Trading Statement

Royal Bank of Scotland Group PLC
09 December 2002

The Royal Bank of Scotland Group plc

Pre-close Trading Up-date

9 December 2002

The Royal Bank of Scotland Group ('RBS') will be holding discussions with
analysts ahead of its close period for the year ending 31 December 2002. This
statement details the information that will be covered in those discussions.

RBS has continued to make good progress in 2002. Key features of its results for
2002, which will be released on 27 February 2003, are expected to include
continued strong growth in income, a further improvement in efficiency, stable
margins and provisions in line with guidance given at the half year stage.
Overall, Group profit for the year is anticipated to be in line with
expectations.

Income:
RBS has continued to achieve strong income growth. As reported in August, Wealth
Management income continues to be impacted by lower stock market levels,
however, all other divisions are expected to report strong growth in income for
2002.

Expenses:
Costs remain well under control. Income growth continues to exceed expense
growth and this relative movement has led to a further improvement in the
Group's cost:income ratio in 2002.

Credit Quality:
Overall credit quality remains strong, with no material change to the
distribution by grade of our risk assets compared with the position disclosed in
the interim results presentation in August.

Provisions:
The charge for provisions continues at a level in line with expectations and
consistent with the first half of 2002 and the growth in the loan book.

Margins:
The Group net interest margin has been maintained at the same level as that
reported for the first half.

Integration:
Successful completion of the NatWest IT integration was announced on 13 November
2002. The Group remains on track to deliver the increased transaction benefits
by the promised dates in 2003.

The successful conversion of the Mellon Regional Franchise onto the Citizens IT
platform was announced on 5 September 2002. Citizens continues to deliver the
promised transaction benefits more quickly than was originally envisaged.

Capital:
Capital ratios remain strong at levels within or in excess of our target ranges
and well above regulatory minima.



Fred Goodwin, Group Chief Executive, commented:

'Strong income growth, stable margins, improving efficiency and good credit
quality are expected to remain the key ingredients of our results.

All integration synergy targets are being met, and we have successfully
completed the IT integrations of both NatWest and the acquired Mellon retail
franchise.

We remain committed to our goal of building superior sustainable value for our
shareholders, customers and staff. Whilst the economic outlook continues to be
uncertain, we are confident that our bias towards less volatile activities in
less volatile geographies will enable us to continue to achieve this goal.

In short, our overall progress remains entirely on track.'


For further information please contact:
Fred Goodwin, Group Chief Executive                               0131 556 8555
Fred Watt, Group Finance Director                                 0131 556 8555
Alan Waite, Head of Group Corporate Finance                       0207 427 9574
Howard Moody, Group Director, Communications                      0131 523 2056





This announcement contains forward looking statements, including such statements
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements concern or may
affect future matters, such as RBS's future economic results, business plans and
strategies, and are based upon the current expectations of the directors. They
are subject to a number of risks and uncertainties that might cause actual
results and events to differ materially from the expectations expressed in the
forward looking statements. Factors that could cause or contribute to
differences in current expectations include, but are not limited to, regulatory
developments, competitive conditions, technological developments and general
economic conditions. RBS assumes no responsibility to update any of the forward
looking statements contained in this announcement.


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