of or

reliance on this presentation.

By attending / reading the presentation you agree to be bound by these provisions.

Note: The results information contained in this presentation has been prepared according to Spanish accounting criteria, regulation and Banco Santander group policy in a manner

applicable to all subsidiaries of the Banco Santander Group. As a result it may differ from that disclosed locally by Santander UK. The results information in this presentation includes all of

the Banco Santander group operations in the UK even if they are in Santander UK consolidated Group.

Source: Santander UK Group Holdings Q1 2015 results “Quarterly Management Statement for the three months ended 31 March 2015” or Santander UK Group Holdings Management

(‘MI’), unless otherwise stated. Santander has a standard listing of its ordinary shares on the London Stock Exchange and Santander UK continues to have its preference shares listed on

the London Stock Exchange. Further information in relation to Santander UK can be found at: www.santander.co.uk/uk/about-santander-uk. Neither the content of Santander UK’s website

nor any website accessible by hyperlinks on Santander UK’s website is incorporated in, or forms part of, this presentation.

Santander UK Group Holdings plc. Registered Office: 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom. Registered Number 8700698. Registered in England.

www.santander.co.uk. Telephone 0870 607 6000. Calls may be recorded or monitored. Santander UK Group Holdings plc. and its subsidiaries operate primarily in the UK, are regulated by

the UK Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’) and are part of the Banco Santander, S.A. group (the ‘Banco Santander group’). Santander UK

plc’s Financial Services Register number is 106054. Santander UK plc. is also licensed by the Financial Supervision Commission of the Isle of Man for its branch in the Isle of Man.

Deposits held with the Isle of Man branch are covered by the Isle of Man Depositors’ Compensation Scheme as set out in the Is le of Man Depositors’ Compensation Scheme Regulations

2010.In the Isle of Man, Santander UK plc’s principal place of business is at 19/21 Prospect Hill, Douglas, Isle of Man, IM1 1ET. Santander and the flame logo are registered trademarks.

Banco Santander S.A. London Branch is regulated by the Financial Conduct Authority.

3 3

Agenda

■ Macro-economic environment and financial system

■ Strategy and business

■ Results

■ Appendix

4 4 Macro-economic environment

Relatively strong growth of UK economy. Falling oil prices leading to lower inflation

Source: Office for National Statistics and Bank of England. Estimates by Santander UK Economics (April 2015)

1 GDP growth was revised up to 0.6% q/q and 3.0% y/y in 2014 Q4 (31st March – Quarterly National Accounts). GDP growth was also marked up from 2.6% to 2.8% for 2014 as a whole.

2 Bank of England base rate

3 Consumer Price Index

Annual GDP growth (%, real)1 Interest rates (%, year end)2

Annual CPI inflation rate (%, annual average) 3 GBP/Euro exchange rates (year end)

0.7

1.7

2.8 2.6 2.5

2012 2013 2014 2015 (e) 2016 (e)

2.8 2.6

1.5

0.4

1.9

2012 2013 2014 2015 (e) 2016 (e)

1.231.20

1.28

1.38 1.38

2012 2013 2014 2015 (e) 2016 (e)

0.50 0.50 0.50 0.50

1.00

2012 2013 2014 2015 (e) 2016 (e)

5 5 Macro-economic environment

Unemployment expected to fall further. Signs of a slowing housing market

House prices (%, year end)

Property transactions (sa, 000s)

Average weekly earnings (annual, % inc. bonuses)

Unemployment rate (ILO, year end) 1

Source: Her Majesty’s Revenue & Customs, Office for National Statistics and Lloyds Banking Group . Estimates by Santander UK Economics (April 2015)

1 International Labour Organisation definition

7.8 7.2 5.7 5.3 5.2

2012 2013 2014 (e) 2015 (e) 2016 (e)

9321,067

1,222 1,230 1,250

2012 2013 2014 2015 (e) 2016 (e)

1.4 1.2 1.2

2.6 2.8

2012 2013 2014 (e) 2015 (e) 2016 (e)

(0.2)

7.5 7.8

4.0 3.0

2012 2013 2014 2015 (e) 2016 (e)

6 6 Financial system: loan and deposit growth

Loan growth remains modest. Steady deposit growth

YoY (%)

GBPbn.

