Natwest Group PLC

Quarterly Report • Jul 18, 2011

Actual results at 31 December 2010	million GBP, %
Operating profit before impairments	9,805
Impairment losses on financial and non-financial assets in the banking book	-9,578
Risk weighted assets (4)	520,661
Core Tier 1 capital (4)	50,563
Core Tier 1 capital ratio, % (4)	9.7%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark
Outcomes of the adverse scenario at 31 December 2012, excluding all mitigating actions
taken in 2011	%
Core Tier 1 Capital ratio	6.3%
Outcomes of the adverse scenario at 31 December 2012, including recognised mitigating measures as of 30 April 2011	million GBP, %
2 yr cumulative operating profit before impairments	8,105
2 yr cumulative impairment losses on financial and non-financial assets in the banking book	-22,198
2 yr cumulative losses from the stress in the trading book	-3,794
of which valuation losses due to sovereign shock	-496
Risk weighted assets	587,008
Core Tier 1 Capital	36,993
Core Tier 1 Capital ratio (%)	6.3%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark
Effects from the recognised mitigating measures put in place until 30 April 2011 (5)
Equity raisings announced and fully committed between 31 December 2010 and 30 April 2011
(CT1 million EUR)
Effect of government support publicly announced and fully committed in period from 31
December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1 ratio)
Effect of mandatory restructuring plans, publicly announced and fully committed in period from 31
December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1 ratio)
	percentage points contributing
Additional taken or planned mitigating measures	to capital ratio
Use of provisions and/or other reserves (including release of countercyclical provisions)
Divestments and other management actions taken by 30 April 2011
Other disinvestments and restructuring measures, including also future mandatory restructuring
not yet approved with the EU Commission under the EU State Aid rules
Future planned issuances of common equity instruments (private issuances)

Future planned government subscriptions of capital instruments (including hybrids)

Other (existing and future) instruments recognised as appropriate back-stop measures by

national supervisory authorities

Supervisory recognised capital ratio after all current and future mitigating actions as of 31 December 2012, % (6) 6.3%

Notes

Results of the 2011 EBA EU-wide stress test: Summary (1-3)

(5) Effects of capital raisings, government support and mandatory restructuring plans publicly announced and fully committed in period from 31 December 2010 to 30 April 2011, which are incorporated in the Core Tier 1 capital ratio reported as the outcome of the stress test.

Name of the bank: Royal Bank of Scotland Group

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's

forecast or directly compared to bank's other published information.

(6) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption and incorporates regulatory transitional floors, where binding (see http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx for the details on the EBA methodology).

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities and/or reported by institutions in public disclosures.

(4) Full static balance sheet assumption excluding any mitigating management actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures and capital raisings fully paid in before 31 December 2010 are included).

Name of the bank:Royal Bank of Scotland Group

All in million GBP, or %

	Baseline scenario				Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	520,661	533,881	521,993	572,405	587,008
Common equity according to EBA definition	50,563	49,039	47,453	41,347	36,993
of which ordinary shares subscribed by government	45,100	45,100	45,100	45,100	45,100
Other existing subscribed government capital (before 31 December 2010)		0	0	0	0
Core Tier 1 capital (full static balance sheet assumption)	50,563	49,039	47,453	41,347	36,993
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%

		Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	520,661	533,881	521,993	572,405	587,008
Effect of mandatory restructuring plans, publicly announced and fully committed before 31 December 2010 on RWA (+/-)
Risk weighted assets after the effects of mandatory restructuring plans publicly announced and fully committed before 31 December 2010 Core Tier 1 Capital (full static balance sheet assumption)	520,661 50,563	533,881 49,039	521,993 47,453	572,405 41,347	587,008 36,993
Effect of mandatory restructuring plans, publicly announced and fully committed before 31 December 2010 on Core Tier 1 capital (+/-)
Core Tier 1 capital after the effects of mandatory restructuring plans publicly announced and fully committed before 31 December 2010	50,563	49,039	47,453	41,347	36,993
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%

		Baseline scenario			Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	520,661	533,881	521,993	572,405	587,008
Effect of mandatory restructuring plans, publicly announced and fully
committed in period from 31 December 2010 to 30 April 2011 on RWA
(+/-)
Risk weighted assets after the effects of mandatory restructuring plans
publicly announced and fully committed before 30 April 2011		533,881	521,993	572,405	587,008
of which RWA in banking book		366,180	352,002	399,547	408,219
of which RWA in trading book		106,407	108,698	111,565	117,495
RWA on securitisation positions (banking and trading book)		121,257	133,532	158,346	199,432
Total assets after the effects of mandatory restructuring plans publicly
announced and fully committed and equity raised and fully committed by
30 April 2011	520,661	533,881	521,993	572,405	587,008
Core Tier 1 capital after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	50,563	49,039	47,453	41,347	36,993
Equity raised between 31 December 2010 and 30 April 2011
Equity raisings fully committed (but not paid in) between 31 December
2010 and 30 April 2011
Effect of government support publicly announced and fully committed
in period from 31 December 2010 to 30 April 2011 on Core Tier 1
capital (+/-)
Effect of mandatory restructuring plans, publicly announced and fully
committed in period from 31 December 2010 to 30 April 2011 on Core
Tier 1 capital (+/-)
Core Tier 1 capital after government support, capital raisings and effects
of restructuring plans fully committed by 30 April 2011		49,039	47,453	41,347	36,993
Tier 1 capital after government support, capital raisings and effects of
restructuring plans fully committed by 30 April 2011
Total regulatory capital after government support, capital raisings and
effects of restructuring plans fully committed by 30 April 2011
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%
Additional capital needed to reach a 5% Core Tier 1 capital
benchmark

		Baseline scenario		Adverse scenario
Profit and losses	2010	2011	2012	2011	2012
Net interest income	13,483	13,345	12,411	13,141	11,807
Trading income	4,588	1,532	1,532	1,532	1,532
of which trading losses from stress scenarios		-732	-732	-1,897	-1,897
of which valuation losses due to sovereign shock				-248	-248
Other operating income (5)	2,101	2,656	1,998	2,656	1,998
Operating profit before impairments	9,805	5,584	5,059	4,815	3,290
Impairments on financial and non-financial assets in the banking book
(6)	-9,578	-6,364	-4,802	-15,145	-7,053
Operating profit after impairments and other losses from the stress	227	-780	257	-10,330	-3,763
Other income (5,6)	0	-	-	-	-
Net profit after tax (7)	-468	-2,004	-768	-9,023	-3,773
of which carried over to capital (retained earnings)	-468	-2,004	-768	-9,023	-3,773
of which distributed as dividends	-	-	-	-	-

A. Results of the stress test based on the full static balance sheet assumption without any mitigating actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures fully paid in before 31 December 2010 are included)

B. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 31 December 2010

C. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 30 April 2011

		Baseline scenario		Adverse scenario
Additional information	2010	2011	2012	2011	2012
Deferred Tax Assets (8)	4,274	4,274	4,274	7,227	8,723
Stock of provisions (9)	18,182	24,478	29,384	32,549	38,940
of which stock of provisions for non-defaulted assets	2,650	8,946	13,852	10,377	16,768
of which Sovereigns (10)	0	117	208	189	378
of which Institutions (10)	69	103	132	136	203
of which Corporate (excluding Commercial real estate)	1,414	4,572	7,160	5,300	8,337
of which Retail (excluding Commercial real estate)	685	2,215	3,368	2,443	4,095
of which Commercial real estate (11)	482	1,559	2,323	1,816	2,915
of which stock of provisions for defaulted assets	15,532	15,532	15,532	22,172	22,172
of which Corporate (excluding Commercial real estate)	4,303	4,303	4,303	6,790	6,790
of which Retail (excluding commercial real estate)	3,771	3,771	3,771	4,184	4,184
of which Commercial real estate	6,736	6,736	6,736	11,169	11,169
Coverage ratio (%) (12)
Corporate (excluding Commercial real estate)	33.6%	20.6%	15.7%	29.8%	22.3%
Retail (excluding Commercial real estate)	59.0%	34.6%	26.1%	35.3%	24.3%
Commercial real estate	27.9%	24.8%	23.0%	40.1%	36.0%
Loss rates (%) (13)
Corporate (excluding Commercial real estate)	0.7%	0.9%	0.8%	1.2%	1.0%
Retail (excluding Commercial real estate)	1.4%	0.8%	0.6%	0.9%	0.9%
Commercial real estate	3.6%	1.4%	1.1%	1.7%	1.5%
Funding cost (bps)	139			248	373

D. Other mitigating measures (see Mitigating measures worksheet for details), million GBP (14)

(13) Loss rate = total impairment flow (specific and collective impairment flow) for a year / total EAD for the specific portfolio (including defaulted and non-defaulted assets but excluding securitisation and counterparty credit risk exposures).

(12) Coverage ratio = stock of provisions on defaulted assets / stock of defaulted assets expressed in EAD for the specific portfolio.

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities and/or reported by institutions in public disclosures.

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption (see http://www.eba.europa.eu/EU-widestress-testing/2011.aspx for the details on the EBA methodology).

(6) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011- 2012 should be reported in Section D as other mitigating measures.

	Baseline scenario		Adverse scenario
All effects as compared to regulatory aggregates as reported in Section C	2011	2012	2011	2012
A) Use of provisions and/or other reserves (including release of
countercyclical provisions), capital ratio effect (6)
B) Divestments and other management actions taken by 30 April 2011,
RWA effect (+/-)
B1) Divestments and other business decisions taken by 30 April 2011,
capital ratio effect (+/-)
C) Other disinvestments and restructuring measures, including also future
mandatory restructuring not yet approved with the EU Commission under
the EU State Aid rules, RWA effect (+/-)
C1) Other disinvestments and restructuring measures, including also
future mandatory restructuring not yet approved with the EU Commission
under the EU State Aid rules, capital ratio effect (+/-)
D) Future planned issuances of common equity instruments (private
issuances), capital ratio effect
E) Future planned government subscriptions of capital instruments
(including hybrids), capital ratio effect
F) Other (existing and future) instruments recognised as appropriate back
stop measures by national supervisory authorities, RWA effect (+/-)
F1) Other (existing and future) instruments recognised as appropriate
back-stop measures by national supervisory authorities, capital ratio
effect (+/-)
Risk weighted assets after other mitigating measures (B+C+F)	533,881	521,993	572,405	587,008
Capital after other mitigating measures (A+B1+C1+D+E+F1)	49,039	47,453	41,347	36,993
Supervisory recognised capital ratio (%) (15)	9.2%	9.1%	7.2%	6.3%

(8) Deferred tax assets as referred to in paragraph 69 of BCBS publication dated December 2010 : "Basel 3 – a global regulatory framework for more resilient banks and banking systems".

(7) Net profit includes profit attributable to minority interests.

(15) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

(4) Regulatory transitional floors are applied where binding. RWA for credit risk have been calculated in accordance with the EBA methodology assuming an additional floor imposed at a level of RWA, before regulatory transitional floors, for December 2010 for both IRB and STA portfolios.

