REG - Royal Bk Scot.Grp. - The Royal Bank of Scotland N.V. Interim Results <Origin Href="QuoteRef">RBS.L</Origin> - Part 2

NatwestAnnouncement

29/09/2017 14:01

- Part 2: For the preceding part double click  ID:nRSc2809Sa 

governmental actions and investigations set out on page 159 of the Group's
2016 Annual Report and Accounts. 
 
Notes 
 
9. Litigation, arbitration, investigations and reviews 
 
Litigation 
 
Madoff 
 
In December 2010, Irving Picard, as trustee for the bankruptcy estates of
Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC., filed a
clawback claim against RBS N.V. in the New York bankruptcy court. In the
operative complaint, filed in August 2012, the trustee seeks to recover
US$75.8 million in redemptions that RBS N.V. allegedly received from certain
Madoff feeder funds and US$162.1 million that RBS N.V. allegedly received from
its swap counterparties at a time when RBS N.V. allegedly 'knew or should have
known of Madoff's possible fraud'. The Trustee alleges that those transfers
were preferences or fraudulent conveyances under the US bankruptcy code and
New York law and he asserts the purported right to claw them back for the
benefit of Madoff's estate. RBS N.V. made a motion to dismiss in this case on
the ground that many of the transfers at issue were extraterritorial to the
United States and therefore not subject to the fraudulent conveyance statute
upon which the trustee's claim is based, but the bankruptcy court denied that
motion on 22 November 2016. RBS N.V. is seeking to appeal that decision. A
further claim by the trustee against RBS N.V., for clawback of an additional
US$21.8 million, was filed in October 2011. With respect to that claim, the
bankruptcy court granted RBS N.V.'s motion to dismiss on extraterritorial
grounds, and the trustee has commenced an appeal of that decision. 
 
Australian Bank Bill Swap Reference Rate (BBSW) 
 
In August 2016, a class action complaint was filed in the United States
District Court for the Southern District of New York against certain RBS Group
companies (including RBS N.V.) and a number of other financial institutions.
The complaint alleges that the defendants conspired to manipulate the BBSW and
asserts claims under the U.S. antitrust laws, the Commodity Exchange Act, RICO
(Racketeer Influenced and Corrupt Organizations Act), and the common law. This
matter is subject to a motion to dismiss that is currently pending. 
 
FX antitrust litigation 
 
In September 2015, certain members of RBS Group (including RBS N.V.), as well
as a number of other financial institutions, were named as defendants in two
purported class actions filed in Ontario and Quebec on behalf of persons in
Canada who entered into foreign exchange transactions or who invested in funds
that entered into foreign exchange transactions. The plaintiffs allege that
the defendants violated the Canadian Competition Act by conspiring to
manipulate the prices of currency trades. RBS Group has settled these matters
for approximately CAD 13 million. The settlement amount has been paid into
escrow pending court approval of the settlement. 
 
Certain other foreign exchange transaction related claims have been or may be
threatened against RBS Group in other jurisdictions. RBS Group cannot predict
whether any of these claims will be pursued, but expects that several may. 
 
CPDO litigation 
 
Claims were served on RBS N.V. in England, the Netherlands and Australia,
relating to the sale of a type of structured financial product known as a
constant proportion debt obligation (CPDO). The claims in England and the
Netherlands have been settled and in April 2017, the court approved settlement
of the remaining claim in Australia. 
 
Fondazione Monte dei Paschi di Siena 
 
A claim for E285.9 million was brought by Fondazione Monte dei Paschi di Siena
(FMPS) in July 2014 against former directors and 13 syndicate banks, including
RBS N.V., in connection with an Italian law-governed term facility agreement
for E600 million dated 4 June 2011. The claim is a civil action based on a
non-contractual liability arising from the alleged breach of the by-laws of
FMPS which set a 20 per cent limit for its debt to equity ratio (the Ratio).
The lenders are alleged to have aided and abetted the former directors of FMPS
to breach the Ratio. It is alleged that as sophisticated financial
institutions, each lender should have known FMPS's financial situation,
including its debt to equity ratio, and that putting the facility in place
would cause it to breach the Ratio. RBS N.V. will defend the claim, which has
been transferred to the Florence courts. A hearing is due to take place on 30
November 2017. 
 
Notes 
 
9. Litigation, arbitration, investigations and reviews 
 
Anti-Terrorism Act litigation against RBS N.V. 
 
