SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 6-K


Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

10 August 2012



The Royal Bank of Scotland Group plc


Gogarburn
PO Box 1000
Edinburgh EH12 1HQ
Scotland
United Kingdom

(Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  X                                              Form 40-F    

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):__

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):__

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                                                                 No  X 

If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-            

This report on Form 6-K shall be deemed incorporated by reference into the company's Registration Statement on Form F-3 (File No. 333-162219) and to be a part thereof from the date which it was filed, to the extent not superseded by documents or reports subsequently filed or furnished.
 
 
 
 
 
Article 11 unaudited pro forma information

Unaudited pro forma condensed consolidated financial information

Basis of preparation
The unaudited pro forma condensed consolidated financial information (the "unaudited pro forma financial information") comprises the unaudited pro forma condensed consolidated balance sheet as at 30 June 2012 (the "unaudited pro forma balance sheet") and the unaudited pro forma condensed consolidated income statements for the six month periods ended 30 June 2012 and 30 June 2011 and the years ended 31 December 2011, 31 December 2010 and 31 December 2009 (the "pro forma income statements") based on the published audited annual financial statements of RBS, prepared in accordance with IFRS, and the published unaudited interim financial statements of RBS, prepared in accordance with IAS34, after giving effect to:

(a)
the distribution of those ABN AMRO businesses attributable to Santander and the Dutch State (the "other Consortium Members"); and
(b)
the divestment of certain businesses to meet the European Commission's State Aid requirements (see below).

The distribution to other Consortium Members has now substantially completed following legal separation of ABN AMRO N.V. which took place on 1 April 2010.

To comply with the European Commission's State Aid requirements, RBS has agreed to make a number of divestments to be completed within four years from December 2009, as follows:

·
Direct Line Group, formerly known as “RBS Insurance”
·
the RBS branch based business in England and Wales, the NatWest branch network in Scotland, along with the Direct SME customers across the UK (termed the 'UK Retail and UK Corporate businesses outlined for disposal')
·
RBS Sempra Commodities (acquired April 2008; majority sold during 2010)
·
Global Merchant Services (sold November 2010)

Collectively, the above are defined as the 'EC State Aid Divestments'.

The pro forma financial information has been prepared assuming the following:

 
·
pro forma balance sheet: the distribution to the other Consortium Members and EC State Aid Divestments had occurred on 30 June 2012;

 
·
pro forma income statements: (i) the divestment of Direct Line Group, which will be accounted for as a discontinued operation, and the distribution to the other Consortium members had occurred on 1 January 2009; (ii) the divestment of the RBS UK Retail and UK Corporate businesses outlined for disposal and the remaining business of RBS Sempra Commodities had occurred on 1 January 2011.

 
·
sale proceeds in respect of the EC State Aid Divestments not yet completed are received in cash and are equal to the net asset values of the businesses to be disposed of.

The pro forma financial information is presented for information purposes only and does not represent what the results of operations would actually have been had the distribution to other Consortium Members and EC State Aid Divestments occurred on the dates indicated nor is it necessarily indicative of the results of operations or the financial position that may or may be expected to be achieved in the future.
 
 
1
 
 
Article 11 unaudited pro forma information (continued)
 
Unaudited pro forma balance sheet as at 30 June 2012
 
   
RBS (1)
  
RFS 
 Minority 
Interest (2)
  
EC 
State Aid 
Divestments (3)
  
 
Pro forma 
RBS (4)
   
£m 
  
£m 
  
£m 
  
£m 
                 
Assets
                
Cash and balances at central banks
  
78,647 
  
- 
  
1,132 
  
79,779 
Loans and advances to banks
  
77,141 
  
- 
  
(2,763)
  
74,378 
Loans and advances to customers
  
495,161 
  
- 
  
(1,157)
  
494,004 
Debt securities and equity shares
  
200,717 
  
- 
  
(7,033)
  
193,684 
Derivatives
  
486,432 
  
- 
  
(17)
  
