Subsidiary Results

Royal Bank of Scotland Group PLC
07 August 2002

The Royal Bank of Scotland Group plc is pleased to attach a copy of the results
of Citizens Financial Group, Inc., its U.S. banking subsidiary.

The financial information contained in the attached release has been prepared in
accordance with accounting principles generally accepted in the United States of
America ('U.S. GAAP'). Citizens' operating earnings before taxation,
amortization of goodwill and core deposit intangible and their one-time costs of
their acquisitions and other one time costs for the six-months ended June 30,
2002 based on U.K. GAAP and U.S. GAAP were as follows:


$ In Millions                                              Six-Months Ended
                                                                    June 30

                                                  2002                 2001

U.K. GAAP                                         $554                 $336

U.S. GAAP                                         $520                 $337

07 August 2002

Contact:                      Fred Watt                    Group Finance Director          020 7427 9760

                                                                                           0131 523 2028

                              Grahame Whitehead            Deputy Group Finance Director   020 7427 9760

                                                                                           0131 523 2970

                              Heather Campion              Corporate Affairs, Citizens     001 617 725 5825
                                                           Financial




                  Citizens reports record growth and earnings

                      Cash operating earnings increase 55%

PROVIDENCE, RI - Citizens Financial Group, Inc. ('Citizens') today reported
record cash operating earnings of $343 million for the six-month period ended
June 30, 2002, up 55% from $221 million for the comparable prior year period.
The results for the six months ended June 30, 2002 include the purchase of the
retail, small business and certain middle market commercial banking businesses
of Mellon Financial Corporation on December 1, 2001.

On June 13, 2002 Citizens announced a definitive agreement under which Citizens
will acquire Medford Bancorp, Inc., the parent company of Medford Savings Bank
which is located in eastern Massachusetts and has total assets of $1.4 billion.
This transaction is subject to approval by regulatory authorities and Medford
Bancorp, Inc. shareholders and is expected to be completed in the fourth quarter
of 2002.

Cash operating earnings exclude the amortization of intangible assets related to
various acquisitions, including goodwill and core deposit intangibles, one-time
merger and other costs and the cumulative effect of accounting change. This
reporting is consistent with Citizens' parent, The Royal Bank of Scotland Group
plc.

At June 30, 2002, Citizens' total assets were $55.3 billion compared with $32.4
billion at June 30, 2001. The purchase from Mellon Financial Corporation added
assets of $17.5 billion.

Citizens had strong year over year organic loan and deposit growth in New
England. New England deposits increased 14%, or $3.2 billion; loans and leases,
excluding consumer mortgages, increased 7%, or $1.2 billion.

'Given the current economic environment, Citizens is particularly proud of our
strong performance this period,' said Lawrence K. Fish, Chairman, President and
CEO of Citizens Financial Group, Inc. 'We are reporting record profits and
strong organic growth during the first half of 2002. In the mid-Atlantic, our
acquisition of Mellon Bank's retail, small and certain middle market businesses
is on track to deliver the financial performance predicted. Mellon's customers
and the communities throughout the mid-Atlantic have embraced and supported
Citizens. Our New England franchise continues to have strong organic growth,'
Fish said. 'With our agreement to acquire Medford Savings Bank, subject to
approval by Medford shareholders and regulators, Citizens is poised to continue
to provide ever greater convenience to our customers in New England.

'Last spring, we signed agreements to open offices in Stop & Shop supermarkets
in Rhode Island and Massachusetts. In the course of the last 13 months we have
opened 74 of these full-service branches greatly expanding our customer reach
and convenience in New England,' Fish said.

Net interest income increased $372 million, or 69%, for the six-month period
ended June 30, 2002, primarily due to the impact of the Mellon transaction and
strong organic loan and deposit growth.

Noninterest income increased $109 million, or 50%, for the six-month period
ended June 30, 2002. In addition to the aforementioned impact of the Mellon
transaction, the growth in noninterest income is being driven by strong growth
in Citizens major business lines.

