Santander: United Kingdom

Santander: United Kingdom First Half 2010 London, 29 th July 2010

Disclaimer 2 Santander UK plc ( Santander UK ) and Banco Santander, S.A. ("Santander") both caution that this presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, (the Securities Act ) and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Factors that may affect Santander UK s operations are described under Risk Factors in Santander UK s Annual Report and Accounts on Form 20-F for 2009. A more detailed cautionary statement is also given on page 5 of Santander UK s Annual Report and Accounts on Form 20-F for 2009. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander UK or Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. In making this presentation available, both Santander UK and Santander give no advice and make no recommendation to buy, sell or otherwise deal in shares in Santander UK or Santander, or in any other securities or investments whatsoever. No offering of Securities shall be made in the United States except pursuant to registration under the Securities Act or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000. Note: Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, historical share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. Note: The results information contained in this presentation has been prepared according to Spanish accounting criteria and regulation in a manner applicable to all subsidiaries of the Santander Group and as a result it may differ from the one disclosed locally by Santander UK.

Agenda 3 Market Environment First Half 2010 - Business Update - Results

Market Environment 4 A modest GDP recovery expected in 2010, with interest rates remaining low for longer and unemployment better than forecast 12 months ago Annual GDP Growth (%, annual average) Interest Rates (%, annual average) 2.8 2.7 1.4 2.0 4.6 5.5 4.7-0.1 0.6 0.5 1.3-4.9 2006* 2007* 2008* 2009* 2010 (e) 2011 (e) 2006* 2007* 2008* 2009* 2010 (e) 2011 (e) Annual CPI inflation rate (%, annual average) GBP : Euro exchange rates (annual average) 2.3 2.3 3.6 2.2 3.3 2.8 1.47 1.46 1.26 1.12 1.18 1.22 2006* 2007* 2008* 2009* 2010 (e) 2011 (e) 2006* 2007* 2008* 2009* 2010 (e) 2011 (e) *source - Office for National Statistics & Bank of England (e) estimated by Santander UK Plc

Market Environment 5 Claimant count unemployment has been improving recently, but the potential impact of the fiscal squeeze on public sector employment is still uncertain 160 140 120 100 80 60 40 20 0-20 -40 Monthly change in claimant count unemployment (000 s) Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 5.5 Unemployment rate (*ILO definition, end year, %) 5.2 6.4 7.8 8.1 2006* 2007* 2008* 2009* 2010 (e) 8.3 2011 (e) Source Office for National Statistics (e) estimated by Santander UK Plc

Market Environment 6 Modest house price growth, still on low volumes House Purchase purchase and Remortgage remortgage approvals Approvals (number of approvals (000s, sa) (s.a., 000s)) UK house Annual price house inflation price growth (annual(%) %, nsa) 140 15 Halifax index: +6.3 % in 12 months to Jun 10 (sa) 120 10 100 80 60 40 House Purchase Remortgage 5 0-5 20 0 May- 05 Nov- 05 Average House Purchase 2003-07 Average Remortage 2003-07 May- 06 Nov- 06 May- 07 Nov- 07 May- 08 Nov- 08 May- 09 Nov- 09 May- 10-10 -15 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Q3 '10 (e) Q4 '10 (e) Source Bank of England Source Department for Communities and Local Government. (e) estimated by Santander UK Plc End period data

Market Environment 7 Household borrowing growth relatively stagnant Total lending to individuals (1) ( bn) Mortgage lending marekt stock (1) ( bn) Consumer credit market stock (1) ( bn) 1,456 1,461 1,460 1,462 1,458 1,460 1,226 1,229 1,231 1,236 1,237 1,240 2.2 2.0 231 232 229 227 221 220 1.2 0.8 0.7 0.8 0.8 1.1 0.9 0.9 1.0 1.0 3.0 2.0 0.4-0.3-0.1-0.1 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Source Bank of England. - annual growth rates (%) * Growth rates are calculated using the Bank of England s methodology - this expresses period net lending as a percentage of the prior period stock.

