Financial Supplement

Financial Supplement Q4 2016 for the year ended 31 December 2016 rbs.com

Contents Page Section 1 Highlights 1.1a Income Statement & Key Metrics - Non Statutory 3 1.1b Income Statement & Key Metrics - Statutory 5 1.1c Earnings Per Share 6 1,2 Balance Sheet & Key Metrics 7 Section 2 Analysis of Results 2,1 Income Statement & Analysis 9 2,2 Capital & Leverage Ratios 11 Section 3 Segment Performance 3,1 Key measures Segment Performance 12 3,2 UK Personal & Business Banking 24 3,3 Ulster Bank RoI 26 3,4 Commercial Banking 30 3,5 Private Banking 32 3,6 RBS International 34 3,7 NatWest Markets 36 3,8 Capital Resolution 38 3,9 Williams & Glyn 40 3.10 Centre 42

Highlights Section 1.1a - Income Statement Summary consolidated income statement - Non Statutory 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 2 382 9 258 2 203 2 215 2 187 2 162 8 767 2 156 2 177 2 167 2 208 8 708 Own credit adjustments (144) (146) 120 168 136 (115) 309 256 194 (156) (114) 180 Gain/(loss) on redemption of own debt -- 20 -- -- -- (263) (263) -- (130) 3 1 (126) Strategic disposals -- 191 (135) -- -- (22) (157) (6) 201 (31) -- 164 Net fees and commissions 851 3 539 812 783 685 653 2 933 654 630 643 608 2 535 (Loss)/income from trading activities (319) 1 325 235 430 82 59 806 (110) (157) 465 622 820 Other operating income 195 963 284 141 93 10 528 114 85 219 (109) 309 Total non-interest income 583 5 892 1 316 1 522 996 322 4 156 908 823 1 143 1 008 3 882 Total income 2 965 15 150 3 519 3 737 3 183 2 484 12 923 3 064 3 000 3 310 3 216 12 590 Restructuring costs (542) (1 154) (447) (1 023) (847) (614) (2 931) (238) (392) (469) (1 007) (2 106) Litigation and conduct costs (1 164) (2 194) (856) (459) (129) (2 124) (3 568) (31) (1 284) (425) (4 128) (5 868) Write down of goodwill -- (130) -- -- -- (498) (498) -- -- -- -- -- Other costs (2 612) (10 381) (2 308) (2 223) (2 300) (2 525) (9 356) (2 151) (1 833) (2 017) (2 219) (8 220) Operating expenses (4 318) (13 859) (3 611) (3 705) (3 276) (5 761) (16 353) (2 420) (3 509) (2 911) (7 354) (16 194) Operating (loss)/profit before impairment releases/(losses) (1 353) 1 291 (92) 32 (93) (3 277) (3 430) 644 (509) 399 (4 138) (3 604) Impairment releases/(losses) 670 1 352 129 192 79 327 727 (223) (186) (144) 75 (478) Operating (loss)/profit before tax (683) 2 643 37 224 (14) (2 950) (2 703) 421 (695) 255 (4 063) (4 082) Tax (charge)/credit (1 040) (1 909) (190) (97) 3 261 (23) (80) (260) (582) (244) (1 166) (Loss)/profit from continuing operations (1 723) 734 (153) 127 (11) (2 689) (2 726) 341 (955) (327) (4 307) (5 248) (Loss)/profit from discontinued operations, net of tax (3 882) (3 445) (316) 674 1 093 90 1 541 -- -- -- -- -- (Loss)/profit for the period (5 605) (2 711) (469) 801 1 082 (2 599) (1 185) 341 (955) (327) (4 307) (5 248) Attributable to: Non-controlling interests 71 60 (84) 428 45 20 409 22 8 7 (27) 10 Other owners 115 379 74 93 97 121 385 94 114 135 161 504 Dividend access share -- 320 -- -- -- -- -- 1 193 -- -- -- 1 193 (Loss)/profit attributable to ordinary shareholders (5 791) (3 470) (459) 280 940 (2 740) (1 979) (968) (1 077) (469) (4 441) (6 955) Memo: Total income - adjusted (1) 3 109 15 085 3 534 3 569 3 047 2 884 13 034 2 814 2 735 3 494 3 329 12 372 Operating expenses - adjusted (2) (2 612) (10 381) (2 308) (2 223) (2 300) (2 525) (9 356) (2 151) (1 833) (2 017) (2 219) (8 220) Operating profit - adjusted (1,2) 1 167 6 056 1 355 1 538 826 686 4 405 440 716 1 333 1 185 3 674 Notes: (1) Excluding own credit adjustments, gain/(loss) on redemption of own debt and strategic disposals. (2) Excluding restructuring costs, litigation and conduct costs and write down of goodwill. RBS Group - Q4 2016 Financial Supplement Page 3

Highlights Section 1.1a - Income Statement (continued) 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Key metrics and ratios £m £m £m £m £m £m £m £m £m £m £m £m Cost:income ratio 146% 91% 103% 99% 103% 232% 127% 79% 117% 88% 229% 129% Cost:income ratio - adjusted (1) 84% 69% 65% 62% 75% 88% 72% 76% 67% 58% 67% 66% (Loss)/earnings per ordinary share from continuing operations - basic (16,2p) 0,5p (2,2p) -- (1,0p) (24,5p) (27,7p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) - adjusted (1) (2,4p) 25,4p 8,6p 9,9p 5,6p 5,1p 29,2p (8,1p) 2,6p 3,9p 7,0p 5,2p Return on tangible equity (2,3) (51,1%) (8,2%) (4,3%) 2,7% 9,0% (26,5%) (4,7%) (9,6%) (11,0%) (4,8%) (48,2%) (17,9%) Return on tangible equity - adjusted (1,2) (37,4%) (1,5%) 7,4% 13,5% 16,3% 6,6% 11,0% (9,4%) 3,2% 4,6% 8,6% 1,6% Average tangible equity (2) 45 268 42 464 42 392 41 572 41 911 41 319 41 821 40 383 39 283 38 696 36 855 38 791 Average number of ordinary shares outstanding during the period (millions) 11 422 11 356 11 451 11 511 11 546 11 554 11 516 11 606 11 673 11 724 11 766 11 692 Notes: (1) Excluding own credit adjustments, gain/(loss) on redemption of own debt, strategic disposals, restructuring costs, litigation and conduct costs and write down of goodwill. (2) Tangible equity is equity attributable to ordinary shareholders less intangible assets. (3) Calculated using (loss)/profit for the period attributable to ordinary shareholders. RBS Group - Q4 2016 Financial Supplement Page 4

Highlights Section 1.1b - Income Statement Condensed consolidated income statement - Statutory 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Interest receivable 3 238 13 079 3 076 3 031 2 963 2 855 11 925 2 845 2 847 2 796 2 770 11 258 Interest payable (856) (3 821) (873) (816) (776) (693) (3 158) (689) (670) (629) (562) (2 550) Net interest income (1) 2 382 9 258 2 203 2 215 2 187 2 162 8 767 2 156 2 177 2 167 2 208 8 708 Fees and commissions receivable 1 055 4 414 989 969 880 904 3 742 866 810 843 821 3 340 Fees and commissions payable (204) (875) (177) (186) (195) (251) (809) (212) (180) (200) (213) (805) (Loss)/income from trading activities (403) 1 285 330 545 170 15 1 060 38 (55) 401 590 974 Gain/(loss) on redemption of own debt -- 20 -- -- -- (263) (263) -- (130) 3 1 (126) Other operating income 135 1 048 174 194 141 (83) 426 216 378 96 (191) 499 Non-interest income 583 5 892 1 316 1 522 996 322 4 156 908 823 1 143 1 008 3 882 Total income 2 965 15 150 3 519 3 737 3 183 2 484 12 923 3 064 3 000 3 310 3 216 12 590 Staff costs (1 325) (5 757) (1 341) (1 546) (1 562) (1 277) (5 726) (1 323) (1 372) (1 287) (1 142) (5 124) Premises and equipment (480) (2 081) (419) (326) (635) (447) (1 827) (324) (328) (354) (382) (1 388) Other administrative expenses (1 999) (4 568) (1 339) (1 027) (730) (3 192) (6 288) (575) (1 564) (1 095) (5 511) (8 745) Depreciation and amortisation (203) (930) (512) (200) (282) (186) (1 180) (178) (176) (175) (249) (778) Write down of goodwill and other intangible assets (311) (523) -- (606) (67) (659) (1 332) (20) (69) -- (70) (159) Operating expenses (4 318) (13 859) (3 611) (3 705) (3 276) (5 761) (16 353) (2 420) (3 509) (2 911) (7 354) (16 194) Operating (loss)/profit before impairment releases/(losses) (1 353) 1 291 (92) 32 (93) (3 277) (3 430) 644 (509) 399 (4 138) (3 604) Impairment releases/(losses) 670 1 352 129 192 79 327 727 (223) (186) (144) 75 (478) Operating (loss)/profit before tax (683) 2 643 37 224 (14) (2 950) (2 703) 421 (695) 255 (4 063) (4 082) Tax (charge)/credit (1 040) (1 909) (190) (97) 3 261 (23) (80) (260) (582) (244) (1 166) (Loss)/profit from continuing operations (1 723) 734 (153) 127 (11) (2 689) (2 726) 341 (955) (327) (4 307) (5 248) (Loss)/profit from discontinued operations, net of tax (3 882) (3 445) (316) 674 1 093 90 1 541 -- -- -- -- -- (Loss)/profit for the period (5 605) (2 711) (469) 801 1 082 (2 599) (1 185) 341 (955) (327) (4 307) (5 248) Attributable to: Non-controlling interests 71 60 (84) 428 45 20 409 22 8 7 (27) 10 Other owners 115 379 74 93 97 121 385 94 114 135 161 504 Dividend access share -- 320 -- -- -- -- -- 1 193 -- -- -- 1 193 Ordinary shareholders (5 791) (3 470) (459) 280 940 (2 740) (1 979) (968) (1 077) (469) (4 441) (6 955) (5 605) (2 711) (469) 801 1 082 (2 599) (1 185) 341 (955) (327) (4 307) (5 248) (Loss)/earnings per ordinary share (EPS) (2) Basic EPS from continuing and discontinued operations (50,7p) (30,6p) (4,0p) 2,3p 8,1p (23,6p) (17,2p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) Basic EPS from continuing operations (16,2p) 0,5p (2,2p) -- (1,0p) (24,5p) (27,7p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) Notes: (1) Negative interest on loans and advances is classed as interest payable. (2) Diluted EPS for discontinued operations for the quarter ended 30 September 2014 was 0.1p lower than the basic EPS. There was no dilutive impact in any other period. RBS Group - Q4 2016 Financial Supplement Page 5

Highlights Section 1.1c - Earnings per share Earnings per share Adjusted earnings/(loss) per ordinary share excludes the rights of the dividend access share in relevant periods and has been calculated on the basis set out below: 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Earnings (Loss)/profit from continuing operations attributable to ordinary shareholders (£m) (1 856) 57 (248) 5 (113) (2 830) (3 186) (968) (1 077) (469) (4 441) (6 955) (Loss)/profit from discontinued operations attributable to ordinary shareholders (£m) (3 935) (3 527) (211) 275 1 053 90 1 207 -- -- -- -- -- (Loss)/profit attributable to ordinary shareholders (£m) (5 791) (3 470) (459) 280 940 (2 740) (1 979) (968) (1 077) (469) (4 441) (6 955) Weighted average number of ordinary shares outstanding during the period (millions) 11 422 11 356 11 451 11 511 11 546 11 554 11 516 11 606 11 673 11 724 11 766 11 692 Effect of dilutive share options and convertible securities (millions) 87 91 71 48 71 50 60 43 40 40 80 51 Diluted weighted average number of ordinary shares outstanding during the period (millions) 11 509 11 447 11 522 11 559 11 617 11 604 11 576 11 649 11 713 11 764 11 846 11 743 Basic (loss)/earnings per ordinary shares (EPS) (2) Basic EPS from continuing operations (16,2p) 0,5p (2,2p) -- (1,0p) (24,5p) (27,7p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) Basic EPS from discontinued operations (34,5p) (31,1p) (1,8p) 2,3p 9,1p 0,9p 10,5p -- -- -- -- -- Basis EPS from continuing and discontinued operations (50,7p) (30,6p) (4,0p) 2,3p 8,1p (23,6p) (17,2p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) Basic EPS from continuing operations (16,2p) 0,5p (2,2p) -- (1,0p) (24,5p) (27,7p) (8,3p) (9,3p) (3,9p) (37,7p) (59,5p) Own credit adjustments 1,1p 1,1p (0,8p) (1,1p) (1,0p) 0,8p (2,1p) (1,7p) (1,3p) 1,1p 0,8p (1,1p) (Loss)/gain on redemption of own debt -- (0,2p) -- -- -- 1,8p 1,8p -- 1,0p (0,1p) -- 0,9p Write down of goodwill -- 1,1p -- -- -- 4,3p 4,3p -- -- -- -- -- Strategic disposals -- (1,7p) 1,2p -- -- 0,2p 1,4p 0,1p (1,3p) 0,3p -- (0,9p) Restructuring costs 3,8p 7,2p 3,6p 7,2p 6,5p 4,3p 21,6p 1,5p 2,5p 2,9p 8,3p 15,2p Litigation and conduct costs 8,9p 17,4p 6,8p 3,8p 1,1p 18,2p 29,9p 0,3p 11,0p 3,6p 35,6p 50,6p Adjusted EPS from continuing operations (2,4p) 25,4p 8,6p 9,9p 5,6p 5,1p 29,2p (8,1p) 2,6p 3,9p 7,0p 5,2p Notes: (1) Q4 2015 includes the effect of 51 billion B shares that were converted to 5.1 billion ordinary shares in October 2015. (2) Diluted EPS for discontinued operations for the quarter ended 30 September 2014 was 0.1p lower than the basic EPS. There was no dilutive impact in any other period. RBS Group - Q4 2016 Financial Supplement Page 6

Highlights Section 1.2 - Balance Sheet Consolidated balance sheet 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December £m £m £m £m £m £m £m £m £m Assets Cash and balances at central banks 74 872 75 521 81 900 77 220 79 404 72 083 65 307 69 254 74 250 Net loans and advances to banks (1) 23 027 25 002 20 714 22 681 18 361 19 295 21 763 19 741 17 278 Reverse repurchase agreements and stock borrowing 20 708 16 071 20 807 15 255 12 285 15 037 14 458 12 251 12 860 Loans and advances to banks 43 735 41 073 41 521 37 936 30 646 34 332 36 221 31 992 30 138 Net loans and advances to customers (1) 334 251 333 173 314 993 311 383 306 334 317 088 326 503 326 736 323 023 Reverse repurchase agreements and stock borrowing 43 987 53 329 46 799 36 545 27 558 27 319 31 320 33 704 28 927 Loans and advances to customers 378 238 386 502 361 792 347 928 333 892 344 407 357 823 360 440 351 950 Debt securities 86 649 79 232 77 187 81 307 82 097 87 622 84 058 79 784 72 522 Equity shares 5 635 6 325 3 363 2 199 1 361 1 255 749 728 703 Settlement balances 4 667 11 341 9 630 9 397 4 116 9 331 13 405 10 298 5 526 Intangible assets 7 781 7 619 7 198 7 151 6 537 6 534 6 525 6 506 6 480 Property, plant and equipment 6 167 5 336 4 874 4 607 4 482 4 552 4 589 4 490 4 590 Deferred tax 1 911 1 804 1 853 1 811 2 631 2 160 2 217 1 684 1 803 Prepayments, accrued income and other assets 5 763 5 876 4 710 4 809 4 242 5 032 4 311 4 140 3 700 Assets of disposal groups (2) 82 011 93 673 89 071 6 300 3 486 3 405 396 13 13 Funded assets 697 429 714 302 683 099 580 665 552 894 570 713 575 601 569 329 551 675 Derivatives 353 590 390 565 281 857 296 019 262 514 312 217 326 023 283 049 246 981 Total assets 1 051 019 1 104 867 964 956 876 684 815 408 882 930 901 624 852 378 798 656 Liabilities Bank deposits (3) 35 806 37 235 30 978 30 543 28 030 31 774 31 377 32 172 33 317 Repurchase agreements and stock lending 24 859 27 997 21 612 12 800 10 266 12 120 11 611 6 557 5 239 Deposits by banks 60 665 65 232 52 590 43 343 38 296 43 894 42 988 38 729 38 556 Customer deposits (3) 354 288 349 289 342 023 346 267 343 186 352 344 355 719 358 844 353 872 Repurchase agreements and stock lending 37 351 41 386 44 750 30 555 27 112 26 910 29 270 29 851 27 096 Customer accounts 391 639 390 675 386 773 376 822 370 298 379 254 384 989 388 695 380 968 Debt securities in issue 50 280 45 855 41 819 37 360 31 150 29 576 27 148 28 357 27 245 Settlement balances 4 503 11 083 7 335 8 401 3 390 8 808 11 262 10 719 3 645 Short positions 23 029 19 716 24 561 20 108 20 809 22 666 21 793 19 882 22 077 Derivatives 349 805 386 056 273 589 288 905 254 705 304 789 322 390 275 364 236 475 Provisions for liabilities and charges 4 774 5 394 5 422 5 661 7 366 7 363 8 740 9 021 12 836 Accruals and other liabilities 8 572 8 848 8 540 8 663 7 749 7 385 6 887 6 933 6 991 Retirement benefit liabilities 4 318 3 591 3 619 3 718 3 789 519 511 526 363 Deferred tax 500 381 363 376 882 825 824 647 662 Subordinated liabilities 22 905 22 004 19 683 20 184 19 847 20 870 20 113 19 162 19 419 Liabilities of disposal groups (2) 71 320 85 244 80 388 6 401 2 980 2 816 252 15 15 Total liabilities 992 310 1 044 079 904 682 819 942 761 261 828 765 847 897 798 050 749 252 Equity Non-controlling interests 2 946 5 473 5 705 703 716 788 820 853 795 Owners' equity* - Called up share capital 6 877 6 925 6 981 6 984 11 625 11 662 11 756 11 792 11 823 Owners' equity* - Reserves 48 886 48 390 47 588 49 055 41 806 41 715 41 151 41 683 36 786 Total equity 58 709 60 788 60 274 56 742 54 147 54 165 53 727 54 328 49 404 Total liabilities and equity 1 051 019 1 104 867 964 956 876 684 815 408 882 930 901 624 852 378 798 656 *Owners' equity attributable to: Ordinary shareholders 50 666 50 368 49 622 50 088 47 480 47 426 47 066 46 328 41 462 Other equity owners 5 097 4 947 4 947 5 951 5 951 5 951 5 841 7 147 7 147 55 763 55 315 54 569 56 039 53 431 53 377 52 907 53 475 48 609 Contingent liabilities and commitments 241 186 237 087 210 679 160 205 153 752 150 729 151 433 151 394 150 691 For notes to this table refer to page 8 RBS Group - Q4 2016 Financial Supplement Page 7

