Closing Branch Review – Part 1

Background information We continue to respond to our customers changing needs. We now Lochgelly have over 13 million of our customers accessing services through Internet Banking and over 9 million using our Mobile Banking app. Address: Monday 09:00 - 17:00 Branches will remain vital in meeting customers' needs but we must 67 Bank Street Tuesday 09:00 - 17:00 continually review our network to make sure we have branches in Lochgelly Wednesday 09:30 - 17:00 locations where customers need and use them the most. Thursday 09:00 - 17:00 KY5 9QN Friday 09:00 - 17:00 Our decision Saturday Closed Following a careful review, Lochgelly branch will close on Lochgelly branch facilities: 27 February 2018. We have made the diffi cult decision to close this branch because of the changing ways customers choose to bank Cashpoint® Cashpoint® Talking with us - most are already using an alternative way to bank in machines machine Cashpoint® addition to the branch. inside branch outside branch machine How we made our closure decision When we close a branch we complete a detailed impact analysis which will include: Yes Yes No ▶ How customers currently use the branch. ▶ Changes to customer use of the branch. Level access Self service zone Counter ▶ Current levels of service provided by the branch including branch to branch or machines service opening hours, ATMs. ▶ Assessment and check of alternative ways to bank locally including their proximity and accessibility. This is confi rmed by a visit. Yes Yes Yes ▶ Assessment of public transport, availability and frequency. ▶ Impact on our customers including those who may need additional support. ▶ Whether we own or lease the branch building. What this decision means for you H How customers are using this branch You can continue to use any other Bank of branches and the nearest alternative branch is the branch. Counters at Lochgelly of our customers use This document includes a summary of our review and provides 4% branch are 4% quieter 48 the branch on a details of alternative ways to access banking. than a year ago regular weekly basis

of our customers use of our customers only 532 the branch on a 1068 use this branch and no û Lochgelly branch customers regular monthly basis other way to bank Age of personal customers using Lochgelly branch Personal Customers < 18 4% 7% Fewer personal customers use Lochgelly branch 18-24 10% than a typical Bank of Scotland branch 25-34 16% 35% 35-44 13% 45-54 18% 55-64 15% 65-74 12% 93% 75+ 12% 4% Fewer Counter Transactions

Figures have been rounded up or Personal Customers FewerSelf Service Zone or Machine 6% Transactions down to show as whole numbers Business Customers

8% Fewer Cashpoint® Machine Transactions ā Lochgelly customers are already banking Business Customers in other ways* Fewer business customers use Lochgelly branch Personal Customers 40% than a typical Bank of Scotland branch only use Lochgelly use branch, online or 32% branch 65% telephone banking use Lochgelly plus also use the Post 1% Fewer Counter Transactions 68% other Bank of 27% O f fi c e ® Scotland branches MoreSelf Service Zone or Machine Business Customers 88% Transactions 26% only use Lochgelly branch More Cashpoint® Machine Transactions *please refer to the Glossary of terms on page 3 3%

