CEO'S MESSAGE CONSOLIDATED RESULTS STATEMENTS RBS RESULTS CENTRE

Analysis of results Year ended Quarter ended 31 December 31 December 31 December 30 September 31 December 2016 2015 2016 2016 2015 Net interest income £m £m £m £m £m Net interest income (1) RBS 8,708 8,767 2,208 2,167 2,162 - UK Personal & Business Banking 4,287 4,152 1,093 1,085 1,030 - Ulster Bank RoI 409 365 105 106 85 - Commercial Banking 2,143 1,997 542 534 512 - Private Banking 449 436 111 112 108 - RBS International 303 303 77 75 78 - NatWest Markets 104 87 29 32 28 - Capital Resolution 239 365 44 27 6 - Williams & Glyn 658 658 170 164 165 - Central items & other 116 404 37 32 150 Average interest-earning assets (IEA) RBS 399,598 413,345 401,548 397,345 407,061 - UK Personal & Business Banking 142,458 130,702 147,703 145,649 134,687 - Ulster Bank RoI 25,193 23,232 26,259 26,026 23,195 - Commercial Banking 121,677 106,429 128,174 123,817 111,600 - Private Banking 16,887 15,835 17,679 16,978 16,025 - RBS International 22,254 20,518 22,793 23,332 20,773 - NatWest Markets 12,387 16,552 14,085 11,960 10,190 - Capital Resolution 25,468 60,656 19,696 22,352 39,875 - Williams & Glyn 24,321 22,940 25,145 24,597 23,327 - Central items & other 8,953 16,482 14 2,634 27,389 Yields, spreads and margins of the banking business Gross yield on interest-earning assets of the banking business (2,3) 2.80% 2.88% 2.72% 2.78% 2.78% Cost of interest-bearing liabilities of banking business (0.94%) (1.11%) (0.82%) (0.92%) (1.00%) (2) Interest spread of the banking business (2,4) 1.86% 1.77% 1.90% 1.86% 1.78% Benefit from interest-free funds 0.32% 0.35% 0.29% 0.31% 0.32% Net interest margin (1,5) RBS 2.18% 2.12% 2.19% 2.17% 2.10% - UK Personal & Business Banking (6) 3.01% 3.18% 2.94% 2.96% 3.03% - Ulster Bank RoI (6) 1.62% 1.57% 1.59% 1.62% 1.45% - Commercial Banking (6) 1.76% 1.88% 1.68% 1.72% 1.82% - Private Banking (6) 2.66% 2.75% 2.50% 2.62% 2.67% - RBS International (6) 1.36% 1.48% 1.34% 1.28% 1.49% - NatWest Markets 0.84% 0.53% 0.82% 1.06% 1.09% - Capital Resolution 0.94% 0.60% 0.89% 0.48% 0.06% - Williams & Glyn 2.71% 2.87% 2.69% 2.65% 2.81% Third party customer rates (7) Third party customer asset rate - UK Personal & Business Banking 3.83% 4.13% 3.64% 3.79% 4.00% - Ulster Bank RoI (8) 2.19% 2.27% 2.20% 2.17% 2.19% - Commercial Banking 2.77% 2.93% 2.65% 2.74% 2.84% - Private Banking 2.90% 3.13% 2.76% 2.86% 3.06% - RBS International 3.04% 3.10% 2.93% 2.95% 3.09% Third party customer funding rate - UK Personal & Business Banking (0.45%) (0.66%) (0.28%) (0.44%) (0.63%) - Ulster Bank RoI (8) (0.50%) (0.88%) (0.42%) (0.46%) (0.74%) - Commercial Banking (0.33%) (0.38%) (0.27%) (0.32%) (0.36%) - Private Banking (0.18%) (0.26%) (0.12%) (0.18%) (0.25%) - RBS International (0.14%) (0.31%) (0.08%) (0.10%) (0.24%) Refer to the following page for footnotes. 21 RBS – Annual results 2016

Annual Results Announcement - Page 26 Annual Results Announcement Page 25 Page 27
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Highlights
Key metrics & ratios 2016 RBS performance summary Q4 2016 RBS performance summary Building a stronger RBS Building the number one bank for customer service Capital reorganisation IFRS9 2017 outlook Medium term outlook 2017 targets
CEO'S MESSAGE CONSOLIDATED RESULTS
ANALYSIS
Net interest income Non-interest income Operating expenses Impairment (releases) / losses Capital and leverage ratios
SEGMENT PERFORMANCE
PBB & CBP Total income by segment Impairment losses / (releases) by segment Loans & advances to customers (gross) by segment UK Personal & Business Banking Ulster Bank RoI Commercial Banking Private Banking RBS International NatWest Markets Capital Resolution Williams & Glyn Central items
STATUTORY RESULTS
Condensed consolidated income statement Condensed consolidated balance sheet Condensed consolidated statement of changes in equity Condensed consolidated cash flow statement
STATEMENTS RBS RESULTS CENTRE