Market Environment 8 with slightly stronger retail deposits growth Retail deposits (incl. current accounts) ( bn) Bancassurance Investment new business market (1) 1,187 1,201 1,213 1,235 1,256 1,261 5.2 4.8 4.1 3.6 4.3 4.4 4.6 4.3 4.5 5.0% 0.0% 0.0% 5.0% 4.2 3.8 4.6 5.4 5.9 5.1 (14.0%) (19.0%) (20.0%) (21.0%) (10.0%) Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Source Bank of England. Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 (e) Source estimated based on data from Investment Managers Association / ABI / Structuredretailproducts.com. annual growth rates (%) (1) Includes restated ABI data for Q1 09

Santander s UK Commercial Franchise 9 Santander core market shares in the UK over 10% with continued gains in SME 30/06/2009 30/06/2010 H1'10 vs. H1'09 Commercial deposits ( bn) 133.8 148.5 11% Residential Mortgages (1) ( bn) 155.1 163.9 6% UPLs (2) ( bn) 4.9 3.8 (22%) Corporate Banking (3) ( bn) 23.6 24.5 4% SME Lending ( bn) 6.2 7.5 20% Total Commercial Lending ( bn) 184.3 192.9 5% Estimated retail market shares: (4) Mortgage stock 13.1% 13.7% 0.6% SME lending stock 2.5% 3.2% 0.7% Retail Deposits / Savings stock 10.1% 10.2% 0.1% Bank account stock 8.7% 9.1% 0.4% UPL's stock 8.2% 6.9% (1.3%) Branches 1,327 1,327 0% Branch market share 10% 10% 0.0% (1) Excludes Social Housing this portfolio now included in Corporate Banking (2) Includes cahoot (3) Includes commercial mortgages and Social Housing Excluding PBU of 4.9bn, growth is 11% (4) Based on Santander s estimate of market size

Agenda 10 Market Environment First Half 2010 - Business Update -Results

Business Update 11 Becoming a full service commercial bank Strong half year results Improving funding & capital position High quality, low risk portfolio strong performance maintained in what remains a tough and volatile environment growth in PAT of 11% driven by revenue growth of 6% which have grown largely in line with our volumes and flat costs cost: income ratio at 38.7% remaining best in class in the UK peer group provisions better than expected with charges in the second quarter of the year lower than in the first quarter return on risk weighted assets increasing from 1.99% in H1 09 to 2.42% estimated gross mortgage lending share in H1 10 of c.19% was 3% ahead of H1 09, and ahead of our stock market share with lending continued to focus on affordability and lower LTV segments funding jaws of 6% driven by commercial deposit growth of 11% to 148.5bn well ahead of commercial loans growing by 5% to 192.9bn; allowing Santander UK to continue improving its commercial funding ratio to 124% (1) (H1 09: 132%, H1 08:167%). reduced proportion of short-term funding despite material increase in liquid assets and continued lending Tier 1 capital increased from 9.5% at Dec 09 to 10.6% robust balance sheet, predominantly made up of secured retail lending over 90%, with no self-certified or sub-prime mortgages and c. 1% of buy to let a UK focused commercial bank with more than 95% of assets UK-based successful medium and long term funding performance so far with public and private raising less than 3% of total retail loans are unsecured personal loans (including overdrafts) following continued active reduction over the last 4 years strong coverage continues to be maintained across all portfolios, with secured coverage strengthened to 23%. Coverage of the commercial unsecured portfolio remains above 100%. arrears / PIPs significantly better than CML average (1) Customer loans / customer deposits + equity

Business Update 12 Becoming a full service commercial bank Developing the commercial franchise further FSMA Part VII (1) completed on 28 May, with the Alliance and Leicester businesses transferred to Santander UK. Plans remain on track to fully integrate and rebrand A&L by the end of the year, increasing the number of Santander branches to over 1,300 branches loyalty strategy delivering c.150,000 Zero current accounts openings to date introduced next stage of our loyalty strategy by launching the Loyalty Tracker Bond, available to our mortgage, investment and primary current account customers bank account balances up 11% compared with same period last year, including a significant increase in higher-value current accounts SME lending up over 20%, in line to grow market share by c.0.5% by the end of the year from c.3% in 2009 Strength of global franchise De-leveraging actions ahead of expectations Global Banking & Markets managed to achieve challenging targets despite unprecedented levels of volatility, market disruptions and reductions in volumes and liquidity. In 2010 GBM will enter new markets which are expected to deliver additional results later in the year and support the revenue growth in the future Asset management momentum increased benefiting from a strong investment sales through Retail and Private Banking channel Private Banking customer deposits have grown in both the Cater Allen and Abbey International businesses in a highly competitive market environment UPL balances reduced by 22% since June 2009 Corporate PBU assets reduced by 28% since December 2008 A&L treasury portfolio has reduced by more than 5.8bn (50%) since June 2009 and 9.3bn (62%) since December 2008 (1) The Financial Services and Markets Act 2000 is an Act of the Parliament of the United Kingdom created by the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking. Part VII of the Act controls business transfers

