Trading Statement

Royal Bank of Scotland Group PLC
11 June 2003

The Royal Bank of Scotland Group plc

Pre-Close Trading Up-date



11 June 2003





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 2003. This
statement details the information that will be covered in those discussions.

RBS has continued to make good progress in the first half of 2003. Key features
of its interim results, which will be released on 5 August, are expected to
include continued strong growth in income, a further improvement in efficiency,
and provisions in line with guidance given at the results presentation in
February. Consequently, profits are anticipated to be in line with expectations.

Income and Margins

RBS continues to achieve strong income growth, with Direct Line and Retail
Direct achieving particularly rapid growth. Wealth Management continues to be
affected by lower stock markets but is showing overall resilience.

As predicted at the results presentation in February, interest margins have been
slightly lower than in 2002. Income growth has, however, been sustained by good
growth in deposit and loan volumes, and by strong growth in non-interest income,
especially in areas such as general insurance and credit cards.

Expenses

The Group remains focused on improving its efficiency, and whilst expenses have
increased to support higher business volumes, a further improvement in the cost:
income ratio is expected to be achieved.

Credit Quality and Provisions

Credit quality remains strong, with no material change to the distribution by
grade of our risk assets compared with the position disclosed in the results
presentation in February.

The charge for bad debts continues at a level consistent with that reported in
2002 and the growth in the loan book.

Our view of credit quality remains essentially unchanged from that discussed in
February with credit metrics, if anything, pointing towards an improving
outlook.

Acquisitions

Citizens completed the acquisition of Commonwealth Bancorp in January 2003 and
had fully integrated its systems, back offices and branches by the end of March.
In April, Citizens announced the acquisition of Port Financial, which is
expected to be completed in the third quarter. In May, RBS announced the sale of
the Miami-based operations of Coutts and the purchase of the credit card and
personal loan businesses of Frankfurt-based Santander Direkt AG: both these
transactions are expected to be completed in the third quarter.

The acquisition of Churchill Insurance Group plc has been announced today: this
acquisition is subject to regulatory approval.

Capital

Capital ratios remain strong at levels within our target ranges and are forecast
to remain so after the completion of all the acquisitions and disposals
mentioned previously.

Fred Goodwin, Group Chief Executive, commented;

'It is pleasing to see continuation of the performance dynamics which have been
evident in the Group's results for some time: superior income growth, continuing
efficiency improvement, and stable credit quality. At the same time we have
continued to develop our stated strategy, with accretive acquisitions in the
United Kingdom, Continental Europe and the United States.

We believe that the interim results will clearly portray a positive picture of
the Group's continuing progress.'





For further information please contact:
Fred Goodwin, Group Chief Executive                                0131 556 8555
Fred Watt, Group Finance Director                                  0131 556 8555
Richard O'Connor, Head of Investor Relations                       0207 672 1758
Howard Moody, Group Director, Communications                       0131 523 2056




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