Capital Raising

Royal Bank of Scotland Group PLC
12 June 2001

THE ROYAL BANK OF SCOTLAND GROUP PLC

COMPLETES US$ 400 MILLION PREFERENCE SHARE ISSUE

The Royal Bank of Scotland Group plc ('the Group') has completed the issue of
16,000,000 Category II Series K Non-cumulative Dollar Preference Shares of
nominal value US$0.01 each ('the Series K Preference Shares') at an issue
price of US$25.00 per share. The proceeds of the issue of the Series K
Preference Shares, after deducting underwriting commission, amount to
US$387,486,250. Application has been made for Series K ADSs, representing the
Series K Preference Shares, to be listed on the New York Stock Exchange.

No application has been made to list the Series K Preference Shares in the UK
and the Series K Preference Shares are not being offered or sold to the public
in the UK.

Fred Watt, Group Finance Director of The Royal Bank of Scotland Group
commented:

'We are absolutely delighted with the exceptional demand this issue has
generated from the US retail investor market. The US continues to be a very
important market to the Group and we were pleased to satisfy some of the extra
investor demand by increasing the size of the issue'.

Alan Patterson, Director, Salomon Smith Barney commented:

' We are very pleased to have acted as lead manager for The Royal Bank of

Scotland Group's Preference Share issue, Series K. The Bank has enjoyed a
strong following in the US retail market for many years, and investors
responded enthusiastically to this new offering'

For further information, please contact:

The Royal Bank of Scotland Group plc

Fred Watt

Group Finance Director

42 St Andrew Square

Edinburgh

EH2 2YE

Tel: [phone]

Ron Huggett

Capital Raising Director

Waterhouse Square

138-142 Holborn

London

EC1N 2TH

Tel: [phone]



Schroder Salomon Smith Barney

Alan Patterson

Managing Director

Citigroup Centre

33 Canada Square

Canary Wharf

London

E14 5LB

Tel: [phone]