Highlights Section 1.2 - Balance Sheet (continued) Key metrics and ratios 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Tangible net asset value (TNAV) per ordinary share (8) 374p 371p 367p 371p 352p 351p 345p 338p 296p Loan:deposit ratio (3,4) 95% 95% 92% 89% 89% 90% 92% 91% 91% Short-term wholesale funding (£m) (3,5) 27 766 27 157 25 037 16 831 17 215 16 552 14 695 14 035 13 881 Wholesale funding (£m) (3,5) 90 467 84 038 76 365 65 936 58 692 58 879 55 073 56 006 59 307 Liquidity portfolio (£m) 151 000 157 000 161 000 164 000 156 000 157 000 153 000 149 000 164 000 Liquidity coverage ratio (LCR) (6) 112% 112% 117% 136% 136% 121% 116% 112% 123% Net stable funding ratio (NSFR) (7) 112% 110% 115% 117% 121% 119% 119% 119% 121% Tangible equity (£m) (8) 42 885 42 749 42 424 42 937 40 943 40 892 40 541 39 822 34 982 Number of ordinary shares in issue (millions) (9) 11 466 11 514 11 570 11 574 11 625 11 661 11 755 11 792 11 823 Common Equity Tier 1 (CET1) ratio 11,2% 11,5% 12,3% 12,7% 15,5% 14,6% 14,5% 15,0% 13,4% Risk-weighted assets (RWAs) (£bn) 355,9 348,6 326,4 316,0 242,6 249,5 245,2 235,2 228,2 Leverage ratio (10) 4,2% 4,3% 4,6% 5,0% 5,6% 5,3% 5,2% 5,6% 5,1% Notes: (1) Excludes reverse repurchase agreements and stock borrowing. (2) Primarily consists of international private banking business at 31 March 2016 and 31 December 2015, international private banking business and the interest in associate in relation to Citizens at 30 September 2015 , Citizens and international private banking business at 30 June 2015 and Citizens at 31 December 2014. (3) Excludes repurchase agreements and stock lending. (4) Includes disposal groups. (5) Excludes derivative collateral and includes disposal groups for periods prior to 2016. (6) On 1 October 2015 the LCR became the Prudential Regulation Authority's (PRA) primary regulatory liquidity standard; UK banks are required to meet a minimum standard of 80% initially, rising to 100% by 1 January 2018. The published LCR excludes Pillar 2 add-ons. RBS calculates the LCR using its own interpretation of the EU LCR Delegated Act, which may change over time and may not be fully comparable with that of other institutions. (7) NSFR for all periods have been calculated using RBS’s current interpretations of the revised BCBS guidance on NSFR issued in late 2014. Therefore, reported NSFR will change over time with regulatory developments. Due to differences in interpretation, RBS’s ratio may not be comparable with those of other financial institutions. (8) Tangible equity is equity attributable to ordinary shareholders less intangible assets. (9) Includes 39 million treasury shares (30 September 2016 - 41 million; 31 December 2015 - 26 million). (10) Based on end-point Capital Requirements Regulation (CRR) Tier 1 capital and leverage exposure under the CRR Delegated Act. RBS Group - Q4 2016 Financial Supplement Page 8

Analysis of Results Section 2.1 - Income Statement 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Net interest income £m £m £m £m £m £m £m £m £m £m £m £m Net interest income (1) 2 382 9 258 2 203 2 215 2 187 2 162 8 767 2 156 2 177 2 167 2 208 8 708 Average interest-earning assets (IEA) - RBS 421 244 432 935 415 380 417 248 413 778 407 061 413 345 403 384 396 118 397 345 401 548 399 598 - UK Personal & Business Banking 127 980 126 951 127 973 128 957 131 406 134 687 130 702 135 793 140 591 145 649 147 703 142 458 - Ulster Bank RoI 23 372 24 344 23 244 23 029 23 456 23 195 23 232 24 178 24 288 26 026 26 259 25 193 - Commercial Banking 102 324 103 248 103 479 104 648 105 905 111 600 106 429 114 855 119 768 123 817 128 174 121 677 - Private Banking 15 789 15 687 15 575 15 855 15 878 16 025 15 835 16 259 16 622 16 978 17 679 16 887 - RBS International 19 712 19 540 20 639 20 416 20 244 20 773 20 518 21 075 21 798 23 332 22 793 22 254 - NatWest Markets 14 940 14 917 14 227 23 128 18 686 10 190 16 552 11 568 11 923 11 960 14 085 12 387 - Capital Resolution 90 538 100 716 82 990 68 544 51 786 39 875 60 656 30 767 29 157 22 352 19 696 25 468 - Williams & Glyn 22 681 22 678 22 636 22 769 23 020 23 327 22 940 23 356 24 172 24 597 25 145 24 321 Gross yield on interest-earning assets of the banking business 3,05% 3,02% 3,00% 2,91% 2,84% 2,78% 2,88% 2,82% 2,87% 2,78% 2,72% 2,80% Cost of interest-bearing liabilities of the banking business (1,16%) (1,24%) (1,22%) (1,14%) (1,09%) (1,00%) (1,11%) (1,01%) (1,00%) (0,92%) (0,82%) (0,94%) Interest spread of banking business 1,89% 1,78% 1,78% 1,77% 1,75% 1,78% 1,77% 1,81% 1,87% 1,86% 1,90% 1,86% Benefit from interest free funds 0,34% 0,35% 0,37% 0,36% 0,34% 0,32% 0,35% 0,34% 0,34% 0,31% 0,29% 0,32% Net interest margin (1) - RBS 2,23% 2,13% 2,15% 2,13% 2,09% 2,10% 2,12% 2,15% 2,21% 2,17% 2,19% 2,18% - UK Personal & Business Banking (2) 3,37% 3,32% 3,27% 3,22% 3,19% 3,03% 3,18% 3,02% 3,12% 2,96% 2,94% 3,01% - Ulster Bank RoI (2) 1,90% 1,92% 1,66% 1,65% 1,52% 1,45% 1,57% 1,75% 1,54% 1,62% 1,59% 1,62% - Commercial Banking (2) 1,96% 1,91% 1,89% 1,91% 1,89% 1,82% 1,88% 1,88% 1,78% 1,72% 1,68% 1,76% - Private Banking (2) 2,91% 2,89% 2,86% 2,76% 2,72% 2,67% 2,75% 2,80% 2,73% 2,62% 2,50% 2,66% - RBS International (2) 1,67% 1,65% 1,49% 1,49% 1,43% 1,49% 1,48% 1,43% 1,40% 1,28% 1,34% 1,36% - NatWest Markets 0,21% (0,07%) 0,40% 0,28% 0,62% 1,09% 0,53% 0,66% 0,81% 1,06% 0,82% 0,84% - Capital Resolution 0,71% 0,67% 0,77% 0,73% 0,60% 0,06% 0,60% 1,12% 1,13% 0,48% 0,89% 0,94% - Williams & Glyn 2,92% 2,93% 2,92% 2,87% 2,88% 2,81% 2,87% 2,79% 2,70% 2,65% 2,69% 2,71% Notes: (1) For the purpose of net interest margin (NIM) calculations, no decrease for 2016 (2015 - £15 million) and no decrease for Q4 2016 (Q3 2016 – nil; Q4 2015 - £3 million) was made in respect of interest on financial assets and liabilities designated as at fair value through profit or loss. Related average interest-earning assets and average interest-bearing liabilities have also been adjusted. (2) PBB NIM for the year ended 2016 was 2.80% (year ended 2015 – 2.93%; Q4 2016 – 2.74%; Q3 2016 – 2.76%; Q4 2015 – 2.80%). CPB NIM for the year ended 2016 was 1.80% (year ended 2015 – 1.92%; Q4 2016 – 1.72%; Q3 2016 – 1.75%; Q4 2015 – 1.87%). RBS Group - Q4 2016 Financial Supplement Page 9

Analysis of Results Section 2.1 - Income Statement (continued) Operating expenses - Non Statutory 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Staff costs 1 192 5 376 1 285 1 258 1 281 1 072 4 896 1 202 1 127 1 128 1 025 4 482 Premises and equipment 452 1 812 411 298 352 422 1 483 315 315 321 346 1 297 Other administrative expenses 701 2 120 380 481 477 786 2 124 446 179 393 601 1 619 Restructuring costs (see below) 542 1 154 447 1 023 847 614 2 931 238 392 469 1 007 2 106 Litigation and conduct costs 1 164 2 194 856 459 129 2 124 3 568 31 1 284 425 4 128 5 868 Administrative expenses 4 051 12 656 3 379 3 519 3 086 5 018 15 002 2 232 3 297 2 736 7 107 15 372 Depreciation and amortisation 203 927 232 186 190 170 778 178 174 175 178 705 Write down of goodwill -- 130 -- -- -- 498 498 -- -- -- -- -- Write down of intangible assets 64 146 -- -- -- 75 75 10 38 -- 69 117 Operating expenses 4 318 13 859 3 611 3 705 3 276 5 761 16 353 2 420 3 509 2 911 7 354 16 194 Adjusted operating expenses (1) 2 612 10 381 2 308 2 223 2 300 2 525 9 356 2 151 1 833 2 017 2 219 8 220 Restructuring costs comprise: - staff expenses 133 381 56 288 281 205 830 121 245 159 117 642 - premises, equipment, depreciation and amortisation 28 272 288 42 375 41 746 9 15 33 107 164 - other 381 501 103 693 191 368 1 355 108 132 277 783 1 300 542 1 154 447 1 023 847 614 2 931 238 392 469 1 007 2 106 Staff costs as a % of total income 40% 35% 37% 34% 40% 43% 38% 39% 38% 34% 32% 36% Cost:income ratio 146% 91% 103% 99% 103% 232% 127% 79% 117% 88% 229% 129% Cost:income ratio - adjusted (2) 84% 69% 65% 62% 75% 88% 72% 76% 67% 58% 67% 66% Employee numbers (FTE - thousands) 91,3 91,3 91,7 91,6 92,4 91,5 91,5 92,4 89,2 82,5 77,8 77,8 Impairment (releases)/losses 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Loan impairment (releases)/losses - individually assessed (514) (835) (15) (105) (15) (271) (406) 186 172 217 (40) 535 - collectively assessed (120) 173 12 (7) (13) (27) (35) 16 27 176 (1) 218 - latent (50) (692) (225) (91) (64) (28) (408) 21 (10) (202) (25) (216) Customer loans (684) (1 354) (228) (203) (92) (326) (849) 223 189 191 (66) 537 Bank loans -- (10) -- -- (4) -- (4) -- -- -- -- -- Total loan impairment (releases)/losses (684) (1 364) (228) (203) (96) (326) (853) 223 189 191 (66) 537 Securities 14 12 99 11 17 (1) 126 -- (3) (47) (9) (59) Total impairment (releases)/losses (670) (1 352) (129) (192) (79) (327) (727) 223 186 144 (75) 478 Credit metrics (3) Gross customer loans 412 801 412 801 413 900 390 781 322 957 315 111 315 111 325 339 333 017 332 917 327 478 327 478 Loan impairment provisions 18 040 18 040 13 785 11 303 9 277 7 139 7 139 6 701 6 456 6 181 4 455 4 455 Risk elements in lending (REIL) 2 8 219 2 8 219 2 2 278 1 8 714 1 4 643 1 2 157 1 2 157 1 1 867 1 1 789 1 2 625 10 310 10 310 Provisions as a % of REIL 64% 64% 62% 60% 63% 59% 59% 57% 55% 49% 43% 43% REIL as a % of gross customer loans 6,8% 6,8% 5,4% 4,8% 4,5% 3,9% 3,9% 3,6% 3,5% 3,8% 3,1% 3,1% Provisions as a % of gross customer loans 4,4% 4,4% 3,3% 2,9% 2,9% 2,3% 2,3% 2,1% 1,9% 1,9% 1,4% 1,4% Notes: (1) Excluding restructuring costs, litigation and conduct costs and write down of goodwill. (2) Excluding own credit adjustments, gain/(loss) on redemption of own debt, strategic disposals, restructuring costs, litigation and conduct costs and write down of goodwill. (3) Includes disposal groups and excludes reverse repos. RBS Group - Q4 2016 Financial Supplement Page 10

Analysis of Results Section 2.2 - Capital & Leverage Ratios Capital and leverage ratios PRA Transitional Basis End-point CRR basis (1) 2014 2015 2016 2014 2015 2016 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Risk asset ratios % % % % % % % % % % % % % % % % % % CET1 11,1% 11,5% 12,3% 12,7% 15,5% 14,6% 14,5% 15,0% 13,4% 11,2% 11,5% 12,3% 12,7% 15,5% 14,6% 14,5% 15,0% 13,4% Tier 1 13,2% 13,3% 14,3% 15,5% 19,1% 17,7% 17,7% 19,1% 17,7% 11,2% 11,5% 12,3% 13,3% 16,3% 15,4% 15,4% 16,7% 15,2% Total 17,1% 17,0% 18,5% 19,8% 24,7% 22,9% 23,0% 24,1% 22,9% 13,7% 14,0% 14,8% 16,0% 19,6% 18,8% 19,0% 20,6% 19,2% Capital £m £m £m £m £m £m £m £m £m £m £m £m £m £m £m £m Tangible equity 42 885 42 749 42 424 42 937 40 943 40 892 40 541 39 822 34 982 42 885 42 749 42 424 42 937 40 943 40 892 40 541 39 822 34 982 Expected losses less impairment provisions (1 491) (1 512) (1 319) (1 185) (1 035) (936) (831) (862) (1 371) (1 491) (1 512) (1 319) (1 185) (1 035) (936) (831) (862) (1 371) Prudential valuation adjustment (384) (393) (366) (392) (381) (408) (603) (734) (532) (384) (393) (366) (392) (381) (408) (603) (734) (532) Deferred tax assets (1 222) (1 140) (1 206) (1 159) (1 110) (1 075) (1 040) (838) (906) (1 222) (1 140) (1 206) (1 159) (1 110) (1 075) (1 040) (838) (906) Own credit adjustments 500 609 345 208 (104) (371) (587) (435) (304) 500 609 345 208 (104) (371) (587) (435) (304) Pension fund assets (238) (245) (250) (256) (161) (458) (209) (209) (208) (238) (245) (250) (256) (161) (458) (209) (209) (208) Other deductions (401) 79 448 49 (522) (1 214) (1 617) (1 574) (1 038) (131) 57 425 27 (544) (1 214) (1 617) (1 574) (1 038) Total deductions (3 236) (2 602) (2 348) (2 735) (3 313) (4 462) (4 887) (4 652) (4 359) (2 966) (2 624) (2 371) (2 757) (3 335) (4 462) (4 887) (4 652) (4 359) CET1 capital 39 649 40 147 40 076 40 202 37 630 36 430 35 654 35 170 30 623 39 919 40 125 40 053 40 180 37 608 36 430 35 654 35 170 30 623 AT1 capital 7 468 6 206 6 709 8 716 8 716 7 756 7 756 9 662 9 796 -- -- -- 1 997 1 997 1 997 1 997 4 041 4 041 Tier 1 capital 47 117 46 353 46 785 48 918 46 346 44 186 43 410 44 832 40 419 39 919 40 125 40 053 42 177 39 605 38 427 37 651 39 211 34 664 Tier 2 capital 13 626 12 970 13 573 13 742 13 619 13 028 13 043 11 773 11 884 8 717 8 689 8 181 8 331 8 002 8 422 9 028 9 181 9 161 Total regulatory capital 60 743 59 323 60 358 62 660 59 965 57 214 56 453 56 605 52 303 48 636 48 814 48 234 50 508 47 607 46 849 46 679 48 392 43 825 Risk-weighted assets Credit risk - non-counterparty 264 700 263 000 245 000 237 800 166 400 171 600 172 500 166 600 162 200 264 700 263 000 245 000 237 800 166 400 171 600 172 500 166 600 162 200 - counterparty 30 400 31 200 27 500 26 900 23 400 27 100 26 100 25 100 22 900 30 400 31 200 27 500 26 900 23 400 27 100 26 100 25 100 22 900 Market risk 24 000 22 800 22 300 19 700 21 200 21 200 20 900 17 800 17 400 24 000 22 800 22 300 19 700 21 200 21 200 20 900 17 800 17 400 Operational risk 36 800 31 600 31 600 31 600 31 600 29 600 25 700 25 700 25 700 36 800 31 600 31 600 31 600 31 600 29 600 25 700 25 700 25 700 Total RWAs 355 900 348 600 326 400 316 000 242 600 249 500 245 200 235 200 228 200 355 900 348 600 326 400 316 000 242 600 249 500 245 200 235 200 228 200 2014 2015 2016 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Leverage (2) £m £m £m £m £m £m £m £m £m Derivatives 354 000 391 100 282 300 296 500 262 500 312 200 326 000 283 000 247 000 Loans and advances 419 600 429 400 402 800 402 300 327 000 338 600 348 500 346 500 340 300 Reverse repos 64 700 69 900 67 800 52 100 39 900 42 500 45 800 46 000 41 800 Other assets 212 700 214 200 211 800 208 000 186 000 189 600 181 300 176 900 169 600 Total assets 1 051 000 1 104 600 964 700 958 900 815 400 882 900 901 600 852 400 798 700 Derivatives - netting and variation margin (330 900) (379 200) (266 600) (280 300) (258 600) (303 500) (328 400) (281 700) (241 700) - potential future exposures 98 800 96 000 83 500 82 200 75 600 75 900 75 500 64 100 65 300 Securities financing transactions gross up 25 000 20 200 6 200 6 600 5 100 7 100 3 200 2 200 2 300 Undrawn commitments 96 400 94 900 84 700 78 900 63 500 62 300 63 200 62 100 58 600 Regulatory deductions and other adjustments (800) 900 2 000 200 1 500 3 600 5 600 4 100 100 Leverage exposure 939 500 937 400 874 500 846 500 702 500 728 300 720 700 703 200 683 300 42 177 39 605 38 427 37 651 39 211 34 664 Tier 1 Capital 3 9 919 4 0 125 4 0 053 Leverage ratio % 4,2 4,3 4,6 5,0 5,6 5,3 5,2 5,6 5,1 Notes: (1) Capital Requirements Regulation (CRR) as implemented by the Prudential Regulation Authority in the UK, with effect from 1 January 2014. All regulatory adjustments and deductions to CET1 have been applied in full for both bases with the exception of unrealised gains on AFS securities which have been included from 2015 under the PRA transitional basis. (2) Based on end-point CRR Tier 1 capital and leverage exposure under the CRR Delegated Act. RBS Group - Q4 2016 Financial Supplement Page 11

