Statement re Subsidiary

Royal Bank of Scotland Group PLC
05 September 2002


Citizens Financial Group completes Mellon Integration

Ahead of routine investors meetings, The Royal Bank of Scotland Group announced
today that its US subsidiary, Citizens Financial Group, has successfully
completed the conversion of the Regional Banking Franchise acquired from Mellon
onto the Citizens IT platform.

Completion of the IT conversion in August is considerably ahead of the schedule
envisaged at the time of the acquisition, and means that the vast majority of
the integration activity is complete. In addition to systems conversion, the
rebranding of the business, the transitioning of employees, the introduction of
the Citizens product suite and the establishment of all operational facilities
are complete.

Commenting on the Mellon integration Fred Goodwin, Group Chief Executive said:-

        'The conversion of the acquired Mellon operations onto the Citizens IT
        platform marks the completion of the vast majority of the overall
        integration programme. That this has been achieved so far ahead of
        schedule, so smoothly, and whilst delivering good income growth, is to
        the great credit of Larry Fish and our team, and provides a strong
        foundation for the next phase of our strategy in the US.'



For further information please contact:

Fred Goodwin, Group Chief Executive               0131 523 2033

Fred Watt, Group Finance Director                 0131 523 2056

Jonathan Atack, Head of Investor Relations        0207 427 9574



                      This information is provided by RNS
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