(14) All elements are be reported net of tax effects.

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's forecast or directly compared to bank's other published information.

(10) Provisions for non-defaulted exposures to sovereigns and financial institutions have been computed taking into account benchmark risk parameters (PDs and LGDs) provided by the EBA and referring to external credit ratings and assuming hypothetical scenario of rating agency downgrades of sovereigns.

(11) For definition of commercial real estate please refer to footnote (5) in the worksheet "4 - EADs".

(5) Banks are required to provide explanations of what "Other operating income" and "Other income" constitutes for.

Composition of "Other operating income" and "Other income": Composition of "Other operating income" and "Other income": Other operating income comprises operating lease and other rental income, dividend income, gains on redemption of own debt and changes in the fair value of securities and other financial assets and liabilities.

(9) Stock of provisions includes collective and specific provisions as well as countercyclical provisions, in the jurisdictions, where required by the national legislation.

Notes and definitions

Results of the 2011 EBA EU-wide stress test: Composition of capital as of 31 December 2010

Name of the bank: Royal Bank of Scotland Group

	De ber cem	20 10
Sit ion De ber 20 10 uat at cem	GB Mil lion P	% RW A	Re fer CO RE P r rtin to enc es epo g
A) Co uity be for e d ed ion s ( Ori ina l ow n f und itho hy bri d i nd uct ut nst ent mm on eq g s w rum s a			CO RE P C A 1 .1 - hy brid ins d g the r th tru nts ent rt m me an ove rnm su ppo eas ure s o an
the r th ord ina har es) (+ ) nt s rt m gov ern me up po eas ure s o an r y s	57, 756	11. 1%	ord ina har r y s es
Of : (+ ) e wh ich li ible ital d re g ca p an ser ves	70, 168	13. 5%	CO RE P C A 1 + C OR EP lin .1.1 e 1 .1.2 .1
Of : (- ) ts ( ill) wh ich inta ible inc lud in dw n g s a sse g goo	(14 8) ,44	-2.8 %	( CO ) Ne t in clu ded in T1 n fu nds RE P li 1.1 .5.1 t am oun ow ne
(1) Of wh ich : (- /+) ad jus alu atio n d iffe in oth er A FS tme nt t ets o v ren ces ass	2,0 37	0.4 %	Pru den tial filt for lato ital ( CO RE P li ) 1.1 .2.6 .06 ers re gu ry c ap ne
B) ctio fro it ( d f i ina n f s) (- ) De du Ele de du l ow und nts cte ns m c om mo n e qu me rom or g y	(7, ) 193	-1.4 %	CO RE P C A 1 .3.T 1* ( tive t) ne ga am oun
Of : (- ) f pa wh ich ded ion rtic ipa tion nd sub ord ina ted cla ims uct s o s a	(31 0)	-0. 1%	Tot al o f ite de fine d b Art icle ( l), (m ), (n ) (o ) a nd (p ) o f D irec tive 06/ 48/ EC d 57 20 ms as an y CO ded ed fro rig ina l ow n fu nds ( RE P li fro m 1 .3.1 1.3 .5 i ncl ude d in lin uct to m o nes e .T1 *) 1.3
Of wh ich : (- ) se itisa tion ot i ncl ude d in RW A cur ex pos ure s n	(4,2 25)	-0.8 %	CO RE P li .7 i ncl ude d in lin .3.T 1* 1.3 e 1 ne
Of : (- ) tfal s ( bef ) wh ich IRB ovi sio hor l an d IR B e ity ed los ect unt tax pr n s qu exp s a mo ore	(2,6 58)	-0.5 %	As def ine d b Art icle (q ) o f D irec tive 06/ 48/ EC ( CO RE P li .8 i ncl ude d in 57 20 1.3 ne y 1.3 .T1 *)
C) Co it ( A+ B) mm on e qu y	50, 563	9.7 %
Of wh ich din sh ubs crib ed by nt : or ary are s s gov ern me	45, 100	8.7 %	Pa id u rdin har sub ibe d b nt p o ar y s es scr y gov ern me
D) Oth Ex isti s (+ ) nt s rt m er n g gov ern me up po eas ure
E) Co ier 1 in din xis tin s ( C+ D) re T clu ent rt m g e g g ove rnm su ppo eas ure	50, 563	9.7 %	Co ity + E xis ting s in clu ded in T1 oth han ent rt m er t mm on equ go ver nm su ppo eas ure ord ina har r y s es
Dif fer e f be nch rk c ital th ho ld ( CT 1 5 %) enc rom ma a p res	24, 530	4.7 %	Co ( %) ier 1 in clu din RW A*5 re t ent rt m g g ove rnm su ppo eas ure s -
F) Hy bri d i bsc rib ed by nst ent ot nt rum s n su gov ern me	10, 07 3	1.9 %	Ne t in clu ded in T1 n fu nds ( CO RE P li 1.1 .4.1 CO RE P li fro t am oun ow ne a + nes m 0 .2 05 + C OR EP lin (n tive t) ) no bsc ribe d b 1.1 .2.2 1 to 1. 1.2 e 1 .1.5 .2a t su ega am oun y nt gov ern me
Tie r 1 Ca ital ( E+ F) ( To tal ori ina l ow n f und s fo l so lve es) p g r gen era nc y pu r pos	60, 636	11. 6%	CO P C CO P C CO P C 1* ( t) RE A 1 .4 = RE A 1 .1 + RE A 1 .3.T tive ne ga am oun
Ca Tie r 2 ital ( To tal add itio nal n f und s fo ral lve ) p ow r g ene so ncy pu rpo ses	12, 140	2.3 %	CO P C RE A 1 .5
Tie r 3 Ca ital ( To tal add itio nal n f und ific ark ris ks) to et p ow s s pec co ver m	0	0.0 %	CO P C RE A 1 .6
To tal Ca ital ( To tal n f und s fo lve es) p ow r so nc y pu r pos	68, 044	13. 1%	CO P C RE A 1
Me du m i tem mo ran s
Am t of ho ldin rtic ipa tion nd sub ord ina ted cla ims in dit, fin ial and ins oun gs, pa s a cre anc ura nce ins titu tion ot d edu d fo r th tati of c tie r 1 but de duc ted for the tion of l cte uta tota s n e c om pu on ore co mp n fu nds ow	938	0.2 %	Tot al o f ite de fine d b Art icle ( l), (m ), (n ) (o ) a nd (p ) o f D irec tive 06/ 48/ EC 57 20 t ms as no y ded ed for the tion of orig ina l ow n fu nds uct uta co mp
Am t of itisa tion ot i ncl ude d in RW A a nd de duc ted for the tion of not uta oun se cur ex pos ure s n co mp d fo of t n fu e ti 1 b ut d edu r th tati l ow nds cte ota cor er e c om pu on	0	0.0 %	Tot al o f ite de fine d b Art icle (r ) o f D irec tive 06/ 48/ EC t de duc ted for the 57 20 ms as y no of o n fu tati ri ina l ow nds com pu on g
(2) De fer red tax set as s	4, 274	0.8 %	CB S p As refe rred in p h 6 9 o f B ubl ica tion da ted De ber 20 10 : "B l 3 to ara gra p cem ase – a lob al r lato fra rk f esi lien t ba nks d b ank in s" tem g e gu r y me wo or mo re r an g s ys
(2) Min orit inte ts ( lud ing hy brid ins ) tru nts res exc me y	1, 435	0.3 %	Gro t of mi ity inte s d efin ed by Art icle (a ) o f D irec tive 06/ 48/ EC ts a 65 1. 20 ss am oun nor res
(3) dif fere n fu (- /+) Va lua tion lig ible ig ina l ow nds nce s e as or		0.0 %	CO RE P li 1.1 .2.6 ne

Notes and definitions

(3) This item represents the impact in original own funds of valuation differences arising from the application of fair value measurement to certain financial instruments (AFS/FVO) and property assets after the application of prudential filters.

(1) The amount is already included in the computation of the eligible capital and reserves and it is provided separately for information purposes.

(2) According to the Basel 3 framework specific rules apply for the treatment of these items under the Basel 3 framework, no full deduction is required for the computation of common equity.

Results of the 2011 EBA EU-wide stress test: Overview of mitigating measures (1-2)

Name of the bank: Royal Bank of Scotland Group

Future capital raisings and other back stop measures

Notes and definitions

Ple fill in th ble usin for h m e ta te r ase g a sep ara ow eac eas ure	Nar rati des crip tion ve	Dat f co leti e o mp on (act ual lann ed or p for futu re issu es) anc	Cap ital / P& L imp act (in GB P) mill ion	RW A im t pac (in GB P) mill ion	Cap ital rati o imp (as of act 31 Dec ber 12) 20 em %
A) Use of vis ion nd/ the (inc ludi rele of lica nte pro s a or o r re ser ves ng ase cou rcyc	(3) l pro visi ), ons
B) D ives d o the tion ken by 30 Ap ril 2 011 tme nts ent s ta an r m ana gem ac
1)
2)
C) O the r di sin d re ring , in clu din lso futu tme nts stru ctu ves an me asu res g a re m	and ing ved wit h th e E U C mis sio nde r th e E U S Aid rul ato est tur t ye t ap tate ry r ruc no pro om n u es
1)
2)

		Fle xib ility of Per ma nen ce Dat f is Los bso rbe e o sua nce s a ncy				Con sio lau ver n c se	(wh pria te) ere ap pro
Ple fill in th ble usin for h m e ta te r ase ara ow eac eas	(act ual lann ed or p for futu	Am t oun	Mat urit y	in g oin g c onc ern	nts pay me (ca ity to pac	(Un dat ed and wit hou t in tive to cen	Nat of ure sio con ver n	Dat f co rsio e o nve n	Trig ger s	Con sio ver qui com mo n e
g a sep ure	re issu anc es, dd/ /yy) mm	(in mill ion GB P)	(da ted/ (4) und d) ate	s/N (Ye o)	s/N (Ye o)	s/N (Ye o)	/ disc (ma nda tory retio y) nar	e/fr (at tim a spe any om cific da te: dd/ /yy) mm	(de scri ptio n of the trig s) ger	s/N (Ye o)
D) F lan ned iss of qui ty i s (p riva te i utu nst ent re p uan ces com mo n e rum ssu anc	es)
E) F ript ion f ca pita l in (in din utu lan ned ent bsc stru nts clu re p go ver nm su s o me	ids ) g h ybr
1) D f th min atio e in stru nt eno n o me
2)
F) O the r (e xis ting d fu ) in ised ba ck ture stru nts sto an me rec ogn as p m eas ure	s b atio nal y n su per	vis tho ory au	ritie s (i ncl udi ng	hyb rids )
1) D min atio f th e in stru nt eno n o me
2)

(3) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011-2012 should be reported in Section D of the worksheet "1- Aggregate information" as other mitigating measures and explained in this worksheet. (4) If dated please insert the maturity date (dd/mm/yy) otherwise specify undated.

