1

millionmembersbuilding societynationwide

Investor UpdateFebruary 2019

2

No. 1 for customer satisfaction amongst high

street peer group1

Joint 5th in UK Customer Service Index2

Which? Banking Brand of the Year 2018

UK leverage ratio of 5.0%

£1.3bn additional technology investment in the future of the Society

On track to deliver £100m of sustainable saves in 2018/19

UK’s most trusted financial brand3

Four community boards have supported

34 local housing projects

Attracted 1 in 5 current account switchers

and 2 in 3 new ISA deposits4

Helped a record 40.5k first-time buyers

Member financial benefit of £330m

Creating up to 1000 roles as part of our

technology investment

One of the first businesses to sign the Race at

Work Charter

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1 © GfK 2018, Financial Research Survey (FRS) measure; 2 Institute of Customer Service UK Customer Satisfaction Index; 3 compiled by Independent Research Agency, 12 months ending 31 December 2018 vs 12 months ended 31 March 2018. Financial brands included Nationwide, Barclays, Co-operative Bank, First Direct, Halifax, HSBC, Lloyds, NatWest, Santander and TSB); 4 Sources: CASS BACS Payments Schemes monthly CASS switching market data (Apr-Sep 2018) and Bank of England (Apr-Sep 2018)

Our strategy: building society, nationwide

3

Nationwide is the largest building society in the UK with over 15m members; our members are our retail savings, residential mortgage and current account customers1

In addition to being regulated by the PRA and FCA, Nationwide is subject to the Building Societies Act 1986

Nationwide does not have shareholders, so aims to make sufficient profits to run a safe and sustainable business and invest in services for members

Mutual structure does not allow for a holding company – Nationwide is, and will continue to be, run as an operating company

Our mutual model sets us apart from our competitors

Assets

Liabilities

Member Owned

No proprietary trading

One member; One vote

Residential mortgages ≥75%

Retail deposits ≥50%

Hedging to matchrisk

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1 Holders of CCDS, deferred shares, PIBS, and AT1 instruments issued by the Society are also members

Key requirements of the Building Societies Act:

4

04/04/17 04/04/18 31/12/18

9m 31/12/16 9m 31/12/17 9m 31/12/18 9m 31/12/16 9m 31/12/17 9m 31/12/18

Prime Mortgage Gross Lending (£m)1

Strong prime mortgage lending

Current Account Openings (‘000)1,2

Continued current account growth

31,773

16,430

7,483 5,363 2,116 586

HSBCNationwide MonzoSan UK Tesco Bank

Starling

Current Account Switching Net Gains2

Number 1 for current account switchers

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1 Nationwide Building Society’s Interim Management Statement, Q3 2018/19; 2 Nationwide Building Society’s Interim Management Statement, Q3 2017/18; 3 Current Account Switch Service Dashboard, Issue 21 quarterly participant data, Q3 2018; 4 Nationwide Building Society’s Preliminary Results, 2017/18

Market Share of Retail Deposits (%)1,4

Maintaining market share of deposits

Strong trading performance in a competitive market

570617 588 23.421.622.5

10.1 10.0 10.1

5

Profits in line with expectations as we invest in technology

Underlying profit for the period has reduced, principally due to a charge of £167 million1

driven by asset write-offs and additional investment in technology

Costs are flat period on period, excluding asset write-offs and our additional technology investment. On track to deliver £100 million of sustainable saves within the 2018/19 year

Net interest margin was 7 basis points lower year on year1. Expect margins to continue to moderate as consumers benefit from considerable choice

Announced £330m of member financial benefit at the half year (H1 2017/18: £245m), by offering our members better rates, fees and incentives than the market average

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1 Nationwide Building Society’s Interim Management Statement, Q3 2018/19

9 months to 31 December

2017

9 months to 31 December

20181

Underlying profit (£m)

880 691

Statutory profit (£m)

886 703

Cost income ratio (%)

59.7 68.4

Net interest margin (%)