1 Other ways for customers to do their everyday banking

á Other branches nearby p Other local banking services You can use any other Bank of Scotland branch. To find your most We will not be maintaining our cash machine at the Lochgelly convenient branch and their opening hours please search on the branch. Nearby cash machines are listed below or you can use Branch Locator: bankofscotland.co.uk/branchfinder/search.asp ATM Link Locator to find your most convenient alternative: Nearest and most used alternative www.link.co.uk/atm-locator Cowdenbeath 349/351 High Street Free cash machines nearby KY4 9QJ The Cooperative Food Lochgelly – 50 Bank Street, KY5 9QN 2.19 miles away 0 miles away Cash machines Cash machine Talking Level access Self service zone Counter McColls – 48 North Street, KY5 9NH 0.14 miles away inside branch outside branch cash machine to branch or machines service Yes Yes No Yes Yes Yes Premier – 5 Knockhill Close, KY5 9NE 0.15 miles away PayPoint nearby: Other nearby branches The Cooperative Food Lochgelly – 50 Bank Street, KY5 9QN High Street PayPoint Locator: http://www.paypoint.ie/locator 163 High Street KY1 1LR 6.95 miles away Post Office® Kirkcaldy Mitchelston Carberry Road Personal and Business Banking customers can withdraw money or KY1 3PA check their balance, as well as pay in cheques and money to their ® 7.18 miles away account at any Post Office branch. To find your most convenient Post Office® branch and it's opening times please search on the Post Office® Locator: www.royalmail.com/cy/branch-finder Transport R Nearest Post Office® Address: For nearest and most used alternative branch: Lochgelly, 74-80 Main Street, Lochgelly KY5 9AA Buses run every 10 - 15 minutes from the closing branch at Lochgelly ® to the branch at Cowdenbeath, Stagecoach East Scotland, service Post Office opening hours: numbers 19 and 19A with a journey time of around 15 minutes. Monday 05:00 - 22:00 Friday 05:00 - 22:00 Tuesday 05:00 - 22:00 Saturday 05:00 - 22:00 Wednesday 05:00 - 22:00 Sunday 06:00 - 22:00 Thursday 05:00 - 22:00

Our Internet Banking, Mobile Banking and Telephone Banking services give customers 24 hour access to their accounts, 7 days a week. In your local area broadband services will be available from multiple suppliers.

Personal Customers Business Customers Commercial Customers ì bankofscotland.co.uk q Cash & cheque collection services q Cash & cheque collection services Ì 0345 780 1801 ì bankofscotland.co.uk/business ì bankofscotland.co.uk/business ê Mobile banking app Ì Telephone banking services Ì Telephone banking services ü Branch colleagues ê Mobile banking app ê Mobile banking app ü Bespoke on-line services ü Bespoke on-line services

T Further help: For further help and support please contact either colleagues in our branches, your relationship manager or contact us on 0345 780 1801. 2 Terms used in this document To help you understand what the terms mean please use the table below.

Term used Definition

Counters quieter or busier than a year Rolling year on year % change in counter transactions ago

Customers using the branch on a The number of customers who transacted at the counter or Immediate Deposit Machine (IDM) regular weekly basis in 48 out of 52 weeks in a 12 month period

Customers using the branch on a The number of customers who transacted at the counter or IDM in 11 out of 12 months in a 12 regular monthly basis month period

Personal % comparison to typical The percentage of Personal customers using the named branch compared to the average branch number of Personal customers using a typical branch for the Brand

Business % comparison to a typical The percentage of Business customers using the named branch compared to the average branch number of Business customers using a typical branch for the Brand

The proportion of branch using Personal customers who have not used another branch in the Personal only use this branch last 12 months

Personal only use this branch and The proportion of branch using Personal customers who have also used a different branch in others the last 12 months

Personal use branch, online and The proportion of branch using Personal customers who have also used Internet or Telephone telephone banking Banking in the last 6 months

The proportion of branch using Personal customers who have transacted in the Post Office® in Personal also use Post Office® the last 12 months

The proportion of branch using Business customers who have not used another branch in the Business – only use this branch last 12 months

Based on the road distance between the closing and next closest branch. Source: Mapinfo – Closest branch distance this software package measures distance between post codes.

Measured on a straight line 'as the crow flies' basis between postcode of the closing branch ATM distance and postcode of cash machine.

All data collated and validated as at 11th October 2017

Lloyds Banking Group is a signatory to the Access to Banking Standard and the result of our local community engagement will be published in Part 2 of this document before the branch closes.

If you’d like this in another format such as large print, Braille or audio CD please speak to a colleague in branch, your Relationship Manager or contact us on 0345 780 1801.

Cashpoint® is a registered trademark of Lloyds Bank plc. Post Office® is a registered trademark of Royal Mail. Bank of Scotland plc, Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. Bank of Scotland plc is covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service. 3