RBS N.V. and certain other financial institutions (HSBC, Barclays, Standard
Chartered, Credit Suisse, Bank Saderat, and Commerzbank) are defendants in an
action first commenced in the United States District Court for the Eastern
District of New York in November 2014 by a number of US nationals (or their
estates, survivors, or heirs), most of whom are or were US military personnel,
who were killed or injured in more than 90 attacks in Iraq between 2004 and
2011. 
 
The attacks were allegedly perpetrated by Hezbollah and certain Iraqi terror
cells allegedly funded by the Islamic Republic of Iran. According to the
plaintiffs' allegations, RBS N.V. and the other defendants are liable for
damages arising from the attacks because they allegedly conspired with Iran
and certain Iranian banks to assist Iran in transferring money to Hezbollah
and the Iraqi terror cells, in violation of the US Anti- terrorism Act, by
agreeing to engage in "stripping" of transactions initiated by the Iranian
banks so that the Iranian nexus to the transactions would not be detected.
Since commencing this matter, the plaintiffs have amended the complaint twice.
The second amended complaint is subject to a motion to dismiss that defendants
filed on 14 September 2016. 
 
On 2 November 2016, additional plaintiffs commenced a different action in the
United States District Court for the Southern District of Illinois against the
same defendants (including RBS N.V.), as well as Deutsche Bank. The
allegations are substantially similar to the allegations contained in the
complaint described above. The plaintiffs are a number of US military
personnel (or their estates, survivors, or heirs) who were killed or injured
in 21 attacks in Iraq between 2006 and 2011. In April 2017, this case was
transferred to the United States District Court for the Eastern District of
New York. Defendants have made a motion to dismiss this matter. 
 
Interest rate swap claim by Ville d'Aubagne 
 
Ville d'Aubagne, a French local authority, filed a claim in April 2013 against
RBS N.V. and RBS plc in respect of two structured interest rates swaps, which
were entered into between Ville d'Aubagne and RBS N.V., and novated to RBS plc
in 2009. In the same year, they were terminated early and a rescheduling
agreement was entered into under which payments were rescheduled over 28
years. Ville d'Aubagne seeks retroactive cancellation of the swaps and the
rescheduling agreement. The amount claimed is approximately E65 million (which
is subject to fluctuations in market value from time to time). The bank was
successful in its defence of the claim, winning at first instance in November
2015. Ville d'Aubagne has appealed that decision to the French Court of
Appeal. The appeal proceedings continue, and a decision is expected in 2018. 
 
Arbitration 
 
Greek Bonds 
 
RBS N.V. and ABN AMRO Bank N.V. were in dispute over the ownership of economic
exposure to certain Greek bonds. This matter concluded prior to arbitration. 
 
Investigations and reviews 
 
The Group's businesses and financial condition can be affected by the actions
of various governmental and regulatory authorities in the Netherlands, the UK,
the EU, the US and elsewhere. RBS Group has engaged, and will continue to
engage, in discussions with relevant governmental and regulatory authorities,
including in the Netherlands, the UK, the EU, the US and elsewhere, on an
ongoing and regular basis, and in response to informal and formal inquiries or
investigations, regarding operational, systems and control evaluations and
issues including those related to compliance with applicable laws and
regulations, including consumer protection, business conduct,
competition/anti-trust, anti-bribery, anti-money laundering and sanctions
regimes. 
 
The NatWest Markets (formerly CIB) segment of RBS Group in particular has been
providing information regarding a variety of matters, including, for example,
the setting of benchmark rates and related derivatives trading, conduct in the
foreign exchange market, and various issues relating to the issuance,
underwriting, and sales and trading of fixed income securities, including
structured products and government securities. 
 
Notes 
 
9. Litigation, arbitration, investigations and reviews 
 
Any matters discussed or identified during such discussions and inquiries may
result in, among other things, further inquiry or investigation, other action
being taken by governmental and regulatory authorities, increased costs being
incurred by the Group, remediation of systems and controls, public or private
censure, restriction of the Group's business activities and/or fines. Any of
the events or circumstances mentioned in this paragraph or below could have a
material adverse effect on the Group, its business, authorisations and
licences, reputation, results of operations or the price of securities issued
by it. 
 
The Group is co-operating fully with the investigations and reviews described
below. 
 
LIBOR and other trading rates 
 
Certain members of RBS Group continue to co-operate with investigations and
requests for information by various governmental and regulatory authorities
into submissions, communications and procedures around the setting of LIBOR
and other interest rates and interest rate trading. 
 
