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RBS unveils ring-fenced structure, brand

Royal Bank of Scotland Group Plc outlined a sweepingoverhaul of its current structure and business model to with legislation set to takeeffect Jan. 1, 2019.

The bank intends to place the majority of itsU.K. and western European banking business in ring-fenced banking entitiesunder an intermediate holding company by the end of 2018. The corporate andinstitutional banking business will be placed in a non-ring-fenced bank and theRBS International business will be placed outside the ring-fence, both as unitsof RBS Group, which will continue to be the primary issuing entity for fundingand capital raising activities.

Under the proposed plan, most of 'sexisting personal, private, business and commercial customers will betransferred to Adam & Co.Plc, the group's current Scottish private bank, in mid-2018.Following the transfer, Adam & Co. will be renamed Royal Bank of ScotlandPlc, which will be a ring-fenced bank within the ring-fenced group. The Adambrand and activities will remain unchanged.

At the same time in 2018, RBS Plc will berenamed NatWest Markets Plc, which will be the non-ring-fenced bank and adirect subsidiary of RBS Group Plc. The group's CIB business willbe branded as NatWest Markets.

At the beginning of 2017, the group willintroduce an intermediate holding company for the ring-fenced banks, to benamed NatWest Holdings Ltd., which will also assume direct ownership ofNational Westminster BankPlc, Adam & Co. and Ulster Bank Ireland DAC. NatWest Holdings Ltd. willinitially be a subsidiary of RBS Plc but will become a direct subsidiary of RBSGroup Plc by the end of 2018.

National Westminster Bank will therefore nolonger be a subsidiary of the current RBS Plc entity; instead, it will be aring-fenced bank and will continue to operate under the NatWest brand, servingpersonal, private, business and commercial customers in England and Wales, aswell as in western Europe. Coutts& Co. will be within the ring-fence and will continue to serveprivate banking clients.

The group will continue to operate under itsexisting Ulster BankLtd. and Ulster Bank Ireland brands and legal entities in NorthernIreland and the Republic of Ireland. in Jersey will be a subsidiary of RBS Group plc.

As for the group's branding strategy, NatWestwill become the main customer-facing brand in England, Wales and westernEurope, while Royal Bank of Scotland will be its core brand in Scotland.

The final ring-fenced legal structure, as wellas the measures taken to achieve it, remain subject to regulatory, board andother approvals, as well as employee information and consultation procedures.