Highlights Section 3.1 - Segment Performance Segmental performance Year ended 31 December 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 4 287 409 2 143 449 303 104 239 658 116 8 708 Other non-interest income 1 003 164 1 272 208 71 1 417 (654) 179 4 3 664 Total income - adjusted (3) 5 290 573 3 415 657 374 1 521 (415) 837 120 12 372 Own credit adjustments -- 3 -- -- -- 53 134 -- (10) 180 Loss on redemption of own debt -- -- -- -- -- -- -- -- (126) (126) Strategic disposals -- -- -- -- -- -- (81) -- 245 164 Total income 5 290 576 3 415 657 374 1 574 (362) 837 229 12 590 Direct expenses - staff costs (690) (207) (522) (154) (45) (256) (102) (250) (2 256) (4 482) - other costs (293) (55) (235) (44) (17) (35) (84) (59) (2 916) (3 738) Indirect expenses (2 022) (195) (1 179) (313) (107) (1 029) (578) (84) 5 507 -- Operating expenses - adjusted (4) (3 005) (457) (1 936) (511) (169) (1 320) (764) (393) 335 (8 220) Restructuring costs - direct (51) (38) (25) (7) (2) (19) (56) (57) (1 851) (2 106) - indirect (136) (2) (83) (30) (3) (93) (22) -- 369 -- Litigation and conduct costs (634) (172) (423) (1) -- (528) (3 413) -- (697) (5 868) Operating expenses (3 826) (669) (2 467) (549) (174) (1 960) (4 255) (450) (1 844) (16 194) Operating profit/(loss) before impairment (losses)/releases 1 464 (93) 948 108 200 (386) (4 617) 387 (1 615) (3 604) Impairment (losses)/releases (83) 113 (206) 3 (10) -- (253) (42) -- (478) Operating profit/(loss) 1 381 20 742 111 190 (386) (4 870) 345 (1 615) (4 082) Operating profit/(loss) - adjusted (3,4) 2 202 229 1 273 149 195 201 (1 432) 402 455 3 674 Additional information Return on equity (5) 16,2% 0,7% 4,1% 5,6% 13,8% (6,6%) nm nm nm (17,9%) Return on equity - adjusted (3,4,5) 26,8% 8,4% 8,4% 7,8% 14,2% 1,1% nm nm nm 1,6% Cost:income ratio 72% 116% 72% 84% 47% 125% nm 54% nm 129% Cost:income ratio - adjusted (3,4) 57% 80% 57% 78% 45% 87% nm 47% nm 66% Total assets (£bn) 155,6 24,1 150,5 18,6 23,4 240,0 132,5 25,8 28,2 798,7 Funded assets (£bn) (6) 155,6 24,0 150,5 18,5 23,4 100,9 27,6 25,8 25,4 551,7 Net loans and advances to customers (£bn) 132,1 18,9 100,1 12,2 8,8 17,4 12,8 20,6 0,1 323,0 Risk elements in lending (£bn) 2,0 3,5 1,9 0,1 0,1 -- 2,3 0,4 -- 10,3 Impairment provisions (£bn) (1,3) (1,2) (0,8) -- -- -- (0,8) (0,2) (0,2) (4,5) Customer deposits (£bn) 145,8 16,1 97,9 26,6 25,2 8,4 9,5 24,2 0,2 353,9 Risk-weighted assets (RWAs) (£bn) 32,7 18,1 78,5 8,6 9,5 35,2 34,5 9,6 1,5 228,2 RWA equivalent (£bn) (5) 35,7 19,5 82,6 8,6 9,5 37,2 37,5 10,1 1,7 242,4 Employee numbers (FTEs - thousands) 18,3 3,1 5,5 1,7 0,8 1,2 0,4 4,5 42,3 77,8 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 12

Highlights Section 3.1 - Segment Performance (continued) Segmental performance Quarter ended 31 December 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 093 105 542 111 77 29 44 170 37 2 208 Other non-interest income 246 32 325 50 19 285 (329) 47 446 1 121 Total income - adjusted (3) 1 339 137 867 161 96 314 (285) 217 483 3 329 Own credit adjustments -- -- -- -- -- (29) (8) -- (77) (114) Gain on redemption of own debt -- -- -- -- -- -- -- -- 1 1 Total income 1 339 137 867 161 96 285 (293) 217 407 3 216 Direct expenses - staff costs (161) (57) (130) (39) (12) (64) (23) (60) (479) (1 025) - other costs (72) (23) (69) (12) (4) (7) (3) (13) (991) (1 194) Indirect expenses (544) (65) (357) (95) (45) (267) (150) (24) 1 547 -- Operating expenses - adjusted (4) (777) (145) (556) (146) (61) (338) (176) (97) 77 (2 219) Restructuring costs - direct (1) (6) (12) (6) (1) (3) (21) -- (957) (1 007) - indirect (50) 2 (34) (8) (1) (43) 13 -- 121 -- Litigation and conduct costs (214) (77) (407) 1 (1) (466) (3 156) -- 192 (4 128) Operating expenses (1 042) (226) (1 009) (159) (64) (850) (3 340) (97) (567) (7 354) Operating profit/(loss) before impairment (losses)/releases 297 (89) (142) 2 32 (565) (3 633) 120 (160) (4 138) Impairment (losses)/releases (16) 47 (83) 8 1 -- 130 (11) (1) 75 Operating profit/(loss) 281 (42) (225) 10 33 (565) (3 503) 109 (161) (4 063) Operating profit/(loss) - adjusted (3,4) 546 39 228 23 36 (24) (331) 109 559 1 185 Additional information Return on equity (5) 13,5% (5,8%) (9,1%) 1,6% 8,8% (30,2%) nm nm nm (48,2%) Return on equity - adjusted (3,4,5) 27,8% 5,4% 5,3% 4,5% 9,8% (2,7%) nm nm nm 8,6% Cost:income ratio 78% 165% 116% 99% 67% nm nm 45% nm 229% Cost:income ratio - adjusted (3,4) 58% 106% 64% 91% 64% 108% nm 45% nm 67% Total assets (£bn) 155,6 24,1 150,5 18,6 23,4 240,0 132,5 25,8 28,2 798,7 Funded assets (£bn) (6) 155,6 24,0 150,5 18,5 23,4 100,9 27,6 25,8 25,4 551,7 Net loans and advances to customers (£bn) 132,1 18,9 100,1 12,2 8,8 17,4 12,8 20,6 0,1 323,0 Risk elements in lending (£bn) 2,0 3,5 1,9 0,1 0,1 -- 2,3 0,4 -- 10,3 Impairment provisions (£bn) (1,3) (1,2) (0,8) -- -- -- (0,8) (0,2) (0,2) (4,5) Customer deposits (£bn) 145,8 16,1 97,9 26,6 25,2 8,4 9,5 24,2 0,2 353,9 Risk-weighted assets (RWAs) (£bn) 32,7 18,1 78,5 8,6 9,5 35,2 34,5 9,6 1,5 228,2 RWA equivalent (£bn) (5) 35,7 19,5 82,6 8,6 9,5 37,2 37,5 10,1 1,7 242,4 Employee numbers (FTEs - thousands) 18,3 3,1 5,5 1,7 0,8 1,2 0,4 4,5 42,3 77,8 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 13

Highlights Section 3.1 - Segment Performance (continued) Segmental performance Quarter ended 30 September 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 085 106 534 112 75 32 27 164 32 2 167 Other non-interest income 251 40 315 53 18 494 148 45 (37) 1 327 Total income - adjusted (3) 1 336 146 849 165 93 526 175 209 (5) 3 494 Own credit adjustments -- -- -- -- -- (55) (42) -- (59) (156) Gain on redemption of own debt -- -- -- -- -- -- -- -- 3 3 Strategic disposals -- -- -- -- -- -- (30) -- (1) (31) Total income 1 336 146 849 165 93 471 103 209 (62) 3 310 Direct expenses - staff costs (168) (53) (127) (38) (11) (61) (17) (65) (588) (1 128) - other costs (59) (19) (55) (9) (5) (7) (17) (13) (705) (889) Indirect expenses (491) (45) (265) (62) (24) (274) (139) (21) 1 321 -- Operating expenses - adjusted (4) (718) (117) (447) (109) (40) (342) (173) (99) 28 (2 017) Restructuring costs - direct 1 (8) (12) -- -- (6) (23) (12) (409) (469) - indirect (26) (3) (9) (3) -- (27) (10) -- 78 -- Litigation and conduct costs 1 (3) (6) -- 1 (6) (231) -- (181) (425) Operating expenses (742) (131) (474) (112) (39) (381) (437) (111) (484) (2 911) Operating profit/(loss) before impairment (losses)/releases 594 15 375 53 54 90 (334) 98 (546) 399 Impairment (losses)/releases (27) 39 (20) (3) -- -- (120) (14) 1 (144) Operating profit/(loss) 567 54 355 50 54 90 (454) 84 (545) 255 Operating profit/(loss) - adjusted (3,4) 591 68 382 53 53 184 (118) 96 24 1 333 Additional information Return on equity (5) 27,1% 7,8% 9,5% 11,1% 15,4% 3,1% nm nm nm (4,8%) Return on equity - adjusted (3,4,5) 28,3% 9,9% 10,4% 11,8% 15,1% 8,0% nm nm nm 4,6% Cost:income ratio 56% 90% 56% 68% 42% 81% nm 53% nm 88% Cost:income ratio - adjusted (3,4) 54% 80% 53% 66% 43% 65% 99% 47% nm 58% Total assets (£bn) 155,4 25,3 152,6 18,2 26,9 249,7 176,7 25,7 21,9 852,4 Funded assets (£bn) (6) 155,4 25,2 152,6 18,1 26,9 112,5 34,9 25,7 18,0 569,3 Net loans and advances to customers (£bn) 129,6 19,5 99,8 11,8 8,7 19,9 16,7 20,6 0,1 326,7 Risk elements in lending (£bn) 2,1 4,8 2,1 0,1 0,1 -- 2,9 0,4 0,1 12,6 Impairment provisions (£bn) (1,4) (2,3) (1,0) -- -- -- (1,2) (0,2) -- (6,1) Customer deposits (£bn) 143,7 15,1 98,1 25,3 25,5 9,7 16,8 24,0 0,6 358,8 Risk-weighted assets (RWAs) (£bn) 31,9 21,4 77,6 8,2 9,6 36,6 38,6 9,7 1,6 235,2 RWA equivalent (£bn) (5) 35,4 22,8 82,3 8,2 9,6 37,2 39,8 10,2 1,9 247,4 Employee numbers (FTEs - thousands) 18,7 3,2 5,8 1,8 0,8 1,3 0,7 5,0 45,2 82,5 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 14

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 30 June 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 090 93 531 113 76 24 82 162 6 2 177 Other non-interest income 250 42 315 53 19 380 (438) 44 (107) 558 Total income - adjusted (3) 1 340 135 846 166 95 404 (356) 206 (101) 2 735 Own credit adjustments -- -- -- -- -- 73 76 -- 45 194 Loss on redemption of own debt -- -- -- -- -- -- -- -- (130) (130) Strategic disposals -- -- -- -- -- -- (45) -- 246 201 Total income 1 340 135 846 166 95 477 (325) 206 60 3 000 Direct expenses - staff costs (180) (46) (134) (37) (12) (64) (17) (63) (574) (1 127) - other costs (99) (2) (62) (9) (3) (7) (31) (18) (475) (706) Indirect expenses (503) (43) (301) (73) (18) (238) (135) (18) 1 329 -- Operating expenses - adjusted (4) (782) (91) (497) (119) (33) (309) (183) (99) 280 (1 833) Restructuring costs - direct (38) (18) -- -- (1) (10) (5) (25) (295) (392) - indirect (51) (1) (41) (4) (1) (11) (16) -- 125 -- Litigation and conduct costs (421) (92) (8) (2) -- (38) (16) -- (707) (1 284) Operating expenses (1 292) (202) (546) (125) (35) (368) (220) (124) (597) (3 509) Operating profit/(loss) before impairment (losses)/releases 48 (67) 300 41 60 109 (545) 82 (537) (509) Impairment (losses)/releases (24) 14 (89) -- (9) -- (67) (11) -- (186) Operating profit/(loss) 24 (53) 211 41 51 109 (612) 71 (537) (695) Operating profit/(loss) - adjusted (3,4) 534 58 260 47 53 95 (606) 96 179 716 Additional information Return on equity (5) (0,4%) (8,2%) 4,9% 8,6% 15,0% 4,3% nm nm nm (11,0%) Return on equity - adjusted (3,4,5) 24,2% 9,0% 6,6% 9,9% 15,7% 3,5% nm nm nm 3,2% Cost:income ratio 96% 150% 65% 75% 37% 77% nm 60% nm 117% Cost:income ratio - adjusted (3,4) 58% 67% 59% 72% 35% 76% nm 48% nm 67% Total assets (£bn) 151,2 24,3 146,3 17,8 24,6 284,0 208,0 24,9 20,5 901,6 Funded assets (£bn) (6) 151,2 24,1 146,3 17,7 24,6 125,6 44,7 24,9 16,5 575,6 Net loans and advances to customers (£bn) 126,0 18,9 99,2 11,8 8,5 21,6 19,9 20,3 0,4 326,6 Risk elements in lending (£bn) 2,3 4,3 2,2 0,1 0,1 -- 2,4 0,4 -- 11,8 Impairment provisions (£bn) (1,5) (2,5) (1,0) -- -- -- (1,1) (0,3) (0,1) (6,5) Customer deposits (£bn) 140,4 14,7 96,7 25,4 24,1 8,3 18,8 23,9 3,5 355,8 Risk-weighted assets (RWAs) (£bn) 37,0 20,9 77,5 8,1 9,6 36,7 42,3 9,9 3,2 245,2 RWA equivalent (£bn) (5) 41,3 20,8 81,5 8,1 9,6 37,2 43,2 10,4 3,3 255,4 Employee numbers (FTEs - thousands) 20,0 3,2 5,9 1,8 0,7 1,3 0,9 5,2 50,2 89,2 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 15

