To the CFS Audit & Regulatory Compliance Committee

Company Announcement Office Statement THE CO-OPERATIVE FINANCIAL SERVICES STATEMENT TO THE COMPANY ANNOUNCEMENTS OFFICE (incorporating the results for The Co-operative Bank Plc) The Co-operative Group, today, Thursday 26th August 2010, announced continued progress and growth across its family of businesses for the 26 weeks ended 3rd July 2010. In spite of the tough economic conditions, and a half year which had two weeks less trading than the comparable period last year, Group revenue was up 8% to £6.9bn, while underlying Group operating profit was up 14% to £307m. Underlying profit before payments to and on behalf of members (equivalent to pre-tax profits) was up 17% to £260m. Once again Co-operative Financial Services (CFS) has made a significant contribution to its parent's strong trading performance. -------------------------------------------------------------------------------------------------------------------------- The Co-operative Financial Services (CFS) CFS has today announced results that confirm the strength of its balance sheet and strong sales performance across its business. Highlights of CFS interim financial results for the six months to 30 June 2010 • Strong Profit & Balance Sheet Performance o Operating results up 34% to £109.3m* o Total impairments down 41.1%* o Customer funding ratio strengthened further to 110% • Strong Sales & Business Retention o Like-for-like mortgage applications up ...