Foreign exchange related investigations 
 
Certain members of RBS Group continue to co-operate with investigations and
requests for information by various governmental and regulatory authorities on
certain issues relating to failings in its FX business within its NatWest
Markets segment. 
 
Governance and risk management consent order 
 
In July 2011, RBS Group, RBS plc and RBS N.V. agreed with the Board of
Governors of the Federal Reserve System, the New York State Banking
Department, the Connecticut Department of Banking, and the Illinois Department
of Financial and Professional Regulation to enter into a consent Cease and
Desist Order (Governance Order) (which is publicly available) to address
deficiencies related to governance, risk management and compliance systems and
controls in the US branches of RBS plc and RBS N.V.. All of the RBS N.V.
branches in the United States have been closed since the issuance of the
Governance Order. RBS Group continues to work closely with the regulator in
the US to fulfil the requirements of the Governance Order, which will remain
in effect until terminated by the regulators. 
 
Notes 
 
10. Related party transactions 
 
On 25 April 2017 Alawwal Bank announced the start of merger discussions with
Saudi British Bank (SABB). A 40% stake in its associate, Alawwal Bank, is the
last significant shared asset of the RFS Consortium. 
 
Other related party transactions in the half year ended 30 June 2017 were
similar to those for the year ended 31 December 2016. 
 
11. Date of approval 
 
The interim results for the half year ended 30 June 2017 were approved by the
Supervisory Board on 29 September 2017. 
 
12. Post balance sheet events 
 
In August 2017 a distribution of E90 million was made by RBS N.V. (on behalf
of RFS Holdings B.V.) to ABN AMRO Bank N.V. at the instruction and on behalf
of the Dutch State (NLFI). 
 
Other than as above, there have been no significant events between 30 June
2017 and the date of approval of this announcement which would require a
change to or additional disclosure in the announcement. 
 
Risk factors 
 
Set out below is a summary of certain risks which could adversely affect the
RBSH Group and RBS N.V.. This summary updates, and should be read in
conjunction with, the fuller description of these and other risk factors
included on pages 155 to 168 of the 2016 Annual Report and Accounts. In
addition, RBSH Group is a subsidiary of The Royal Bank of Scotland Group plc
("RBSG" and, together with its subsidiaries, the "RBS Group") and depends on
the RBS Group to conduct its operations. Accordingly, a number of risk factors
described below which relate to RBSG and the RBS Group will also be of
relevance to the RBS N.V. and the occurrence of any such risks could also
directly or indirectly impact the RBSH Group's financial position, results of
operations or reputation. This summary should not be regarded as a complete
and comprehensive statement of all potential risks and uncertainties facing
the RBS N.V.. 
 
On 4 August 2017 RBS Group announced that NatWest Markets has reviewed ways to
minimise disruption to the business and continue to serve its customers in the
event of any loss of EU passporting. Should the outcome of the current EU
separation negotiations make it necessary, NatWest Markets and RBS N.V. are
working together to ensure that the banking licence in the Netherlands is
maintained and that the entity is made operationally ready. In parallel, work
continues to decrease the Group's legacy assets and liabilities further.
Consequently, the Group has revised the target end-state plan and no longer
plans to relinquish the Group's banking licence. As a result, the risks
relating to the Group's ability to relinquish its banking license set out in
the risk factor included in the Group's 2016 Annual Report & Accounts entitled
"The RBSH Group has formulated a target end state plan designed to decrease
financial and regulatory risk and comprising the further winding-down of its
business so as to be in a position to hand back its banking licence in the
Netherlands. A number of steps remain to be completed, including the transfers
or sale of the remaining business activities of The Royal Bank of Scotland
N.V. ("RBS N.V.") to The Royal Bank of Scotland plc ("RBS plc") and/or third
parties and any delay in the execution or non-completion of these steps,
including the approved transfers or sale of such business activities, may
prevent the RBSH Group from finalising the target end state plan within the
time frames contemplated, or at all, which may in turn have a material adverse
effect on the RBSH Group" and in the other risk factors included in the
Group's 2016 Annual Report & Accounts are no longer applicable. The risks
relating to the Group's ability to wind-down the legacy assets and liabilities
remain unchanged. 
 