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 31 March 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 019 105 536 113 75 19 86 162 41 2 156 Other non-interest income 256 50 317 52 15 258 (35) 43 (298) 658 Total income - adjusted (3) 1 275 155 853 165 90 277 51 205 (257) 2 814 Own credit adjustments -- 3 -- -- -- 64 108 -- 81 256 Strategic disposals -- -- -- -- -- -- (6) -- -- (6) Total income 1 275 158 853 165 90 341 153 205 (176) 3 064 Direct expenses - staff costs (181) (51) (131) (40) (10) (67) (45) (62) (615) (1 202) - other costs (63) (11) (49) (14) (5) (14) (33) (15) (745) (949) Indirect expenses (484) (42) (256) (83) (20) (250) (154) (21) 1 310 -- Operating expenses - adjusted (4) (728) (104) (436) (137) (35) (331) (232) (98) (50) (2 151) Restructuring costs - direct (13) (6) (1) (1) -- -- (7) (20) (190) (238) - indirect (9) -- 1 (15) (1) (12) (9) -- 45 -- Litigation and conduct costs -- -- (2) -- -- (18) (10) -- (1) (31) Operating expenses (750) (110) (438) (153) (36) (361) (258) (118) (196) (2 420) Operating profit/(loss) before impairment (losses)/releases 525 48 415 12 54 (20) (105) 87 (372) 644 Impairment (losses)/releases (16) 13 (14) (2) (2) -- (196) (6) -- (223) Operating profit/(loss) 509 61 401 10 52 (20) (301) 81 (372) 421 Operating profit/(loss) - adjusted (3,4) 531 64 403 26 53 (54) (377) 101 (307) 440 Additional information Return on equity (5) 26,1% 8,8% 11,1% 1,5% 16,0% (2,6%) nm nm nm (9,6%) Return on equity - adjusted (3,4,5) 27,3% 9,2% 11,2% 5,1% 16,3% (4,4%) nm nm nm (9,4%) Cost:income ratio 59% 70% 51% 93% 40% 106% nm 58% nm 79% Cost:income ratio - adjusted (3,4) 57% 67% 51% 83% 39% 119% nm 48% nm 76% Total assets (£bn) 146,3 22,7 139,4 17,4 23,7 255,9 218,8 24,2 34,5 882,9 Funded assets (£bn) (6) 146,3 22,6 139,4 17,3 23,7 116,0 50,2 24,2 31,0 570,7 Net loans and advances to customers (£bn) 121,8 17,9 96,4 11,6 8,0 18,6 22,4 20,1 1,8 318,6 Risk elements in lending (£bn) 2,4 4,5 2,2 0,1 0,1 -- 2,2 0,4 -- 11,9 Impairment provisions (£bn) (1,6) (2,7) (1,1) -- -- -- (1,0) (0,3) -- (6,7) Customer deposits (£bn) 136,9 13,7 97,1 23,2 21,6 6,7 24,9 24,3 6,6 355,0 Risk-weighted assets (RWAs) (£bn) 34,7 20,4 75,7 8,6 9,1 36,1 47,6 9,7 7,6 249,5 RWA equivalent (£bn) (5) 37,5 21,7 79,7 8,6 9,1 36,7 48,4 10,1 7,8 259,6 Employee numbers (FTEs - thousands) 21,4 3,2 6,0 1,8 0,7 1,3 1,0 5,5 51,5 92,4 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 16

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Year ended 31 December 2015 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 4 152 365 1 997 436 303 87 365 658 404 8 767 Other non-interest income 1 048 185 1 257 208 64 1 320 37 175 (27) 4 267 Total income - adjusted (3) 5 200 550 3 254 644 367 1 407 402 833 377 13 034 Own credit adjustments -- -- -- -- -- 120 175 -- 14 309 Loss on redemption of own debt -- -- -- -- -- -- -- -- (263) (263) Strategic disposals -- -- -- -- -- -- (38) -- (119) (157) Total income 5 200 550 3 254 644 367 1 527 539 833 9 12 923 Direct expenses - staff costs (801) (160) (483) (176) (42) (348) (296) (215) (2 375) (4 896) - other costs (272) (85) (238) (35) (16) (122) (202) (52) (3 438) (4 460) Indirect expenses (1 965) (182) (1 080) (307) (98) (997) (1 041) (92) 5 762 -- Operating expenses - adjusted (4) (3 038) (427) (1 801) (518) (156) (1 467) (1 539) (359) (51) (9 356) Restructuring costs - direct (38) (12) (52) (7) -- (44) (380) (28) (2 370) (2 931) - indirect (129) (3) (17) (66) (4) (480) (927) -- 1 626 -- Litigation and conduct costs (972) 13 (51) (12) -- (378) (2 105) -- (63) (3 568) Write down of goodwill -- -- -- (498) -- -- -- -- -- (498) Operating expenses (4 177) (429) (1 921) (1 101) (160) (2 369) (4 951) (387) (858) (16 353) Operating profit/(loss) before impairment releases/(losses) 1 023 121 1 333 (457) 207 (842) (4 412) 446 (849) (3 430) Impairment releases/(losses) 7 141 (69) (13) -- 5 725 (15) (54) 727 Operating profit/(loss) 1 030 262 1 264 (470) 207 (837) (3 687) 431 (903) (2 703) Operating profit/(loss) - adjusted (3,4) 2 169 264 1 384 113 211 (55) (412) 459 272 4 405 Additional information Return on equity (5) 11,7% 10,6% 9,8% (27,7%) 18,5% (11,1%) nm nm nm (4,7%) Return on equity - adjusted (3,4,5) 26,2% 10,6% 10,9% 4,9% 18,9% (2,0%) nm nm nm 11,0% Cost:income ratio 80% 78% 59% 171% 44% 155% nm 46% nm 127% Cost:income ratio - adjusted (3,4) 58% 78% 55% 80% 43% 104% nm 43% nm 72% Total assets (£bn) 143,9 21,3 133,5 17,0 23,1 215,3 201,5 24,1 35,7 815,4 Funded assets (£bn) (6) 143,9 21,2 133,5 17,0 23,1 103,3 53,4 24,1 33,4 552,9 Net loans and advances to customers (£bn) 119,8 16,7 91,3 11,2 7,3 16,1 23,6 20,0 2,0 308,0 Risk elements in lending (£bn) 2,7 3,5 1,9 0,1 0,1 -- 3,4 0,5 -- 12,2 Impairment provisions (£bn) (1,8) (1,9) (0,7) -- (0,1) -- (2,3) (0,3) -- (7,1) Customer deposits (£bn) 137,8 13,1 88,9 23,1 21,3 5,7 26,0 24,1 6,0 346,0 Risk-weighted assets (RWAs) (£bn) 33,3 19,4 72,3 8,7 8,3 33,1 49,0 9,9 8,6 242,6 RWA equivalent (£bn) (5) 35,5 20,4 77,6 8,7 8,3 33,4 50,3 10,4 8,8 253,4 Employee numbers (FTEs - thousands) 22,4 2,5 5,8 1,9 0,7 1,3 1,4 5,1 50,4 91,5 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 17

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 31 December 2015 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 030 85 512 108 78 28 6 165 150 2 162 Other non-interest income 224 31 285 50 17 224 (239) 43 87 722 Total income - adjusted (3) 1 254 116 797 158 95 252 (233) 208 237 2 884 Own credit adjustments -- -- -- -- -- (66) (5) -- (44) (115) Loss on redemption of own debt -- -- -- -- -- -- -- -- (263) (263) Strategic disposals -- -- -- -- -- -- (24) -- 2 (22) Total income 1 254 116 797 158 95 186 (262) 208 (68) 2 484 Direct expenses - staff costs (199) (40) (124) (43) (12) (63) (54) (61) (476) (1 072) - other costs (82) (28) (80) (7) (5) (50) (54) (24) (1 123) (1 453) Indirect expenses (596) (49) (380) (109) (24) (251) (286) (22) 1 717 -- Operating expenses - adjusted (4) (877) (117) (584) (159) (41) (364) (394) (107) 118 (2 525) Restructuring costs - direct (31) 7 (40) (7) -- -- (21) (28) (494) (614) - indirect (56) (1) (14) 12 1 (62) (83) -- 203 -- Litigation and conduct costs (607) 4 8 (10) -- (5) (1 498) -- (16) (2 124) Write down of goodwill -- -- -- (498) -- -- -- -- -- (498) Operating expenses (1 571) (107) (630) (662) (40) (431) (1 996) (135) (189) (5 761) Operating (loss)/profit before impairment releases/(losses) (317) 9 167 (504) 55 (245) (2 258) 73 (257) (3 277) Impairment releases/(losses) 27 10 (27) (12) -- -- 356 (20) (7) 327 Operating (loss)/profit (290) 19 140 (516) 55 (245) (1 902) 53 (264) (2 950) Operating profit/(loss) - adjusted (3,4) 404 9 186 (13) 54 (112) (271) 81 348 686 Additional information Return on equity (5) (16,8%) 3,0% 3,1% (118,9%) 19,1% (15,1%) nm nm nm (26,5%) Return on equity - adjusted (3,4,5) 19,8% 1,4% 4,6% (4,4%) 18,7% (7,6%) nm nm nm 6,6% Cost:income ratio 125% 92% 79% 419% 42% 232% nm 65% nm 232% Cost:income ratio - adjusted (3,4) 70% 101% 73% 101% 43% 144% nm 51% nm 88% Total assets (£bn) 143,9 21,3 133,5 17,0 23,1 215,3 201,5 24,1 35,7 815,4 Funded assets (£bn) (6) 143,9 21,2 133,5 17,0 23,1 103,3 53,4 24,1 33,4 552,9 Net loans and advances to customers (£bn) 119,8 16,7 91,3 11,2 7,3 16,1 23,6 20,0 2,0 308,0 Risk elements in lending (£bn) 2,7 3,5 1,9 0,1 0,1 -- 3,4 0,5 -- 12,2 Impairment provisions (£bn) (1,8) (1,9) (0,7) -- (0,1) -- (2,3) (0,3) -- (7,1) Customer deposits (£bn) 137,8 13,1 88,9 23,1 21,3 5,7 26,0 24,1 6,0 346,0 Risk-weighted assets (RWAs) (£bn) 33,3 19,4 72,3 8,7 8,3 33,1 49,0 9,9 8,6 242,6 RWA equivalent (£bn) (5) 35,5 20,4 77,6 8,7 8,3 33,4 50,3 10,4 8,8 253,4 Employee numbers (FTEs - thousands) 22,4 2,5 5,8 1,9 0,7 1,3 1,4 5,1 50,4 91,5 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 18

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 30 September 2015 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 055 90 504 109 73 29 78 167 82 2 187 Other non-interest income 258 74 296 51 14 299 (27) 44 (149) 860 Total income - adjusted (3) 1 313 164 800 160 87 328 51 211 (67) 3 047 Own credit adjustments -- -- -- -- -- 78 38 -- 20 136 Total income 1 313 164 800 160 87 406 89 211 (47) 3 183 Direct expenses - staff costs (202) (40) (117) (43) (9) (97) (60) (57) (656) (1 281) - other costs (68) (22) (54) (11) (3) (19) (41) (12) (789) (1 019) Indirect expenses (464) (48) (238) (65) (24) (242) (245) (22) 1 348 -- Operating expenses - adjusted (4) (734) (110) (409) (119) (36) (358) (346) (91) (97) (2 300) Restructuring costs - direct (5) (3) (1) 2 -- (3) (190) -- (647) (847) - indirect (23) (2) 2 (1) (2) (148) (300) -- 474 -- Litigation and conduct costs -- -- -- -- -- (6) (101) -- (22) (129) Operating expenses (762) (115) (408) (118) (38) (515) (937) (91) (292) (3 276) Operating profit/(loss) before impairment (losses)/releases 551 49 392 42 49 (109) (848) 120 (339) (93) Impairment (losses)/releases (2) 54 (16) (4) 1 -- 50 (5) 1 79 Operating profit/(loss) 549 103 376 38 50 (109) (798) 115 (338) (14) Operating profit/(loss) - adjusted (3,4) 577 108 375 37 52 (30) (245) 115 (163) 826 Additional information Return on equity (5) 27,2% 16,7% 12,3% 7,4% 18,0% (6,4%) nm nm nm 9,0% Return on equity - adjusted (3,4,5) 28,7% 17,5% 12,3% 7,1% 18,8% (2,7%) nm nm nm 16,3% Cost:income ratio 58% 70% 51% 74% 44% 127% nm 43% nm 103% Cost:income ratio - adjusted (3,4) 56% 67% 51% 74% 41% 109% nm 43% nm 75% Total assets (£bn) 140,7 23,0 129,6 17,4 22,9 250,0 234,9 24,0 34,2 876,7 Funded assets (£bn) (6) 140,7 22,9 129,6 17,4 22,9 125,9 66,0 24,0 31,3 580,7 Net loans and advances to customers (£bn) 116,3 16,8 89,1 11,1 7,0 19,8 30,8 20,0 2,8 313,7 Risk elements in lending (£bn) 2,9 3,6 2,1 0,1 0,1 -- 5,3 0,5 -- 14,6 Impairment provisions (£bn) (2,0) (2,0) (0,7) -- (0,1) -- (4,0) (0,3) (0,2) (9,3) Customer deposits (£bn) 134,9 13,6 89,4 22,7 22,3 5,9 30,0 23,6 10,1 352,5 Risk-weighted assets (RWAs) (£bn) 33,3 19,6 64,2 8,4 8,1 38,8 59,7 10,1 73,8 316,0 RWA equivalent (£bn) (5) 36,0 19,8 70,1 8,4 8,1 39,5 62,0 10,7 74,1 328,7 Employee numbers (FTEs - thousands) 22,9 2,4 5,6 2,0 0,6 1,4 1,7 4,8 51,0 92,4 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 19

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 30 June 2015 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 035 95 499 109 76 16 124 163 98 2 215 Other non-interest income 284 37 369 52 16 327 53 47 169 1 354 Total income - adjusted (3) 1 319 132 868 161 92 343 177 210 267 3 569 Own credit adjustments -- -- -- -- -- 62 77 -- 29 168 Total income 1 319 132 868 161 92 405 254 210 296 3 737 Direct expenses - staff costs (200) (40) (119) (44) (11) (79) (90) (52) (623) (1 258) - other costs (58) (17) (53) (8) (4) (27) (50) (10) (738) (965) Indirect expenses (460) (42) (221) (65) (26) (247) (250) (23) 1 334 -- Operating expenses - adjusted (4) (718) (99) (393) (117) (41) (353) (390) (85) (27) (2 223) Restructuring costs - direct (2) (16) (11) (2) -- (41) (153) -- (798) (1 023) - indirect (20) (1) (6) (80) (1) (179) (360) -- 647 -- Litigation and conduct costs (11) 9 (59) -- -- (33) (340) -- (25) (459) Operating expenses (751) (107) (469) (199) (42) (606) (1 243) (85) (203) (3 705) Operating profit/(loss) before impairment releases/(losses) 568 25 399 (38) 50 (201) (989) 125 93 32 Impairment releases/(losses) 2 52 (27) 2 1 (3) 174 (11) 2 192 Operating profit/(loss) 570 77 372 (36) 51 (204) (815) 114 95 224 Operating profit/(loss) - adjusted (3,4) 603 85 448 46 52 (13) (39) 114 242 1 538 Additional information Return on equity (5) 27,2% 12,6% 12,1% (9,9%) 18,1% (10,2%) nm nm nm 2,7% Return on equity - adjusted (3,4,5) 28,9% 13,9% 14,9% 9,3% 18,4% (1,9%) nm nm nm 13,5% Cost:income ratio 57% 81% 54% 124% 46% 150% nm 40% nm 99% Cost:income ratio - adjusted (3,4) 54% 75% 45% 73% 45% 103% nm 40% nm 62% Total assets (£bn) 139,5 21,6 132,1 18,0 23,7 256,6 247,5 23,9 102,1 965,0 Funded assets (£bn) (6) 139,5 21,5 132,1 17,9 23,7 145,4 79,2 23,9 99,5 682,7 Net loans and advances to customers (£bn) 112,9 16,4 88,4 10,9 6,6 22,1 36,7 19,5 66,0 379,5 Risk elements in lending (£bn) 3,1 3,8 2,2 0,2 0,1 -- 7,6 0,5 1,2 18,7 Impairment provisions (£bn) (2,2) (2,0) (0,8) -- (0,1) -- (5,2) (0,3) (0,7) (11,3) Customer deposits (£bn) 133,2 13,1 89,5 23,2 21,1 8,6 28,0 23,4 72,4 412,5 Risk-weighted assets (RWAs) (£bn) 34,6 19,2 64,0 8,2 7,7 41,8 68,6 10,3 72,0 326,4 RWA equivalent (£bn) (5) 37,4 18,6 70,1 8,2 7,7 42,5 72,8 10,6 72,3 340,2 Employee numbers (FTEs - thousands) 22,8 2,4 5,7 2,0 0,6 1,5 2,0 4,6 50,0 91,6 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 20