Business Update - Lending 13 Commercial lending performance Mortgage Stock ( bn) Mortgage Flows ( bn) +6% Gross lending market share 16.3% 19.1% 10.8 +14% 12.3 (2) 155.1 163.9 9.0 8.8 +67% 2.0 3.3 H1'09 H1'10 H1'09 Net Lending Repayments H1'10 UPL Stock ( bn) Corporate Stock ( bn) (1) (2) 4.9 (22%) 3.8 +4% 23.6 24.5 6.0 +11% 4.9 17.6 19.6 H1'09 H1'10 H1'09 Corporate Ongoing H1'10 Corporate Exit (1) Includes Social Housing (2) Includes Commercial Mortgages. SME lending up over 20%

Business Update - Lending 14 Continue to lend to mortgage and SME customers Total Residential mortgages ( bn) Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 153.9 155.1 158.1 160.4 161.9 163.9 Residential retail mortgage stock 6.0 6.1 6.2 6.3 6.3 6.3 Social Housing stock 160.0 161.2 164.3 166.8 168.3 170.2 Total Residential mortgages 13.1% 13.2% 13.4% 13.5% 13.6% 13.7% Santander UK market share (%) 184.0 184.3 3.1% 187.6 189.9 3.6% 191.3 192.9 4.0% 4.7% H1'10 H1'10 v H1'09 H1'10 v H2'09 Residential Retail mortgages 163.9 5.7% 2.2% UPLs 3.8 (22.0%) (12.0%) Overdraft & Other 0.7 (5.2%) (3.9%) 0.7% 1.3% Corporate Banking (1) 24.5 3.9% 0.4% Total commercial loans 192.9 4.7% 1.6% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Excluding deleverage portfolios (2) 184.2 6.2% 2.3% YoY growth (1) Corporate Banking includes Social Housing and Commercial Mortgages (2) Deleverage portfolios comprise UPLs and Corporate non-core business

Business Update - Lending 15 Strong gross lending and successful retention strategies (1) Total residential mortgage gross lending ( bn) Gross lending market share 14.4% 11.6% 11.0% 15.0% 17.0% 20.5% 19.8% 20.0% 19.3% +19% Residential mortgage stock and net lending ( bn) Mortgage stock (2) 153.5 154.6 153.2 153.9 155.1 158.1 Net lending share FY08 28.9% FY09 (1) (2) 160.4 161.9 162.4 69.1% 11.8 8.1 5.1 5.2 5.6 8.2 7.4 5.7 6.6 4.1 1.2 (1.2) 0.8 1.2 3.1 2.5 1.4 1.9 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Total residential mortgage repayments ( bn) Repayment share (1) (2) 8.6% 9.0% 14.6% 12.9% 14.0% 14.4% 14.6% 15.3% 14.7% FY08 13.8% FY09 14.4% +7% 7.6 6.9 6.4 4.4 4.4 5.1 4.9 4.3 4.7 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Comments gross lending up 19% on same quarter last year a strong performance with a focus on affordability and low risk segments more than 90% of Santander UK retained business had a LTV < 75% mortgages redemptions were broadly in line with first half 2009 new business margins were slightly higher than in the first half of 2009 3.3bn of net lending in H1 10, as the bank continues to be a consistent lender in the current environment (1) Market shares include A&L from Q4 08 onwards (2) Excludes Social Housing

Business Update - Lending 16 Existing customers with credit track records remain the focus in UPL s Total UPL gross lending ( m) Total UPL stock ( bn) H1'10 vs. H1'09 (19%) (1) (22%) 443 411 412 255 373 315 5.2 4.9 4.6 4.3 4.0 3.8 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Total quarterly margin growth (Q1 08 rebase to 100) (1) (2) 182 164 166 167 141 149 106 112 119 Comments we continue to drive value by focusing on existing customers with an established credit history with Santander UK gross UPL lending reduced by 19% vs. H1 09 with new lending written at more attractive margins downward stock trend continuing balances down by 22% compared to June 09 including 98m of asset acquired from GE Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10

Business Update - Deposits 17 Commercial deposit performance Commercial deposit stock ( bn) +11% Commercial deposit flows ( bn) (1) (2) (7%) 133.8 148.5 4.9 ` 4.6 H1'09 H1'10 H1'09 H1'10 Investment flow API ( bn) (1) Loan:deposit ratio (2) (Commercial deposits + MTF) / Commercial loans: +0% 87% 98% 108% 167% (8%) 1.8 1.8 132% 124% H1'09 H1'10 H1'08 H1'09 H1'10 (1) API: Annual Premium Income measures the new business flows that impact revenue and commissions, excluding redemptions and market movements (2) Commercial loans / (commercial deposits + equity)