Con sio lau (wh pria te) ver n c se ere ap pro
f co Dat rsio e o nve n	Trig ger s	Con sio n in ver qui t com mo n e y

(1) The order of the measures follows the order of mitigating measures reported in the Section D of the worksheet "1 - Aggregate information".

(2) All elements are be reported net of tax effects.

Use of countercyclical provisions, divestments and other management actions

Results of the 2011 EBA EU-wide stress test: Credit risk exposures (EAD - exposure at default), as of 31 December 2010, mln GBP, (1-5)

Name of the bank: Royal Bank of Scotland Group

All values in million GBP, or %

		Corp orat e	Reta il (ex clud	ing cial com mer	real te) esta				Com mer	cial Rea l Est ate	Defa ulte d
	Inst ituti ons	(exc ludi ng cial com mer real te) esta		of w hich mor	Res iden tial tgag es Loan to V alue (LTV ) rat io (6) (%),	of w hich Rev olvi ng	SM of w hich E	of w hich oth er		Loan to V alue ) (6) (LTV ) rat io (%	expo sure s (exc ludi ng reig n) sove	res ( 7) Tota l exp osu
Aus tria	587	727	6	1		2	1	2	2		33	2,38 4
ium Belg	1,19 2	1,68 7	331	11		5	314	1	237		43	4,74 1
Bulg aria	4	25	6	2		1	3	0	1		0	35
Cyp rus	17	581	20	9		7	3	1	117		191	927
Cze ch R blic epu	81	542	3	1		1	1	0	41		16	965
Den k mar	602	1,05 7	7	5		2	0	0	15		5	2,68 8
Esto nia	0	0	0	0		0	0	0	0		0	1
Finla nd	447	1,28 1	2	1		1	0	0	100		0	2,64 3
Fran ce	10,5 90	9,44 0	116	47		46	12	11	1,55 7		289	29,6 81
Ger man y	9,68 6	9,25 4	166	116		15	14	21	2,86 9		676	52,5 81
Gree ce	159	1,19 2	19	7		8	3	1	3		14	3,02 7
Hun gary	38	744	5	1		1	2	1	0		17	807
Icela nd	0	177	1	1		0	0	0	0		145	324
Irela nd	2,03 3	12,7 37	19,5 87	16,6 28	62	936	1,73 6	287	5,12 5	153	10,9 60	55,0 66
Italy	1,68 7	4,56 4	30	15		8	6	1	510		359	9,06 1
Latv ia	1	0	0	0		0	0	0	0		0	1
Liec hten stei n	53	17	4	1		0	3	0	1		1	76
Lith ia uan	2	24	0	0		0	0	0	0		0	27
Luxe mbo urg	1,70 4	4,98 1	3	2		1	0	0	1,92 5		221	9,13 8
Malt a	1	380	5	3		2	0	0	0		5	391
Neth erla nds	4,91 9	14,5 84	86	15		7	62	2	1,31 3		1,03 4	43,6 79
Norw ay	191	1,41 4	1				1	0	91		378	2,90 9
Pola nd	56	976	8	2		3	2	1	56		48	1,41 3
Port l uga	272	846	10	4		5	1	0	18		44	1,45 6
Rom ania	24	531	404	164		0	240	0	5		71	1,53 1
Slov akia	8	63	1	0		1	0	0	0		27	124
Slov enia	22	1	1	0		1	0	0	0		0	23
Spa in	4,14 4	10,6 93	421	332		35	48	6	1,96 8		1,72 9	19,9 70
Swe den Unit ed K	590	2,65 7	10	4		4	2	0	263		558	5,07 5
ingd om	13,4 26	107 ,474	158 ,003	106 ,355	59	25,0 96	19,3 84	7,16 8	43,5 24	74	20,3 53	516 398,
Unit ed S tate s	14,6 96	75,8 09	35,2 55	24,8 02	76	5,20 9	5,23 9	5	7,85 9	70	2,56 8	197, 108
Japa n Othe n EE A no	1,81 0	1,85 5	22	10		5	6	1	487		363	10,4 42
r no n
rgin ies Eme untr g co	11,6 82	26,9 37	2,13 4	1,77 1		100	254	9	3,19 3		1,23 2	64,7 89
Asia Midd le an d So uth	6,18 8	7,44 0	115	65		24	25	1	89		79	17,0 00
Ame rica	1,44 4	2,12 6	8	4		3	1	0	3		14	3,92 9
East Euro ern pe n on EEA	921	3,93 9	54	40		4	10	1	21		181	6,08 2
Othe rs	1,16 9	8,36 0	176	112		25	34	5	905		1,22 4	12,9 73
Tota l	90,4 47	315 ,116	217 ,021	150 ,530		31,5 58	27,4 07	7,52 6	72,2 99		42,8 79	961, 579

Notes and definitions

(7) Total exposures is the total EAD according to the CRD definition based on which the bank computes RWA for credit risk. Total exposures, in addition to the exposures broken down by regulatory portfolios in this table, include EAD for securitisation transactions, counterparty credit risk, sovereigns, guaranteed by sovereigns, public sector entities and central banks.

(1) EAD - Exposure at Default or exposure value in the meaning of the CRD.

(6) Loan to value ratio - ratio of EAD to the market value of real estate used as collateral for such exposures. Given the different methodologies applied to assessing the value, the bank is required to explain the computation of the ratio. In particular (a) whether collateral values is marked-to-market or any other valuation method is used, (b) whether the amount has been adjusted for principal repayments, and (c) how guarantees other than the underlying property are treated.

Definition of Loan to Value ratio used: Ratio of EAD to the lower of the last external professional valuation, the latest indexed value and the current internal RBS view of value

(2) The EAD reported here are based on the methodologies and portfolio breakdowns used in the 2011 EU-wide stress test, and hence may differ from the EAD reported by banks in their Pillar 3 disclosures, which can vary based on national regulation. For example, this would affect breakdown of EAD for real estate exposures and SME exposures.

(3) Breakdown by country and macro area (e.g. Asia) when EAD >=5%. In any case coverage 100% of total EAD should be ensured (if exact mapping of some exposures to geographies is not possible, they should be allocated to the group "others").

(4) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm

(5) Residential real estate property which is or will be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, and commercial real estate property, that is, offices and other commercial premises, which are recognised as eligible collateral in the meaning of the CRD, with the following criteria, which need to be met:

(a) the value of the property does not materially depend upon the credit quality of the obligor. This requirement does not preclude situations where purely macro economic factors affect both the value of the property and the performance of the borrower; and

(b) the risk of the borrower does not materially depend upon the performance of the underlying property or project, but rather on the underlying capacity of the borrower to repay the debt from other sources. As such, repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral.

NET DIRECT POSITIONS Residual Maturity GROSS DIRECT LONG EXPOSURES (accounting (gross exposures (long) net of cash short position of sovereign debt to other counterparties only value gross of specific provisions) where there is maturity matching) Country/Region of which: FVO								DIRECT SOVEREIGN EXPOSURES IN DERIVATIVES	INDIRECT SOVEREIGN EXPOSURES IN THE TRADING BOOK
			of which: loans and advances		of which: AFS banking book	(designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
3M 1Y 2Y 3Y		1 10 10 42	0 0 0 0	0 9 7 0	0 0 0 0	0 0 0 0	0 9 7 -	0 3 139 5	0 0 0 0
5Y 10Y 15Y	Austria	41 33 189	0 0 0	16 0 146	0 0 138	0 0 0	16 - 8	20 178 141	-2 2 0
3M 1Y 2Y		326 31 158 38	0 0 0 0	179 16 63 0	138 0 0 0	0 0 0 0	41 16 63 -	486 23 113 111	0 0 0 0
3Y 5Y 10Y	Belgium	38 293 311	0 0 0	0 146 262	0 146 262	0 0 0	- - -	-28 -419 61	1 -7 4
15Y 3M 1Y		346 1,215 0 0	0 0 0 0	278 765 0 0	278 686 0 0	0 0 0 0	- 79 - -	77 -61	0 -2 0 0
2Y 3Y 5Y	Bulgaria	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -		0 0 0
10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - 0	0	0 - 0
3M 1Y 2Y 3Y		0 0 0 0	0 0 0 0	0 0 0 0	0 0 0 0	0 0 0 0	- - - -
5Y 10Y 15Y	Cyprus	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3M 1Y		0 3 5	0 0 0	0 3 5	0 3 5	0 0 0	0 - -	0 - -2	0 - -
2Y 3Y 5Y 10Y	Czech Republic	10 0 15 242	0 0 0 0	10 0 15 240	10 - 15 52	0 0 0 0	- - - 187	14 5 37 18	0 0 0 0
15Y 3M		0 276 468	0 0 0	0 274 468	- 86 468	0 0 0	- 187 -	- 72 2	- 0 0
1Y 2Y 3Y	Denmark	77 0 2	0 0 0	77 0 2	74 0 0	0 0 0	3 0 2	-10 -54 -23	0 0 0
5Y 10Y 15Y		0 1 1	0 0 0	0 1 1	0 0 0	0 0 0	0 1 1	-45 16 -89	0 0 -
3M 1Y 2Y		549 0 0 0	0 0 0 0	549 0 0 0	542 0 0 0	0 0 0 0	7 - - -	-203	0
3Y 5Y 10Y	Estonia	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
15Y 3M		0 0 8	0 0 0	0 0 6	0 0 0	0 0 0	- 0 6	0 -1	0 -
1Y 2Y 3Y	Finland	0 18 2	0 0 0	0 17 0	0 0 0	0 0 0	- 17 -	9 0 6	0 0 0
5Y 10Y 15Y		3 83 115 228	2 13 108 124	2 71 115 211	0 26 - 26	0 0 0 0	- 32 6 62	38 127 22 201	-1 1 0 0
3M 1Y 2Y		349 310 7,685	0 0 0	319 253 6,938	223 165 734	0 0 0	96 88 6,204	23 -22 -27	0 0 1
3Y 5Y 10Y	France	1,600 1,666 3,238	0 0 106	1,427 376 2,592	1,427 256 2,206	0 0 0	- 121 279	10 75 130	1 -5 1
15Y 3M 1Y		1,584 16,433 1,863 1,421	406 512 0 0	1,051 12,955 1,716 1,062	645 5,655 278 528	0 0 0 0	- 6,788 1,438 534	54 245 6 26	0 -2
2Y 3Y 5Y	Germany	2,114 1,522 1,668	0 0 0	1,471 1,011 974	811 1,011 974	0 0 0	660 - -	-5 -333 -88
10Y 15Y		2,030 986 11,605	0 0 0	1,626 677 8,538	1,484 555 5,642	0 0 0	142 123 2,897	499 -457 -352	0
3M 1Y 2Y 3Y		37 36 42	0 0 0	37 36 19	29 - -	0 0 0	8 36 19	- - - -	0 -1 0 2
5Y 10Y 15Y	Greece	28 527 49 309	14 0 0 0	25 524 42 306	0 524 37 305	0 0 0 0	11 - 5 2	1 -65 0	-3 -1 0
3M 1Y		1,027 2 8	14 0 0	990 2 8	895 0 0	0 0 0	81 2 8	-65 - -	-3 0 0
2Y 3Y 5Y	Hungary	0 1 4	0 0 0	0 0 1	0 0 0	0 0 0	0 - 1	- 3 -	0 1 0
10Y 15Y 3M		1 0 16 0	0 0 0 0	1 0 11 0	0 0 0 0	0 0 0 0	1 - 11 -	- - 3 -	-1 - 0
1Y 2Y 3Y	Iceland	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -	- - -1
5Y 10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -	- - - -1	0
3M 1Y 2Y		0 189 5 1	0 175 5 1	0 189 5 1	0 0 0 0	0 0 0 0	0 14 - -	-14 7 8	0 -1 -1
3Y 5Y 10Y	Ireland	32 14 146	6 5 2	29 13 105	0 0 104	0 0 0	23 8 -	7 -1 14	0 -5 5
15Y 3M		3 389 443	0 193 7	3 345 395	- 104 -	0 0 0	3 48 388	- 21 0	0 -1 0
1Y 2Y 3Y 5Y	Italy	631 2,255 569 517	1 0 0 0	381 2,022 0 252	- - 0 252	0 0 0 0	380 2,022 - -	-11 0 - -137	-2 -1 1 -19
10Y 15Y		1,353 259 6,026	0 0 8	856 84 3,990	570 84 906	0 0 0	286 - 3,076	9 66 -74	21 0 0
3M 1Y 2Y		0 0 0	0 0 0	0 0 0	- - -	0 0 0	- - -
3Y 5Y 10Y	Latvia	0 0 0	0 0 0	0 0 0	- - -	0 0 0	- - -
15Y 3M 1Y		0 0 0 0	0 0 0 0	0 0 0 0	0 0 0	0 0 0 0	- 0 - -	0	0
2Y 3Y 5Y	Liechtenstein	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - 0	0	0
3M 1Y 2Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - 0
3Y 5Y 10Y 15Y	Lithuania	0 3 0 0	0 0 0 0	0 3 0 0	0 0 0 0	0 0 0 0	- 3 - -
3M 1Y		4 108 183	0 0 0	3 108 183	0 0 0	0 0 0	3 108 183	0	0
2Y 3Y 5Y	Luxembourg	5 39 27	0 0 0	5 39 27	0 0 0	0 0 0	5 39 27
10Y 15Y		32 5 397	0 0 0	32 5 397	0 0 0	0 0 0	32 5 397	0	0