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 31 March 2015 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 032 95 482 110 76 14 157 163 74 2 203 Other non-interest income 282 43 307 55 17 470 250 41 (134) 1 331 Total income - adjusted (3) 1 314 138 789 165 93 484 407 204 (60) 3 534 Own credit adjustments -- -- -- -- -- 46 65 -- 9 120 Strategic disposals -- -- -- -- -- -- (14) -- (121) (135) Total income 1 314 138 789 165 93 530 458 204 (172) 3 519 Direct expenses - staff costs (200) (40) (123) (46) (10) (109) (92) (45) (620) (1 285) - other costs (64) (18) (51) (9) (4) (26) (57) (6) (788) (1 023) Indirect expenses (445) (43) (241) (68) (24) (257) (260) (25) 1 363 -- Operating expenses - adjusted (4) (709) (101) (415) (123) (38) (392) (409) (76) (45) (2 308) Restructuring costs - direct -- -- -- -- -- -- (16) -- (431) (447) - indirect (30) 1 1 3 (2) (91) (184) -- 302 -- Litigation and conduct costs (354) -- -- (2) -- (334) (166) -- -- (856) Operating expenses (1 093) (100) (414) (122) (40) (817) (775) (76) (174) (3 611) Operating profit/(loss) before impairment (losses)/releases 221 38 375 43 53 (287) (317) 128 (346) (92) Impairment (losses)/releases (20) 25 1 1 (2) 8 145 21 (50) 129 Operating profit/(loss) 201 63 376 44 51 (279) (172) 149 (396) 37 Operating profit/(loss) - adjusted (3,4) 585 62 375 43 53 100 143 149 (155) 1 355 Additional information Return on equity (5) 8,4% 10,1% 12,4% 7,8% 18,8% (13,3%) nm nm nm (4,3%) Return on equity - adjusted (3,4,5) 27,2% 9,9% 12,4% 7,5% 19,5% 3,0% nm nm nm 7,4% Cost:income ratio 83% 72% 52% 74% 43% 154% nm 37% nm 103% Cost:income ratio - adjusted (3,4) 54% 73% 53% 75% 41% 81% nm 37% nm 65% Total assets (£bn) 137,8 21,7 131,1 17,3 24,3 308,7 338,7 23,7 101,6 1 104,9 Funded assets (£bn) (6) 137,8 21,6 131,1 17,3 24,3 152,1 108,3 23,7 97,7 713,9 Net loans and advances to customers (£bn) 111,7 16,7 86,2 11,1 7,2 31,6 48,5 19,5 67,7 400,2 Risk elements in lending (£bn) 3,4 4,0 2,3 0,1 0,1 -- 10,4 0,6 1,4 22,3 Impairment provisions (£bn) (2,4) (2,1) (0,8) (0,1) (0,1) -- (7,3) (0,4) (0,6) (13,8) Customer deposits (£bn) 131,6 13,5 90,0 22,0 22,7 11,2 34,6 22,1 74,9 422,6 Risk-weighted assets (RWAs) (£bn) 35,9 20,4 63,1 8,4 7,9 43,8 84,3 10,5 74,3 348,6 RWA equivalent (£bn) (5) 38,6 19,3 69,7 8,4 7,9 44,5 90,1 11,1 74,7 364,3 Employee numbers (FTEs - thousands) 22,7 2,4 5,8 2,0 0,6 1,6 2,3 4,4 49,9 91,7 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 21

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Year ended 31 December 2014 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 4 221 467 1 976 454 323 (11) 673 664 491 9 258 Other non-interest income 1 223 137 1 329 235 68 1 951 1 155 188 (459) 5 827 Total income - adjusted (3) 5 444 604 3 305 689 391 1 940 1 828 852 32 15 085 Own credit adjustments -- -- -- -- -- (9) (36) -- (101) (146) Gain on redemption of own debt -- -- -- -- -- -- -- -- 20 20 Strategic disposals -- -- -- -- -- -- -- -- 191 191 Total income 5 444 604 3 305 689 391 1 931 1 792 852 142 15 150 Direct expenses - staff costs (824) (164) (495) (178) (44) (446) (444) (200) (2 581) (5 376) - other costs (346) (83) (241) (37) (15) (190) (293) (36) (3 764) (5 005) Indirect expenses (1 958) (180) (1 008) (289) (94) (1 080) (1 283) (94) 5 986 -- Operating expenses - adjusted (4) (3 128) (427) (1 744) (504) (153) (1 716) (2 020) (330) (359) (10 381) Restructuring costs - direct (10) 8 (41) (1) (2) (13) (80) -- (1 015) (1 154) - indirect (101) (21) (67) -- (5) (89) (105) -- 388 -- Litigation and conduct costs (918) 19 (112) (90) -- (832) (162) -- (99) (2 194) Write down of goodwill -- -- -- -- -- -- (130) -- -- (130) Operating expenses (4 157) (421) (1 964) (595) (160) (2 650) (2 497) (330) (1 085) (13 859) Operating profit/(loss) before impairment (losses)/releases 1 287 183 1 341 94 231 (719) (705) 522 (943) 1 291 Impairment (losses)/releases (154) 306 (85) 5 7 9 1 307 (55) 12 1 352 Operating profit/(loss) 1 133 489 1 256 99 238 (710) 602 467 (931) 2 643 Operating profit/(loss) - adjusted (3,4) 2 162 483 1 476 190 245 233 1 115 467 (315) 6 056 Additional information Return on equity (5) 11,9% 18,6% 10,2% 4,1% 24,2% (7,9%) nm nm nm (8,2%) Return on equity - adjusted (3,4,5) 23,7% 18,4% 12,2% 9,1% 24,9% 1,3% nm nm nm (1,5%) Cost:income ratio 76% 70% 59% 86% 41% 137% nm 39% nm 91% Cost:income ratio - adjusted (3,4) 57% 71% 53% 73% 39% 88% nm 39% nm 69% Total assets (£bn) 137,8 22,5 127,9 17,7 23,4 276,2 327,3 23,6 94,6 1 051,0 Funded assets (£bn) (6) 137,8 22,4 127,9 17,7 23,4 137,7 115,6 23,6 90,9 697,0 Net loans and advances to customers (£bn) 111,6 18,1 84,9 11,0 7,2 26,5 52,9 19,5 63,1 394,8 Risk elements in lending (£bn) 3,6 4,4 2,4 0,1 0,2 -- 15,6 0,6 1,3 28,2 Impairment provisions (£bn) (2,5) (2,4) (0,9) -- (0,1) -- (11,1) (0,4) (0,6) (18,0) Customer deposits (£bn) 132,6 14,7 84,9 22,3 20,8 11,8 36,4 22,0 69,4 414,9 Risk-weighted assets (RWAs) (£bn) 36,6 21,8 63,2 8,7 7,5 41,9 95,1 10,1 71,0 355,9 RWA equivalent (£bn) (5) 39,2 20,0 70,1 8,7 7,5 42,6 101,3 10,8 71,4 371,6 Employee numbers (FTEs - thousands) 22,4 2,5 6,2 2,0 0,6 1,7 2,6 4,4 48,9 91,3 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 22

Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 31 December 2014 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 086 112 506 116 83 8 162 167 142 2 382 Other non-interest income 288 40 343 54 18 248 37 49 (350) 727 Total income - adjusted (3) 1 374 152 849 170 101 256 199 216 (208) 3 109 Own credit adjustments -- -- -- -- -- (33) (50) -- (61) (144) Total income 1 374 152 849 170 101 223 149 216 (269) 2 965 Direct expenses - staff costs (205) (43) (115) (44) (11) (36) (66) (50) (622) (1 192) - other costs (72) (23) (73) (12) (2) (47) (80) (10) (1 101) (1 420) Indirect expenses (548) (53) (319) (90) (23) (293) (344) (24) 1 694 -- Operating expenses - adjusted (4) (825) (119) (507) (146) (36) (376) (490) (84) (29) (2 612) Restructuring costs - direct (2) -- (1) (1) -- (3) (46) -- (489) (542) - indirect (14) 2 (16) -- (2) (16) (22) -- 68 -- Litigation and conduct costs (650) 19 (62) (90) -- (370) (12) -- 1 (1 164) Operating expenses (1 491) (98) (586) (237) (38) (765) (570) (84) (449) (4 318) Operating (loss)/profit before impairment releases/(losses) (117) 54 263 (67) 63 (542) (421) 132 (718) (1 353) Impairment releases/(losses) 2 70 (32) 1 (3) 6 634 (9) 1 670 Operating (loss)/profit (115) 124 231 (66) 60 (536) 213 123 (717) (683) Operating profit/(loss) - adjusted (3,4) 551 103 310 25 62 (114) 343 123 (236) 1 167 Additional information Return on equity (5) (7,0%) 19,8% 7,0% (15,8%) 24,7% (23,3%) nm nm nm (51,1%) Return on equity - adjusted (3,4,5) 25,5% 16,4% 9,9% 3,7% 25,6% (5,9%) nm nm nm (37,4%) Cost:income ratio 109% 64% 69% 139% 38% 343% nm 39% nm 146% Cost:income ratio - adjusted (3,4) 60% 78% 60% 86% 36% 147% nm 39% nm 84% Total assets (£bn) 137,8 22,5 127,9 17,7 23,4 276,2 327,3 23,6 94,6 1 051,0 Funded assets (£bn) (6) 137,8 22,4 127,9 17,7 23,4 137,7 115,6 23,6 90,9 697,0 Net loans and advances to customers (£bn) 111,6 18,1 84,9 11,0 7,2 26,5 52,9 19,5 63,1 394,8 Risk elements in lending (£bn) 3,6 4,4 2,4 0,1 0,2 -- 15,6 0,6 1,3 28,2 Impairment provisions (£bn) (2,5) (2,4) (0,9) -- (0,1) -- (11,1) (0,4) (0,6) (18,0) Customer deposits (£bn) 132,6 14,7 84,9 22,3 20,8 11,8 36,4 22,0 69,4 414,9 Risk-weighted assets (RWAs) (£bn) 36,6 21,8 63,2 8,7 7,5 41,9 95,1 10,1 71,0 355,9 RWA equivalent (£bn) (5) 39,2 20,0 70,1 8,7 7,5 42,6 101,3 10,8 71,4 371,6 Employee numbers (FTEs - thousands) 22,4 2,5 6,2 2,0 0,6 1,7 2,6 4,4 48,9 91,3 nm = not meaningful. Notes: (1) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During the period presented W&G has not operated as a separate legal entity. (2) Central items include unallocated transactions which principally comprise volatile items under IFRS and balances in relation to Citizens for periods prior to HY 2015 and International private banking for periods from Q1 2015 to Q1 2016. (3) Excluding own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals. (4) Excluding restructuring costs, litigation and conduct costs and write down of goodwill. (5) RBS’s CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating profit after tax and adjusted for preference dividends is divided by notional equity allocated at different rates of 11% (Commercial Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets incorporating the effect of capital deductions (RWAes). RBS Return on equity is calculated using profit for the period attributable to ordinary shareholders. (6) Funded assets exclude derivative assets. RBS Group - Q4 2016 Financial Supplement Page 23

Segment Performance UK Personal & Business Banking 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 1 086 4 221 1 032 1 035 1 055 1 030 4 152 1 019 1 090 1 085 1 093 4 287 Net fees and commissions 284 1 162 267 277 256 220 1 020 255 243 255 231 984 Other non-interest income 4 61 15 7 2 4 28 1 7 (4) 15 19 Non-interest income 288 1 223 282 284 258 224 1 048 256 250 251 246 1 003 Total income 1 374 5 444 1 314 1 319 1 313 1 254 5 200 1 275 1 340 1 336 1 339 5 290 Direct expenses - staff costs (205) (824) (200) (200) (202) (199) (801) (181) (180) (168) (161) (690) - other costs (72) (346) (64) (58) (68) (82) (272) (63) (99) (59) (72) (293) Indirect expenses (548) (1 958) (445) (460) (464) (596) (1 965) (484) (503) (491) (544) (2 022) Restructuring costs - direct (2) (10) -- (2) (5) (31) (38) (13) (38) 1 (1) (51) - indirect (14) (101) (30) (20) (23) (56) (129) (9) (51) (26) (50) (136) Litigation and conduct costs (650) (918) (354) (11) -- (607) (972) -- (421) 1 (214) (634) Operating expenses (1 491) (4 157) (1 093) (751) (762) (1 571) (4 177) (750) (1 292) (742) (1 042) (3 826) Operating (loss)/profit before impairment releases/(losses) (117) 1 287 221 568 551 (317) 1 023 525 48 594 297 1 464 Impairment releases/(losses) 2 (154) (20) 2 (2) 27 7 (16) (24) (27) (16) (83) Operating (loss)/profit (115) 1 133 201 570 549 (290) 1 030 509 24 567 281 1 381 Memo: Operating expenses - adjusted (1) (825) (3 128) (709) (718) (734) (877) (3 038) (728) (782) (718) (777) (3 005) Operating profit - adjusted (1) 551 2 162 585 603 577 404 2 169 531 534 591 546 2 202 Analysis of income by product Personal advances 192 842 199 186 185 177 747 204 210 216 215 845 Personal deposits 197 664 181 199 186 181 747 166 195 186 184 731 Mortgages 607 2 399 571 574 591 569 2 305 564 573 596 598 2 331 Cards 161 700 168 154 159 140 621 142 174 148 150 614 Business banking 179 663 180 184 182 180 726 175 181 188 188 732 Other 38 176 15 22 10 7 54 24 7 2 4 37 Total income 1 374 5 444 1 314 1 319 1 313 1 254 5 200 1 275 1 340 1 336 1 339 5 290 Analysis of impairments by sector Personal advances 31 128 31 13 12 13 69 6 14 26 38 84 Mortgages (22) (29) 5 3 (9) 5 4 4 14 (1) (39) (22) Business banking 2 46 (40) (18) 3 (24) (79) -- 1 (8) (3) (10) Cards 22 75 5 3 3 (1) 10 6 (5) 10 20 31 Others (35) (66) 19 (3) (7) (20) (11) -- -- -- -- -- Total impairment (releases)/losses (2) 154 20 (2) 2 (27) (7) 16 24 27 16 83 Loan impairment charge/release as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector Personal advances 1,9% 2,0% 1,9% 0,8% 0,8% 0,9% 1,2% 0,4% 0,9% 1,7% 2,5% 1,4% Mortgages (0,1%) -- -- -- -- -- -- -- -- -- -- -- Business banking 0,1% 0,8% (2,7%) (1,3%) 0,2% (1,8%) (1,5%) -- 0,1% (0,5%) (0,2%) (0,2%) Cards 1,9% 1,6% 0,5% 0,3% 0,3% (0,1%) 0,2% 0,6% (0,5%) 1,0% 2,1% 0,8% Others (9,3%) (4,4%) 5,1% (0,8%) (1,9%) (5,7%) (0,8%) -- -- -- -- -- Total -- 0,1% 0,1% -- -- (0,1%) -- 0,1% 0,1% 0,1% -- 0,1% Performance ratios Return on equity (2) (7,0%) 11,9% 8,4% 27,2% 27,2% (16,8%) 11,7% 26,1% (0,4%) 27,1% 13,5% 16,2% Return on equity - adjusted (1,2) 25,5% 23,7% 27,2% 28,9% 28,7% 19,8% 26,2% 27,3% 24,2% 28,3% 27,8% 26,8% Net interest margin 3,37% 3,32% 3,27% 3,22% 3,19% 3,03% 3,18% 3,02% 3,12% 2,96% 2,94% 3,01% Cost:income ratio 109% 76% 83% 57% 58% 125% 80% 59% 96% 56% 78% 72% Cost:income ratio - adjusted (1) 60% 57% 54% 54% 56% 70% 58% 57% 58% 54% 58% 57% Notes: (1) Excluding restructuring costs and litigation and conduct costs. (2) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% of the monthly average of segmental RWAes, assuming 28% tax rate. RBS Group - Q4 2016 Financial Supplement Page 24

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) - personal advances 6,5 6,4 6,4 6,1 6,0 6,0 6,0 6,0 6,0 - mortgages 95,5 96,0 97,6 101,2 104,8 108,0 111,4 114,7 117,1 - business banking 5,9 5,9 5,4 5,4 5,3 5,5 6,2 6,4 6,4 - cards 4,7 4,3 4,2 4,1 4,1 3,9 3,9 3,9 3,9 - others 1,5 1,5 1,5 1,5 1,4 -- -- -- -- Total loans and advances to customers (gross) 114,1 114,1 115,1 118,3 121,6 123,4 127,5 131,0 133,4 Loan impairment provisions (2,5) (2,4) (2,2) (2,0) (1,8) (1,6) (1,5) (1,4) (1,3) Net loans and advances to customers 111,6 111,7 112,9 116,3 119,8 121,8 126,0 129,6 132,1 Total assets 137,8 137,8 139,5 140,7 143,9 146,3 151,2 155,4 155,6 Funded assets 137,8 137,8 139,5 140,7 143,9 146,3 151,2 155,4 155,6 Risk elements in lending 3,6 3,4 3,1 2,9 2,7 2,4 2,3 2,1 2,0 Provision coverage (1) 69% 70% 72% 67% 69% 65% 66% 67% 65% Customer deposits - personal current accounts 34,4 34,6 35,2 36,3 37,2 38,8 39,3 40,7 42,1 - personal savings 76,3 76,4 77,3 77,4 78,9 78,7 80,2 81,1 81,4 - business banking 19,5 18,3 18,5 19,1 19,6 19,4 20,8 21,9 22,3 - others 2,4 2,3 2,2 2,1 2,1 -- 0,1 -- -- Customer deposits 132,6 131,6 133,2 134,9 137,8 136,9 140,4 143,7 145,8 Assets under management (excluding deposits) 4,9 4,9 4,6 4,3 4,3 4,2 4,1 4,3 4,2 Loan:deposit ratio (excluding repos) 84% 85% 85% 86% 87% 89% 90% 90% 91% Risk-weighted assets - credit risk - non-counterparty 29,0 28,1 26,8 25,4 25,4 26,9 29,1 24,1 24,8 - counterparty -- -- -- 0,1 -- -- -- -- -- - operational risk 7,6 7,8 7,8 7,8 7,9 7,8 7,9 7,8 7,9 Total risk-weighted assets 36,6 35,9 34,6 33,3 33,3 34,7 37,0 31,9 32,7 Note: (1) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 25