 ●  The RBS Group and the RBSH Group are subject to political risks, including economic, regulatory and political uncertainty arising from the vote to leave in the UK's membership of the European Union (EU Referendum) and more generally arising from the       
    outcome of general elections in the UK and changes in government policies, including as a shareholder of the RBS Group, which could adversely impact the RBS Group's business, results of operations, financial condition and prospects.                        
 ●  Changes to the prudential regulatory framework for banks and investment banks within the EU may require additional structural changes to the RBS Group's operations, including, for example, as a result of potential changes in the prudential regulatory      
    framework for banks and investment banks within the EU or if the RBS Group is no longer able to rely on the passporting framework for financial services applicable in the EU, which may affect current restructuring plans and have a material adverse effect  
    on the RBSH Group.                                                                                                                                                                                                                                              
 ●  Implementation of the ring-fencing regime in the UK which began in 2015 and must be completed before 1 January 2019 will result in material structural changes to the RBS Group. These changes could have a material adverse effect on the RBSH Group. The steps 
    required to implement the UK ring-fencing regime are extraordinarily complex and entail significant costs and operational, legal and execution risks, which risks may be exacerbated by the RBS Group's other ongoing restructuring efforts. There is no        
    certainty that the RBS Group will be able to complete the legal restructuring and migration of customers by the 1 January 2019 deadline or in accordance with future rules and the consequences of non-compliance are currently uncertain.                      
 ●  The RBS Group has been, and will remain, in a period of major restructuring through to 2019, which carries significant execution and operational risks, and may adversely impact the RBSH Group.                                                                
 ●  The RBSH Group and the RBS Group are subject to a number of legal, regulatory and governmental actions and investigations. Unfavourable outcomes in such actions and investigations could have a material adverse effect on the RBSH Group's operations,        
    operating results, reputation or financial position.                                                                                                                                                                                                            
 ●  Operational risks are inherent in the RBSH Group's businesses and these risks are heightened as the RBS Group implements its transformation programme against the backdrop of legal and regulatory changes.                                                     
 
 
Risk factors 
 
 ●  The RBS Group and the RBSH Group are exposed to cyberattacks and a failure to prevent or defend against such attacks could have a material adverse effect on the RBSH Group's operations, results of operations or reputation.                                  
 ●  The RBSH Group's business performance and financial position could be adversely affected if its capital is not managed effectively or if it is unable to meet its capital targets or capital requirements.                                                      
 ●  The RBSH Group's borrowing costs, its access to the debt capital markets and its liquidity depend significantly on its and the RBS Group's credit ratings.                                                                                                      
 ●  The RBSH Group's ability to meet its obligations including its funding commitments depends on the RBSH Group's ability to access sources of liquidity and funding.                                                                                              
 ●  The RBS Group and RBSH Group's businesses and financial position could be negatively affected by actual or perceived global economic and financial market conditions and other global risks, including risks arising out of geopolitical events and political   
    developments.                                                                                                                                                                                                                                                   
 ●  The financial performance of the RBSH Group has been, and may continue to be, materially affected by customer and counterparty credit quality and deterioration in credit quality could arise due to prevailing economic and market conditions and legal and    
    regulatory developments.                                                                                                                                                                                                                                        
 ●  The RBSH Group's operations are highly dependent on its and the RBS Group's IT systems. A failure of such IT systems, including as a result of the lack of or untimely investments, could adversely affect the RBSH Group's operations and expose the RBSH Group 
    to regulatory sanctions.                                                                                                                                                                                                                                        
 ●  Failure to retain qualified and sufficient staff may adversely impact the RBSH Group.                                                                                                                                                                           
 ●  The RBSH Group's businesses are subject to substantial regulation and oversight. Significant regulatory developments and increased scrutiny by the RBSH Group's key regulators has had and is likely to continue to increase compliance and conduct risks and   
    could have a material adverse effect on how the RBSH Group conducts its business, its results of operations and financial condition.                                                                                                                            
 ●  The RBS Group and the RBSH Group rely on valuation, capital and stress test models to conduct their business, assess their risk exposure and anticipate capital and funding requirements. Failure of these models to provide accurate results or accurately     
    reflect changes in the micro- and macroeconomic environment in which the RBS Group and the RBSH Group operate or findings of deficiencies by the RBSH Group's regulators resulting in increased regulatory capital requirements could have a material adverse   
    effect on the RBSH Group's business, capital position or results of operations.                                                                                                                                                                                 
 ●  The reported results of the RBSH Group are sensitive to the accounting policies, assumptions and estimates that underlie the preparation of its financial statements. Its results in future periods may be affected by changes to applicable accounting rules   
    and standards.                                                                                                                                                                                                                                                  
 ●  The RBSH Group is exposed to conduct risk which may adversely impact the RBSH Group or its employees and may result in conduct having a detrimental impact on the RBSH Group's customers or counterparties.                                                     
 ●  The RBSH Group may be adversely impacted if its risk management is not effective.                                                                                                                                                                               
 ●  The legal demerger of ABN AMRO Bank N.V. (as it was then named) has resulted in a cross liability that affects the legal recourse available to investors.                                                                                                       
 