Business Update: Deposits 18 Improved funding profile with deposit growth continuing to exceed asset growth 143.9 146.9 148.5 H1'10 H1'10 v H1'09 H1'10 v H2'09 140.2 Retail Banking 127.6 7.8% 3.4% 129.8 133.8 Other businesses (1) 20.9 33.6% 2.0% 14.0% 13.2% Total commercial deposits 148.5 11.0% 3.2% 11.6% 11.7% 11.5% 11.0% FUM (2) 4.6 37.8% 9.8% Total funds under management 153.1 11.6% 3.4% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 YoY growth (1) Other businesses includes Corporate Banking, cahoot and others (2) Managed through Santander Asset Management

Business Update - Deposits 19 Impact of historically low interest rates and strong competition mitigated through a balanced mix of products and proactive hedging strategies Commercial deposit flows ( bn) H1'10 vs. H1'09 (7%) Investment new business sales - API (1) ( bn) (1) H1'10 vs. H1'09 0% 0.9 4.0 6.4 3.6 3.0 1.6 0.9 0.9 0.8 0.8 0.9 0.9 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Retail deposit market share (2) (1) +0.1% 10.1% 10.2% H1'09 H1'10 Comments H1 10 net deposit flows of 4.6bn underpinned by strong flows across Retail, Private and Corporate Banking strong flows throughout the cross tax-year campaign led by the Flexible ISA campaign and the introduction of highly competitive fixed rate bond propositions launch of the Loyalty Tracker Bond, available to mortgage, investment and primary current account customers core retail flows market share in H1 10 of c.16% overall Investments & Pensions performance in H1 10 has been strong in a difficult market delivering 1.8bn API (1) API: Annual Premium Income measures the new business flows that impact revenue and commissions, excluding redemptions and market movements (2) Includes A&L business banking and retail structured product deposits

Business Update Bank accounts 20 Focus on primary accounts bearing fruit Bank account openings (000s) H1'10 vs. H1'09 Current account liability ( bn) (1) (1%) +11% 267 255 295 276 285 234 10.3 10.6 10.9 11.3 11.7 11.7 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Comments Focus on increasing proportion of high-value openings evident from 11% increase in current account liability Total bank account openings broadly in line with H1 09 c.150,000 new Zero current accounts have been opened since launch Switcher volumes have increased throughout H1 with switcher mix at 27% of adult volumes Comments Santander UK announced the launch of the unique Zero current account form 11 th January 2010, exclusively for Santander UK s customers, offering: No fees when customers exceed their overdraft No fees on using cash machines abroad Market leading credit interest rate of 5%, fixed for the first year

Agenda 21 Market Environment First Half 2010 - Business Update - Results

Results: Gross Operating Income 22 Strong net interest income growth 1,186 1,242 1,226 1,206 1,285 1,289 UK Total m 1,038 1,098 1,133 1,117 1,162 1,168 UK Total Commercial Margin m 6 141 213 6 8 4 139 86 85 214 244 212 5 5 118 116 202 208 Var % H1'10 m v H1'09 v H2'09 Net interest income 1,920 12% 7% Net Fees 410 (4%) (10%) Total Commercial Margin 2,331 9% 4% 825 883 888 905 960 960 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Net interest income Net Fees Gains on Financial Transactions Other Operating Income Gains on Financial Transactions 234 (16%) 37% Other Operating Income 10 (17%) (21%) Gross Operating Income 2,574 6% 6% net interest income, up 12% reflecting improved lending new business and retention margins, combined with growth in bank account and savings liability. In addition, robust balance sheet growth in SME lending and deposits have contributed positively pressure on fees continued, consistent with the UK market driven by a further reduction in mortgage redemptions, lower investment fees due to the mix of sales shifting away from structured products towards managed funds which will yield a trail income in future periods, and weaker trading income reflecting recent market conditions gains on financial transactions decreased by 16% reflecting lower levels of market volatility combined with the unwind of earnings from the A&L treasury portfolio that is earnings neutral