Segment Performance Ulster Bank RoI 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 112 467 95 95 90 85 365 105 93 106 105 409 Net fees and commissions 25 93 22 20 21 22 85 21 21 21 19 82 Other non-interest income 15 44 21 17 53 9 100 29 21 19 13 82 Own credit adjustments -- -- -- -- -- -- -- 3 -- -- -- 3 Non-interest income 40 137 43 37 74 31 185 53 42 40 32 167 Total income 152 604 138 132 164 116 550 158 135 146 137 576 Direct expenses - staff costs (43) (164) (40) (40) (40) (40) (160) (51) (46) (53) (57) (207) - other costs (23) (83) (18) (17) (22) (28) (85) (11) (2) (19) (23) (55) Indirect expenses (53) (180) (43) (42) (48) (49) (182) (42) (43) (45) (65) (195) Restructuring costs - direct -- 8 -- (16) (3) 7 (12) (6) (18) (8) (6) (38) - indirect 2 (21) 1 (1) (2) (1) (3) -- (1) (3) 2 (2) Litigation and conduct costs 19 19 -- 9 -- 4 13 -- (92) (3) (77) (172) Operating expenses (98) (421) (100) (107) (115) (107) (429) (110) (202) (131) (226) (669) Operating profit/(loss) before impairment releases 54 183 38 25 49 9 121 48 (67) 15 (89) (93) Impairment releases 70 306 25 52 54 10 141 13 14 39 47 113 Operating profit/(loss) 124 489 63 77 103 19 262 61 (53) 54 (42) 20 Memo: Total income - adjusted (1) 152 604 138 132 164 116 550 155 135 146 137 573 Operating expenses - adjusted (2) (119) (427) (101) (99) (110) (117) (427) (104) (91) (117) (145) (457) Operating profit - adjusted (1,2) 103 483 62 85 108 9 264 64 58 68 39 229 Average exchange rate - €/£ 1,268 1,241 1,345 1,385 1,392 1,386 1,377 1,299 1,270 1,177 1,153 1,224 Analysis of income by business Corporate 49 185 37 34 38 38 147 56 43 43 34 176 Retail 73 291 77 78 91 75 321 100 95 96 101 392 Other 30 128 24 20 35 3 82 2 (3) 7 2 8 Total income 152 604 138 132 164 116 550 158 135 146 137 576 Analysis of impairments by sector Mortgages (40) (171) (19) (39) (36) 21 (73) 1 (2) 60 (30) 29 Commercial real estate - investment (4) (7) -- 3 (1) 3 5 (5) -- (18) (1) (24) - development 4 (3) -- 3 (2) (2) (1) (2) (5) (12) (1) (20) Other lending (30) (125) (6) (19) (15) (32) (72) (7) (7) (69) (15) (98) Total impairment (releases) (70) (306) (25) (52) (54) (10) (141) (13) (14) (39) (47) (113) Loan impairment charge/release as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector Mortgages (1,0%) (1,1%) (0,5%) (1,1%) (1,0%) 0,6% (0,5%) -- (0,1%) 1,5% (0,8%) 0,2% Commercial real estate - investment (1,6%) (0,7%) -- 1,3% (0,4%) 1,7% 0,7% (2,0%) -- (7,2%) (0,6%) (3,4%) - development 5,3% (1,0%) -- 4,0% (2,7%) (4,0%) (0,5%) (1,3%) (5,0%) (12,0%) (2,0%) (10,0%) Other lending (3,1%) (3,2%) (0,7%) (2,2%) (1,6%) (3,3%) (1,8%) (0,7%) (0,6%) (6,3%) (1,5%) (2,5%) Total (1,4%) (1,5%) (0,5%) (1,1%) (1,2%) (0,2%) (0,8%) (0,3%) (0,3%) (0,7%) (0,9%) (0,6%) Performance ratios Return on equity (3) 19,8% 18,6% 10,1% 12,6% 16,7% 3,0% 10,6% 8,8% (8,2%) 7,8% (5,8%) 0,7% Return on equity - adjusted (1,2,3) 16,4% 18,4% 9,9% 13,9% 17,5% 1,4% 10,6% 9,2% 9,0% 9,9% 5,4% 8,4% Net interest margin 1,90% 1,92% 1,66% 1,65% 1,52% 1,45% 1,57% 1,75% 1,54% 1,62% 1,59% 1,62% Cost:income ratio 64% 70% 72% 81% 70% 92% 78% 70% 150% 90% 165% 116% Cost:income ratio - adjusted (1,2) 78% 71% 73% 75% 67% 101% 78% 67% 67% 80% 106% 80% Notes: (1) Excluding own credit adjustments. (2) Excluding restructuring costs, litigation and conduct costs. (3) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% of the monthly average of segmental RWAes, assuming 15% tax rate. RBS Group - Q4 2016 Financial Supplement Page 26

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) Mortgages 15,3 14,1 13,7 13,9 13,8 14,8 15,6 16,0 15,3 commercial real estate - investment 1,0 1,0 0,9 0,9 0,7 1,0 1,0 1,0 0,7 - development 0,3 0,3 0,3 0,3 0,2 0,6 0,4 0,4 0,2 other lending 3,9 3,4 3,5 3,7 3,9 4,2 4,4 4,4 3,9 Total loans and advances to customers (gross) 20,5 18,8 18,4 18,8 18,6 20,6 21,4 21,8 20,1 Loan impairment provisions - mortgages (1,4) (1,2) (1,2) (1,1) (1,1) (1,1) (1,2) (1,3) (0,9) - commercial real estate - investment (0,1) (0,1) (0,1) (0,1) (0,1) (0,4) (0,3) (0,2) -- - development (0,1) (0,1) (0,1) (0,1) (0,1) (0,4) (0,2) (0,2) -- other lending (0,8) (0,7) (0,6) (0,7) (0,6) (0,8) (0,8) (0,6) (0,3) Total loan impairment provisions (2,4) (2,1) (2,0) (2,0) (1,9) (2,7) (2,5) (2,3) (1,2) Net loans and advances to customers 18,1 16,7 16,4 16,8 16,7 17,9 18,9 19,5 18,9 Total assets 22,5 21,7 21,6 23,0 21,3 22,7 24,3 25,3 24,1 Funded assets 22,4 21,6 21,5 22,9 21,2 22,6 24,1 25,2 24,0 Risk elements in lending - mortgages 3,3 2,9 2,8 2,6 2,6 2,7 2,9 3,5 3,1 - commercial real estate - investment 0,2 0,2 0,2 0,2 0,2 0,4 0,3 0,3 -- - development 0,1 0,1 0,1 0,1 0,1 0,5 0,3 0,3 -- other Lending 0,8 0,8 0,7 0,7 0,6 0,9 0,8 0,7 0,4 Risk elements in lending 4,4 4,0 3,8 3,6 3,5 4,5 4,3 4,8 3,5 Provision coverage (1) 55% 51% 52% 54% 55% 60% 57% 48% 34% Customer deposits 14,7 13,5 13,1 13,6 13,1 13,7 14,7 15,1 16,1 Loan:deposit ratio (excluding repos) 124% 123% 125% 123% 127% 131% 129% 129% 117% Risk-weighted assets - credit risk - non-counterparty 20,3 19,1 17,9 18,4 18,1 19,2 19,7 20,2 16,9 - counterparty 0,1 0,1 0,1 -- 0,1 0,1 0,1 0,1 0,1 - operational risk 1,4 1,2 1,2 1,2 1,2 1,1 1,1 1,1 1,1 Risk-weighted assets 21,8 20,4 19,2 19,6 19,4 20,4 20,9 21,4 18,1 Spot exchange rate - €/£ 1,285 1,382 1,411 1,355 1,362 1,263 1,194 1,158 1,168 Note: (1) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 27

Segment Performance Ulster Bank RoI 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement €m €m €m €m €m €m €m €m €m €m €m €m Net interest income 142 579 128 131 126 118 503 136 118 125 122 501 Net fees and commissions 32 116 29 29 30 28 116 27 27 25 21 100 Other non-interest income 18 54 28 23 72 16 139 38 27 21 14 100 Own credit adjustments -- -- -- -- -- -- -- 4 -- -- (1) 3 Non-interest income 50 170 57 52 102 44 255 69 54 46 34 203 Total income 192 749 185 183 228 162 758 205 172 171 156 704 Direct expenses - staff costs (55) (203) (54) (55) (56) (55) (220) (66) (58) (62) (66) (252) - other costs (30) (104) (25) (24) (30) (37) (116) (15) (3) (23) (27) (68) Indirect expenses (67) (224) (57) (59) (67) (68) (251) (55) (55) (53) (76) (239) Restructuring costs - direct -- 10 -- (22) (4) 9 (17) (8) (23) (9) (6) (46) - indirect 2 (26) 1 (1) (3) (1) (4) -- (1) (3) 2 (2) Litigation and conduct costs 24 24 -- 13 -- 5 18 -- (118) -- (93) (211) Operating expenses (126) (523) (135) (148) (160) (147) (590) (144) (258) (150) (266) (818) Operating profit/(loss) before impairment releases 66 226 50 35 68 15 168 61 (86) 21 (110) (114) Impairment releases 89 380 33 72 75 14 194 17 17 48 56 138 Operating profit/(loss) 155 606 83 107 143 29 362 78 (69) 69 (54) 24 Memo: Total income - adjusted (1) 192 749 185 183 228 162 758 201 172 171 157 701 Operating expenses - adjusted (2) (152) (531) (136) (138) (153) (160) (587) (136) (116) (138) (169) (559) Operating profit - adjusted (1,2) 129 598 82 117 150 16 365 82 73 81 44 280 Analysis of income by business Corporate 62 230 50 47 52 53 202 73 55 49 38 215 Retail 93 361 103 109 126 105 443 130 121 112 116 479 Other 37 158 32 27 50 4 113 2 (4) 10 2 10 Total income 192 749 185 183 228 162 758 205 172 171 156 704 Analysis of impairments by sector Mortgages (50) (212) (25) (53) (51) 29 (100) 2 (3) 75 (39) 35 Commercial real estate - investment (6) (10) 1 4 (2) 4 7 (6) -- (23) (1) (30) - development 5 (3) -- 5 (3) (2) -- (2) (6) (16) (1) (25) Other lending (38) (155) (9) (28) (19) (45) (101) (11) (8) (84) (15) (118) Total impairment (releases) (89) (380) (33) (72) (75) (14) (194) (17) (17) (48) (56) (138) Loan impairment charge/release as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector Mortgages (1,0%) (1,1%) (0,5%) (1,1%) (1,1%) 0,6% (0,5%) -- (0,1%) 1,6% (0,9%) 0,2% Commercial real estate - investment (1,8%) (0,8%) 0,3% 1,2% (0,7%) 1,8% 0,8% (2,0%) -- (8,4%) (0,5%) (3,8%) - development 6,7% (1,0%) -- 5,0% (3,0%) (2,7%) -- (1,1%) (4,8%) (12,8%) (1,3%) (8,3%) Other lending (2,9%) (3,0%) (0,8%) (2,3%) (1,5%) (3,4%) (1,9%) (0,8%) (0,6%) (6,6%) (1,3%) (2,6%) Total (1,3%) (1,4%) (0,5%) (1,1%) (1,2%) (0,2%) (0,8%) (0,3%) (0,3%) (0,8%) (1,0%) (0,6%) Performance ratios Return on equity (3) 19,8% 18,6% 10,1% 12,6% 16,7% 3,0% 10,6% 8,8% (8,2%) 7,8% (5,8%) 0,7% Return on equity - adjusted (1,2,3) 16,4% 18,4% 9,9% 13,9% 17,5% 1,4% 10,6% 9,2% 9,0% 9,9% 5,4% 8,4% Net interest margin 1,90% 1,92% 1,66% 1,65% 1,52% 1,45% 1,57% 1,75% 1,54% 1,62% 1,59% 1,62% Cost:income ratio 64% 70% 72% 81% 70% 92% 78% 70% 150% 90% 165% 116% Cost:income ratio - adjusted (1,2) 78% 71% 73% 75% 67% 101% 78% 67% 67% 80% 106% 80% Notes: (1) Excluding own credit adjustments. (2) Excluding restructuring costs, litigation and conduct costs. (3) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% of the monthly average of segmental RWAes, assuming 15% tax rate. RBS Group - Q4 2016 Financial Supplement Page 28

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet €bn €bn €bn €bn €bn €bn €bn €bn €bn Loans and advances to customers (gross) mortgages 19,6 19,5 19,4 18,8 18,8 18,6 18,6 18,6 17,9 commercial real estate - investment 1,3 1,4 1,3 1,2 0,9 1,2 1,2 1,1 0,8 - development 0,3 0,4 0,4 0,4 0,3 0,7 0,5 0,5 0,3 other Lending 5,2 4,8 4,9 5,0 5,3 5,5 5,3 5,1 4,5 Total loans and advances to customers (gross) 26,4 26,1 26,0 25,4 25,3 26,0 25,6 25,3 23,5 Loan impairment provisions - mortgages (1,8) (1,7) (1,7) (1,4) (1,4) (1,4) (1,4) (1,5) (1,1) - commercial real estate - investment (0,2) (0,2) (0,2) (0,2) (0,2) (0,4) (0,3) (0,3) -- - development (0,1) (0,1) (0,1) (0,1) (0,1) (0,5) (0,3) (0,3) -- other lending (1,0) (0,9) (0,8) (0,9) (0,9) (1,1) (1,0) (0,6) (0,3) Total loan impairment provisions (3,1) (2,9) (2,8) (2,6) (2,6) (3,4) (3,0) (2,7) (1,4) Net loans and advances to customers 23,3 23,2 23,2 22,8 22,7 22,6 22,6 22,6 22,1 Total assets 28,9 30,0 30,5 31,2 29,0 28,7 29,0 29,3 28,2 Funded assets 28,7 29,8 30,4 31,0 28,8 28,6 28,8 29,2 28,0 Risk elements in lending - mortgages 4,2 4,0 4,0 3,5 3,5 3,5 3,4 4,0 3,7 - commercial real estate - investment 0,3 0,3 0,3 0,2 0,2 0,5 0,4 0,3 -- - development 0,2 0,2 0,2 0,1 0,1 0,6 0,3 0,3 -- other lending 0,9 1,0 0,8 1,1 0,9 1,1 1,1 1,0 0,4 Risk elements in lending 5,6 5,5 5,3 4,9 4,7 5,7 5,2 5,6 4,1 Provision coverage (1) 55% 51% 52% 54% 55% 60% 57% 48% 34% Customer deposits 18,9 18,7 18,5 18,4 17,8 17,3 17,5 17,5 18,8 Loan:deposit ratio (excluding repos) 124% 123% 125% 123% 127% 131% 129% 129% 117% Risk-weighted assets - credit risk - non-counterparty 26,1 26,4 25,3 24,9 24,6 24,2 23,5 23,3 19,7 - counterparty 0,1 0,1 0,1 -- 0,1 0,1 0,1 0,1 0,1 - operational risk 1,8 1,7 1,7 1,6 1,7 1,4 1,3 1,3 1,3 Risk-weighted assets 28,0 28,2 27,1 26,5 26,4 25,7 24,9 24,7 21,1 Note: (1) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 29