1.33 1.26

6

Balance sheet growth driven by £3.6bn net mortgage lending and increase in liquidity due to strong retail deposit performance

Capital position has strengthened with CET1 and UK leverage ratios increasing to 31.7% and 5.0%, respectively

Day one impact of IFRS9 is limited: provisions increased by £162m, CET1 ratio reduced by 10 bps

Key ratios (%)05 Apr

18430 Sep

1831 Dec

185

Liquidity coverage ratio

130.3 131.9 152.5

Wholesale funding ratio

28.2 28.6 28.8

CET1 ratio 30.4 31.7 31.7

UK leverage ratio 4.9 5.0 5.0

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1Treasury liquidity and investment portfolio (on balance sheet); 2 Shares (member deposits) and amounts due to customers on consolidated balance sheet; 3 Total members’ interests and equity including CCDS, AT1 and subordinated liabilities; 4 Comparison shown vs 5 April to reflect the impact of IFRS9; 5 Nationwide Building Society’s Interim Management Statement, Q3 2018/19

04 Apr 18IAS39, £bn

05 Apr 184

IFRS9, £bn30 Sep 18

£bn%

share

Residential mortgages

177.2 177.1 180.7 76

Other lending 14.5 14.4 14.3 6

Liquidity1 30.8 30.8 36.0 15

Other assets 6.6 6.6 7.3 3

Assets 229.1 228.9 238.3 100

Retail deposits2 148.4 148.4 153.5 65

Wholesale funding

58.8 58.8 62.1 26

Other liabilities 3.7 3.7 3.2 1

Capital & reserves3 18.2 18.0 19.5 8

Liabilities 229.1 228.9 238.3 100

Maintaining a low risk balance sheet

7

Continued strong asset performanceRetail lending

Residential Unsecured

05 Apr 18 30 Sep 18 05 Apr 18 30 Sep 18

Total balances (£m) 177,303 180,967 4,107 4,316

Provision balances (£m) 235 234 365 371

3 month+ arrears (%) 0.43 0.42 1.56 1.53

UKF industry average (%) 0.81 0.78

Total negative equity balances (£m) 261 236

Negative equity (£m) 38 34

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00% Mortgage balances in 3 month+ arrears1

Nationwide UKF industry average

The proportion of loans in arrears across prime and specialist lending remains low, reflecting the favourable economic conditions and low interest rate environment, supported by robust credit management policies

Nationwide’s mortgage book has a 3m+ arrears value consistently below the UK Finance Industry average since at least 2005

On the 31st December, arrears performance for residential mortgages was stable at 0.43%, with an average LTV of loan stock of 57% (4 April 2018: 56%)2

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)1 Nationwide Building Society Preliminary Results disclosures 2005-2018 2 Nationwide Building Society’s Interim Management Statement, Q3 2018/19

8

In excess of expected capital and MREL requirements

MREL (£bn)Going concern capital (% of RWAs) 1

Tier 1

6.5% UK leverage exposure

Buffers

Tier 2

SNP

£18.8bn£16.8bn

Current resources 2020 expectedrequirements

5

CET1

AT1

Minimum leverage

requirement

Pillar 1

Pillar 2A

Buffers

Buffers

34.7%

27.9%

13.1%

End point Tier 1capital resources

UK leveragerequirement

CET1 requirement2 3

Unless otherwise stated, information in this presentation is correct as per Interim Management Statement (31 December 2018). 1 Requirements, including buffers which are expected to apply in 2019; 2 Leverage buffers comprise: 3.25% minimum, 0.35% additional leverage ratio buffer and 0.4% countercyclical leverage ratio buffer; 3 CRD IV buffers comprise: 1% countercyclical capital buffer; 1% systemic buffer; and 2.5% capital conservation buffer; 4 Assuming UK leverage exposure as at December 2018; 5 Senior non-preferred notes

2, 4

9

Continue to be active in wholesale funding markets

Maintained wholesale funding market presence, issuing c.£2.2bn term funding in H1 2018/19 across secured and unsecured programmes, in both private and public transactions

