Halifax: The Group’s challenger brand

1. David Nicholson Group Director, Halifax Community Bank 25 April 2012 Halifax:The Group’s challenger brand

2. Becoming the best bank for customers “With over 30 million customers, we are uniquely placed to unlock the potential of families, businesses and the communities we serve, making a significant contribution to the future strength and prosperity of the UK.” • Our Lloyds Banking Group strategy: • Strengthening our balance sheet • Paying back the taxpayer • Reshaping our portfolio • Verde • Focus on core business • Simplifying the Group • Operations and processes • Getting it right first time • Investing for future growth • Commitment to branches and multi-brand... And Bancassurance • Investing in colleagues and communities

3. A key role in our multi-brand strategy

4. Halifax: The Group’s Challenger Brand Re-invigorated the brand – “the people who give you extra” Rewarding, great value products Keeping it simple and straightforward Upbeat, friendly and professional colleagues

5. 2011: the Group is already delivering • We’re now in a significantly stronger financial position • We’ve strengthened our balance sheet • We’ve significantly improved our capital and liquidity positions • We’ve exceeded our SME lending and complaints reduction targets

6. 2011: Halifax – a great big beast! • Group - £3.5bn loss, largely due to PPI provision • Retail profit - £3.6bn… and Halifax delivered a significant part of that profit • 2.9m main bankers… 120,000 growth in 2011 • No.1 choice for savers… savings balances £7bn growth in 2011 • Direct mortgage growth at 8% in 2011 in a flat market … we helped 23,000 customers buy a home through Halifax • Complaints reduced by a third in Halifax Community Bank • All while integrating!

7. Halifax: Our bulging trophy cabinet Best Current Account Best Overall Lender Best Cash ISA Provider Best Fixed Rate Mortgage The bank that most rewards loyalty Rewards Clarity Credit Card Best Current Account Best Student Account Best Customer Service Best Current Account Provider (credit interest) Best Cash ISA Provider Best Fixed Rate Account Provider Switching

8. We’re getting the message across • December saw Halifax receive more positive press coverage than any other bank thanks to our savers’ prize draw • January – 287 mentions worth £2.5m… great reviews for our switching campaign… and 144 best buys! • March – more positive coverage for Halifax ISAs than any other bank

9. Best bank for customers in 2012 • Halifax no1 for switchers! Most successful campaign in six years • General Insurance ‘Fixed Premiums’ proposition • Savings balances up £574m in Q1 - 750,000 Savers Prize Draw registrations • Tax year end – more prize draw, extended opening, record service scores • Mortgages – home buying expertise and first time buyer support • Multi-channel – unique apps, including Halifax Home Finder

10. Keeping up the momentum in 2012 • £1.7bn savings from our Group Simplification programme – reinvesting a third • We’re investing over £100m in 2012 for Halifax customers • 100 fixes already delivered since migration… loads more to come • ISA transfers and redesignations… complaints down by 62% per 1,000 • More counter system improvements to speed up transactions • Fully automated process for Term Deposit Maturities • Simplified account closures • Pilot of extended Saturday opening hours • Multi-channel is key: significant growth of online users… 29,000 signed up in Q1 • New-look branches to support the challenger brand and self-service

11. Upbeat, friendly and professional We’re building the most professionally qualified workforce in the industry • Branch Managers • Financial Advisers • Mortgage Advisers • Banking Advisers – 67 already accredited All professional by end of 2012

12. Clear commitments • Fastest growing UK bank for main banking • Number one on the high street for mortgages and savings • Fastest growing multi-channel bank • Bancassurance growth