RBS.L Regulatory News (RBS)

The Royal Bank of Scotland Group plc

19 February 2014

Disposal of its Structured Retail Investor Products and Equity Derivatives BusinessesRBS is pleased to announce that it has reached agreement with BNP Paribas S.A. ("BNP Paribas") for the disposal of certain assets and liabilities related to its structured retail investor products and equity derivatives ("IP&ED") businesses, as well as associated market-making activities (the "Proposed Transaction"). The Proposed Transaction is subject to competition approval and it is anticipated that it will be implemented on a phased basis during 2014 and 2015. The consideration is not material within the context of the RBS Group but the Proposed Transaction is expected to transfer risk management of, and/or market making for, up to £15 billion of liabilities over time. The Proposed Transaction is in line with the strategic repositioning and de-risking of the Markets division of the RBS Group as announced in 2013. As part of the Proposed Transaction, where available, statutory transfer schemes will be used to effect a legal transfer of eligible transactions (including securities) to BNP Paribas or one of its affiliates. In particular, RBS and BNP Paribas will work together with the aim of implementing a banking business transfer scheme pursuant to Part VII of the UK Financial Services and Markets Act 2000, which will be subject, amongst other matters, to court and regulatory approvals. In the meantime, there is no requirement for investors to take any action. Any action required in connection with the Proposed Transaction will be communicated in a timely way with a view to ensuring a smooth transition.This announcement is made by The Royal Bank of Scotland Group plc, The Royal Bank of Scotland plc and The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank N.V.).

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