486,415 
Intangible assets
  
14,888 
  
- 
  
(1,114)
  
13,774 
Property, plant and equipment
  
11,337 
  
- 
  
(86)
  
11,251 
Other assets
  
50,866 
  
(831)
  
(20,742)
  
29,293 
                 
Total assets
  
1,415,189 
  
(831)
  
(31,780)
  
1,382,578 
                 
Liabilities
                
Deposits by banks
  
106,744 
  
(65)
  
- 
  
106,679 
Customer accounts
  
501,719 
  
- 
  
- 
  
501,719 
Debt securities in issue
  
119,855 
  
- 
  
- 
  
119,855 
Settlement balances
  
15,126 
  
- 
  
- 
  
15,126 
Short positions
  
38,376 
  
- 
  
- 
  
38,376 
Derivatives
  
480,745 
  
- 
  
- 
  
480,745 
Subordinated liabilities
  
25,596 
  
 - 
  
(516)
  
25,080 
Other liabilities
  
51,812 
  
(510)
  
(30,924)
  
20,378 
                 
Total liabilities
  
1,339,973 
  
(575)
  
(31,440)
  
1,307,958 
                 
Non-controlling interests
  
1,200 
  
(256)
  
(340)
  
604 
Owners’ equity
  
74,016 
  
- 
  
- 
  
74,016 
                 
Total equity
  
75,216 
  
(256)
  
(340)
  
74,620 
                 
Total liabilities and equity
  
1,415,189 
  
(831)
  
(31,780)
  
1,382,578 

Notes:
(1)
The financial information for RBS has been extracted from the unaudited financial statements for the six months ended 30 June 2012 included on page 71 of the Form 6-K filed with the SEC on 8 August 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the six months ended 30 June 2012 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the six months ended 30 June 2012 and represents those parts of the businesses agreed with the European Commission to be divested, namely Direct Line Group, the UK Retail and UK Corporate businesses outlined for disposal and the remaining business of RBS Sempra Commodities.
(4)
Adjusted pro forma unaudited balance sheet of RBS as at 30 June 2012 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and the EC State Aid Divestments.

 
2
 

Article 11 unaudited pro forma information (continued)
 
Unaudited pro forma income statement for the six months ended 30 June 2012
   
RBS (1) 
  
RFS 
 Minority 
Interest (2) 
  
EC 
State Aid 
Divestments 
 (3)
  
Pro forma 
RBS (4)
Continuing operations
  
£m 
  
£m 
  
£m 
  
£m 
                 
Net interest income
  
5,970 
  
10 
  
(486)
  
5,494 
                 
Net fees and commissions
  
2,333 
  
- 
  
99 
  
2,432 
Income from trading activities
  
869 
  
1 
  
(2)
  
868 
Gain on redemption of own debt
  
577 
  
- 
  
- 
  
577 
Other operating income (excluding insurance net premium income)
  
(353)
  
5 
  
(86)
  
(434)
Insurance net premium income
  
1,867 
  
- 
  
(1,867)
  
- 
                 
Non-interest income
  
5,293 
  
6 
  
(1,856)
  
3,443 
                 
Total income
  
11,263 
  
16 
  
(2,342)
  
8,937 
Operating expenses
  
(8,894)
  
1 
  
743 
  
(8,150)
                 
Profit before insurance net claims and impairment losses
  
2,369 
  
17 
  
(1,599)
  
787 
Insurance net claims
  
(1,225)
  
- 
  
1,225 
  
- 
Impairment losses
  
(2,649)
  
- 
  
67 
  
(2,582)
                 
Operating loss before tax
  
(1,505)
  
17 
  
(307)
  
(1,795)
Tax
  
(429)
  
22 
  
13 
  
(394)
                 
Loss from continuing operations
  
(1,934)
  
39 
  
(294)
  
(2,189)
                 
Loss attributable to:
                
Non-controlling interests
  
(23)
  
39 
  
(4)
  