Name of the bank: Royal Bank of Scotland Group

All values in million GBP

Results of the 2011 EBA EU-wide stress test: Exposures to sovereigns (central and local governments), as of 31 December 2010, mln GBP (1,2)

Residual Maturity	Country/Region		NET DIRECT POSITIONS GROSS DIRECT LONG EXPOSURES (accounting (gross exposures (long) net of cash short position of sovereign debt to other counterparties only value gross of specific provisions) where there is maturity matching)						INDIRECT SOVEREIGN EXPOSURES IN THE TRADING BOOK
			of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
3M 1Y 2Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3Y 5Y 10Y	Malta	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
15Y 3M		0 0 519	0 0 1	0 0 518	0 0 131	0 0 0	- 0 386	0 30	0 0
1Y 2Y		2,019 778	0 0	2,002 761	1,363 761	0 0	639 -	66 392	0 0
3Y 5Y 10Y	Netherlands	275 284 630	1 0 0	215 227 562	135 187 513	0 0 0	79 39 49	668 -736 -441	0 -1 0
15Y		269 4,773	0 3	253 4,539	253 3,345	0 0	- 1,192	-942 -963	0 0
3M 1Y 2Y		1 0 0	0 0 0	1 0 0	0 0 0	0 0 0	1 0 -	- - -28	- 0 0
3Y 5Y	Norway	0 45	0 0	0 45	0 0	0 0	- 45	-1 -10	0 0
10Y 15Y		0 0 47	0 0 0	0 0 47	0 0 0	0 0 0	- - 47	4 53 18	0 - 0
3M 1Y		48 67	0 0	48 67	26 25	0 0	21 42		0 0
2Y 3Y	Poland	129 1	0 0	124 0	40 -	0 0	84 -		0 0
5Y 10Y 15Y		56 19 2	0 0 0	43 8 1	0 - -	0 0 0	43 8 1		0 0 -
3M		322 100	0 86	291 86	92 0	0 0	199 -	0 10	0 0
1Y 2Y 3Y		32 0 7	0 0 0	0 0 0	0 0 0	0 0 0	- - -	12 -4 -11	0 2 5
5Y 10Y	Portugal	31 76	0 0	27 65	27 65	0 0	- -	- 23	-26 15
15Y 3M		0 246 153	0 86 30	0 178 153	- 92 122	0 0 0	- 0 -	- 29	0 -3 0
1Y 2Y		149 1	0 1	149 1	139 0	0 0	11 -		0 0
3Y 5Y 10Y	Romania	1 28 15	1 0 4	1 28 15	0 0 0	0 0 0	- 28 11		0 0 0
15Y		0 347	0 37	0 347	0 261	0 0	- 50	0	- -1
3M 1Y 2Y		2 0 0	1 0 0	2 0 0	1 - -	0 0 0	- - -	0 - 1
3Y 5Y	Slovakia	0 19	0 0	0 19	- 17	0 0	- 2	-1 -1
10Y 15Y		0 0	0 0	0 0	- -	0 0	- -	- -
3M 1Y		21 0 0	1 0 0	21 0 0	18 0 0	0 0 0	2 - -	-2	0
2Y 3Y	Slovenia	0 0	0 0	0 0	0 0	0 0	- -
5Y 10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3M		0 77	0 12	0 12	0 -	0 0	0 -	0 1	0 0
1Y 2Y 3Y		648 66 162	0 19 0	212 29 0	25 - 0	0 0 0	187 10 -	- 7 16	0 0 4
5Y 10Y	Spain	122 141	0 0	23 49	23 -	0 0	- 49	12 -	-31 26
15Y		37 1,252	0 31	0 325	- 48	0 0	- 246	5 40 -28	0 -1 0
3M 1Y 2Y		210 2 95	134 0 0	207 0 60	0 0 0	0 0 0	73 - 60	8 -15	0 0
3Y 5Y	Sweden	152 80	0 23	129 23	0 0	0 0	129 -	-1 -24	0 0
10Y 15Y		265 165 969	96 154 408	265 154 838	0 0 0	0 0 0	169 - 430	-29 15 -75	0 - 0
3M 1Y		3,096 1,539	2,520 1	2,995 1,250	475 980	0 0	- 268	-16 18
2Y 3Y 5Y	United Kingdom	744 2,125 2,328	1 609 1	676 1,563 1,588	675 878 1,349	0 0 0	- 76 237	-35 -82 -4
10Y 15Y		3,089 3,858	8 166	2,821 2,478	2,813 1,206	0 0	- 1,106	- -
	TOTAL EEA 30	16,781 63,249	3,306 4,722	13,371 49,165	8,377 26,912	1 1	1,688 17,531	-119 -799	0 -13
3M		883	0	247	247		-
1Y 2Y 3Y		6,837 1,980 2,844	2 4 38	6,708 167 1,134	2,710 163 1,096		3,995 - -
5Y 10Y	United States	9,829 7,213	11 13	6,463 5,482	6,274 3,999		179 1,471
15Y		4,355 33,942	50 118	3,430 23,631	3,380 17,868	0	- 5,645	0	0
3M 1Y 2Y		10,496 1,833 1,189	366 1,013 0	10,469 1,827 1,159	2,877 764 614		7,226 50 545
3Y 5Y	Japan	775 712	0 0	727 592	0 0		727 592
10Y 15Y		702 606 16,313	0 0 1,379	604 537 15,915	0 0 4,255	0	604 537 10,281	0	0
3M 1Y		2,137 787	0 0	2,136 647	2,099 190		37 457
2Y 3Y 5Y	Other non EEA non Emerging countries	877 1,063 800	0 0 0	766 1,039 581	135 111 0		631 928 581
10Y 15Y		237 238	0 0	94 58	0 0		94 58
3M 1Y		6,138 1,282 519	0 258 49	5,322 1,282 519	2,535 938 429	0 170 78	2,787 87 41	0	0
2Y 3Y	Asia	161 170	13 20	161 170	74 0	13 0	74 150
5Y 10Y 15Y		288 408 181	111 31 35	118 31 35	0 0 0	0 0 0	7 0 0
3M		3,009 46	517 4	2,317 46	1,442 38	262	359 3	0	0
1Y 2Y 3Y	Middle and South	63 10 40	0 0 0	63 10 40	0 0 0		63 10 40
5Y 10Y	America	131 208	0 0	128 186	0 0		127 186
15Y 3M		279 777 197	0 5 128	262 734 197	0 38 67	0	262 691 2	0	0
1Y 2Y		82 34	4 19	82 34	77 14		1 0
3Y 5Y	Eastern Europe non EEA	30 59	17 58	30 58	11 0		2 0
10Y 15Y		59 25 487	59 3 288	59 3 462	0 0 168	0	0 0 6	0	0
3M 1Y		144 56	106 35	144 56	14 1		25 20
2Y 3Y 5Y	Others	27 30 11	1 6 8	27 30 8	1 0 0		25 24 0
10Y 15Y		197 319	4 0	158 198	0 0		154 198
	TOTAL	784 124,699	159 7,187	620 98,166	16 53,234	0 263	446 37,745	0 -799	0 -13

(1) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm

(2) The exposures reported in this worksheet cover only exposures to central and local governments on immediate borrower basis, and do not include exposures to other counterparts with full or partial government guarantees (such exposures are however inclu

(3) According to the EBA methodologies, for the trading book assets banks have been allowed to offset only cash short positions having the same maturities (paragraph 202 of the Methodological note).