Results: Commercial Banking Spreads 23 Tightening of deposit spreads continue to offset loan widening 2.22 2.25 2.31 2.31 2.31 1.86 1.81 1.80 1.82 2.04 1.70 1.75 1.82 1.83 1.89 2.01 1.93 1.34 1.35 1.33 1.42 1.44 1.67 1.82 1.90 1.13 1.22 0.64 1.12 0.68 1.04 0.76 0.96 0.86 0.91 0.78 0.58 0.49 0.41 0.30 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1'10 Q2'10 Loans Deposits (product spread) Commercial Spread Undiluted spread Average H1 10 customer assets of 191.5bn Average H1 10 customer deposits of 146.2bn Notes: - Q1 08 to Q4 08 restated to include A&L and B&B - Commercial Spreads are total net interest income over total customer assets and therefore include the cost of Wholesale and Medium Term Funding. Undiluted Spreads are the sum of Asset Spreads and Deposit Spreads

Results: Costs 24 Costs marginally up as we invest in the business Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 23,384 23,043 22,903 22,625 22,374 22,409 Group FTE Var % H1'10 m v H1'09 v H2'09 500 496 491 497 494 501 General & administrative expenses Depreciation & amortisation 869 (3%) (2%) 126 24% 19% Operating Expenses 995 (0%) 1% operating expenses were flat compared with H1 09 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Continued investment in growth initiatives within Corporate Banking and Global Banking & Markets were funded from continuing synergy benefits resulting from the A&L acquisition Santander s efficiency ratio of 38.7% in H1 10 keeps it best in class

Results: Ratios 25 Efficiency remains a strategic advantage relative to UK banks Proforma Cost:Income Ratio (1) (%) Operating Jaws (2) (%) 21% 70.0% Proform a 49.5% 60.6% 55.0% 50.1% 45.0% 40.8% 10.8 p.p 38.7% 13% 12% 10% 12% 6% FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 H1'10 FY'05 FY'06 FY'07 FY'08 FY'09 H1'10 (1) FY 08 data includes depreciation & amortisation and B&B (2) FY05 is based on a UK view

Results: Net Operating Income 26 leading to a 10% increase in net operating income 686 116 H1'10 vs. H1'09 745 735 709 148 103 40 +10% 791 788 115 112 570 597 633 669 676 676 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Commercial (1) SGBM (1) Commercial includes Retail and Corporate

Results: Provisions and Credit Quality 27 Provisions lower relative to Quarter 1 Net loan loss provisions ( m) Q2'10 vs. Q2'09 6% 189 90 176 215 14 80 44 204 21 2 204 51 187 5 50 100 135 157 181 153 132 (1) (39) Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Other Retail and Corporate Mortgages Global Clients (1) (1) Generic provisions under Bank of Spain regulations, relating to global client corporate portfolios

Results: Provisions and Credit Quality 28 with improved coverage and stable arrears PIPs as a % of stock Coverage ratio and NPL CML PIPs Total coverage: 56% 45% 48% 44% 40% 41% 0.23% 0.19% 0.16% 0.14% 0.13% n/a (1) Mortgage NPLs Santander UK (2) CML (2) 1.13% 1.34% 1.34% 1.37% 1.43% 1.42% 2.39% 2.43% 2.40% 2.38% 2.22% n/a (1) 0.07% 0.06% 0.06% 0.05% 0.05% 0.06% 22 22 22 21 22 23 (3) 1.25 1.54 1.65 1.71 1.87 1.84 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Secured Coverage Total NPL Unsecured Personal Loans coverage remains at >100% (1) CML June 2010 data not available at time of reporting (2) CML NPL relates to residential mortgages on a volume basis (3) Of the increase since Dec 09, 7bps represents a reduction in SGBM customer balances

Results: Provisions and Credit Quality 29 LTV metrics highlight low risk nature of book Average new business mortgage LTV (%) (1) Average indexed mortgage LTV on stock (%) 59% 59% 61% 64% 61% 62% 52% 53% 53% 52% 52% 51% Approvals 60% 61% 63% 63% 63% 63% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 (1) Based on completions

Results: Net Income 30 Double-digit net income growth m Total H1'10 vs. H1'09 Commercial H1'10 vs. H1'09 +11% +22% 371 87 419 374 372 133 67 53 426 93 449 85 Var % H1'10 m v H1'09 v H2'09 PBT 1,186 11% 14% 284 285 307 319 332 364 Provisions for income tax (311) (12%) (6%) Profit after tax 875 11% 17% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Commercial (1) SGBM (1) Commercial includes Retail and Corporate

