Annual Results 2012

Markets Factsheet
Markets was created at the beginning of 2012 to focus on core strengths in fixed income and currencies. These support a range of risk management products, debt financing and treasury services for customers. It serves the Group's financial institution clients and works with colleagues in the UK Corporate and International Banking divisions to support medium-to-large sized corporate clients. We provide market-leading services fixed-income, securitisation, foreign exchange and rates services, supported by deep liquidity. We are committed to excellence and service, with a strong and sustainable banking model to meet the evolving market and regulatory backdrop.

Serving corporates, financial institutions, sovereigns and the public sector Debt capital markets and credit Electronic trading Emerging markets Derivatives Foreign Exchange (FX) Prime services, futures and options Rates RBS Marketplace Research and Trading Strategy Short term markets Structured finance AWARDS: Our success in helping clients was recognised in the awards we won The Euromoney Awards for Excellence named us Best Debt
House in the UK We were Best for Sterling Issues and Best for Liability Management in the Euromoney Primary Debt Survey International Financing Review named us EMEA Structured Finance House of the Year for an unprecedented second year in succession The Euromoney FX Survey 2012 rated us number one for overall client service in the EMEA time zone We were named the Interest Rate Derivatives House of the Year in the Derivatives Intelligence Awards

How we helped clients We worked with the International Banking division to

organise a GBP1.2 billion refinancing for holiday company Center Parcs. It is using some of the money to develop a new site in Bedfordshire, UK Helped to raise USD2.2 billion for Formula 1 We were a leading adviser on a three-part hybrid bond helping BG Group strengthen its capital structure, maintain its credit rating and diversify funding Underwrote and arranged a EUR700 million loan and GBP466 million fund raising to allow DS Smith to buy most of SCA Packaging, creating Europes second biggest packaging company Helped Kraft Foods raise USD6 billion We were the joint bookrunner on a 10-year USD500 million eurobond issue on behalf of Anadolou Efes. The company was the first blue-chip Turkish corporate to access the international bond market We secured a ground-breaking CNH500 million deal for French utilities giant Veolia Environnement. It was the first dim-sum bond transaction to be listed on EuroNext Paris

Our parent company RBS has strengthened its balance sheet

Group Key performance indicators Group loan:deposit ratio Q3 12 Actual Medium-Term Target 100% 9.8% 59% 15.0x 10.3% c.100% >12% <55% <18x >10%

Markets FY 2012 (GBPm)

Core return on equity1 Core cost:income ratio2 Leverage ratio3 Core Tier 1 capital ratio

4,483

4,415

1 Based on indicative Core attributable profit taxed at standard rates and Core average tangible equity per the average

1509

balance sheet (83% of Group tangible equity based on RWAs at 31 December 2012)

899

641 139

1,042 295 Q3 2012

2 Cost:income ratio net of insurance claims; 3 Funded tangible assets divided by total Tier 1 capital; (12) As at June 2008.

FY 2012

FY 2011 Revenues

Q4 2012

Operating profit

The Royal Bank of Scotland plc. Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.V. and The Royal Bank of Scotland N.V. is in certain jurisdictions an authorised agent of The Royal Bank of Scotland plc.