12 
Preference shareholders
  
76 
  
- 
  
- 
  
76 
Ordinary shareholders
  
(1,987)
  
- 
  
(290)
  
(2,277)
                 
   
(1,934)
  
39 
  
(294)
  
(2,189)
                 
Per 100p ordinary share (pence)
                
                 
Continuing operations
                
Basic
  
(18.2)
          
(20.9)
Fully diluted
  
(18.2)
          
(20.9)
                 
Number of shares (million)
                
Weighted average ordinary shares and effect of convertible B shares
  
10,912 
          
10,912 
Weighted average diluted ordinary shares and effect
  of convertible B shares
  
10,912 
          
10,912 

Notes:
(1)
The financial information for RBS has been extracted from the unaudited financial statements for the six months ended 30 June 2012 included on page 69 of the Form 6-K filed with the SEC on 8 August 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the six months ended 30 June 2012 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the six months ended 30 June 2012 and represents those parts of RBS attributable to the businesses agreed with the European Commission to be divested, namely Direct Line Group, the UK Retail and UK Corporate businesses outlined for disposal and the remaining business of RBS Sempra Commodities.
(4)
Pro forma unaudited income statement of RBS for the six months ended 30 June 2012 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and the EC State Aid Divestments.

 
3
 

Article 11 unaudited pro forma information (continued)
 
Unaudited pro forma income statement for the year ended 31 December 2011
   
RBS (1) 
  
RFS 
 Minority 
Interest (2) 
  
EC 
State Aid 
Divestments 
 (3)
  
Pro forma 
RBS (4)
Continuing operations
  
£m 
  
£m 
  
£m 
  
£m 
                 
Net interest income
  
12,679 
  
8 
  
(1,065)
  
11,622 
                 
Net fees and commissions
  
4,924 
  
- 
  
224 
  
5,148 
Income from trading activities
  
2,701 
  
(1)
  
(1)
  
2,699 
Gain on redemption of own debt
  
255 
  
- 
  
- 
  
255 
Other operating income (excluding insurance premium income)
  
4,122 
  
(1)
  
(148)
  
3,973 
Insurance net premium income
  
4,256 
  
- 
  
(4,256)
  
- 
                 
Non-interest income
  
16,258 
  
(2)
  
(4,181)
  
12,075 
                 
Total income
  
28,937 
  
6 
  
(5,246)
  
23,697 
Operating expenses
  
(18,026)
  
(1)
  
1,335 
  
(16,692)
                 
Profit before insurance net claims and impairment losses
  
10,911 
  
5 
  
(3,911)
  
7,005 
Insurance net claims
  
(2,968)
  
- 
  
2,968 
  
- 
Impairment losses
  
(8,709)
  
2 
  
201 
  
(8,506)
                 
Operating loss before tax
  
(766)
  
7 
  
(742)
  
(1,501)
Tax
  
(1,250)
  
- 
  
121 
  
(1,129)
                 
Loss from continuing operations
  
(2,016)
  
7 
  
(621)
  
(2,630)
                 
Loss attributable to:
                
Non-controlling interests
  
(14)
  
7 
  
18 
  
11 
Ordinary shareholders
  
(2,002)
  
- 
  
(639)
  
(2,641)
                 
   
(2,016)
  
7 
  
(621)
  
(2,630)
                 
Per 100p ordinary share (pence)
                
                 
Continuing operations (5)
                
Basic
  
(18.5)
          
(24.4)
Fully diluted
  
(18.5)
          
(24.4)
                 
Number of shares (million) (5)
                
Weighted average ordinary shares and effect of convertible B shares
  
10,822 
          
10,822 
Weighted average diluted ordinary shares and
  effect of convertible B shares
  
10,822 
          
10,822 

Notes:
(1)
The financial information for RBS has been extracted from the audited financial statements for the year ended 31 December 2011 included on page 266 of the Form 20-F filed with the SEC on 27 March 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2011 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the year ended 31 December 2011 and represents those parts of RBS attributable to the businesses agreed with the European Commission to be divested, namely Direct Line Group, the UK Retail and UK Corporate businesses outlined for disposal and the remaining business of RBS Sempra Commodities.
(4)
Pro forma unaudited income statement of RBS for the year ended 31 December 2011 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and the EC State Aid Divestments.
(5)
Prior period data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012.