Segment Performance Commercial Banking 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 506 1 976 482 499 504 512 1 997 536 531 534 542 2 143 Net fees and commissions 234 983 230 250 246 258 984 262 261 254 254 1 031 Other non-interest income 109 346 77 119 50 27 273 55 54 61 71 241 Non-interest income 343 1 329 307 369 296 285 1 257 317 315 315 325 1 272 Total income 849 3 305 789 868 800 797 3 254 853 846 849 867 3 415 Direct expenses - staff costs (115) (495) (123) (119) (117) (124) (483) (131) (134) (127) (130) (522) - operating lease costs (38) (141) (36) (35) (34) (36) (141) (35) (35) (35) (36) (141) - other costs (35) (100) (15) (18) (20) (44) (97) (14) (27) (20) (33) (94) Indirect expenses (319) (1 008) (241) (221) (238) (380) (1 080) (256) (301) (265) (357) (1 179) Restructuring costs - direct (1) (41) -- (11) (1) (40) (52) (1) -- (12) (12) (25) - indirect (16) (67) 1 (6) 2 (14) (17) 1 (41) (9) (34) (83) Litigation and conduct costs (62) (112) -- (59) -- 8 (51) (2) (8) (6) (407) (423) Operating expenses (586) (1 964) (414) (469) (408) (630) (1 921) (438) (546) (474) (1 009) (2 467) Operating profit/loss before impairment (losses)/releases 263 1 341 375 399 392 167 1 333 415 300 375 (142) 948 Impairment (losses)/releases (32) (85) 1 (27) (16) (27) (69) (14) (89) (20) (83) (206) Operating profit/loss 231 1 256 376 372 376 140 1 264 401 211 355 (225) 742 Memo: Operating expenses - adjusted (1) (507) (1 744) (415) (393) (409) (584) (1 801) (436) (497) (447) (556) (1 936) Operating profit - adjusted (1) 310 1 476 375 448 375 186 1 384 403 260 382 228 1 273 Analysis of income by business Commercial lending 407 1 618 388 455 380 411 1 634 436 464 472 503 1 875 Deposits 112 375 111 118 123 125 477 125 124 116 109 474 Asset and invoice finance 186 740 178 180 184 168 710 177 179 181 175 712 Other 144 572 112 115 113 93 433 115 79 80 80 354 Total income 849 3 305 789 868 800 797 3 254 853 846 849 867 3 415 Analysis of impairments by sector Commercial real estate 3 3 (4) 10 4 8 18 (2) 4 (6) 8 4 Asset and invoice finance 7 11 1 2 (2) 8 9 3 10 1 21 35 Private sector services (education, health, etc) 1 -- 3 -- 2 4 9 1 -- -- 7 8 Banks & financial institutions 1 2 -- 1 -- (1) -- -- 1 1 -- 2 Wholesale and retail trade repairs 4 17 (2) 2 3 -- 3 3 (4) 10 6 15 Hotels and restaurants 6 7 (3) 2 1 (2) (2) -- (1) 21 7 27 Manufacturing 1 9 1 (1) 1 -- 1 1 1 -- 1 3 Construction 1 11 -- 2 3 1 6 1 4 -- 13 18 Other 8 25 3 9 4 9 25 7 74 (7) 20 94 Total impairment losses/(releases) 32 85 (1) 27 16 27 69 14 89 20 83 206 Loan impairment charge as % of gross customer loans and advances by sector Commercial real estate 0,1% -- -- 0,2% 0,1% 0,2% 0,1% -- 0,1% (0,1%) 0,2% -- Asset and invoice finance 0,2% 0,1% -- 0,1% (0,1%) 0,2% 0,1% 0,1% 0,3% -- 0,6% 0,2% Private sector services (education, health, etc) 0,1% -- 0,2% -- 0,1% 0,2% 0,1% 0,1% -- -- 0,4% 0,1% Banks & financial institutions 0,1% -- -- 0,1% -- (0,1%) -- -- -- -- -- -- Wholesale and retail trade repairs 0,2% 0,3% (0,1%) 0,1% 0,2% -- -- 0,1% (0,2%) 0,5% 0,3% 0,2% Hotels and restaurants 0,7% 0,2% (0,4%) 0,3% 0,1% (0,2%) (0,1%) -- (0,1%) 2,4% 0,8% 0,7% Manufacturing 0,1% 0,2% 0,1% (0,1%) 0,1% -- -- 0,1% 0,1% -- 0,1% -- Construction 0,2% 0,6% -- 0,4% 0,6% 0,2% 0,3% 0,2% 0,8% (0,1%) 2,5% 0,8% Other 0,1% 0,1% -- 0,1% 0,1% 0,1% 0,1% 0,1% 0,9% (0,1%) 0,2% 0,3% Total 0,1% 0,1% -- 0,1% 0,1% 0,1% 0,1% 0,1% 0,4% 0,1% 0,3% 0,2% Performance ratios Return on equity (2) 7,0% 10,2% 12,4% 12,1% 12,3% 3,1% 9,8% 11,1% 4,9% 9,5% (9,1%) 4,1% Return on equity - adjusted (1,2) 9,9% 12,2% 12,4% 14,9% 12,3% 4,6% 10,9% 11,2% 6,6% 10,4% 5,3% 8,4% Net interest margin 1,96% 1,91% 1,89% 1,91% 1,89% 1,82% 1,88% 1,88% 1,78% 1,72% 1,68% 1,76% Cost:income ratio 69% 59% 52% 54% 51% 79% 59% 51% 65% 56% 116% 72% Cost:income ratio - adjusted (1) 60% 53% 53% 45% 51% 73% 55% 51% 59% 53% 64% 57% Notes: (1) Excluding restructuring costs and litigation and conduct costs. (2) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 11% of the monthly average of segmental RWAes, assuming 28% tax rate. RBS Group - Q4 2016 Financial Supplement Page 30

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) - commercial real estate 16,6 16,7 16,4 16,6 16,7 17,5 17,8 17,5 16,9 - asset and invoice finance 14,2 13,9 14,1 14,3 14,4 14,4 14,8 15,0 14,1 - private sector services (education, health, etc) 6,8 7,0 6,9 7,0 6,7 7,0 6,8 6,9 6,9 - banks & financial institutions 5,5 5,3 5,9 6,1 7,1 7,4 8,2 8,9 8,9 - wholesale and retail trade repairs 6,8 7,0 7,1 7,2 7,5 8,3 8,2 8,2 8,4 - hotels and restaurants 3,3 3,3 3,1 3,1 3,3 3,5 3,6 3,6 3,7 - manufacturing 3,9 4,2 5,0 4,8 5,3 6,4 7,0 6,4 6,6 - construction 2,0 1,8 1,9 1,9 2,1 2,2 2,1 2,0 2,1 - other 26,7 27,8 28,8 28,8 28,9 30,8 31,7 32,3 33,3 Total loans and advances to customers (gross) 85,8 87,0 89,2 89,8 92,0 97,5 100,2 100,8 100,9 Loan impairment provisions (0,9) (0,8) (0,8) (0,7) (0,7) (1,1) (1,0) (1,0) (0,8) Net loans and advances to customers 84,9 86,2 88,4 89,1 91,3 96,4 99,2 99,8 100,1 Total assets 127,9 131,1 132,1 129,6 133,5 139,4 146,3 152,6 150,5 Funded assets 127,9 131,1 132,1 129,6 133,5 139,4 146,3 152,6 150,5 Risk elements in lending 2,4 2,3 2,2 2,1 1,9 2,2 2,2 2,1 1,9 Provision coverage (1) 39% 34% 39% 33% 39% 48% 46% 45% 43% Customer deposits (excluding repos) 84,9 90,0 89,5 89,4 88,9 97,1 96,7 98,1 97,9 Loan:deposit ratio (excluding repos) 100% 96% 99% 100% 103% 99% 103% 102% 102% Risk-weighted assets - credit risk - non-counterparty 55,8 56,1 57,0 57,2 65,3 69,2 71,0 71,1 72,0 - operational risk 7,4 7,0 7,0 7,0 7,0 6,5 6,5 6,5 6,5 Total risk-weighted assets 63,2 63,1 64,0 64,2 72,3 75,7 77,5 77,6 78,5 Note: (1) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 31

Segment Performance Private Banking 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 116 454 110 109 109 108 436 113 113 112 111 449 Net fees and commissions 49 214 50 46 46 44 186 46 48 45 42 181 Other non-interest income 5 21 5 6 5 6 22 6 5 8 8 27 Non-interest income 54 235 55 52 51 50 208 52 53 53 50 208 Total income 170 689 165 161 160 158 644 165 166 165 161 657 Direct expenses - staff costs (44) (178) (46) (44) (43) (43) (176) (40) (37) (38) (39) (154) - other costs (12) (37) (9) (8) (11) (7) (35) (14) (9) (9) (12) (44) Indirect expenses (90) (289) (68) (65) (65) (109) (307) (83) (73) (62) (95) (313) Restructuring costs - direct (1) (1) -- (2) 2 (7) (7) (1) -- -- (6) (7) - indirect -- -- 3 (80) (1) 12 (66) (15) (4) (3) (8) (30) Litigation and conduct costs (90) (90) (2) -- -- (10) (12) -- (2) -- 1 (1) Write down of goodwill -- -- -- -- -- (498) (498) -- -- -- -- -- Operating expenses (237) (595) (122) (199) (118) (662) (1 101) (153) (125) (112) (159) (549) Operating (loss)/profit before impairment releases/(losses) (67) 94 43 (38) 42 (504) (457) 12 41 53 2 108 Impairment releases/(losses) 1 5 1 2 (4) (12) (13) (2) -- (3) 8 3 Operating (loss)/profit (66) 99 44 (36) 38 (516) (470) 10 41 50 10 111 Memo: Operating expenses - adjusted (1) (146) (504) (123) (117) (119) (159) (518) (137) (119) (109) (146) (511) Operating profit/(loss) - adjusted (1) 25 190 43 46 37 (13) 113 26 47 53 23 149 Analysis of income by business Investments 24 104 24 21 20 21 86 28 22 24 23 97 Banking 146 585 141 140 140 137 558 137 144 141 138 560 Total income 170 689 165 161 160 158 644 165 166 165 161 657 Performance ratios Return on equity (2) (15,8%) 4,1% 7,8% (9,9%) 7,4% (118,9%) (27,7%) 1,5% 8,6% 11,1% 1,6% 5,6% Return on equity - adjusted (1,2) 3,7% 9,1% 7,5% 9,3% 7,1% (4,4%) 4,9% 5,1% 9,9% 11,8% 4,5% 7,8% Net interest margin 2,91% 2,89% 2,86% 2,76% 2,72% 2,67% 2,75% 2,80% 2,73% 2,62% 2,50% 2,66% Cost:income ratio 139% 86% 74% 124% 74% 419% 171% 93% 75% 68% 99% 84% Cost:income ratio - adjusted (1) 86% 73% 75% 73% 74% 101% 80% 83% 72% 66% 91% 78% Notes: (1) Excluding restructuring costs, and litigation and conduct costs and write down of goodwill. (2) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% of the monthly average of segmental RWAes, assuming 28% tax rate. RBS Group - Q4 2016 Financial Supplement Page 32

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) - personal 2,6 2,7 2,5 2,6 2,7 2,6 2,5 2,3 2,3 - mortgages 6,1 6,3 6,3 6,4 6,5 6,8 6,8 6,7 7,0 - other 2,3 2,2 2,1 2,1 2,0 2,2 2,5 2,8 2,9 Total loans and advances to customers (gross) 11,0 11,2 10,9 11,1 11,2 11,6 11,8 11,8 12,2 Loan Impairment provisions -- (0,1) -- -- -- -- -- -- -- Net loans and advances to customers 11,0 11,1 10,9 11,1 11,2 11,6 11,8 11,8 12,2 Total assets 17,7 17,3 18,0 17,4 17,0 17,4 17,8 18,2 18,6 Funded assets 17,7 17,3 17,9 17,4 17,0 17,3 17,7 18,1 18,5 Assets under management (1) 13,8 14,3 13,7 13,5 13,9 14,0 14,6 16,5 17,0 Risk elements in lending 0,1 0,1 0,2 0,1 0,1 0,1 0,1 0,1 0,1 Provision coverage (2) 25% 103% 12% 32% 28% 32% 42% 41% 30% Customer deposits (excluding repos) 22,3 22,0 23,2 22,7 23,1 23,2 25,4 25,3 26,6 Loan:deposit ratio (excluding repos) 49% 50% 47% 49% 48% 50% 46% 47% 46% Risk-weighted assets - credit risk - non-counterparty 7,6 7,4 7,2 7,3 7,6 7,6 7,0 7,1 7,5 - counterparty -- -- -- 0,1 -- -- -- -- -- - market risk 0,1 -- -- -- -- -- -- -- -- - operational risk 1,0 1,0 1,0 1,0 1,1 1,0 1,1 1,1 1,1 Total risk-weighted assets 8,7 8,4 8,2 8,4 8,7 8,6 8,1 8,2 8,6 Notes: (1) Comprises assets under management, assets under custody and investment cash. (2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 33

Segment Performance RBS International 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 83 323 76 76 73 78 303 75 76 75 77 303 Net fees and commissions 13 43 10 9 9 12 40 11 14 12 13 50 Other non-interest income 5 25 7 7 5 5 24 4 5 6 6 21 Non-interest income 18 68 17 16 14 17 64 15 19 18 19 71 Total income 101 391 93 92 87 95 367 90 95 93 96 374 Direct expenses - staff costs (11) (44) (10) (11) (9) (12) (42) (10) (12) (11) (12) (45) - other costs (2) (15) (4) (4) (3) (5) (16) (5) (3) (5) (4) (17) Indirect expenses (23) (94) (24) (26) (24) (24) (98) (20) (18) (24) (45) (107) Restructuring costs - direct -- (2) -- -- -- -- -- -- (1) -- (1) (2) - indirect (2) (5) (2) (1) (2) 1 (4) (1) (1) -- (1) (3) Litigation and conduct costs -- -- -- -- -- -- -- -- -- 1 (1) -- Operating expenses (38) (160) (40) (42) (38) (40) (160) (36) (35) (39) (64) (174) Operating profit before impairment (losses)/releases 63 231 53 50 49 55 207 54 60 54 32 200 Impairment (losses)/releases (3) 7 (2) 1 1 -- -- (2) (9) -- 1 (10) Operating profit 60 238 51 51 50 55 207 52 51 54 33 190 Memo: Operating expenses - adjusted (1) (36) (153) (38) (41) (36) (41) (156) (35) (33) (40) (61) (169) Operating profit - adjusted (1) 62 245 53 52 52 54 211 53 53 53 36 195 Performance ratios Return on equity (2) 24,7% 24,2% 18,8% 18,1% 18,0% 19,1% 18,5% 16,0% 15,0% 15,4% 8,8% 13,8% Return on equity - adjusted (1,2) 25,6% 24,9% 19,5% 18,4% 18,8% 18,7% 18,9% 16,3% 15,7% 15,1% 9,8% 14,2% Net interest margin 1,67% 1,65% 1,49% 1,49% 1,43% 1,49% 1,48% 1,43% 1,40% 1,28% 1,34% 1,36% Cost:income ratio 38% 41% 43% 46% 44% 42% 44% 40% 37% 42% 67% 47% Cost:income ratio - adjusted (1) 36% 39% 41% 45% 41% 43% 43% 39% 35% 43% 64% 45% Notes: (1) Excluding restructuring costs and litigation and conduct costs. (2) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 12% of the monthly average of segmental RWAes, assuming 10% tax rate. RBS Group - Q4 2016 Financial Supplement Page 34

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) - corporate 4,5 4,6 3,9 4,3 4,5 5,4 5,9 6,1 6,2 - mortgages 2,6 2,5 2,5 2,5 2,5 2,6 2,6 2,6 2,6 - other 0,2 0,2 0,3 0,3 0,4 -- -- -- -- Total loans and advances to customers (gross) 7,3 7,3 6,7 7,1 7,4 8,0 8,5 8,7 8,8 Loan impairment provisions (0,1) (0,1) (0,1) (0,1) (0,1) -- -- -- -- Net loans and advances to customers 7,2 7,2 6,6 7,0 7,3 8,0 8,5 8,7 8,8 Total assets 23,4 24,3 23,7 22,9 23,1 23,7 24,6 26,9 23,4 Funded assets 23,4 24,3 23,7 22,9 23,1 23,7 24,6 26,9 23,4 Risk elements in lending 0,2 0,1 0,1 0,1 0,1 0,1 0,1 0,1 0,1 Provision coverage (1) 27% 45% 56% 58% 34% 37% 33% 35% 35% Customer deposits (excluding repos) 20,8 22,7 21,1 22,3 21,3 21,6 24,1 25,5 25,2 Loan:deposit ratio (excluding repos) 35% 32% 32% 32% 35% 37% 35% 34% 35% Risk-weighted assets - credit risk - non-counterparty 6,8 7,2 7,0 7,4 7,6 8,4 8,9 8,9 8,8 - operational risk 0,7 0,7 0,7 0,7 0,7 0,7 0,7 0,7 0,7 Risk-weighted assets 7,5 7,9 7,7 8,1 8,3 9,1 9,6 9,6 9,5 Note: (1) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 35