Since 30 September 2018, Nationwide has been active in secured and unsecured private placements. Nationwide issued £1bn of its inaugural SONIA 5yr covered bond in January 2019

Given Nationwide’s participation in the Term Funding Scheme, wholesale funding requirements have been reduced over the 2018/19 financial year

Typically, Nationwide would issue £7-10bn term funding per annum across secured and unsecured asset classes – this is the expectation for 2019/20 onwards

Term Funding Scheme

17.0

Covered Bond16.4

Short Term 15.5

Medium Term Notes 9.1

Securitisations3.4

Other 0.7

Wholesale funding portfolio (£bn)

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018). 1 Includes commercial paper, certificates of deposit, repos and deposits (of which include protected equity bond balances of £0.2bn).

1

10

Credit ratings reflect capital strength and conservative business model

Senior Preferred

Short termSenior Non Preferred

Tier 2 AT1 Outlook

Moody's Aa3 P-1 Baa1 Baa1 - Negative

Standard & Poor's A A-1 BBB+ BBB BB+ Positive

Fitch Ratings A+ F1 A A- BB+ Stable

Latest ratings actions:

Moody’s (Oct 2018): Affirmed Nationwide’s long and short term ratings, but changed its outlook to negative from stable. This change in outlook reflects uncertainties embedded in Moody’s forward looking view on the loss given failure of the Society’s senior debt

Standard & Poor’s (Nov 2018): Affirmed Nationwide’s long and short term ratings and left the positive outlook unchanged

Fitch (Dec 2018): Affirmed Nationwide’s long and short term ratings and left the stable outlook unchanged

Nationwide’s long-term and short-term credit ratings are shown in the table below. The long-term rating for both Moody’s and Standard & Poor’s is the senior preferred rating. The long-term rating for Fitch is the senior non-preferred rating.

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018)

11

Strong performance in the 2018 Bank of England Stress Test1

The 2018 Annual Cyclical Scenario stress test was the same as the 2017 scenario, but was conducted under IFRS9. The scenario included:

UK GDP falling by 4.7%

UK unemployment rising to 9.5%

UK residential property prices falling by 33%

Bank Rate rising to 4%

Nationwide remained profitable throughout the stressed period; full distributions continued to be made on all Tier 1 capital instruments

Low point CET1 ratio of 14.1%, 620bps above the hurdle rate; low point UK leverage ratio of 5.1%

The FPC stated the 2018 stress test was sufficiently severe to encompass the outcomes based on ‘worst case’ assumptions about the challenges the UK economy could face in the event of a cliff-edge Brexit

14.1

11.4 11.0 10.99.7

Nationwide LBG Barclays San UK RBS

Projected low-point CET1 capital ratios in the stress scenario (%)

Low-point CET1

Hurdle Rate

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018) 1 Bank of England, Stress testing the UK banking system 2018 results, November 2018

12

Average UK house price

Annual house price growth stagnates in January1

“Annual house price growth almost ground to a complete halt in January, with prices just 0.1% higher than the same time last year. This follows a subdued December when price growth slowed to 0.5%.

Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, but forward-looking indicators had suggested some softening was likely.

In particular, measures of consumer confidence weakened in December and surveyors reported a further fall in new buyer enquiries towards the end of 2018. While the number of properties coming onto the market also slowed, this doesn’t appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers in recent months.

It is likely that the recent slowdown is attributable to the impact of the uncertain economic outlook on buyer sentiment, given that it has occurred against a backdrop of solid employment growth, stronger wage growth and continued low borrowing costs.

Near term prospects will be heavily dependent on how quickly this uncertainty lifts, but ultimately the outlook for the housing market and house prices will be determined by the performance of the wider economy – especially the labour market.

The economic outlook remains unusually uncertain. However, if the economy continues to grow at a modest pace, with the unemployment rate and borrowing costs remaining close to current levels, we would expect UK house prices to rise at a low single-digit pace in 2019.”