 
4
 

Article 11 unaudited pro forma information (continued)
 
Unaudited pro forma income statement for the six months ended 30 June 2011
   
RBS (1) 
  
RFS 
 Minority 
Interest (2) 
  
Direct Line 
Group (3)
  
Pro forma 
RBS (4)
Continuing operations
  
£m 
  
£m 
  
£m 
  
£m 
                 
Net interest income
  
6,528 
  
5 
  
(197)
  
6,336 
                 
Net fees and commissions
  
2,759 
  
- 
  
161 
  
2,920 
Income from trading activities
  
1,982 
  
- 
  
- 
  
1,982 
Gain on redemption of own debt
  
255 
  
- 
  
- 
  
255 
Other operating income (excluding insurance premium income)
  
1,533 
  
(2)
  
(73)
  
1,458 
Insurance net premium income
  
2,239 
  
- 
  
(2,239)
  
- 
                 
Non-interest income
  
8,768 
  
(2)
  
(2,151)
  
6,615 
                 
Total income
  
15,296 
  
3 
  
(2,348)
  
12,951 
Operating expenses
  
(9,332)
  
(1)
  
410 
  
(8,923)
                 
Profit before insurance net claims and impairment losses
  
5,964 
  
2 
  
(1,938)
  
4,028 
Insurance net claims
  
(1,705)
  
- 
  
1,705 
  
- 
Impairment losses
  
(5,053)
  
- 
  
- 
  
(5,053)
                 
Operating loss before tax
  
(794)
  
2 
  
(233)
  
(1,025)
Tax
  
(645)
  
1 
  
55 
  
(589)
                 
Loss from continuing operations
  
(1,439)
  
3 
  
(178)
  
(1,614)
                 
Loss attributable to:
                
Non-controlling interests
  
(10)
  
3 
  
- 
  
(7)
Ordinary shareholders
  
(1,429)
  
- 
  
(178)
  
(1,607)
                 
   
(1,439)
  
3 
  
(178)
  
(1,614)
                 
Per 100p ordinary share (pence)
                
                 
Continuing operations (5)
                
Basic
  
(13.2)
          
(14.9)
Fully diluted
  
(13.2)
          
(14.9)
                 
Number of shares (million) (5)
                
Weighted average ordinary shares and effect of convertible B shares
  
10,789 
          
10,789 
Weighted average diluted ordinary shares and
  effect of convertible B shares
  
10,789 
          
10,789 

Notes:
(1)
The financial information for RBS has been extracted from the unaudited financial statements for the six months ended 30 June 2011 included on page 69 of the Form 6-K filed with the SEC on 8 August 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the six months ended 30 June 2011 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for Direct Line Group has been extracted from RBS's accounting records for the six months ended 30 June 2011 and represents the business agreed with the European Commission as being for disposal.
(4)
Pro forma unaudited income statement of RBS for the six months ended 30 June 2011 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and Direct Line Group.
(5)
Prior period data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012.
 
 
5
 
 
Article 11 unaudited pro forma information (continued)

Unaudited pro forma income statement for the year ended 31 December 2010
   
RBS (1) 
  
RFS 
 Minority 
Interest (2) 
  
Direct Line 
Group (3)
  
Pro forma 
RBS (4)
Continuing operations
  
£m 
  
£m 
  
£m 
  
£m 
                 
Net interest income
  
14,209 
  
(9)
  
(427)
  
13,773 
                 
Net fees and commissions
  
5,982 
  
1 
  
319 
  
6,302 
Income from trading activities
  
4,517 
  
(4)
  
