Citizens reports strong growth and record earnings

Reflects organic loan and deposit growth and acquisition of Charter One

PROVIDENCE, R.I. (February 28, 2006) - Citizens Financial Group, Inc. ("Citizens") today announced record pre-tax contribution of $2.87 billion for the year 2005, up 46 percent from $1.96 billion for 2004, reflecting strong organic growth and a full year contribution of Charter One, which was acquired on August 31, 2004. Excluding acquisitions, pre-tax contribution increased by 10 percent to $1.79 billion.

"This was another successful year for Citizens," said Lawrence K. Fish, Chairman and CEO of Citizens Financial Group, Inc. "We finished converting the Charter One franchise consisting of more than 750 branches spread over a wide geography at the end of July, five months ahead of schedule and seamlessly moved three million customer accounts to Citizens' systems. Beyond the proven conversion of the Charter One franchise, we are reporting solid organic growth," Fish said. "We continue to build on our successful banking strategy throughout our company, especially in the Charter One franchise where loans and customer deposits grew 18 percent and 10 percent respectively during the year."

Citizens' earnings are based on International Financial Reporting Standards and are as reported by its parent company, The Royal Bank of Scotland Group plc ("RBS"), and reflect pre-tax contribution defined as earnings before taxation, amortization of intangibles, and acquisition costs.

Citizens is the eighth-largest commercial banking company in the United States, as well as the No. 2 supermarket banker, and No. 2 commercial bank auto lender. In addition, Citizens is the No. 1 SBA lender in the markets in which we operate and No. 2 SBA lender nationwide.

Net interest income increased $895 million, or 30 percent to $3.86 billion, reflecting the Charter One acquisition and strong organic growth in both personal loans and deposits. Excluding acquisitions, average loans were up 13 percent or $6.7 billion and average customer deposits were up 9 percent or $5.7 billion. The benefit of this volume growth was reduced by a narrowing interest margin due to the flattening of the yield curve; net interest income was up 3 percent or $69 million to $2.53 billion excluding acquisitions.

Non-interest income rose by $871 million, or 72 percent. Excluding acquisitions, non-interest income increased by 15 percent or $133 million, reflecting growth in underlying business volumes, increased student loan and leasing activities and investment gains.

Operating expense increased by $833 million, or 42 percent, to $2.83 billion. Excluding acquisitions, the amortization of intangibles and acquisition costs, expenses were up 5 percent or $80 million.

Citizens' credit quality remains strong, as total non-performing loans were 0.3 percent of total loans at both December 31, 2005 and 2004. This compares favorably with the top 20 banks in the United States. Provisions were up $25 million to $239 million. Excluding acquisitions, provisions declined by $36 million.

Customer numbers in both personal and business segments grew with Charter One increasing its small business and corporate base by 10 percent. The co-operation between Citizens and the RBS Corporate Markets group in the United States is yielding good results. For example, Citizens' new international cash management service has already opened almost 300 new accounts with existing RBS customers. The credit card businesses, which are only active in the prime and super-prime segments, have made good progress. Credit card balances increased by 19 percent during the year to $2.5 billion and RBS Lynk, Citizens' merchant acquiring business, increased its customer base by 24 percent.

On March 5, 2004, Citizens purchased the credit card business of People's Bank headquartered in Bridgeport, Conn. The purchase added $2 billion of loans to Citizens' balance sheet.

On August 31, 2004, Citizens acquired Charter One Financial, Inc., a $41 billion holding company for Charter One Bank, NA, ("Charter One") a commercial bank based in Cleveland, Ohio. The acquisition extended Citizens' retail and commercial banking into Ohio, Illinois, Indiana, Michigan, New York and Vermont. It also expanded and strengthened Citizens' businesses in western Massachusetts, Connecticut and Pennsylvania. The conversion of Charter One systems to those of Citizens' has been completed.

On September 8, 2004, Citizens expanded its credit card products division with the purchase of Lynk Systems, Inc., an electronic payment processing firm headquartered in Atlanta, Ga.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is a commercial bank holding company headquartered in Providence, R.I. It has more than 1,600 branches, approximately 3,800 ATMs and more than 26,000 employees. It operates its 13-state branch network in Connecticut, Delaware, Illinois, Indiana, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Vermont, and has a retail and commercial presence in over 40 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits as of September 30, 2005. Citizens is owned by RBS.

CITIZENS FINANCIAL GROUP, INC.
(IFRS)

Note:
Citizens' results are as reported by its parent company, The Royal Bank of Scotland Group plc ("RBS"), and are based on International Financial Reporting Standards ("IFRS"). The results include RBS Asset Finance ("RBSAF"), RBS' leasing business in the USA. The prior period has been restated to include RBSAF, Citizens' March 5, 2004 purchase of the credit card business of People's Bank headquartered in Bridgeport, Connecticut and Citizens' September 8, 2004 purchase of Lynk Systems, Inc., an electronic payment processing firm headquartered in Atlanta, Georgia. The financial results of these entities were reported in other business segments of RBS in 2004. To allow more meaningful comparison with the 2005 results, pro forma results have been prepared for 2004. The pro forma results for 2004 and the balance sheet on January 1, 2005, include the impact of standards relating to financial instruments (IAS 32 and IAS 39) which have been applied by RBS from January 1, 2005.

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Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania. Citizens Bank is a division of RBS Citizens, N.A. and Citizens Bank accounts and other RBS Citizens, N.A. accounts are not separately insured by the FDIC. Citizens Bank of Pennsylvania is not part of RBS Citizens, N.A.
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