Segment Performance NatWest Markets 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income from banking activities 8 (11) 14 16 29 28 87 19 24 32 29 104 Net fees and commissions 101 408 115 35 2 66 218 11 6 14 12 43 Income from trading activities 140 1 386 340 303 307 203 1 153 246 374 479 273 1 372 Own credit adjustments (33) (9) 46 62 78 (66) 120 64 73 (55) (29) 53 Other operating income 7 157 15 (11) (10) (45) (51) 1 -- 1 -- 2 Non-interest income 215 1 942 516 389 377 158 1 440 322 453 439 256 1 470 Total income 223 1 931 530 405 406 186 1 527 341 477 471 285 1 574 Direct expenses - staff costs (36) (446) (109) (79) (97) (63) (348) (67) (64) (61) (64) (256) - other costs (47) (190) (26) (27) (19) (50) (122) (14) (7) (7) (7) (35) Indirect expenses (293) (1 080) (257) (247) (242) (251) (997) (250) (238) (274) (267) (1 029) Restructuring costs - direct (3) (13) -- (41) (3) -- (44) -- (10) (6) (3) (19) - indirect (16) (89) (91) (179) (148) (62) (480) (12) (11) (27) (43) (93) Litigation and conduct costs (370) (832) (334) (33) (6) (5) (378) (18) (38) (6) (466) (528) Operating expenses (765) (2 650) (817) (606) (515) (431) (2 369) (361) (368) (381) (850) (1 960) Operating (loss)/profit before impairment releases/(losses) (542) (719) (287) (201) (109) (245) (842) (20) 109 90 (565) (386) Impairment releases/(losses) 6 9 8 (3) -- -- 5 -- -- -- -- -- Operating (loss)/profit (536) (710) (279) (204) (109) (245) (837) (20) 109 90 (565) (386) Memo: Total income - adjusted (1) 256 1 940 484 343 328 252 1 407 277 404 526 314 1 521 Operating expenses - adjusted (2) (376) (1 716) (392) (353) (358) (364) (1 467) (331) (309) (342) (338) (1 320) Operating (loss)/profit - adjusted (1,2) (114) 233 100 (13) (30) (112) (55) (54) 95 184 (24) 201 Analysis of income by product Rates 49 883 247 167 166 145 725 121 264 354 129 868 Currencies 162 551 90 109 96 95 390 144 122 128 157 551 Financing 57 515 134 86 31 22 273 46 56 78 66 246 Other (70) (232) (29) (55) 15 (10) (79) (34) (38) (34) (38) (144) Total excluding own credit adjustments 198 1 717 442 307 308 252 1 309 277 404 526 314 1 521 Own credit adjustments (33) (9) 46 62 78 (66) 120 64 73 (55) (29) 53 Businesses transferred to Commercial Banking 58 223 42 36 20 -- 98 -- -- -- -- -- Total income 223 1 931 530 405 406 186 1 527 341 477 471 285 1 574 Performance ratios Return on equity (3) (23,3%) (7,9%) (13,3%) (10,2%) (6,4%) (15,1%) (11,1%) (2,6%) 4,3% 3,1% (30,2%) (6,6%) Return on equity - adjusted (1,2,3) (5,9%) 1,3% 3,0% (1,9%) (2,7%) (7,6%) (2,0%) (4,4%) 3,5% 8,0% (2,7%) 1,1% Net interest margin 0,21% (0,07%) 0,40% 0,28% 0,62% 1,09% 0,53% 0,66% 0,81% 1,06% 0,82% 0,84% Cost:income ratio 343% 137% 154% 150% 127% 232% 155% 106% 77% 81% 298% 125% Cost:income ratio - adjusted (1,2) 147% 88% 81% 103% 109% 144% 104% 119% 76% 65% 108% 87% Notes: (1) Excluding own credit adjustments. (2) Excluding restructuring costs and litigation and conduct costs. (3) Return on equity is based on segmental operating profit after tax adjusted for preference dividends divided by average notional equity based on 15% of the monthly average of segmental RWAes, assuming 28% tax rate. RBS Group - Q4 2016 Financial Supplement Page 36

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross, excluding reverse repos) 26,5 31,6 22,1 19,8 16,1 18,6 21,6 19,9 17,4 Loans and advances to banks (excluding reverse repos) (1) 2,5 2,5 2,2 7,0 5,7 5,2 6,3 5,9 3,3 Reverse repos 45,9 60,1 61,7 48,8 38,6 40,4 43,1 42,7 38,6 Securities 43,7 34,3 31,0 26,0 23,7 29,5 30,1 26,4 22,0 Cash and eligible bills 10,4 10,5 15,3 13,8 14,3 12,2 10,3 6,4 13,4 Other 8,7 13,0 13,0 10,5 4,9 10,1 14,2 11,2 6,2 Total assets 276,2 308,7 256,6 250,0 215,3 255,9 284,0 249,7 240,0 Total funded assets 137,7 152,1 145,4 125,9 103,3 116,0 125,6 112,5 100,9 Customer deposits (excluding repos) 11,8 11,2 8,6 5,9 5,7 6,7 8,3 9,7 8,4 Bank deposits (excluding repos) 10,8 10,2 8,2 8,5 6,7 6,5 7,7 7,8 9,8 Repos 52,8 63,6 59,5 41,0 35,2 35,9 38,2 29,0 27,3 Debt securities in issue 4,9 4,3 4,3 3,2 3,3 3,1 2,6 2,4 5,4 Loan:deposit ratio (excluding repos) 226% 282% 257% 337% 284% 279% 260% 204% 208% Risk-weighted assets: - credit risk - non-counterparty 10,3 11,5 11,1 11,0 5,0 5,1 4,6 6,2 5,5 - counterparty 12,5 14,9 12,8 12,1 11,3 13,6 14,7 14,3 14,1 - market risk 15,4 14,5 15,0 12,8 13,8 13,4 13,4 12,1 11,6 - operational risk 3,7 2,9 2,9 2,9 3,0 4,0 4,0 4,0 4,0 Total risk-weighted assets 41,9 43,8 41,8 38,8 33,1 36,1 36,7 36,6 35,2 Note: (1) Excludes disposal groups. RBS Group - Q4 2016 Financial Supplement Page 37

Segment Performance Capital Resolution 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 162 673 157 124 78 6 365 86 82 27 44 239 Net fees and commissions 105 483 89 96 76 5 266 30 24 22 22 98 (Loss)/income from trading activities (139) 401 (26) (15) (105) (264) (410) (74) (478) 182 (173) (543) Other operating income 71 271 187 (28) 2 20 181 9 16 (56) (178) (209) Own credit adjustments (50) (36) 65 77 38 (5) 175 108 76 (42) (8) 134 Strategic disposals -- -- (14) -- -- (24) (38) (6) (45) (30) -- (81) Non-interest income (13) 1 119 301 130 11 (268) 174 67 (407) 76 (337) (601) Total income 149 1 792 458 254 89 (262) 539 153 (325) 103 (293) (362) Direct expenses - staff costs (66) (444) (92) (90) (60) (54) (296) (45) (17) (17) (23) (102) - other costs (80) (293) (57) (50) (41) (54) (202) (33) (31) (17) (3) (84) Indirect expenses (344) (1 283) (260) (250) (245) (286) (1 041) (154) (135) (139) (150) (578) Restructuring costs - direct (46) (80) (16) (153) (190) (21) (380) (7) (5) (23) (21) (56) - indirect (22) (105) (184) (360) (300) (83) (927) (9) (16) (10) 13 (22) Litigation and conduct costs (12) (162) (166) (340) (101) (1 498) (2 105) (10) (16) (231) (3 156) (3 413) Write down of goodwill -- (130) -- -- -- -- -- -- -- -- -- -- Operating expenses (570) (2 497) (775) (1 243) (937) (1 996) (4 951) (258) (220) (437) (3 340) (4 255) Operating (loss) before impairment releases/(losses) (421) (705) (317) (989) (848) (2 258) (4 412) (105) (545) (334) (3 633) (4 617) Impairment releases/(losses) 634 1 307 145 174 50 356 725 (196) (67) (120) 130 (253) Operating profit/(loss) 213 602 (172) (815) (798) (1 902) (3 687) (301) (612) (454) (3 503) (4 870) Memo: Total income - adjusted (1) 199 1 828 407 177 51 (233) 402 51 (356) 175 (285) (415) Operating expenses - adjusted (2) (490) (2 020) (409) (390) (346) (394) (1 539) (232) (183) (173) (176) (764) Operating profit/(loss) - adjusted (1,2) 343 1 115 143 (39) (245) (271) (412) (377) (606) (118) (331) (1 432) Analysis of income by portfolios APAC portfolio (3) 26 94 25 26 17 6 74 1 1 (5) (3) (6) Americas portfolio 25 98 23 24 5 8 60 7 3 1 2 13 EMEA portfolio (4) 27 146 26 21 15 14 76 10 9 8 12 39 Legacy Loan Portfolio 46 416 107 26 22 (26) 129 (14) (25) 31 7 (1) Shipping 30 95 24 21 21 14 80 16 15 6 6 43 Markets 28 866 95 59 58 (32) 180 (29) (360) 212 6 (171) GTS 132 563 126 103 48 69 346 48 35 24 16 123 Other (85) (481) (46) 8 (46) (130) (214) 8 23 11 (6) 36 Income excluding disposals and own credit adjustments 229 1 797 380 288 140 (77) 731 47 (299) 288 40 76 Disposal (losses)/profit (30) 31 13 (111) (89) (180) (367) (2) (102) (143) (325) (572) Own credit adjustments (50) (36) 65 77 38 (5) 175 108 76 (42) (8) 134 Total income 149 1 792 458 254 89 (262) 539 153 (325) 103 (293) (362) For the notes to this table refer to page 39. RBS Group - Q4 2016 Financial Supplement Page 38

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers gross 64,0 55,8 41,9 34,8 25,9 23,4 21,0 17,9 13,6 Loan impairment provisions (11,1) (7,3) (5,2) (4,0) (2,3) (1,0) (1,1) (1,2) (0,8) Net loans and advances to customers 52,9 48,5 36,7 30,8 23,6 22,4 19,9 16,7 12,8 Net loans and advances to banks 14,5 16,2 11,9 8,1 7,1 7,3 8,9 7,4 4,6 Total assets 327,3 338,7 247,5 234,9 201,5 218,8 208,0 176,7 132,5 Funded assets 115,6 108,3 79,2 66,0 53,4 50,2 44,7 34,9 27,6 Risk elements in lending 15,6 10,4 7,6 5,3 3,4 2,2 2,4 2,9 2,3 Provision coverage (5) 71% 70% 68% 76% 67% 48% 47% 40% 35% Customer deposits (excluding repos) 36,4 34,6 28,0 30,0 26,0 24,9 18,8 16,8 9,5 Bank deposits (excluding repos) 19,8 21,7 17,3 15,4 14,7 18,1 16,3 16,1 11,5 Repos 8,3 4,7 1,5 0,3 -- -- -- -- -- Debt securities in issue 9,3 8,2 6,3 5,6 4,3 3,7 3,6 3,2 1,3 Risk-weighted assets: - credit risk - non-counterparty 62,6 57,2 43,7 35,2 27,3 25,6 22,7 20,5 18,2 - counterparty 16,9 15,3 13,6 13,5 12,0 13,3 11,2 10,7 8,7 - market risk 8,5 7,8 7,4 7,0 5,7 5,9 5,6 4,6 4,8 - operational risk 7,1 4,0 3,9 4,0 4,0 2,8 2,8 2,8 2,8 Total risk-weighted assets 95,1 84,3 68,6 59,7 49,0 47,6 42,3 38,6 34,5 Analysis of RWAs by product APAC portfolio (3) 4,0 3,9 3,2 1,8 0,5 0,3 0,2 0,1 0,1 Americas portfolio 7,8 8,6 4,0 2,1 1,0 0,6 0,3 0,3 0,2 EMEA portfolio (4) 5,9 5,1 3,7 2,0 1,2 1,2 1,1 1,2 1,0 Legacy Loan Portfolio 10,5 7,9 6,1 4,8 3,7 3,1 2,2 2,0 1,4 Shipping 5,8 5,5 5,3 5,0 4,5 4,2 4,0 3,5 2,8 Markets 33,3 30,4 26,1 25,2 20,7 22,4 19,2 17,1 15,8 Global Transaction Services 9,8 8,7 6,6 5,2 3,6 3,3 2,5 1,8 0,5 Alawwal Bank 5,9 6,4 6,3 6,6 6,9 7,3 7,9 7,9 7,9 Other 5,0 3,8 3,4 3,0 2,9 2,4 2,1 1,9 2,0 Total credit and market risk RWAs 88,0 80,3 64,7 55,7 45,0 44,8 39,5 35,8 31,7 Operational risk 7,1 4,0 3,9 4,0 4,0 2,8 2,8 2,8 2,8 Total RWAs 95,1 84,3 68,6 59,7 49,0 47,6 42,3 38,6 34,5 Notes: (1) Excluding own credit adjustments and strategic disposals. (2) Excluding restructuring costs and litigation and conduct costs and write down of goodwill. (3) Asia-Pacific portfolio. (4) European, the Middle East and Africa portfolio. (5) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 39

Segment Performance Williams & Glyn 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year Income statement (1) £m £m £m £m £m £m £m £m £m £m £m £m Net interest income 167 664 163 163 167 165 658 162 162 164 170 658 Net fees and commissions 43 170 38 41 41 40 160 40 39 41 43 163 Other non-interest income 6 18 3 6 3 3 15 3 5 4 4 16 Non-interest income 49 188 41 47 44 43 175 43 44 45 47 179 Total income 216 852 204 210 211 208 833 205 206 209 217 837 Direct expenses - staff costs (50) (200) (45) (52) (57) (61) (215) (62) (63) (65) (60) (250) - other costs (10) (36) (6) (10) (12) (24) (52) (15) (18) (13) (13) (59) Indirect expenses (24) (94) (25) (23) (22) (22) (92) (21) (18) (21) (24) (84) Restructuring costs - direct -- -- -- -- -- (28) (28) (20) (25) (12) -- (57) Operating expenses (84) (330) (76) (85) (91) (135) (387) (118) (124) (111) (97) (450) Operating profit before impairment (losses)/releases 132 522 128 125 120 73 446 87 82 98 120 387 Impairment (losses)/releases (9) (55) 21 (11) (5) (20) (15) (6) (11) (14) (11) (42) Operating profit 123 467 149 114 115 53 431 81 71 84 109 345 Memo: Operating expenses - adjusted (2) (84) (330) (76) (85) (91) (107) (359) (98) (99) (99) (97) (393) Operating profit - adjusted (2) 123 467 149 114 115 81 459 101 96 96 109 402 Analysis of income by product Retail 127 502 117 119 119 117 472 115 116 120 129 480 Commercial 89 350 87 91 92 91 361 90 90 89 88 357 Total income 216 852 204 210 211 208 833 205 206 209 217 837 Analysis of impairments by sector Retail 8 48 5 7 3 1 16 5 5 11 7 28 Commercial 1 7 (26) 4 2 19 (1) 1 6 3 4 14 Total impairment losses/(releases) 9 55 (21) 11 5 20 15 6 11 14 11 42 Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector Retail 0,3% 0,4% 0,2% 0,3% 0,1% -- 0,1% 0,2% 0,2% 0,4% 0,2% 0,2% Commercial -- 0,1% (1,2%) 0,2% 0,1% 0,9% -- 0,1% 0,3% 0,1% 0,2% 0,2% Total 0,2% 0,3% (0,4%) 0,2% 0,1% 0,4% 0,1% 0,1% 0,2% 0,3% 0,2% 0,2% Performance ratios Net interest margin 2,92% 2,93% 2,92% 2,87% 2,88% 2,81% 2,87% 2,79% 2,70% 2,65% 2,69% 2,71% Cost:income ratio 39% 39% 37% 40% 43% 65% 46% 58% 60% 53% 45% 54% Cost:income ratio - adjusted (2) 39% 39% 37% 40% 43% 51% 43% 48% 48% 47% 45% 47% Notes: (1) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During the period presented W&G has not operated as a separate legal entity. (2) Excluding restructuring costs. RBS Group - Q4 2016 Financial Supplement Page 40

Segment Performance 2014 2015 2016 31 December 31 March 30 June 30 September 31 December 31 March 30 June 30 September 31 December Balance sheet (1) £bn £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers (gross) - retail 11,3 11,2 11,2 11,4 11,6 11,7 12,1 12,2 12,3 - commercial 8,6 8,7 8,6 8,9 8,7 8,7 8,5 8,6 8,5 Total loans and advances to customers (gross) 19,9 19,9 19,8 20,3 20,3 20,4 20,6 20,8 20,8 Loan impairment provisions (0,4) (0,4) (0,3) (0,3) (0,3) (0,3) (0,3) (0,2) (0,2) Net loans and advances to customers 19,5 19,5 19,5 20,0 20,0 20,1 20,3 20,6 20,6 Total assets 23,6 23,7 23,9 24,0 24,1 24,2 24,9 25,7 25,8 Funded assets 23,6 23,7 23,9 24,0 24,1 24,2 24,9 25,7 25,8 Risk elements in lending 0,6 0,6 0,5 0,5 0,5 0,4 0,4 0,4 0,4 Provision coverage (2) 61% 65% 67% 59% 60% 65% 66% 64% 65% Customer deposits - retail 10,3 10,4 10,9 11,1 11,4 11,6 12,2 12,4 12,6 - commercial 11,7 11,7 12,5 12,5 12,7 12,7 11,7 11,6 11,6 Total customer deposits 22,0 22,1 23,4 23,6 24,1 24,3 23,9 24,0 24,2 Loan:deposit ratio (excluding repos) 88% 88% 83% 85% 83% 83% 85% 86% 85% Risk-weighted assets - credit risk - non-counterparty 8,6 9,0 8,9 8,7 8,5 8,3 8,5 8,3 8,2 - operational risk 1,5 1,5 1,4 1,4 1,4 1,4 1,4 1,4 1,4 Total risk-weighted assets 10,1 10,5 10,3 10,1 9,9 9,7 9,9 9,7 9,6 Notes: (1) Williams & Glyn refers to the business formerly intended to be divested as a separate legal entity and comprises RBS England and Wales branch-based businesses, along with certain small and medium enterprises and corporate activities across the UK. During the period presented W&G has not operated as a separate legal entity. (2) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending. RBS Group - Q4 2016 Financial Supplement Page 41

Segment Performance Central Items 2014 2015 2016 Q4 Full year Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year £m £m £m £m £m £m £m £m £m £m £m £m Central items not allocated (717) (931) (396) 95 (338) (264) (903) (372) (537) (545) (161) (1 615) RBS Group - Q4 2016 Financial Supplement Page 42