Trading Statement

Royal Bank of Scotland Group PLC
27 June 2002


                      The Royal Bank of Scotland Group plc

                           Pre-Close Trading Up-date



27 June 2002

The Royal Bank of Scotland Group ('RBS') will be holding discussions with
analysts ahead of its close period for the half year ending 30 June 2002. This
statement details the information that will be covered in those discussions.

RBS has continued to make strong progress in the first half of 2002. Key
features of its interim results, which will be released on 7 August, are
expected to include continued strong growth in income, a further improvement in
efficiency and stable margins. The increased targets for NatWest integration
benefits are being met and excellent progress is being made on the integration
of the Mellon Regional Franchise by Citizens.

Income:

RBS has continued to achieve strong growth in income. While lower stock market
values have affected income growth in Wealth Management, income growth elsewhere
is strong, especially in Citizens, Direct Line and Retail Direct.

Expenses:

Expenses have grown to support the increased levels of income, however income
growth has again comfortably exceeded expense growth in the first half of 2002,
and this relative movement has led to a further improvement in the Group's cost:
income ratio.

Credit Quality:

Overall credit quality remains strong, with no material change to the
distribution by grade of our lending portfolio compared with the position
disclosed in the results presentation in February.

Provisions:

The charge for provisions continues at a level consistent with the second half
of 2001 and the growth in the loan book, and is in line with expectations.
Ratios for risk elements in lending and provision coverage remain in line with
levels at the end of last year.

Margins:

The Group net interest margin has remained stable. Improved lending margins have
offset the downward pressure on deposit margins arising from lower interest
rates.



Integration:

The increased targets for benefits in relation to the integration of NatWest are
being met and the integration programme remains fully on track. In the United
States, the integration of the Mellon Regional Franchise by Citizens is running
ahead of plan.

Capital:

Capital ratios remain in line with those reported in February and the
anticipated rate of capital generation is sufficient to meet foreseeable
requirements.



Accounting Policy Changes:

Implementation of FRS19 (Deferred Tax) and UITF Abstract 33 (Capital
Instruments) has not had a material effect on the Group's results for the
current and prior periods. The Group will be implementing FRS17 (Retirement
Benefits) with effect from 1 January 2003; early implementation in 2002 would
not have had a material effect on the Group's results.

Fred Goodwin, Group Chief Executive, commented:

'Strong income growth and improved efficiency will again be key features when we
report our half year results. Our view of credit provisioning and credit quality
is unchanged from that discussed in detail in February. The Group continues to
perform well and in line with expectations. We believe that the interim results
will portray a very positive picture of the Group's progress.'
-----------------------------------------------

End

For further information please contact:
Fred Goodwin, Group Chief Executive                                0131 556 8555
Fred Watt, Group Finance Director                                  0131 556 8555
Jonathan Atack, Head of Investor Relations                         020 7427 9574
Howard Moody, Group Director, Communications                       0131 523 2056



This announcement contains forward looking statements. These statements are
based on current expectations and are subject to a number of risks and
uncertainties. The factors that might cause forward looking statements to differ
materially from actual results include, among other things, regulatory and
economic factors. RBS assumes no responsibility to update any of the forward
looking statements contained herein nor should anything in this announcement be
taken as a profit forecast.



                      This information is provided by RNS
            The company news service from the London Stock Exchange