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018) 1 Nationwide’s House Price Index, January 2019

UK Economy – Housing Market

Average percentage change in UK house prices

13

Contacts

Alex WallHead of Investor Relations, Rating Agencies & Capitalalexander.wall@nationwide.co.uk0845 602 9053

Nationwide Treasury Mailboxnationwide.treasury@nationwide.co.uk

14

DisclaimerThis presentation has been prepared by and is the property of Nationwide Building Society (“Nationwide”). By attending this presentation or accepting this document you represent, warrant and agree that (i) you will not reproduce ortransmit the contents (in whole or in part) of this presentation by any means; (ii) you have understood and agreed to the terms set out herein; (iii) you consent to delivery of this presentation by electronic transmission, if applicable; (iv) youare not a US Person, as defined below; (v) if you are in the United Kingdom, then you are a person who is (a) an investment professional within the meaning of Article 19 (5) of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 (“FPO”) or (b) a high net worth entity falling with Article 49(2)(a) to (d) of the FPO; and (vi) if you are within the European Economic Area (“EEA”), then you are a person who is a “qualified investor” within themeaning of Article 2(1)(e) of EU Directive 2003/71/EC, as amended (the “Prospectus Directive”).

This presentation shall not constitute or form part of any offer to sell or the solicitation of an offer to buy or subscribe for any securities. Any securities subsequently issued by Nationwide will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or any other jurisdiction of the United States. Any securities subsequently issued by Nationwide may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

NOT FOR DISTRIBUTION TO ANY US PERSON (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) OR TO ANY PERSON OR ADDRESS IN THE UNITED STATES.

In the United Kingdom, this communication is directed only at persons who (i) have professional experience in matters relating to investments falling within Article 19 of the FPO, as amended; or (ii) are Professional Clients (as defined by FCA Rules), all such persons in (i) and (ii) together being referred to as “relevant persons”.

This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only withrelevant persons.

In the EEA, this communication is only addressed to and directed at persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive.

NEITHER THIS PRESENTATION NOR ANY COPY HEREOF MAY BE DISTRIBUTED IN ANY JURISDICTIONS WHERE ITS DISTRIBUTION MAY BE RESTRICTED BY LAW. PERSONS WHO RECEIVE THIS PRESENTATION SHOULD MAKE THEMSELVESAWARE OF AND ADHERE TO ANY SUCH RESTRICTIONS. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdictions. In particular, neither this presentation nor any copy of it nor theinformation contained in it is for distribution directly or indirectly in or into the United States, Canada, Australia or Japan.

This presentation does not constitute an offering document. The information presented herein is an advertisement and does not comprise a prospectus for the purposes of the Prospectus Directive and/or Part VI of the Financial Services andMarkets Act 2000. The information herein has not been reviewed or approved by any rating agency, government entity, regulatory body or listing authority and does not constitute listing particulars in compliance with the regulations or rulesof any stock exchange. Any future potential transaction is qualified in its entirety by the information in the final form documentation relating to any such proposed transaction. Investors should not subscribe for any securities except on thebasis of the information contained in the final form documentation relating to any such proposed issue of securities, in particular, each reader is directed to any section headed “Risk Factors” in any such documentation.

This presentation is published solely for informational purposes and should not be treated as giving investment advice.

It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted byNationwide and its affiliates, agents, directors, partners and employees as to the accuracy or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such arepresentation or warranty or to constitute a recommendation to any person to acquire any securities. Nationwide and its affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage howsoeverarising from any use of this presentation or its contents or otherwise arising in connection therewith.

Although the statements of fact in this presentation have been obtained from and are based upon sources that are believed to be reliable, their accuracy is not guaranteed by Nationwide and any such information may be incomplete orcondensed.

All opinions and estimates included in this presentation are subject to change without notice. Nationwide is under no obligation to update or keep current the information contained herein.