Noninterest operating expense, which excludes the impact of one-time merger and
other costs and the amortization of goodwill and core deposit intangible, was
$664 million for the six-month period ended June 2002, a $284 million increase
over the comparable prior year period.

Citizens also recorded pre-tax costs for amortization of goodwill and core
deposit intangible of $40 million for the six-month period ended June 30, 2002
compared with $59 million for the six-month period ended June 30, 2001. Citizens
recorded one-time merger and other costs of $107 million, $70 million after tax,
during the period ended June 30, 2002 connected with the Mellon transaction.
Including the impact of the one-time costs, amortization and cumulative effect
of accounting change, net income was $245 million for the six-month period ended
June 30, 2002 and $169 million for the comparable prior year period.

Citizens Financial Group, Inc. is a $55.3 billion commercial bank holding
company headquartered in Providence, RI. It operates as Citizens Bank in
Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, Pennsylvania,
and Rhode Island. Citizens is one of the 20 largest commercial banks in the
United States. Citizens is wholly owned by The Royal Bank of Scotland Group plc.
Combined, Citizens has 740 branches, 1,545 ATMs and more than 14,000 employees
in seven states. For more information, please contact our website,
citizensbank.com.



                         CITIZENS FINANCIAL GROUP, INC.

                       CONSOLIDATED STATEMENTS OF INCOME

                                  (unaudited)
                                                                                              SIX MONTHS ENDED JUNE
                                                                                                       30
                                                                                             -----------------------
                                                                                               2002             2001
                                                                                           --------         --------
(In Millions)

Net interest income                                                                         $   910          $   538
Provision for credit losses                                                                      53               39
                                                                                           --------         --------
Net interest income after provision for credit losses                                           857              499
                                                                                           --------         --------
Noninterest income                                                                              327              218

Noninterest expense

        Operating                                                                               664              380
            Amortization of goodwill and core deposit intangible                                 40               59
                                                                                           --------         --------
                                                                                                704              439
Total noninterest expense                                                                  --------         --------
                                                                                                480              278
Earnings before income taxes                                                                    165              110
Income taxes                                                                               --------         --------
                                                                                                315              168
Net income-operating
                                                                                                  -                1
Cumulative effect of accounting change, net of tax                                               70                -
One-time merger and other costs, net of tax                                                --------         --------
                                                                                                245              169
Net income
                                                                                                 98               52
Cash basis and one-time adjustment, net of tax                                             --------         --------
                                                                                            $   343          $   221
Cash basis-operating earnings                                                                 =====            =====



                         CITIZENS FINANCIAL GROUP, INC.

                          CONSOLIDATED BALANCE SHEETS

                                  (unaudited)
                                                                                                   JUNE 30,
                                                                                             ---------------------
                                                                                             2002              2001
                                                                                      -----------       -----------
(In Millions)
Assets
-------
Cash and due from banks                                                              $      1,223        $      803
Short-term investments                                                                        693                95
Securities                                                                                 20,665             9,366
Loans and leases                                                                           26,823            18,743

                                                                                              426               301
        Less: Allowance for possible credit losses                                    -----------       -----------
                                                                                           26,397            18,442
Net loans and leases                                                                  -----------         ---------
                                                                                            4,187             1,929
Goodwill and core deposit intangible                                                        2,134             1,727
Other assets                                                                          -----------       -----------
                                                                                        $  55,299         $  32,362
                                                                                          =======           =======
        Total assets

Liabilities and Stockholder's Equity
-----------------------------------------
Deposits                                                                                $  41,490        $   23,235
Borrowed funds                                                                              6,271             5,383
Other liabilities                                                                           1,375               521
                                                                                      -----------       -----------
                                                                                           49,136            29,139
        Total liabilities                                                             -----------       -----------
                                                                                            6,163             3,223
Stockholder's equity                                                                  -----------       -----------
                                                                                       $   55,299         $  32,362
Total liabilities and stockholder's equity                                                =======           =======






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