31 APPENDIX Financial Results Balance Sheet

Financial Results 32

Financial Results: Profit and Loss 33 million Variation H1 10 H1 09 Amount % Net interest income 1,920 1,708 212 12.4 Net fees 410 428 (17) (4.0) Gains (losses) on financial transactions 234 280 (46) (16.4) Other operating income* 10 12 (2) (17.4) Gross income 2,574 2,428 147 6.0 Operating expenses (995) (996) 1 (0.1) General administrative expenses (869) (894) 25 (2.8) Personnel (526) (515) (11) 2.1 Other general administrative expenses (343) (379) 36 (9.4) Depreciation and amortisation (126) (102) (24) 23.9 Net operating income 1,579 1,432 148 10.3 Net loan-loss provisions (391) (365) (26) 7.2 Other income (2) 1 (3) Profit before taxes 1,186 1,067 118 11.1 Tax on profit (311) (277) (34) 12.3 Profit from continuing operations 875 790 84 10.7 Net profit from discontinued operations Consolidated profit 875 790 84 10.7 Minority interests 0 0 Attributable profit to the Group 875 790 84 10.7 Note: * Including dividends, income from equity- accounted method and other operating income/expenses

Financial Results: UK Profit and Loss 34 million Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 825 883 888 905 960 960 Net fees 213 214 244 212 202 208 Gains (losses) on financial transactions 141 139 86 85 118 116 Other operating income* 6 6 8 5 5 5 Gross income 1,186 1,242 1,226 1,206 1,285 1,289 Operating expenses (500) (496) (491) (497) (494) (501) General administrative expenses (453) (442) (437) (446) (431) (439) Personnel (262) (253) (258) (267) (256) (270) Other general administrative expenses (191) (188) (179) (178) (175) (168) Depreciation and amortisation (47) (55) (54) (52) (63) (63) Net operating income 686 745 735 709 791 788 Net loan-loss provisions (189) (176) (215) (204) (204) (187) Other income 1 (0) (3) 18 (4) 2 Profit before taxes 498 570 517 522 583 602 Tax on profit (126) (151) (143) (150) (158) (153) Profit from continuing operations 372 419 374 372 426 449 Net profit from discontinued operations Consolidated profit 372 419 374 372 426 449 Minority interests 0 0 0 0 Attributable profit to the Group 372 419 374 372 426 449 Note: * Including dividends, income from equity- accounted method and other operating income/expenses

Balance Sheet 35

Financial Results: Balance Sheet 36 million Variation 30.06.10 30.06.09 Amount % Loans and credits* 196,656 194,103 2,553 1.3 Trading portfolio (w/o loans) 40,652 37,903 2,749 7.3 Available-for-sale financial assets 806 783 23 3.0 Due from credit institutions* 18,172 26,547 (8,375) (31.5) Intangible assets and property and equipment 1,198 1,182 15 1.3 Other assets** 33,796 24,910 8,885 35.7 Total assets/liabilities & shareholders' equity 291,279 285,428 5,851 2.1 Customer deposits* 151,851 138,792 13,060 9.4 Marketable debt securities* 54,099 48,658 5,441 11.2 Subordinated debt 7,680 7,792 (112) (1.4) Insurance liabilities 1 2 (1) (57.0) Due to credit institutions* 44,725 55,463 (10,738) (19.4) Other liabilities 26,886 29,477 (2,590) (8.8) Shareholders' equity *** 6,036 5,244 792 15.1 Total liabilities & shareholders' equity 291,279 285,428 5,851 2.1 Mutual funds 10,793 7,720 3,073 39.8 Pension funds Managed portfolios Savings-insurance policies Customer funds under management 224,423 202,962 21,462 10.6 Retail and Corporate credits included above 192,916 184,314 8,603 4.7 Retail, Private and Corporate deposits included above 148,456 133,776 14,680 11.0 Notes: * Includes all stock of concept classified in the balance sheet ** Increase largely driven by deposit of surplus cash as part of increasing liquidity *** Not including profit of the year

Investor Relations Level 5 2 Triton Square Regents Place London NW1 3AN e-mail: ir@santander.co.uk www.santander.co.uk Israel Santos Tel. +44 (0) 20 7756 4275 Investor Relations Ciudad Grupo Santander Edificio Pereda, 1st floor Avda de Cantabria, s/n 28660 Boadilla del Monte, Madrid (Spain) Tel.: +34 91 259 65 14 - +34 91 259 65 20 Fax: +34 91 257 02 45 e-mail: investor@gruposantander.com www.santander.com