Notes and definitions

Results of the 2011 EBA EU-wide stress test: Summary (1-3)

Name of the bank: Royal Bank of Scotland Group

Actual results at 31 December 2010	million EUR, %
Operating profit before impairments	11,438
Impairment losses on financial and non-financial assets in the banking book	-11,173
Risk weighted assets (4)	607,351
Core Tier 1 capital (4)	58,982
Core Tier 1 capital ratio, % (4)	9.7%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark

Outcomes of the adverse scenario at 31 December 2012, excluding all mitigating actions taken in 2011 % Core Tier 1 Capital ratio 6.3%

Outcomes of the adverse scenario at 31 December 2012, including recognised mitigating measures as of 30 April 2011	million EUR, %
2 yr cumulative operating profit before impairments	9,454
2 yr cumulative impairment losses on financial and non-financial assets in the banking book	-25,894
2 yr cumulative losses from the stress in the trading book of which valuation losses due to sovereign shock	-4,426 -579
Risk weighted assets	684,744
Core Tier 1 Capital	43,152
Core Tier 1 Capital ratio (%)	6.3%
Additional capital needed to reach a 5 % Core Tier 1 capital benchmark
Effects from the recognised mitigating measures put in place until 30 April 2011(5)
Equity raisings announced and fully committed between 31 December 2010 and 30 April 2011 (CT1 million EUR)
Effect of government support publicly announced and fully committed in period from 31 December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1 ratio)
Effect of mandatory restructuring plans, publicly announced and fully committed in period from 31 December 2010 to 30 April 2011 on Core Tier 1 capital ratio (percentage points of CT1 ratio)

	percentage points contributing
Additional taken or planned mitigating measures	to capital ratio
Use of provisions and/or other reserves (including release of countercyclical provisions)
Divestments and other management actions taken by 30 April 2011
Other disinvestments and restructuring measures, including also future mandatory restructuring
not yet approved with the EU Commission under the EU State Aid rules
Future planned issuances of common equity instruments (private issuances)
Future planned government subscriptions of capital instruments (including hybrids)
Other (existing and future) instruments recognised as appropriate back-stop measures by
national supervisory authorities
Supervisory recognised capital ratio after all current and future mitigating actions as of 31
December 2012, % (6)	6.3%

Notes

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption and incorporates regulatory transitional floors, where binding (see http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx for the details on the EBA methodology).

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities and/or reported by institutions in public disclosures.

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's forecast or directly compared to bank's other published information.

(4) Full static balance sheet assumption excluding any mitigating management actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures and capital raisings fully paid in before 31 December 2010 are included).

(5) Effects of capital raisings, government support and mandatory restructuring plans publicly announced and fully committed in period from 31 December 2010 to 30 April 2011, which are incorporated in the Core Tier 1 capital ratio reported as the outcome of the stress test.

(6) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

Results of the 2011 EBA EU-wide stress test: Aggregate information and evolution of capital (1-4)

Name of the bank:Royal Bank of Scotland Group

All in million EUR, or %

A. Results of the stress test based on the full static balance sheet assumption without any mitigating actions, mandatory restructuring or capital raisings post 31 December 2010 (all government support measures fully paid in before 31 December 2010 are included)

		Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	607,351	622,772	608,905	667,709	684,744
Common equity according to EBA definition	58,982	57,204	55,354	48,231	43,152
of which ordinary shares subscribed by government	52,609	52,609	52,609	52,609	52,609
Other existing subscribed government capital (before 31 December
2010)
Core Tier 1 capital (full static balance sheet assumption)	58,982	57,204	55,354	48,231	43,152
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%

B. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 31 December 2010

		Baseline scenario		Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets (full static balance sheet assumption)	607,351	622,772	608,905	667,709	684,744
Effect of mandatory restructuring plans, publicly announced and fully
committed before 31 December 2010 on RWA (+/-)
Risk weighted assets after the effects of mandatory restructuring plans publicly announced and fully committed before 31 December 2010 Core Tier 1 Capital (full static balance sheet assumption)	607,351 58,982	622,772 57,204	608,905 55,354	667,709 48,231	684,744 43,152
Effect of mandatory restructuring plans, publicly announced and fully committed before 31 December 2010 on Core Tier 1 capital (+/-)
Core Tier 1 capital after the effects of mandatory restructuring plans publicly announced and fully committed before 31 December 2010	58,982	57,204	55,354	48,231	43,152
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%

C. Results of the stress test recognising capital issuance and mandatory restructuring plans publicly announced and fully committed before 30 April 2011

Baseline scenario					Adverse scenario
Capital adequacy	2010	2011	2012	2011	2012
Risk weighted assets after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	607,351	622,772	608,905	667,709	684,744
Effect of mandatory restructuring plans, publicly announced and fully
committed in period from 31 December 2010 to 30 April 2011 on
RWA (+/-)
Risk weighted assets after the effects of mandatory restructuring plans
publicly announced and fully committed before 30 April 2011		622,772	608,905	667,709	684,744
of which RWA in banking book		427,149	410,610	466,071	476,188
of which RWA in trading book		124,124	126,796	130,140	137,058
RWA on securitisation positions (banking and trading book)		141,446	155,765	184,711	232,638
Total assets after the effects of mandatory restructuring plans publicly
announced and fully committed and equity raised and fully committed by
30 April 2011	607,351	622,772	608,905	667,709	684,744
Core Tier 1 capital after the effects of mandatory restructuring plans
publicly announced and fully committed before 31 December 2010	58,982	57,204	55,354	48,231	43,152
Equity raised between 31 December 2010 and 30 April 2011
Equity raisings fully committed (but not paid in) between 31
December 2010 and 30 April 2011
Effect of government support publicly announced and fully committed
in period from 31 December 2010 to 30 April 2011 on Core Tier 1
capital (+/-)
Effect of mandatory restructuring plans, publicly announced and fully
committed in period from 31 December 2010 to 30 April 2011 on
Core Tier 1 capital (+/-)
Core Tier 1 capital after government support, capital raisings and effects
of restructuring plans fully committed by 30 April 2011		57,204	55,354	48,231	43,152
Tier 1 capital after government support, capital raisings and effects of
restructuring plans fully committed by 30 April 2011		68,769	66,618	59,609	54,242
Total regulatory capital after government support, capital raisings and
effects of restructuring plans fully committed by 30 April 2011		79,154	74,818	63,726	60,050
Core Tier 1 capital ratio (%)	9.7%	9.2%	9.1%	7.2%	6.3%
Additional capital needed to reach a 5% Core Tier 1 capital
benchmark
		Baseline scenario			Adverse scenario
Profit and losses	2010	2011	2012	2011	2012
Net interest income	15,728	15,567	14,477	15,329	13,773
Trading income	5,352	1,787	1,787	1,787	1,787
of which trading losses from stress scenarios		-854	-854	-2,213	-2,213
of which valuation losses due to sovereign shock				-289	-289
Other operating income (5)	2,451	3,098	2,331	3,098	2,331
Operating profit before impairments	11,438	6,514	5,901	5,617	3,838
Impairments on financial and non-financial assets in the banking
book (6)	-11,173	-7,424	-5,602	-17,667	-8,227

Operating profit after impairments and other losses from the stress 265 -910 300 -12,050 -4,390 Other income (5,6) - - - - Net profit after tax (7) -546 -2,338 -895 -10,525 -4,401 of which carried over to capital (retained earnings) -546 -2,338 -895 -10,525 -4,401 of which distributed as dividends - ----

		Baseline scenario			Adverse scenario
Additional information	2010	2011	2012	2011	2012
Deferred Tax Assets (8)	4,986	4,986	4,986	8,430	10,175
Stock of provisions (9)	21,209	28,554	34,276	37,968	45,424
of which stock of provisions for non-defaulted assets	3,091	10,436	16,158	12,105	19,560
of which Sovereigns (10)	0	136	243	220	441
of which Institutions (10)	80	120	154	159	237
of which Corporate (excluding Commercial real estate)	1,649	5,333	8,352	6,182	9,725
of which Retail (excluding Commercial real estate)	799	2,584	3,929	2,850	4,777
of which Commercial real estate (11)	562	1,819	2,710	2,118	3,400
of which stock of provisions for defaulted assets	18,118	18,118	18,118	25,864	25,864
of which Corporate (excluding Commercial real estate)	5,019	5,019	5,019	7,921	7,921
of which Retail (excluding commercial real estate)	4,399	4,399	4,399	4,881	4,881
of which Commercial real estate	7,858	7,858	7,858	13,029	13,029
Coverage ratio (%) (12)
Corporate (excluding Commercial real estate)	33.6%	20.6%	15.7%	29.8%	22.3%
Retail (excluding Commercial real estate)	59.0%	34.6%	26.1%	35.3%	24.3%
Commercial real estate	27.9%	24.8%	23.0%	40.1%	36.0%
Loss rates (%) (13)
Corporate (excluding Commercial real estate)	0.7%	0.9%	0.8%	1.2%	1.0%
Retail (excluding Commercial real estate)	1.4%	0.8%	0.6%	0.9%	0.9%
Commercial real estate	3.6%	1.4%	1.1%	1.7%	1.5%
Funding cost (bps)	139			248	373

D. Other mitigating measures (see Mitigating measures worksheet for details), million EUR (14)

All effects as compared to regulatory aggregates as reported in Section	Baseline scenario			Adverse scenario
C	2011	2012	2011	2012
A) Use of provisions and/or other reserves (including release of
countercyclical provisions), capital ratio effect (6)
B) Divestments and other management actions taken by 30 April 2011,
RWA effect (+/-)
B1) Divestments and other business decisions taken by 30 April 2011,
capital ratio effect (+/-)
C) Other disinvestments and restructuring measures, including also
future mandatory restructuring not yet approved with the EU
Commission under the EU State Aid rules, RWA effect (+/-)
C1) Other disinvestments and restructuring measures, including also
future mandatory restructuring not yet approved with the EU
Commission under the EU State Aid rules, capital ratio effect (+/-)
D) Future planned issuances of common equity instruments (private
issuances), capital ratio effect
E) Future planned government subscriptions of capital instruments
(including hybrids), capital ratio effect
F) Other (existing and future) instruments recognised as appropriate
back-stop measures by national supervisory authorities, RWA effect (+/-
)
F1) Other (existing and future) instruments recognised as appropriate
back-stop measures by national supervisory authorities, capital ratio
effect (+/-)
Risk weighted assets after other mitigating measures (B+C+F)	622,772	608,905	667,709	684,744
Capital after other mitigating measures (A+B1+C1+D+E+F1)	57,204	55,354	48,231	43,152
Supervisory recognised capital ratio (%) (15)	9.2%	9.1%	7.2%	6.3%

Notes and definitions

(1) The stress test was carried using the EBA common methodology, which includes a static balance sheet assumption (see http://www.eba.europa.eu/EU-widestress-testing/2011.aspx for the details on the EBA methodology).

(2) All capital elements and ratios are presented in accordance with the EBA definition of Core Tier 1 capital set up for the purposes of the EU-wide stress test, and therefore may differ from the definitions used by national supervisory authorities and/or reported by institutions in public disclosures.

(3) Neither baseline scenario nor the adverse scenario and results of the stress test should in any way be construed as a bank's forecast or directly compared to bank's other published information.

(4) Regulatory transitional floors are applied where binding. RWA for credit risk have been calculated in accordance with the EBA methodology assuming an additional floor imposed at a level of RWA, before regulatory transitional floors, for December 2010 for both IRB and STA portfolios.

(5) Banks are required to provide explanations of what "Other operating income" and "Other income" constitutes for.

Composition of "Other operating income" and "Other income": Other operating income comprises operating lease and other rental income, dividend income, gains on redemption of own debt and changes in the fair value of securities and other financial assets and liabilities.

(6) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011-2012 should be reported in Section D as other mitigating measures.

(7) Net profit includes profit attributable to minority interests.

(8) Deferred tax assets as referred to in paragraph 69 of BCBS publication dated December 2010 : "Basel 3 – a global regulatory framework for more resilient banks and banking systems".