Mortgage growth of 1.5% in 2015

Corporate loan stock continued to reduce in the year

Growth in total loans of 1.3% at end 2014, expected to continue in 2015

YoY (%)

Deposit growth has continued but is easing. This reflects continuing balance sheet adjustments

Some indication that the personal savings ratio is moderating

Corporate deposit growth still strong. Some evidence of stronger investment intentions

Total loans1

Total deposits2

1 Total loans stock and annual % change include household borrowing and PNFC sterling borrowing from banks 2 Total deposits include household deposits (with banks and NS&I) and PNFC deposits, excluding cash holdings

Source: Bank of England. Bankstats (Monetary and Financial Statistics) March 2015 (February data)

Annual growth is calculated using growth of net lending on existing stock

1,826 1,834 1,842 1,839 1,843

0.8

1.5 1.5 1.3 1.5

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

1,526 1,548 1,565 1,590 1,606

4.4 4.3 4.7 5.1 5.0

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

7 7

Agenda

■ Macro-economic environment and financial system

■ Strategy and business

■ Results

■ Appendix

8 8

Santander UK is a well established UK market player

Santander UK’s branches

1 Active customers hold at least one active product. For current accounts, savings accounts or credit cards an active product must be open and have a balance of more than £50 or at least one

transaction in the last month 2 Local criteria includes branches and universities and excludes agencies

3 Calculated as Customer Loans and Credits divided by Customer Deposits on the face of the balance sheet. Excluding the impact of the PSA joint venture, the LDR was 125%. 4 RoTE of 12.1% is adjusted for the FSCS and UK Bank levy phasing. Statutory RoTE was 13.7% 5 Excluding PSA joint venture, the CET 1 capital ratio was 11.8%.

Our franchise

Mar'15 Var. YoY

Business and Results

Loans £194.2 bn. 4%

Deposits £154.6 bn. 5%

Total customer funds £161.4 bn. 4%

Attributable profit £355 mn. 14%

Network and Customers

Clients - active customers1

14 mn. n.a.

Branches2

917 (8%)

ATMs 2,326 (1%)

Other Key Metrics

Loan-to-Deposit ratio (LDR)3

127% 7 p.p.

Return on Risk Weighted Assets (RoRWA) 1.75% 14 b.p.s.

Return on Tangible Equity (RoTE)4

12.1% 30 b.p.s.

CET1 ratio5

11.6% 0 b.p.s.

9 9

Current accounts (£bn.)

Sustained balance growth from relationship customers;

improving the quality of liabilities

Corporate loans (£bn.)

Lending to corporates grew 9% year-on-year despite a

subdued market; roll out of enhanced capability

‘Bank of Choice’ for UK

companies

1|2|3 World customers (mn.)

1|2|3 World transforming our profile and improving

customer satisfaction

Loyal and satisfied retail

customers

Commercial focus / strategy (1)

Dec'13 Dec'14 Mar'15

27.9

41.1 44.3

Dec'13 Dec'14 Mar'15

2.4

3.64.0

Dec'13 Dec'14 Mar'15

22.1

23.9

25.0

10 10

CET11 2

1 CRD IV end point Common Equity Tier 1 Capital is calculated in accordance with the PRA CRD IV implementation rules (Policy Statement PS7/13) 2 CET 1 capital ratio and the LDR were impacted by the completion of the PSA joint venture. Excluding the impact of the PSA joint venture, the CET 1 capital ratio was 11.8% and LDR 125%.

Strong capital position

Loan-to-Deposit Ratio (LDR)2

Underlying funding position broadly stable

Consistent profitability and

a strong balance sheet

Commercial focus / strategy (2)

Dec'13 Dec'14 Mar'15

11.6%

11.9%

11.6%

Dec'13 Dec'14 Mar'15

123%124%

127%

11 11 Loans performance

Total loans

Growth in consumer credit1. Strong corporate loan growth

GBPbn.

1 Consumer credit impacted by the completion of the PSA joint venture. 2 Mortgages refers to residential retail mortgages only and excludes social housing and commercial mortgage assets

187.0188.5

190.4 190.7

194.2

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

3.8%

1.8%

Mar'15 YoY QoQ

Individuals 161.0 4% 2%

Mortgages2

149.7 1% (0%)

Consumer credit 11.3 47% 35%

Companies 25.0 9% 5%

SMEs 12.8 10% 2%

Corporates 6.6 12% 8%

Large corporates 5.6 4% 8%

Non core 8.2 (8%) (1%)

Total 194.2 4% 2%

12 12 Total customer funds performance

Total deposits

Further growth in retail relationship balances. Managing down rate sensitive deposits

GBPbn.

