"Bank lending to businesses saw modest year-on-year growth in February, driven by investment within the manufacturing sector.

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1 Release date : 26 March 218 Lending Update - February 218 update on lending by UK Finance Key data highlights: Gross mortgage lending in February is estimated to have been 19bn, 49 per cent more than a year earlier but below the monthly average of 214bn for 217 Remortgage approvals in the month are up over 9 per cent in both number and value compared to February 217 Consumer spending was mainly reflected in the use of credit cards, with outstanding levels of card borrowing growing at a rate of 63 per cent over the year, while use of loans and overdrafts continues to fall UK businesses' deposits grew by almost 7 per cent in the past 12 months, while borrowing over the same period grew slightly by 5 per cent Within business sectors, manufacturers' borrowing expanded, while construction and property-related sectors contracted Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance said: There has been an increase in remortgage approvals compared to last year, as borrowers look to lock in to attractive deals amid speculation of further interest rate rises later this year We are also seeing a continuing rise in credit card spending, reflecting the growing number of transactions carried out using cards, while other forms of borrowing such as overdrafts continue to fall Meanwhile real wages continue to be squeezed by inflation, impacting on consumer confidence and retail sales This pressure on household incomes should ease in the coming months, as the effect of the fall in sterling begins to fade and the strong labour market leads to a better outlook for wage growth Stephen Pegge, Managing Director, Commercial Finance at UK Finance added: "Bank lending to businesses saw modest year-on-year growth in February, driven by investment within the manufacturing sector "Credit balances have risen at an even faster rate as companies build reserves in the face of economic uncertainty and its effect on longer term business confidence" Notes to Editors 1 For more information please call the UK Finance Press Office on or press@ukfinanceorguk 2 3 UK Finance is the trade association formed on 1 July 217 to represent the finance and banking industry operating in the UK It represents around 3 firms in the UK providing credit, banking, markets and payment-related services The organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association ' data reflect around two-thirds of all UK retail banking, while full market data are either estimated by UK Finance or published by the Bank of England Next update: 26 April 218

2 number Release date : 26 March 218 Household borrowing 12% Full market - mortgages Annual growth in amounts outstanding Rates reflect underlying 12- month trends, compiled on a comparable basis 1% 8% 6% 4% 2% Full market - consumer credit - mortgages 28% % - consumer credit 8% Mortgages Gross mortgage lending Value of new residential mortgage loans for home purchase, remortgaging or other purposes, secured by a first charge on the property 3, 25, 2, 15, 1, 5, Full market 19 bn 49% 113 bn 18% Mortgage approvals Number of new residential mortgage loans approved by high street banks for home purchase, remortgaging with a different lender or for other purposes, less cancellations Approvals are a forward indicator of lending in future months 1, 8, 6, 4, 2, Other secured lending 8,615-39% Remortgaging 25,999 97% House purchase 33,11-18% Consumer credit 2, Credit card spending Value of world-wide credit card transactions by UK cardholders using cards issued by UK banks, building societies or non-bank credit providers 15, 1, 5, Full market 96 bn 89% 3, 2,5 Gross personal loans Value of new personal loans provided by high street banks 2, 1,5 1, 16 bn -141% 5

3 7,5 Overdrafts Sterling amounts outstanding on personal current account overdrafts with high street banks 7, 6,5 6, 65 bn -23% 5,5 Personal deposits & savings total sterling deposits held in personal current and savings accounts 9, 8373 bn 19% 6, Personal deposits of which immediate access without penalty 6297 bn 46% 3, of which requiring notice or available on maturity 276 bn -59% 3, 25, Full market ISAs Cash deposits held in Individual Savings Accounts 2, 15, 1, 1557 bn -45% Business finance Annual growth rate 27, Loans & overdrafts Sterling loan & overdraft lending amounts outstanding on business accounts with high street banks 26, 265 bn 5% 25, Annual growth rate 36, Business deposits Total sterling deposits held in UK business accounts with high street banks 34, 32, 3635 bn 66% 3, Next update: 26 April 218

