Subsidiary Interim Results

Royal Bank of Scotland Group PLC
05 August 2003



The Royal Bank of Scotland Group plc is pleased to attach a copy of the results
of Citizens Financial Group, Inc., its U.S. banking subsidiary.

The financial information contained in the attached release has been prepared in
accordance with accounting principles generally accepted in the United States of
America ('U.S. GAAP'). Citizens' earnings before taxation, amortization of
goodwill and core deposit intangible, and acquisition costs for the six-months
ended June 30, 2003 and June 30, 2002 based on U.K. GAAP and U.S. GAAP were as
follows:

                                            Six-Months Ended
                                               JUNE 30,

(In Millions)                           2003                 2002

  U.K. GAAP                            $685                  $555
  U.S. GAAP                            $673                  $520


                        Citizens reports record earnings

        Net income increases 64%; continued double digit organic growth

FOR IMMEDIATE RELEASE

August 5, 2003

PROVIDENCE, RI - Citizens Financial Group, Inc. ('Citizens') today reported
record net income of $401 million for the six-month period ended June 30, 2003,
up 64 percent from $245 million for the comparable prior year period. Excluding
acquisition costs, net income totaled $411 million for the six-months ended June
30, 2003, up 30 percent from $315 million for the same period in 2002.

At June 30, 2003, Citizens' total assets were $69.4 billion compared with $55.3
billion at June 30, 2002, growth of 25 percent. Approximately $3.4 billion of
this asset growth came from acquisitions; organic growth accounted for the
remainder. Citizens had strong year over year organic loan and deposit growth.
Excluding the impact of the Medford and Commonwealth acquisitions, deposits
increased 22 percent, or $9.3 billion; loans and leases, excluding consumer
mortgages, increased 38 percent, or $9.5 billion.

'Citizens' outstanding results this period demonstrate that our long term
strategic focus on customer service and convenience is a winning formula,' said
Lawrence K. Fish, Chairman, President and CEO of Citizens Financial Group, Inc.
'Citizens has produced outstanding organic growth in deposits and loans while
continuing to make acquisitions. Our acquisition and integration of
Commonwealth, acquisition of Port Financial and recently announced agreement to
acquire Community National will continue to fuel our growth and add to our
results.'

'Organic growth continues to be strong in the Mid-Atlantic region, the
integration of our Commonwealth Bank acquisition is complete, we are delivering
the financial performance predicted, and have grown our number of customers
including Commonwealth by approximately 27 percent year over year,' said Fish.
'In New England, our acquisition and integration of Medford Savings Bank and the
addition of more than 100 full service branches in Stop & Shop supermarkets have
contributed to Citizens' strong growth, increasing our number of customers by
approximately 13 percent. The acquisition of CambridgePort Bank further
increases these numbers.'

For the six-month period ended June 30, 2003, net interest income increased $126
million, or 14 percent, mainly as a result of strong organic loan and deposit
growth, offset by a narrowing spread due to the lower interest rate environment.

Noninterest income increased $114 million, or 35 percent, for the six-month
period ended June 30, 2003. The growth in noninterest income was driven by
strong growth in Citizens' major business lines and net securities gains.

Noninterest operating expense was $737 million for the six-month period ended
June 30, 2003. Excluding the acquisitions, noninterest operating expense
increased $45 million or 7% over the comparable prior year period to support
higher business volumes and expansion of Citizens' supermarket banking program.
Noninterest operating expense excludes acquisition costs and the amortization of
core deposit intangible.

Citizens recorded amortization of core deposit intangible of $44 million for the
six-month period ended June 30, 2003 compared with $40 million for the six-month
period ended June 30, 2002. Citizens recorded acquisition costs of $16 million,
$10 million after tax, during the period ended June 30, 2003 connected with the
Commonwealth transaction and $107 million, $70 million after tax, during the
period ended June 30, 2002 connected with the Mellon transaction.

Citizens completed the conversion in December 2002 of Medford Bancorp, Inc., the
parent company of Medford Savings Bank purchased on October 15, 2002. This
transaction included $1.2 billion in deposits, 19 branches and 24 ATMs in
eastern Massachusetts.

Citizens completed the conversion in March 2003 of Commonwealth Bancorp, Inc., a
$1.8 billion banking company headquartered in Norristown, Pennsylvania purchased
on January 17, 2003. This transaction included 60 branches and 61 ATMs and was
Citizens' first introduction into the Reading, Pennsylvania market.

On February 28, 2003, Citizens completed the purchase of The Feitelberg Company,
one of the largest insurance agencies in southeastern New England. The
full-service insurance agency and brokerage firm represents more than 6,500
individuals and 1,500 commercial clients.

On July 30, 2003, Citizens announced a definitive agreement under which Citizens
will acquire Community Bancorp, Inc., the holding company for Community National
Bank, headquartered in Hudson, Massachusetts. Community Bancorp, Inc., with
total assets of $457 million operates 10 branch locations and 12 ATMs in central
and eastern Massachusetts. This transaction is subject to approval by regulatory
authorities and Community Bancorp, Inc. shareholders and is expected to be
completed in the fourth quarter of 2003.

On July 31, 2003, Citizens completed the purchase of Port Financial Corp., the
holding company for CambridgePort Bank, a $1.5 billion banking company
headquartered in Brighton, Massachusetts. This transaction includes $1.2 billion
in deposits, 11 banking locations and 15 ATMs throughout suburban-metropolitan
Boston.

Following the July 31, 2003 acquisition of Port Financial Corp., Citizens
Financial Group, Inc. is a $71 billion commercial bank holding company. It is
headquartered in Providence, RI, and has more than 825 offices, approximately
1,650 ATMs and more than 15,000 employees in seven states. It operates as
Citizens Bank in Connecticut, Delaware, Massachusetts, New Hampshire, New
Jersey, Pennsylvania, and Rhode Island. Citizens is one of the 20 largest
commercial banks in the United States. Citizens is owned by The Royal Bank of
Scotland Group plc. Our website is citizensbank.com.



CONSOLIDATED BALANCE SHEETS
(unaudited)


                                                                                           JUNE 30,
(In Millions)                                                                      2003                 2002

Assets
  Cash and due from banks                                                        $1,819               $1,223
  Short-term investments                                                            204                  693
  Securities                                                                     23,092               20,666
  Loans and leases                                                               37,094               26,823
         Less: Allowance for possible credit losses                                 467                  426

  Net loans and leases                                                           36,627               26,397

  Goodwill and core deposit intangible                                            4,721                4,187
  Other assets                                                                    2,888                2,133

         Total assets                                                           $69,351              $55,299

Liabilities and Stockholder's Equity
  Deposits                                                                      $53,568              $41,491
  Borrowed funds                                                                  6,348                6,271
  Other liabilities                                                                 996                1,374

         Total liabilities                                                       60,912               49,136

  Stockholder's equity                                                            8,439                6,163

         Total liabilities and stockholder's equity                             $69,351              $55,299



                                 CONSOLIDATED STATEMENTS OF INCOME
                                            (unaudited)


                                                                             Six-Months Ended
                                                                                 JUNE 30,
(In Millions)                                                             2003               2002

  Net interest income                                                   $1,035               $909
  Provision for credit losses                                               67                 53

  Net interest income after provision for credit losses                    968                856

  Noninterest income                                                       442                328
  Noninterest expense
         Operating                                                         737                664
         Amortization of core deposit intangible                            44                 40
         Acquisition costs                                                  16                107

  Total noninterest expense                                                797                811

  Earnings before income taxes                                             613                373
  Income taxes                                                             212                128

  Net income                                                              $401               $245


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