 
Forward-looking statements 
 
Cautionary statement regarding forward-looking statements 
 
Certain sections in this document contain 'forward-looking statements' as that
term is defined in the United States Private Securities Litigation Reform Act
of 1995, such as statements that include the words 'expect', 'estimate',
'envisage', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend',
'plan', 'could', 'envisage', 'probability', 'risk', 'Value-at-Risk (VaR)',
'target', 'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic',
'prospects' and similar expressions or variations on these expressions. 
 
In particular, this document includes forward-looking statements relating, but
not limited to RBS N.V.'s planned transfers or sale of any remaining business
activities of RBS N.V. and the timing thereof; future profitability and
performance, including financial performance targets such as return on
tangible equity; cost savings and targets, including cost:income ratios;
litigation and government and regulatory investigations, including the timing
and financial and other impacts thereof; structural reform and the
implementation of the UK ring-fencing regime by the RBS Group; the
implementation of the RBS Group's transformation programme, including the
further restructuring of the NatWest Markets business; the satisfaction of the
RBS Group's residual EU State Aid obligations; the continuation of the RBS
Group's RBS N.V.'s balance sheet reduction programme, including the reduction
of risk-weighted assets (RWAs) and the timing thereof; capital and strategic
plans and targets; capital, liquidity and leverage ratios and requirements,
including CET1 Ratio, RWA equivalents (RWAe), Pillar 2 and other regulatory
buffer requirements, the RBS Group's minimum requirement for own funds and
eligible liabilities, and other funding plans; funding and credit risk
profile; capitalisation; portfolios; net interest margin; customer loan and
income growth; the level and extent of future impairments and write-downs,
including with respect to goodwill; restructuring and remediation costs and
charges; future pension contributions; exposure to political risks,
operational risk, conduct risk, cyber and IT risk and credit rating risk and
to various types of market risks, including as interest rate risk, foreign
exchange rate risk and commodity and equity price risk; employee engagement
and gender balance in leadership positions. 
 
Limitations inherent to forward-looking statements 
 
These statements are based on current plans, estimates, targets and
projections, and are subject to significant inherent risks, uncertainties and
other factors, both external and relating to the RBS Group's and RBS N.V.'s
strategy or operations, which may result in the RBS Group and/or RBS N.V.
being unable to achieve the current targets, predictions, expectations and
other anticipated outcomes expressed or implied by such forward- looking
statements. In addition certain of these disclosures are dependent on choices
relying on key model characteristics and assumptions and are subject to
various limitations, including assumptions and estimates made by management.
By their nature, certain of these disclosures are only estimates and, as a
result, actual future gains and losses could differ materially from those that
have been estimated. Accordingly, undue reliance should not be placed on these
statements. Forward-looking statements speak only as of the date we make them
and we expressly disclaim any obligation or undertaking to release publicly
any updates or revisions to any forward- looking statements contained herein
to reflect any change in expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is based. 
 
Important factors that could affect the actual outcome of the forward-looking
statements 
 
We caution you that a large number of important factors could adversely affect
the results of the RBS Group and/or RBS N.V. or their ability to implement
their strategy, cause the RBS Group or RBS N.V. to fail to meet their targets,
predictions, expectations and other anticipated outcomes or affect the
accuracy of forward-looking statements described in this document as well as
in the risk factors and other uncertainties set out in the 2016 Annual Report
and Accounts and other risk factors and  uncertainties discussed in this
document. 
 