(9) Stock of provisions includes collective and specific provisions as well as countercyclical provisions, in the jurisdictions, where required by the national legislation.

(10) Provisions for non-defaulted exposures to sovereigns and financial institutions have been computed taking into account benchmark risk parameters (PDs and LGDs) provided by the EBA and referring to external credit ratings and assuming hypothetical scenario of rating agency downgrades of sovereigns.

(11) For definition of commercial real estate please refer to footnote (5) in the worksheet "4 - EADs".

(12) Coverage ratio = stock of provisions on defaulted assets / stock of defaulted assets expressed in EAD for the specific portfolio.

(13) Loss rate = total impairment flow (specific and collective impairment flow) for a year / total EAD for the specific portfolio (including defaulted and nondefaulted assets but excluding securitisation and counterparty credit risk exposures).

(14) All elements are be reported net of tax effects.

(15) The supervisory recognised capital ratio computed on the basis of additional mitigating measures presented in this section. The ratio is based primarily on the EBA definition, but may include other mitigating measures not recognised by the EBA methodology as having impacts in the Core Tier 1 capital, but which are considered by the national supervisory authorities as appropriate mitigating measures for the stressed conditions. Where applicable, such measures are explained in the additional announcements issued by banks/national supervisory authorities. Details of all mitigating measures are presented in the worksheet "3 - Mitigating measures).

Results of the 2011 EBA EU-wide stress test: Composition of capital as of 31 December 2010

Name of the bank: Royal Bank of Scotland Group

	De cem	ber 20 10
Sit ion uat at De ber 20 10 cem	Mil lion EU R	% RW A	Ref CO rtin s to RE P r ere nce epo g
A) Co ity bef de duc tio ( Ori ina l ow n fu nds wi tho ut h bri d in str ent mm on equ ore ns g um s y		11.	CO RE P C A 1 .1 - hy brid ins nd oth han trum ent nt s ort er t s a gov ern me upp me asu res
es) (+ ) and ent rt m the r th ord ina har go ver nm su ppo eas ure s o an ry s	67, 372	1%	ord ina har ry s es
Of wh ich : (+ ) e lig ible ital and ca p res erv es	81, 851	13. 5%	CO P C + C OR RE A 1 .1.1 EP lin e 1 .1.2 .1
Of : (- ) ts ( ill) wh ich inta ible inc lud ing dw ng s a sse goo	(16 4) ,85	-2.8 %	( CO ) Ne t am t in clu ded in T1 n fu nds RE P li 1.1 .5.1 oun ow ne
(1) Of wh ich : (- /+) adj alu atio n d iffe in oth er A FS ust nt t ets me o v ren ces ass	2,3 76	0.4 %	Pru den tial filt for ula ital ( CO RE P li 1.1 .2.6 .06 ) tory ers reg ca p ne
B) De duc tio fro ity ( Ele de duc ted fro rig ina l ow n fu nds ) (- ) nts ns m c om mo n e qu me m o	-8, 391	-1.4 %	CO RE P C A 1 .3.T 1* ( ativ ) unt neg e a mo
			Tot al o f ite de fine d b Art icle ( l), (m ), (n ) (o ) an d (p ) o f D irec tive 06/ 48/ EC 57 20 ms as y
Of wh ich : (- ) ded ion f pa rtic ipa tion nd sub ord ina ted cla ims uct s o s a	(36 2)	-0.1 %	and de duc ted fro rig ina l ow n fu nds ( CO RE P li fro m 1 .3.1 1.3 .5 i ncl ude d in to m o nes
			line .T1 *) 1.3
Of wh ich : (- ) se itisa tion ot i ncl ude d in RW A cur ex pos ure s n	(4,9 28)	-0.8 %	CO RE P li 1.3 .7 i ncl ude d in lin e 1 .3.T 1* ne
	(3,1 01)	-0.5 %	As def ine d b Art icle (q ) o f D irec tive 20 06/ 48/ EC ( CO RE P li 1.3 .8 i ncl ude d in 57 y ne
Of : (- ) ortf s ( bef ) wh ich IRB vis ion sh all and IR B e ity ect ed los unt tax pro qu exp s a mo ore			*) 1.3 .T1
C) Co ( B) ity A+ mm on equ	58, 982	9.7 %
Of wh ich din sh ubs crib ed by nt : or ary are s s gov ern me	52, 609	8.7 %	Pa id u rdin sh ubs crib ed by nt p o ary are s s gov ern me
D) Exi stin s (+ ) Oth ent rt m er g g ove rnm su ppo eas ure
E) Co s ( C+ D) re T ier 1 in clu din xis tin ent rt m g e g g ove rnm su ppo eas ure	58, 982	9.7 %	Co ity + E xist ing s in clu ded in T1 oth han ent rt m er t mm on equ go ver nm su ppo eas ure ord ina har ry s es
Dif fer e fr be nch rk c ital th hol d ( CT 1 5 %) enc om ma ap res	28, 614	4.7 %	Co ier 1 in clu din ( RW A*5 %) re t ent rt m g g ove rnm su ppo eas ure s -
			Net t in clu ded in T1 n fu nds ( CO RE P li CO RE P li fro 1.1 .4.1 am oun ow ne a + nes m
F) Hy bri d in str ent ot s ubs cri bed by ent um s n go ver nm	11, 750	1.9 %	1.1 .2.2 0 1 to 1.1 .2.2 0 5 + CO RE P li 1.1 .5.2 a (n tive t) ) no t ne ega am oun
			sub ibe d b ent scr y g ove rnm
Tie r 1 Ca ital ( E+ F) ( Tot al o rig ina l ow n fu nds fo ral sol es) p r g ene ven cy pur pos	70, 732	11. 6%	CO RE P C A 1 .4 = CO RE P C A 1 .1 + CO RE P C A 1 .3.T 1* ( ativ ) unt neg e a mo
Tie r 2 Ca ital ( Tot al a dd itio nal n fu nds fo ral sol es) p ow r g ene ven cy pur pos	14, 161	2.3 %	CO RE P C A 1 .5
Tie r 3 Ca ital ( Tot al a dd itio nal n fu nds eci fic rke t ri sks ) to p ow sp cov er ma	0	0.0 %	CO RE P C A 1 .6
Tot al C ital ( Tot al o fu nds fo lve es) ap wn r so ncy pur pos	79, 373	13. 1%	CO P C RE A 1
Me du m i tem mo ran s
Am t of ho ldin rtic ipa tion nd sub ord ina ted cla ims in dit, fin ial and ins oun gs, pa s a cre anc ura nce			Tot al o f ite de fine d b Art icle ( l), (m ), (n ) (o ) an d (p ) o f D irec tive 06/ 48/ EC 57 20 ms as y
d fo of c for of inst itut ion ot d edu cte r th tati tie r 1 bu t de duc ted the uta tion s n e c om pu on ore co mp	1,0 94	0.2 %	de duc ted for the tion of orig ina l ow n fu nds not uta co mp
l ow n fu nds tota
Am t of itisa tion ot i ncl ude d in RW A a nd de duc ted for the tion not uta oun se cur ex pos ure s n co mp	0	0.0 %	Tot al o f ite de fine d b Art icle (r ) o f D irec tive 06/ 48/ EC t de duc ted for 57 20 ms as y no
of c tie r 1 but de duc ted for the tion of l ow n fu nds uta tota ore co mp			the tion of orig ina l ow n fu nds uta co mp
(2) Def d ta ts erre x a sse	4,9 86	0.8 %	refe f B CB S p : "B As rred to in p h 6 9 o ubl icat ion da ted De ber 20 10 l 3 ara gra p cem ase
			lob al r lato fram ork for esi lien t ba nks d b ank ing " ste – a g egu ry ew mo re r an sy ms
(2) Min orit inte ts ( lud ing hy brid ins s) trum ent y res exc	1,6 74	0.3 %	Gro t of efin (a ) o f D mi ity inte ts a s d ed by Art icle 65 1. irec tive ss am oun nor res
(3)			200 6/4 8/E C
Va lua tion dif fere lig ible ig ina l ow n fu nds (- /+) nce s e as or	-	0.0 %	CO RE P li 1.1 .2.6 ne

Notes and definitions

(1) The amount is already included in the computation of the eligible capital and reserves and it is provided separately for information purposes.

(2) According to the Basel 3 framework specific rules apply for the treatment of these items under the Basel 3 framework, no full deduction is required for the computation of common equity.

(3) This item represents the impact in original own funds of valuation differences arising from the application of fair value measurement to certain financial instruments (AFS/FVO) and property assets after the application of prudential filters.

Results of the 2011 EBA EU-wide stress test: Overview of mitigating measures (1-2)

Name of the bank: Royal Bank of Scotland Group

Use of countercyclical provisions, divestments and other management actions

Plea se f ill in the tab le u sing rate for ch m a s epa row ea eas ure	Nar rati ve d ript ion esc	Dat f co letio e o mp n (act ual lann ed or p for futu re es) issu anc	Cap ital / P& L imp act (in m UR) illio n E	RW A im t pac (in m UR) illio n E	Cap ital rati o imp act (as of 3 1 ) Dec emb er 2 012 %
(3) A) U f pr ovi sio nd/ the (inc ludi elea f co lica l pro visi ), unte se o ns a or o r re ser ves ng r se o rcyc ons
B) D ives tme nts d o the ent act ion s ta ken by 30 Apr il 20 11 an r m ana gem
1)
2)
C) O the r di sinv d re ring , inc lud ing also fut est nts stru ctu me an me asu res ure	nda turi ved wit h th e E U C mis sio nde r th e E U S Aid rul tory truc not yet tate ma res ng ap pro om n u es
1)
2)

Future capital raisings and other back stop measures

	f is Dat e o sua nce			Los s ab ben sor cy	Flex ibil ity o f	Per ma nen ce		Con sio laus e (w ver n c	her pria te) e ap pro
Plea se f ill in the tab le u sing for ch m rate a s epa row ea eas ure	(act ual lann ed or p for futu re	Am t oun	Mat urit y	in g oin g c onc ern	nts pay me (ca ity t pac o	(Un dat ed and wit hou t in tive to cen	Nat of ure sio con ver n	Dat f co rsio e o nve n	Trig ger s	Con sio n in ver com uity mo n eq
	issu anc es, dd/m m/y y)	(in m illio n EUR )	(dat ed/ (4) und ated )	(Ye s/N o)	(Ye s/N o)	(Ye s/N o)	/ disc (ma nda tory retio ) nary	(at a ime /fro ny t m a spe cific dat e: dd/m m/y y)	(des crip he trigg tion of t ers)	(Ye s/N o)
D) F lan ned iss of uity ins s (p riva te i es) utu trum ent re p uan ces com mo n eq ssu anc
utu lan ned ent bsc ion s of l ins trum ent ncl udi	rids
E) F ript pita s (i re p go ver nm su ca 1) D min atio n of the ins trum ent eno	hyb ) ng
2)
F) O the r (e xist ing and fut ) in ised bac k st stru nts ure me rec ogn as op mea sur	es b atio nal y n sup erv	iso uth orit ry a	ies (inc lud ing	hyb rids )
1) D min atio n of the ins trum ent eno
2)

Notes and definitions

(1) The order of the measures follows the order of mitigating measures reported in the Section D of the worksheet "1 - Aggregate information".