1 Third-party off-balance sheet assets originated by Santander Asset Management in the United Kingdom

Mar'15 YoY QoQ

Demand 54.8 35% 6%

Savings 62.4 1% (1%)

Time 37.5 (18%) (0%)

Total 154.6 5% 1%

Funds distributed1

6.8 (6%) 1%

Total Customer Funds 161.4 4% 1%

147.6

150.7 150.9

152.4

154.6

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

4.7%

1.4%

13 13

Agenda

■ Macro-economic environment and financial system

■ Strategy and business

■ Results

■ Appendix

14 14

Banking NIM (%)1

Net interest income and spreads

Net Interest Income

Improved NII and Banking NIM driven by improved deposit spreads

Loans spread (%)

Deposits spread (%)

GBPmn.

1 ‘Banking NIM’ is calculated as annualised statutory net interest income divided by average customer loans

819

844

864

885 887

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

8.3%

0.2%

1.79% 1.81% 1.82% 1.85% 1.87%

1.39%1.35% 1.36%

1.33% 1.33%

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

Total Loans Spread

0.76%0.82%

0.89%0.92% 0.92%

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

Total Deposits Spread

15 15 Net fees

Net Fees

Regulatory and competitive pressures impacting fee income

GBPmn.

205201

206

216213

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

(1.4%)

4.0% 3M'15 3M'14 YoY QoQ

Banking 72 84 (14%) 4%

Credit Cards 21 15 38% 1%

Investments 16 16 (1%) 1%

Mortgages 4 7 (41%) (51%)

Global Banking & Markets 49 41 19% (16%)

Other 51 42 23% 18%

Total 213 205 4% (1%)

16 16 Gross income

Gross Income

Gross income rising, driven by net interest income momentum

GBPmn.

1,100 1,105

1,124

1,136

1,152

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

4.7%

1.4%

3M'15 3M'14 YoY QoQ

Net Interest Income 887 819 8% 0%

Net Fees 213 205 4% (1%)

Subtotal 1,100 1,023 7% (0%)

Gains/Losses on

Financial Transactions45 65 (31%) 64%

Other Operating

Income7 12 (39%) (1%)

Gross income 1,152 1,100 5% 1%

17 17

Operating expenses

Operating Expenses

Operational efficiency well managed, absorbing on-going investment costs

GBPmn.

1 Local criteria, includes branches and universities but excludes agencies

574 571579

604 605

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

5.4%

0.1%

3M'15 3M'14 YoY QoQ

General and admin.

expenses517 479 8% 1%

Depreciation and

amortisation88 95 (7%) (6%)

Operating expenses 605 574 5% 0%

Efficiency ratio

(including depreciation)52.5% 52.2% 0.4 p.p. (0.7) p.p.

Number of branches 1

917 999 (8%) (0%)

Number of employees 26,209 25,642 2% 2%

18 18 Net operating income after loan-loss provisions (‘LLPs’)

Loan portfolios performing well in a benign credit environment

Cost of credit

Net LLPs

LLPs and Cost of Credit

GBPmn.

1 Cost of credit based on rolling 12-month period

1

99

71 70

27

56

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

0.23% 0.22%0.19%

0.14% 0.11%

3M'15 3M'14 YoY QoQ

Net operating income 547 526 4% 3%

LLPs (56) (99) (43%) 105%

Net op. income after

LLPs490 427 15% (3%)

NPL Coverage Ratio 41% 43% (2) p.p. (1) p.p.

NPL Ratio 1.75% 1.88% (13) b.p.s (5) b.p.s

19 19

3M'15 3M'14 YoY QoQ

Profit before taxes 449 388 16% 13%

Tax on profit (89) (77) 15% 0%

Attributable profit 1

355 311 14% 15%

Effective tax rate 20% 20% 0 p.p. (3) p.p.

Attributable profit

Strategic transformation underpinning continued improvement in profitability

Attributable Profit

GBPmn.

1

311 325 326 308355

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

14.0%

15.2%

1 Attributable profit is post non-controlling interests of £6m

20 20

The UK economy continues to be supportive of our business. Full year 2015 GDP growth forecast of +2.6%

UK housing market remains strong, and volumes and house prices are higher than a year ago, but with evidence of a slow down. We maintain a conservative risk discipline, with a 65% LTV on new mortgages

Market loan growth driven by residential mortgages and unsecured personal lending; corporate loan stock to be broadly steady for 2015

Market Environment

and Financial System

Strategy and

Business

Results

Conclusions

1I2I3 World, with 4.0 million customers, is transforming the quality and of our customer base while reducing funding costs

Retail customer satisfaction improved further and we continue to be the leading choice for customers switching their current account provider

The new corporate platform is delivering business growth. Loans increased 9% over the year, despite a subdued market

Profit after tax (1) rose 14% to £355mn vs 3M’14. Banking NIM of 1.87% for 3M’15 was the highest for thirteen quarters.

