Dividend Declaration

Royal Bank of Scotland Group

27th December 2018

NatWest Markets Plc ‐ Declaration of Interim Dividend

NatWest Markets Plc ("NatWest Markets") today announces it has declared an interim ordinary dividend payable to its parent company, The Royal Bank of Scotland Group plc ("RBS Group"), of 62.58 pence per ordinary share, corresponding to a total payment of £250 million.

Following the £2.3bn interim dividend announced on 31 October 2018, today's interim dividend further reduces NatWest Markets Plc's pro-forma CET1 ratio as at Q3 2018 by c.61 bps and is in line with the RBS Group's internal capital management plan. There is no impact on the RBS Group CET1 ratio.

NatWest Markets Investor Relations

Richard Coombs

Head of NatWest Markets Investor Relations

+44 (0) 20 7678 2069

RBS Investor Relations:

Matt Waymark

Head of Investor Relations

+44 (0) 20 7672 1758 

Forward Looking Statements

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to RBS and its subsidiaries' regulatory capital position, and requirements, financial position, future pension funding requirements, on-going litigation and regulatory investigations, profitability, risk-weighted assets, impairment losses and credit exposures under certain specified scenarios. In addition, forward-looking statements may include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "believes", "risk", "estimates" and words of similar import. These statements concern or may affect future matters, such as RBS's future economic results, business and capital plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBS's actual results are discussed in RBS's UK annual report and accounts and interim reports and materials filed with, or furnished to, the US Securities and Exchange Commission, including, but not limited to, RBS's Reports on Form 6-K and most recent Annual Report on Form 20-F. The forward-looking statements contained in this announcement speak only as of the date of this announcement and RBS does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent legally required.

Legal Entity Identifiers