(2) All elements are be reported net of tax effects.

(3) If under the national legislation, the release of countercyclical provisions and/or other similar reserves is allowed, this figure for 2010 could be included either in rows "Impairments on financial assets in the banking book" or "Other income" for 2010, whereas under the EU-wide stress test methodology such release for 2011-2012 should be reported in Section D of the worksheet "1- Aggregate information" as other mitigating measures and explained in this worksheet. (4) If dated please insert the maturity date (dd/mm/yy) otherwise specify undated.

Name of the bank: Royal Bank of Scotland Group

All values in million EUR, or %

Non -defa ulted exp osur es
		Corp orat e	Reta il (ex clud	ing c ercia omm	l rea l est ate)				Com merc	ial R eal E state	Defa ulted
	Insti tutio ns	(exc ludin g ial com merc real esta te)		of w hich mort	Res iden tial gage s Loan to V alue (LTV ) rat io (6) (%),	of w hich Revo lving	of w hich SM E	of w hich oth er		Loan to V alue ) (6) (LTV ) rat io (%	expo sure s (exc ludin g reign ) sove	es (7 ) Tota l exp osur
Aus tria	685	848	7	1		2	1	2	2		38	2,78 1
Belg ium	1,39 0	1,96 8	386	13		6	366	1	276		50	5,53 0
Bulg aria	5	29	7	2		1	3	0	1		0	41
Cyp rus	20	678	23	10		8	3	1	136		223	1,08 1
Czec h Re publ ic	94	632	3	1		1	1	0	48		19	1,12 6
Den mark	702	1,23 3	8	6		2	0	0	17		6	3,13 6
Esto nia	0	0	0	0		0	0	0	0		0	1
Finla nd	521	1,49 4	2	1		1	0	0	117		0	3,08 3
Fran ce	12,3 53	11,0 12	135	55		54	14	13	1,81 6		337	34,6 23
Germ any	11,2 99	10,7 95	194	135		17	16	24	3,34 7		789	61,3 36
Gree ce	185	1,39 0	22	8		9	3	1	3		16	3,53 1
Hun gary	44	868	6	1		1	2	1	0		20	941
Icela nd	0	207	1	1		0	0	0	0		169	378
Irela nd	2,37 1	14,8 58	22,8 48	19,3 97	62	1,09 2	2,02 5	335	5,97 8	153	12,7 85	64,2 34
Italy	1,96 8	5,32 4	35	17		9	7	1	595		419	10,5 70
Latv ia	1	0	0	0		0	0	0	0		0	1
Liec hten stein	62	20	5	1		0	3	0	1		1	89
Lithu ania	2	28	0	0		0	0	0	0		0	31
Luxe mbo urg	1,98 8	5,81 0	3	2		1	0	0	2,24 6		258	10,6 59
Malt a	1	443	6	3		2	0	0	0		6	456
Neth erlan ds	5,73 8	17,0 12	100	17		8	72	2	1,53 2		1,20 6	50,9 52
Norw ay	223	1,64 9	1	0		0	1	0	106		441	3,39 3
Pola nd	65	1,13 9	9	2		3	2	1	65		56	1,64 8
Port ugal	317	987	12	5		6	1	0	21		51	1,69 8
Rom ania	28	619	471	191		0	280	0	6		83	1,78 6
Slov akia	9	73	1	0		1	0	0	0		31	145
Slov enia	26	1	1	0		1	0	0	0		0	27
Spa in	4,83 4	12,4 73	491	387		41	56	7	2,29 6		2,01 7	23,2 95
Swe den	688	3,09 9	12	5		5	2	0	307		651	5,92 0
Unit ed K ingd om	15,6 61	125, 368	184, 310	124, 063	59	29,2 74	22,6 11	8,36 1	50,7 71	74	23,7 42	464, 869
Unit ed S tates	17,1 43	88,4 31	41,1 25	28,9 32	76	6,07 6	6,11 1	6	9,16 8	70	2,99 6	229, 926
Japa n	2,11 1	2,16 4	26	12		6	7	1	568		423	12,1 81
Othe n EE A no r no n
rgin ies Eme untr	13,6 27	31,4 22	2,48 9	2,06 6		117	296	10	3,72 5		1,43 7	75,5 76
g co Asia	7,21 8	8,67 9	134	76		28	29	1	104		92	19,8 31
d So Midd le an uth
Ame rica	1,68 5	2,48 0	9	5		3	1	0	3		16	4,58 3
East Euro on E EA ern pe n	1,07 4	4,59 5	64	47		5	12	1	24		211	7,09 5
Othe rs	1,36 4	9,75 2	205	131		29	40	6	1,05 6		1,42 8	15,1 33
Tota l	105, 506	367, 583	253, 155	175, 594		36,8 12	31,9 70	8,77 8	84,3 36		50,0 17	1,12 1,68 7

Notes and definitions

(1) EAD - Exposure at Default or exposure value in the meaning of the CRD.

(2) The EAD reported here are based on the methodologies and portfolio breakdowns used in the 2011 EU-wide stress test, and hence may differ from the EAD reported by banks in their Pillar 3 disclosures, which can vary based on national regulation. For example, this would affect breakdown of EAD for real estate exposures and SME exposures.

(3) Breakdown by country and macro area (e.g. Asia) when EAD >=5%. In any case coverage 100% of total EAD should be ensured (if exact mapping of some exposures to geographies is not possible, they should be allocated to the group "others").

(4) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm

(5) Residential real estate property which is or will be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, and commercial real estate property, that is, offices and other commercial premises, which are recognised as eligible collateral in the meaning of the CRD, with the following criteria, which need to be met:

(a) the value of the property does not materially depend upon the credit quality of the obligor. This requirement does not preclude situations where purely macro economic factors affect both the value of the property and the performance of the borrower; and

(b) the risk of the borrower does not materially depend upon the performance of the underlying property or project, but rather on the underlying capacity of the borrower to repay the debt from other sources. As such, repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral.

(6) Loan to value ratio - ratio of EAD to the market value of real estate used as collateral for such exposures. Given the different methodologies applied to assessing the value, the bank is required to explain the computation of the ratio. In particular (a) whether collateral values is marked-to-market or any other valuation method is used, (b) whether the amount has been adjusted for principal repayments, and (c) how guarantees other than the underlying property are treated.

Definition of Loan to Value ratio used: Ratio of EAD to the lower of the last external professional valuation, the latest indexed value and the current internal RBS view of value

(7) Total exposures is the total EAD according to the CRD definition based on which the bank computes RWA for credit risk. Total exposures, in addition to the exposures broken down by regulatory portfolios in this table, include EAD for securitisation transactions, counterparty credit risk, sovereigns, guaranteed by sovereigns, public sector entities and central banks.

Residual Maturity GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions) Country/Region				NET DIRECT POSITIONS (gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)
			of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
3M 1Y 2Y		1 11 12	0 0 0	1 10 9	0 0 0	0 0 0	1 10 9	0 4 162	0 0 0
3Y 5Y 10Y	Austria	49 48 39	0 0 0	0 19 0	0 0 0	0 0 0	- 19 -	6 24 207	0 -2 2
15Y		221 381	0 0	171 209	162 162	0 0	9 48	165 567	0 0
3M 1Y 2Y		36 184 44	0 0 0	19 73 0	0 0 0	0 0 0	19 73 -	27 132 130	0 0 0
3Y 5Y	Belgium	45 342	0 0	0 170	0 170	0 0	- -	-33 -488	1 -8
10Y 15Y		363 403 1,417	0 0 0	305 325 893	305 325 800	0 0 0	- - 92	71 90 -72	5 0 -2
3M 1Y		0 0	0 0	0 0	0 0	0 0	- -		0 0
2Y 3Y 5Y	Bulgaria	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -		0 0 0
10Y 15Y		0 0	0 0	0 0	0 0	0 0	- -		0 -
3M 1Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	0 - -	0	0
2Y 3Y	Cyprus	0 0	0 0	0 0	0 0	0 0	- -
5Y 10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3M 1Y		0 4 6	0 0 0	0 4 6	0 4 6	0 0 0	0 - -	0 - -2	0 - -
2Y 3Y	Czech Republic	12 0	0 0	12 0	12 -	0 0	- -	17 6	0 0
5Y 10Y		18 282	0 0	18 279	18 61	0 0	- 219	43 21	0 0
15Y 3M		0 322 546	0 0 0	0 319 546	- 101 546	0 0 0	- 219 -	- 84 2	- 0 0
1Y 2Y 3Y		90 0 2	0 0 0	90 0 2	87 0 0	0 0 0	3 0 2	-11 -64 -27	0 0 0
5Y 10Y	Denmark	0 2	0 0	0 2	0 0	0 0	0 2	-53 19	0 0
15Y 3M		1 641 0	0 0 0	1 641 0	0 632 0	0 0 0	1 8 -	-104 -237	- 0
1Y 2Y		0 0	0 0	0 0	0 0	0 0	- -
3Y 5Y 10Y	Estonia	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
15Y		0 0	0 0	0 0	0 0	0 0	- 0	0	0
3M 1Y 2Y		9 0 21	0 0 0	6 0 20	0 0 0	0 0 0	6 - 20	-1 11 0	- 0 0
3Y 5Y	Finland	2 3	0 3	0 3	0 0	0 0	- -	7 44	0 -1
10Y 15Y		97 134 266	15 126 144	83 134 246	30 - 30	0 0 0	38 7 72	149 26 235	1 0 0
3M 1Y		407 362	0 0	372 295	260 193	0 0	112 103	27 -25	0 0
2Y 3Y 5Y	France	8,964 1,867 1,944	0 0 0	8,093 1,665 439	856 1,665 298	0 0 0	7,237 - 141	-31 12 88	1 2 -6
10Y 15Y		3,778 1,848 19,169	124 473 597	3,023 1,226 15,112	2,573 752 6,596	0 0 0	326 - 7,919	152 63 285	1 0 -2
3M 1Y		2,174 1,657	0 0	2,002 1,239	325 616	0 0	1,677 623	7 30
2Y 3Y 5Y	Germany	2,466 1,776 1,946	0 0 0	1,716 1,180 1,136	946 1,180 1,136	0 0 0	770 - -	-6 -389 -103
10Y 15Y		2,368 1,150	0 0	1,897 790	1,732 647	0 0	165 143	582 -533
3M 1Y		13,537 44 42	0 0 0	9,960 44 42	6,581 34 -	0 0 0	3,379 9 42	-411 - -	0 0 -1
2Y 3Y 5Y	Greece	49 32 615	0 17 0	22 29 611	- 0 611	0 0 0	22 12 -	- - 1	0 2 -4
10Y 15Y		57 361	0 0	49 357	43 356	0 0	6 2	-76 0	-1 0
3M 1Y		1,199 2 10	17 0 0	1,155 2 9	1,044 0 0	0 0 0	94 2 9	-75 - -	-3 0 0
2Y 3Y	Hungary	0 1	0 0	0 0	0 0	0 0	0 -	- 4	0 1
5Y 10Y 15Y		5 1 0	0 0 0	1 1 0	0 0 0	0 0 0	1 1 -	- - -	0 -2 -
3M		18 0	0 0	13 0	0 0	0 0	13 -	4 -	0
1Y 2Y 3Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -	- - -1
5Y 10Y	Iceland	0 0	0 0	0 0	0 0	0 0	- -	- -
15Y 3M		0 0 221	0 0 204	0 0 221	0 0 0	0 0 0	- 0 16	- -1 -17	0 0
1Y 2Y		6 1	6 1	6 1	0 0	0 0	- -	8 9 8	-1 -1 0
3Y 5Y 10Y	Ireland	38 16 170	7 6 2	34 15 123	0 0 121	0 0 0	27 10 -	-1 16	-5 6
15Y 3M		3 454 517	0 225 8	3 402 461	- 121 -	0 0 0	3 56 453	- 25 0	0 -1 0
1Y 2Y		735 2,630	1 0	444 2,359	- -	0 0	443 2,359	-12 -1	-2 -1
3Y 5Y 10Y	Italy	664 603 1,578	0 0 0	0 293 999	0 293 665	0 0 0	- - 333	- -159 10	1 -22 25
15Y		302 7,029	0 9	98 4,654	98 1,057	0 0	- 3,588	76 -86	0 0
3M 1Y 2Y		0 0 0	0 0 0	0 0 0	- - -	0 0 0	- - -
3Y 5Y	Latvia	0 0	0 0	0 0	- -	0 0	- -
10Y 15Y		0 0 0	0 0 0	0 0 0	- - 0	0 0 0	- - 0	0	0
3M 1Y		0 0	0 0	0 0	0 0	0 0	- -
2Y 3Y 5Y	Liechtenstein	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
10Y 15Y		0 0	0 0	0 0	0 0	0 0	- -
3M 1Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	0 - -	0	0
2Y 3Y	Lithuania	1 0	0 0	1 0	0 0	0 0	1 -
5Y 10Y 15Y		3 0 0	0 0 0	3 0 0	0 0 0	0 0 0	3 - -
3M		4 125	0 0	4 125	0 0	0 1	4 125	0	0
1Y 2Y 3Y		213 5 45	0 0 0	213 5 45	0 0 0	0 0 0	213 5 45
5Y 10Y	Luxembourg	31 38	0 0	31 38	0 0	0 0	31 38
15Y		5 463	0 0	5 463	0 0	0 0	5 463	0	0