Operational efficiency continued to be strong and well managed. We continue to invest in growing the business and improving our capabilities

Balance sheet strength: CET 1 ratio of 11.6%; Leverage ratio 3.7%

Strong performance for 3M’15 and with a supportive outlook

1 Attributable profit is post non-controlling interests of £6m

21 21

Agenda

■ Macro-economic environment and financial system

■ Strategy and business

■ Results

■ Appendix

22 22 Balance sheet GBPbn.

* Includes all stock of concept classified in the balance sheet

** Capital + reserves + retained profit + valuation adjustments

31.03.15 31.03.14 Amount %

Loans and credits* 203.2 193.7 9.4 4.9

Trading portfolio (w/o loans) 31.2 26.1 5.1 19.5

Available-for-sale financial assets 9.4 6.9 2.5 35.9

Due from credit institutions* 14.5 14.7 (0.3) (1.7)

Intangible assets and property and equipment 2.3 2.1 0.2 8.3

Other assets 25.3 36.7 (11.4) (31.2)

Total assets/liabilities & shareholders' equity 285.7 280.3 5.5 1.9

Customer deposits* 160.5 161.4 (0.9) (0.6)

Marketable debt securities* 57.1 55.0 2.2 4.0

Subordinated debt 4.2 4.8 (0.6) (12.6)

Insurance liabilities 0.0 0.0 0.0 -

Due to credit institutions* 19.1 24.0 (4.9) (20.5)

Other liabilities 33.2 23.8 9.4 39.4

Shareholders' equity** 11.5 11.2 0.3 3.1

Off-balance-sheet funds 7.6 8.0 (0.4) (4.5)

Mutual funds 7.5 7.9 (0.4) (4.6)

Pension funds 0.0 0.0 0.0 -

Managed portfolios 0.1 0.1 (0.0) --

Customer funds under management 229.5 229.2 0.3 0.1

Commercial loans included above 194.2 187.0 7.1 3.8

Commercial deposits included above 154.6 147.6 7.0 4.7

Variance

23 23 Income statement GBPmn.

** Including dividends, income from equity-accounted method and other operating income/expenses

Variation

1Q 15 1Q 14 Amount %

Net interest income 887 819 68 8.3

Net fees 213 205 8 4.0

Gains (losses) on financial transactions 45 65 (20) (31.1)

Other operating income** 7 12 (5) (38.6)

Gross income 1,152 1,100 52 4.7

Operating expenses (605) (574) (31) 5.4

General administrative expenses (517) (479) (38) 7.9

Personnel (339) (314) (25) 7.9

Other general administrative expenses (178) (165) (13) 7.9

Depreciation and amortisation (88) (95) 7 (7.2)

Net operating income 547 526 21 3.9

Net loan-loss provisions (56) (99) 43 (43.4)

Other income (41) (38) (3) 7.5

Profit before taxes 449 388 61 15.7

Tax on profit (89) (77) (12) 15.1

Profit from continuing operations 360 311 49 15.9

Net profit from discontinued operations — — — —

Consolidated profit 360 311 49 15.9

Minority interests 6 — 6 —

Attributable profit to the Group 355 311 43 14.0

24 24 Quarterly statements of income GBPmn.

** Including dividends, income from equity-accounted method and other operating income/expenses

1Q 14 2Q 14 3Q 14 4Q 14 1Q 15

Net interest income 819 844 864 885 887

Net fees 205 201 206 216 213

Gains (losses) on financial transactions 65 56 46 27 45

Other operating income** 12 3 7 7 7

Gross income 1,100 1,105 1,124 1,136 1,152

Operating expenses (574) (571) (579) (604) (605)

General administrative expenses (479) (485) (505) (511) (517)

Personnel (314) (315) (337) (333) (339)

Other general administrative expenses (165) (170) (168) (178) (178)

Depreciation and amortisation (95) (86) (74) (93) (88)

Net operating income 526 533 545 532 547

Net loan-loss provisions (99) (71) (70) (27) (56)

Other income (38) (51) (58) (108) (41)

Profit before taxes 388 411 417 396 449

Tax on profit (77) (86) (91) (88) (89)

Profit from continuing operations 311 325 326 308 360

Net profit from discontinued operations — — — — —

Consolidated profit 311 325 326 308 360

Minority interests — — — — 6

Attributable profit to the Group 311 325 326 308 355

25 25