Acquisition and Disposal

Royal Bank of Scotland Group PLC
14 May 2003

THE ROYAL BANK OF SCOTLAND GROUP TO SELL COUTTS, MIAMI TO SANTANDER CENTRAL
HISPANO AND PURCHASE SANTANDER DIREKT BANK IN FRANKFURT

14 May 2003

The Royal Bank of Scotland Group and Santander Central Hispano have reached
agreement on two separate transactions which will allow the two institutions to
focus their growth efforts on specific core businesses.

Santander Central Hispano is to acquire the Miami based Latin American private
banking operations of the Coutts Group. The Royal Bank of Scotland Group is to
purchase the credit card and personal loans portfolios of Frankfurt based
Santander Direkt Bank. Both transactions are subject to regulatory approval and
are expected to be completed within three months.

The transaction with the Coutts Group will enhance Santander Central Hispano's
position as one of the leading providers of private banking services in Latin
America. The acquisition of Santander Direkt Bank's card and loans portfolio
will grow The Royal Bank of Scotland Group's already significant personal loans
and cards business in Europe.

Fred Goodwin, Group Chief Executive of The Royal Bank of Scotland Group, said:
'These transactions are very sensible for both The Royal Bank of Scotland Group
and Santander Central Hispano.'

'The Royal Bank of Scotland Group operates one of the largest credit card
platforms in Europe and is ideally placed to grow this cards and loans business.
Santander Central Hispano is highly regarded in Latin America for its private
client banking and this acquisition will sit very comfortably within that
business.'

Santander Central Hispano CEO Alfredo Saenz, commented: 'We are delighted to
once again reach agreement with our partners at The Royal Bank of Scotland
Group, underlining again our ability to work together for the benefit of our
shareholders.'

As at 31 December 2002, the Latin American private banking operations of the
Coutts Group had US$2.6 billion in assets under management for over 1,400
clients in Latin America. The premium to be paid by Santander Central Hispano
will be approximately US$75 million. The sale of the Latin American private
banking operations will enable Coutts to focus on its priority markets of the
UK, Europe and Asia. The disposal will not have a material impact on The Royal
Bank of Scotland Group.

Through its International Private Banking Unit, Santander Central Hispano had
US$25 billion under management globally as at 31 December 2002.

Santander Direkt Bank is the third largest credit card provider in Germany to
both personal and commercial customers and also has a consumer loans business.
It has around 490,000 customer accounts. Total consideration for the card and
loans portfolio will be approximately €486 million (subject to adjustments).

Ends





Enquiries to:

Media:

The Royal Bank of Scotland Group
Carolyn McAdam
Tel (today only): [phone]; mobile [phone]

Santander Central Hispano
Keith Grant
Tel: [phone]

Investor Relations

The Royal Bank of Scotland Group
Richard O'Connor
Tel: [phone]

Santander Central Hispano
Name: Eduardo Suarez
Tel: [phone] or 1986


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