Name of the bank: Royal Bank of Scotland Group

All values in million EUR

Results of the 2011 EBA EU-wide stress test: Exposures to sovereigns (central and local governments), as of 31 December 2010, mln EUR (1,2)

			GROSS DIRECT LONG EXPOSURES (accounting value gross of specific provisions)		NET DIRECT POSITIONS (gross exposures (long) net of cash short position of sovereign debt to other counterparties only where there is maturity matching)						INDIRECT SOVEREIGN EXPOSURES IN THE
Residual Maturity	Country/Region		of which: loans and advances		of which: AFS banking book	of which: FVO (designated at fair value through profit&loss) banking book	of which: Trading book (3)	DERIVATIVES Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)	TRADING BOOK Net position at fair values (Derivatives with positive fair value + Derivatives with negative fair value)
3M 1Y 2Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3Y 5Y 10Y	Malta	0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
15Y		0 0	0 0	0 0	0 0	0 0	- 0	0	0
3M 1Y 2Y		605 2,355 907	2 0 0	605 2,336 888	153 1,590 888	0 0 0	450 745 -	35 78 457	0 0 0
3Y 5Y	Netherlands	320 331	1 0	251 265	157 219	0 0	92 46	779 -859	0 -1
10Y 15Y		735 314 5,567	0 0 3	656 295 5,295	599 295 3,901	0 0 0	57 - 1,390	-515 -1,099 -1,124	0 0 0
3M 1Y		2 0	0 0	2 0	0 0	0 0	2 0	- -	- 0
2Y 3Y	Norway	0 0	0 0	0 0	0 0	0 0	- -	-33 -2	0 0
5Y 10Y 15Y		53 0 0	0 0 0	53 0 0	0 0 0	0 0 0	53 - -	-12 5 62	0 0 -
3M		55 56	0 0	55 56	0 31	0 0	55 25	21	0 0
1Y 2Y 3Y		78 151 2	0 0 0	78 145 0	29 47 -	0 0 0	48 98 -		0 0 0
5Y 10Y	Poland	66 22	0 0	50 10	0 -	0 0	50 10		0 0
15Y 3M		3 376 117	0 0 101	1 339 101	- 107 0	0 0 0	1 232 -	0 12	- 0 0
1Y 2Y		38 0	0 0	0 0	0 0	0 0	- -	14 -5	0 3
3Y 5Y 10Y	Portugal	9 36 88	0 0 0	0 31 76	0 31 76	0 0 0	- - -	-13 - 26	6 -30 18
15Y		0 287	0 101	0 208	- 108	0 0	- 0	- 34	0 -4
3M 1Y 2Y		178 174 1	36 0 1	178 174 1	142 162 0	0 0 0	- 13 -		0 0 0
3Y 5Y	Romania	1 32	1 0	1 32	0 0	0 0	- 32		0 0
10Y 15Y		18 0 405	5 0 43	18 0 405	0 0 304	0 0 0	13 - 58	0	0 - -1
3M 1Y		2 0	1 0	2 0	1 -	0 0	- -	0 -
2Y 3Y 5Y	Slovakia	0 0 22	0 0 0	0 0 22	- - 20	0 0 0	- - 2	1 -1 -1
10Y 15Y		0 0	0 0	0 0	- -	0 0	- -	- -
3M 1Y		24 0 0	1 0 0	24 0 0	21 0 0	0 0 0	2 - -	-2	0
2Y 3Y	Slovenia	0 0	0 0	0 0	0 0	0 0	- -
5Y 10Y 15Y		0 0 0	0 0 0	0 0 0	0 0 0	0 0 0	- - -
3M		0 90	0 14	0 14	0 -	0 0	0 -	0 1	0 0
1Y 2Y 3Y		756 76 189	0 23 0	247 34 0	29 - 0	0 0 0	218 12 -	- 8 19	0 0 5
5Y 10Y	Spain	142 164	0 0	27 57	27 -	0 0	- 57	14 -	-36 30
15Y 3M		43 1,460 244	0 37 157	0 379 241	- 56 0	0 0 0	- 287 85	5 47 -33	0 -1 0
1Y 2Y		2 111	0 0	0 70	0 0	0 0	- 70	9 -18	0 0
3Y 5Y 10Y	Sweden	178 93 309	0 27 112	151 27 309	0 0 0	0 0 0	151 - 197	-1 -29 -34	0 0 0
15Y		193 1,130	179 476	179 978	0 0	0 0	- 502	17 -88	- 0
3M 1Y 2Y		3,612 1,796 868	2,939 2 1	3,494 1,458 789	554 1,143 788	0 0 0	- 313 -	-19 21 -41
3Y 5Y	United Kingdom	2,479 2,716	710 1	1,824 1,852	1,025 1,574	0 0	89 277	-96 -5
10Y 15Y		3,604 4,501 19,575	9 194 3,856	3,291 2,890 15,597	3,281 1,406 9,772	0 0 1	- 1,291 1,969	- - -139	0
	TOTAL EEA 30	73,780	5,509	57,351	31,393	1	20,450	-933	-15
3M 1Y		1,031 7,975	0 3	288 7,825	288 3,161	0 0	- 4,661
2Y 3Y	United States	2,309 3,318	5 44	195 1,323	190 1,279	0 0	- -
5Y 10Y 15Y		11,465 8,414 5,081	13 15 58	7,539 6,395 4,001	7,318 4,664 3,943	0 0 0	208 1,716 -
3M		39,593 12,244	137 427	27,565 12,212	20,843 3,356	0 0	6,585 8,430	0 -	0
1Y 2Y 3Y		2,139 1,387 904	1,182 0 0	2,131 1,352 848	891 717 0	0 0 0	58 635 848	- - 4
5Y 10Y	Japan	830 818	0 0	691 705	0 0	0 0	691 705	47 -
15Y 3M		707 19,029 2,493	0 1,609 0	627 18,565 2,491	0 4,964 2,448	0 0 0	627 11,992 43	15 67 -45	0
1Y 2Y		919 1,023	0 0	755 894	221 158	0 0	534 736	-37 17
3Y 5Y 10Y	Other non EEA non Emerging countries	1,239 933 277	0 0 0	1,212 678 110	130 0 0	0 0 0	1,082 678 110	-44 -39 -31
15Y		277 7,160	0 0	68 6,208	0 2,957	0 0	68 3,251	10 -169	0
3M 1Y 2Y		1,496 606 187	300 57 15	1,496 606 187	1,094 501 87	199 91 16	101 48 86	-14 - -
3Y 5Y	Asia	199 335	24 130	199 138	0 0	0 0	175 8	- -
10Y 15Y		476 211 3,510	36 41 603	36 41 2,703	0 0 1,682	0 0 305	0 0 418	- - -14	0
3M 1Y		53 73	5 0	53 73	44 0	0 0	4 73
2Y 3Y 5Y	Middle and South America	12 47 153	0 0 0	12 47 149	0 0 0	0 0 0	12 47 149
10Y 15Y		243 326	0 0	217 305	0 0	0 0	217 305
3M 1Y		906 230 96	5 149 4	856 230 96	44 78 90	0 0 0	806 3 2	0 -1 -	0
2Y 3Y	Eastern Europe non	40 35	23 20	40 35	16 13	0 0	0 2	- -
5Y 10Y 15Y	EEA	69 69 29	67 68 4	67 68 4	0 0 0	0 0 0	0 0 0	- - -
3M		568 168	336 123	539 168	196 16	0 0	7 29	-1 32	0
1Y 2Y 3Y		65 32 35	40 2 6	65 32 35	2 1 0	0 0 0	23 30 28	- - 63
5Y 10Y	Others	13 230	9 5	9 184	0 0	0 0	0 180	1 -
15Y		372 915	0 185	231 724	0 19	0 0	231 520	- 96	0
	TOTAL	145,461	8,384	114,511	62,098	306	44,029	-954	-15

Notes and definitions

(1) The allocation of countries and exposures to macro areas and emerging/non-emerging is according to the IMF WEO country groupings. See: http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/groups.htm (2) The exposures reported in this worksheet cover only exposures to central and local governments on immediate borrower basis, and do not include exposures to other counterparts with full or partial government guarantees (such exposures are

however inclu

(3) According to the EBA methodologies, for the trading book assets banks have been allowed to offset only cash short positions having the same maturities (paragraph 202 of the Methodological note).