4 Release date : 26 March 218 Mortgages Gross mortgage lending Full market 18,14 2,973 18,65 2,452 23,65 22,881 24,41 21,758 24,59 23,464 2,53 21,982 19, 11,95 13,4 1,952 12,473 14,638 14,114 15,142 13,672 15,287 15,76 12,593 13,815 11,299 HSB BOE/ est House purchase 37,124 48,925 39,91 47,352 49,527 44,24 44,474 41,529 43,76 41,289 24,84 28,739 33,11 HP Mortgage approvals Remortgaging 23,695 28,895 21,91 26,838 28,832 27,514 29,736 29,899 38,746 38,574 21,92 24,384 25,999 R Other loans 8,969 1,276 8,197 9,782 1,2 1,218 9,723 9,55 9,749 9,783 6,95 7,821 8,615 OL Annual growth in mortgage amounts outstanding Full market 31% 28% 3% 3% 31% 31% 32% 33% 33% 33% 33% 33% BOE 25% 22% 24% 24% 26% 25% 26% 27% 28% 28% 29% 28% 28% Growth Consumer credit Annual growth in consumer credit Full market 15% 12% 14% 14% 1% 99% 1% 98% 95% 92% 95% 93% BOE 29% 24% 29% 21% 18% 19% 14% 14% 8% 8% 7% 6% 8% Growth Credit card spending Full market 14,238 15,927 14,973 16,898 16,47 16,61 15,49 15,69 16,623 17,263 16,767 17,283 BOE 8,827 9,867 9,276 1,46 9,899 1,277 1,118 9,65 1,88 1,483 1,145 1,37 9,615 HSB Annual growth in credit card credit amounts outstanding Full market 93% 89% 97% 91% 9% 88% 88% 91% 85% 88% 89% 96% BOE 6% 53% 64% 55% 55% 53% 5% 55% 5% 53% 54% 6% 63% Growth Gross personal loans 1,848 2,414 1,473 1,578 1,57 1,559 1,616 1,548 1,54 1,557 1,136 1,748 1,587 HSB Net Overdrafts 6,645 6,444 6,245 6,762 6,52 6,734 6,791 6,44 6,75 6,534 6,538 6,56 6,493 O/S Net 46,964 47,45 46,961 47,227 46,812 46,828 46,717 46,1 46,87 45,654 45,191 45,146 45,14 O/S Annual growth in loan & overdraft amounts outstanding Net Full market 111% 19% 17% 11% 16% 14% 16% 12% 11% 95% 98% 92% BOE 2% -1% -1% -9% -14% -1% -18% -22% -29% -32% -35% -42% -4% Growth

5 Personal deposits & savings Personal deposits 822,832 83,76 833,46 828, , , ,986 84,96 838, , , , ,31 O/S of which instant access of which notice or time 62,127 61, ,121 68, ,78 616, , , ,23 63,47 636,13 626, ,736 O/S 22,74 22, , , ,28 216, , ,789 21,494 29,22 29,258 28,342 27,574 O/S 41% 34% 27% 26% 25% 22% 22% 2% 2% 21% 21% 22% 19% Growth ISAs (included above) Full market 268, , , , , , ,5 271, ,156 27, , ,86 BOE 163,35 163,88 165, ,52 163, , ,352 16, , , ,11 156,26 155,749 O/S Business finance 263, , , ,31 265, , , , , ,44 265, , ,41 O/S Loan & overdraft amounts -1,615 3, , , ,11 Net 9% 36% 29% 28% 31% 21% 19% 2% 7% 6% 1% -1% 5% Growth 334, ,37 338,862 35,1 358, , , , ,67 371, ,92 363, ,5 O/S Deposits ,146-4,175 11,138 8, ,763-5,717 2,84 6,33-2,881-6, Net 4% 42% 43% 61% 61% 75% 82% 58% 58% 76% 61% 66% 66% Growth reflect around two-thirds of all UK retail banking and data above relate to the banking groups of Barclays, Lloyds, HSBC, RBS, Santander UK, TSB and Virgin Money Gross mortgage lending reflects the total value of newly advanced loans secured on dwellings by all mortgage lenders and is estimated for the latest month by UK Finance - earlier figures are sourced from the Bank of England Full market data for some series are sourced from the Bank of England but data for the latest month are not yet published Annual growth rates are adjusted to exclude the effects of population changes, write-offs and sales/purchases of loan books, to reflect underlying business trends where appropriate and are based on seasonally adjusted data, while all other data series are non-seasonally adjusted Year-on-year percentage changes compare the latest month's figure with the same month's figure in the previous year Data series for personal and business lending or deposits relate to sterling lending to, and deposits from, UK residents Extended data tables are available from our website wwwukfinanceorguk/statistics/ For more information please call the UK Finance Press Office on or press@ukfinanceorguk Next update: 26 April 218