Forward-looking statements 
 
These include the significant risks for the RBS Group (including RBS N.V.)
presented by the outcomes of the legal, regulatory and governmental actions
and investigations that the RBS Group (including RBS N.V.) is or may be
subject to (including active civil and criminal investigations) and any
resulting material adverse effect on the RBS Group (including RBS N.V.) of
unfavourable outcomes and the timing thereof (including where resolved by
settlement); economic, regulatory and political risks, including as may result
from the uncertainty arising from the vote to leave in the EU Referendum and
from the outcome of general elections in the UK and changes in government
policies; the RBS Group's ability to satisfy its residual EU State Aid
obligations and the timing thereof; the ability to successfully implement the
significant and complex restructuring required to be undertaken in order to
implement the UK ring-fencing regime and related costs; the ability to
successfully implement the various initiatives that are comprised in the RBS
Group's transformation programme, particularly the proposed further
restructuring of the NatWest Markets business, the balance sheet reduction
programme and the significant cost-saving initiatives; the ability to
successfully complete the transfers or sale of any remaining business
activities of the RBS N.V.; the exposure of the RBS Group and RBS N.V. to
cyber-attacks and their ability to defend against such attacks; the RBS
Group's and RBS N.V.'s ability to achieve its capital and leverage
requirements or targets, which will depend on further divestments and future
profitability as well as developments which may impact CET1 capital including
additional litigation or conduct costs, additional pension contributions,
further impairments or accounting changes; ineffective management of capital
or changes to regulatory requirements relating to capital adequacy and
liquidity or failure to pass mandatory stress tests; ability for the RBS Group
and RBS N.V. to access sufficient sources of capital, liquidity and funding
when required; changes in the credit ratings of RBSG, RBS plc, RBS N.V. or
other RBS Group entities; as well as increasing competition for the RBS Group
from new incumbents and disruptive technologies. 
 
In addition, there are other risks and uncertainties that could adversely
affect the RBS Group's and/or RBS N.V.'s results, their ability to implement
their strategy, cause them to fail to meet their targets or the accuracy of
forward-looking statements in this document. These include operational risks
that are inherent to RBS Group's and RBS N.V.'s business and will increase as
a result of the significant restructuring initiatives being concurrently
implemented; the potential negative impact on their business of global
economic and financial market conditions and other global risks, including
risks arising out of geopolitical events and political developments; the
impact of a prolonged period of low interest rates or unanticipated turbulence
in interest rates, yield curves, foreign currency exchange rates, credit
spreads, bond prices, commodity prices, equity prices; basis, volatility and
correlation risks; the extent of future write-downs, impairment charges or
goodwill impairments caused by depressed asset valuations; deteriorations in
borrower and counterparty credit quality; heightened regulatory and
governmental scrutiny and the increasingly regulated environment in which the
RBS Group, including RBS N.V., operates as well as divergences in regulatory
requirements in the jurisdictions in which the RBS Group and RBS N.V. operate;
the risks relating to the IT systems of the RBS Group and RBS N.V. or a
failure to protect themselves and their customers against cyber threats,
reputational risks; risks relating to increased pension liabilities and the
impact of pension risk on RBS Group's capital position; risks relating to the
failure to embed and maintain a robust conduct and risk culture across the RBS
Group or if risk management frameworks are ineffective; the RBS Group's and
RBS N.V.'s  ability to attract and retain qualified personnel; limitations on,
or additional requirements imposed on, RBS Group activities as a result of HM
Treasury's investment in RBSG; risks relating to the reliance on valuation,
capital and stress test models and any inaccuracies resulting therefrom or
failure to accurately reflect changes in the micro and macroeconomic
environment in which the RBS Group and RBS N.V. operate, risks relating to
changes in applicable accounting policies or rules which may impact the
preparation of financial statements or adversely impact its capital position;
the impact of the recovery and resolution framework and other prudential rules
to which the RBS Group and RBS N.V. are subject; the recoverability of
deferred tax assets; RBS N.V.'s exposure to cross liabilities resulting from
the legal demerger of ABN Amro Bank N.V. (as it was then named); and the
success of the RBS Group and RBS N.V. in managing the risks involved in the
foregoing. 
 
The forward-looking statements contained in this document speak only as at the
date hereof, and we does not assume or undertake any obligation or
responsibility to update any forward-looking statement to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. 
 
The information, statements and opinions contained in this document do not
constitute a public offer under any applicable legislation or an offer to sell
or solicit of any offer to buy any securities or financial instruments or any
advice or recommendation with respect to such securities or other financial
instruments. 
 
Additional information 
 
Contact 
 
 Matt Waymark  Investor Relations  +44 (0) 20 7672 1758  
 
 
The Royal Bank of Scotland Group Plc   2138005O9XJIJN4JPN90 
 
The Royal Bank of Scotland N.V. X3CZP3CK64YBHON1LE12 
 
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