This presentation may contain statements that constitute forward-looking statements. Such forward-looking statements can be identified by the use of forward-looking terminology, such as the words “believes”, “expects”, “may”, “intends”,“should” or “anticipates”, or the negative or other variations of those terms. Such statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance of securities,Nationwide or the UK residential mortgage industry to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others:general economic and business conditions in the United Kingdom; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative rules or initiatives affecting

Nationwide; changes in business strategy, lending practices or customer relationships; and other factors that may be referred to in the document. While such statements reflect projections prepared in good faith based upon methods anddata that are believed to be reasonable and accurate as of the date thereof, Nationwide undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Recipients of this presentationshould not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecast periods, which reflect Nationwide’s view only as of the date hereof.

Losses to investments may occur due to a variety of factors. Before purchasing any securities described in this presentation you should take steps to ensure that you understand and have made an independent assessment of the suitabilityand appropriateness thereof, and the nature and extent of your exposure to risk of loss in light of your own objectives, financial and operational resources and other relevant circumstances. You should take such independent investigationsand such professional advice as you consider necessary or appropriate for such purpose.

Furthermore, you should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decisions(including decisions regarding the suitability of any transaction) based upon your own judgement and advice from such advisers as you deem necessary and not upon any view expressed in this presentation. Certain data in this presentationhas been rounded. As a result of such rounding, the totals of data presented in this presentation may vary slightly from the arithmetic totals of such data.

15

Appendix 1: LTV by Geographic Region

Residential mortgage balances by LTV and region Greater London Central England Northern England

South East England

South West England Scotland Wales Northern Ireland Total

30 September 2018 £m £m £m £m £m £m £m £m £m %

Stage 1 and 2 loans

Fully collateralised

LTV ratio:

Up to 50% 26,201 11,424 7,456 8,822 6,096 3,160 1,468 949 65,576

50% to 60% 11,339 6,434 4,483 4,417 3,302 1,773 840 386 32,974

60% to 70% 9,361 6,755 6,396 3,796 3,321 2,560 1,336 389 33,914

70% to 80% 7,056 4,893 5,405 3,024 2,458 2,425 1,072 431 26,764

80% to 90% 5,628 2,602 3,177 2,275 1,746 1,257 656 279 17,620

90% to 100% 888 185 404 385 162 128 66 83 2,301

60,473 32,293 27,321 22,719 17,085 11,303 5,438 2,517 179,149 99.1

Not fully collateralised

Over 100% LTV 4 3 21 2 2 7 1 162 202 0.1

Collateral value 3 3 18 2 1 6 1 139 173

Negative equity 1 - 3 - 1 1 - 23 29

Stage 1 and 2 residential mortgages 60,477 32,296 27,342 22,721 17,087 11,310 5,439 2,679 179,351 99.2

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018).

16

Appendix 2: IFRS9 staging and provision analysis

Residential mortgages1 Unsecured

05 Apr 18 30 Sep 18 05 Apr 18 30 Sep 18

Balance (£m)

Share of book (%)

Provision coverage

(%)

Balance (£m)

Share of book (%)

Provision coverage

(%)

Balance (£m)

Share of book (%)

Provision coverage

(%)

Balance (£m)

Share of book (%)

Provision coverage

(%)

Stage 1 156,647 88 0.01 160,566 89 0.01 3,264 79 0.8 3,397 79 0.7

Stage 2 19,072 11 0.9 18,785 10 0.9 575 14 17.9 642 15 15.4

Of which: >30 dpd 463 488 16 16

Stage 3 1,395 1 3.4 1,427 1 3.1 268 7 88.5 277 6 89.2

Of which: >90 dpd 740 729 61 63

Of which: charged off accounts

n.a n.a. 185 193

Total 177,114 0.13 180,778 0.13 4,107 8.9 4,316 8.6

Memo: Stage 3 provision coverage exc. charge offs (%)

n.a. n.a. 75 74

Unless otherwise stated, information in this presentation is correct as per Interim Results (30 September 2018).