Notices of Redemption

Notices of Redemption

RBS Capital Funding Trust V ("Trust V")andRBS Capital Funding Trust VI ("Trust VI")andRBS Capital Funding Trust VII ("Trust VII")(collectively, the "Issuers")

The holders of the following securities (the "Securities") have been notified by the Issuers of the upcoming redemption of the Securities on 13 June 2016:

A. the U.S.$1,285,000,000 5.90% Non-Cumulative Guaranteed Trust Preferred Securities issued by Trust V pursuant to the Amended and Restated Trust Agreement dated 3 July 2003 of Trust V (ISIN Code: US74928K2087);

B. the U.S.$200,000,000 6.25% Non-Cumulative Guaranteed Trust Preferred Securities issued by Trust VI pursuant to the Amended and Restated Trust Agreement dated 30 September 2003 of Trust VI (ISIN Code: US74928M2044); and

C. the U.S.$1,800,000,000 6.08% Non-Cumulative Guaranteed Trust Preferred Securities issued by Trust VII pursuant to the Amended and Restated Trust Agreement dated 18 February 2004 of Trust VII (ISIN Code: US74928P2074).

The Issuers have sent the notices to the holders pursuant to the terms of the Securities. To view the notices, please click on the links below.

http://www.rns-pdf.londonstockexchange.com/rns/3067Y_-2016-5-16.pdfhttp://www.rns-pdf.londonstockexchange.com/rns/3067Y_1-2016-5-16.pdfhttp://www.rns-pdf.londonstockexchange.com/rns/3067Y_2-2016-5-16.pdf

For further information, please contact:

RBS Investor Relations:

Matthew Richardson

Head of Fixed Income Investor Relations

+44 20 7678 1800