Federal Reserve Completes Review of RBS Citizens Financial Group’s 2014 Capital Plan

  Federal Reserve Completes Review of RBS Citizens Financial Group’s 2014
  Capital Plan

Business Wire

PROVIDENCE, R.I. -- March 26, 2014

RBS Citizens Financial Group, Inc. (“RBSCFG” or ‘the Company”) announced today
that the Board of Governors of the Federal Reserve (“Federal Reserve” or “The
Fed”) has completed its review of the company’s 2014 capital plan and objected
to certain qualitative aspects of the plan. The Federal Reserve did not object
to RBSCFG’s continuation of capital actions at a level consistent with those
executed in 2013. The CCAR results follow the Federal Reserve’s March 24, 2014
publication of Dodd-Frank Act Stress Test (DFAST) results. In that test,
across every category, RBSCFG’s projected capital ratios ranked in the top
quartile of the 30 largest bank holding companies under the hypothetical
Supervisory Severely Adverse Stress scenario.

“RBSCFG continues to be one of the best-capitalized banks in the industry and
we’re pleased to be able to continue normalizing our capital structure,
through dividends and subordinated debt exchanges with our parent at the same
pace as last year,” said Bruce Van Saun, RBSCFG Chairman and Chief Executive
Officer. “We clearly have more work to do to meet the Fed’s standards, and
we’re fully committed to doing that.”

RBSCFG’s 2014 Capital Plan was designed to ensure a strong capital position at
RBSCFG, provide adequate returns to its shareholders, and normalize its
capital structure.

As published in today’s Federal Reserve disclosure, RBSCFG’s CCAR results
under the Federal Reserve hypothetical severely adverse economic scenario are
as follows:

Projected capital rations through Q4 2015 in the severely adverse scenario
                 Actual     Minimum stressed ratios       Minimum stressed
                 Q3         with original planned         ratios with adjusted
                 2013       capital actions               planned capital
                            Q4        2014      2015      Q4       2014     2015
                            2013                          2013
Tier 1
common           13  .9     13 .2     10 .0     9  .0
ratio (%)
equity                                          9  .1
tier 1
ratio (%)
Tier 1
capital          14  .0     13 .2     10 .6     10 .3
ratio (%)
risk-based       16  .3     15 .8     14 .3     13 .9
ratio (%)
Tier 1
leverage         12  .1     11 .3     9  .0     9  .2
ratio (%)
Note: These projections represent hypothetical estimates that involve an
economic outcome that is more adverse than expected. These estimates are not
forecasts of capital ratios. The tables include the minimum ratios assuming the
capital actions originally submitted in January 2014 by the BHCs in their annual
capital plans and the minimum ratios incorporating any adjustments to capital
distributions made by BHCs after reviewing the Federal Reserve's stress test
projections and original planned capital distributions for those BHCs that did
not make adjustments. The minimum capital ratios are for the period Q4 2013 to
Q4 2015 and do not necessarily occur in the same quarter.

The Federal Reserve does not permit bank holding companies to disclose
confidential supervisory information including any reason for an objection to
capital plans submitted in the CCAR process. However, the Federal Reserve has
an established process for resubmission of CCAR capital plans, which are fully
described in the Capital Plans rule. RBSCFG expects to resubmit its capital
plan, as soon as practicable, to address the elements of the plan that were
the focus of the Federal Reserve’s objections. The Federal Reserve does not
permit bank holding companies to disclose the ongoing status of any
resubmitted capital plan.

RBSCFG also announced today the disclosure on its website of its company-run
stress tests for RBSCFG and its subsidiary insured depository institution, RBS
Citizens, N.A. This disclosure is required under the Federal Reserve’s Stress
Test Final Rule in accordance with the DFAST regulation (12 CFR Part 252).

The public disclosure of the Federal Reserve’s 2014 Comprehensive Capital
Analysis and Review (CCAR) results for all participating bank holding
companies is available on the Federal Reserve’s website.

About RBS Citizens Financial Group, Inc.

RBS Citizens Financial Group, Inc. is a $122 billion commercial bank holding
company. It is headquartered in Providence, R.I., and through its subsidiaries
has approximately 1,400 branches, over 3,500 ATMs and more than 18,000
colleagues. It operates a branch network in 12 states and has non-branch
retail and commercial offices in more than 30 states. Its two bank
subsidiaries are RBS Citizens, N.A., and Citizens Bank of Pennsylvania. They
operate a branch network under the Citizens Bank brand in Connecticut,
Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island and Vermont; and the Charter One brand in Illinois, Michigan and
Ohio. RBSCFG is owned by RBS (the Royal Bank of Scotland Group plc). RBSCFG’s
website is citizensbank.com.


RBS Citizens Financial Group, Inc.
Media Contact:
Jim Hughes,781-751-5404
Investor Contact:
Ellen Taylor, 203-897-4240
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