- 
  
4,513 
Gain on redemption of own debt
  
553 
  
- 
  
- 
  
553 
Other operating income (excluding insurance premium income)
  
1,479 
  
154 
  
(124)
  
1,509 
Insurance net premium income
  
5,128 
  
- 
  
(5,013)
  
115 
                 
Non-interest income
  
17,659 
  
151 
  
(4,818)
  
12,992 
                 
Total income
  
31,868 
  
142 
  
(5,245)
  
26,765 
Operating expenses
  
(18,228)
  
8 
  
771 
  
(17,449)
                 
Profit before insurance net claims and impairment losses
  
13,640 
  
150 
  
(4,474)
  
9,316 
Insurance net claims
  
(4,783)
  
- 
  
4,698 
  
(85)
Impairment losses
  
(9,256)
  
- 
  
21 
  
(9,235)
                 
Operating loss before tax
  
(399)
  
150 
  
245 
  
(4)
Tax
  
(634)
  
(29)
  
(68)
  
(731)
                 
Loss from continuing operations
  
(1,033)
  
121 
  
177 
  
(735)
                 
Loss attributable to:
                
Non-controlling interests
  
(60)
  
121 
  
- 
  
61 
Preference shareholders
  
105 
  
- 
  
- 
  
105 
Paid-in equity holders
  
19 
  
- 
  
- 
  
19 
Ordinary shareholders
  
(1,097)
  
- 
  
177 
  
(920)
                 
   
(1,033)
  
121 
  
177 
  
(735)
                 
Per 100p ordinary share (pence)
                
                 
Continuing operations (5)
                
Basic
  
(4.5)
          
(2.9)
Fully diluted
  
(4.5)
          
(2.9)
                 
Number of shares (million) (5)
                
Weighted average ordinary shares and effect of convertible B shares
  
10,725 
          
10,725 
Weighted average diluted ordinary shares and
  effect of convertible B shares
  
10,725 
          
10,725 

Notes:
(1)
The financial information for RBS has been extracted from the audited financial statements for the year ended 31 December 2010 included on page 266 of the Form 20-F filed with the SEC on 27 March 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2010 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for Direct Line Group has been extracted from RBS's accounting records for the year ended 31 December 2010 and represents the business agreed with the European Commission to be divested.
(4)
Pro forma unaudited income statement of RBS for the year ended 31 December 2010 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and Direct Line Group.
(5)
Prior period data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012.

 
6
 

Article 11 unaudited pro forma information (continued)

Unaudited pro forma income statement for the year ended 31 December 2009
   
RBS (1) 
  
RFS 
 Minority 
Interest (2) 
  
Direct Line 
Group (3)
  
Adjusted 
Pro forma 
RBS (4)
Continuing operations
  
£m 
  
£m 
  
£m 
  
£m 
                 
Net interest income
  
13,388 
  
179 
  
(460)
  
13,107 
                 
Net fees and commissions
  
5,948 
  
- 
  
486 
  
6,434 
Income from trading activities
  
3,761 
  
45 
  
- 
  
3,806 
Gain on redemption of own debt
  
3,790 
  
- 
  
- 
  
3,790 
Other operating income (excluding insurance premium income)
  
873 
  
97 
  
(336)
  
634 
Insurance net premium income
  
5,266 
  
- 
  
(5,138)
  
128 
                 
Non-interest income
  
19,638 
  
142 
  
(4,988)
  
14,792 
                 
Total income
  
33,026 
  
321 
  
(5,448)
  
27,899 
Operating expenses
  
(17,417)
  
35 
  
849 
  
(16,533)
                 
Profit before insurance net claims and impairment losses
  
15,609 
  
356 
  
(4,599)
  
11,366 
Insurance net claims
  
(4,357)
  
- 
  
4,223 
  
(134)
Impairment losses
  
(13,899)
  
- 
  
8 
  
(13,891)
                 
Operating loss before tax
  
(2,647)
  
356 
  
(368)
  
(2,659)
Tax
  
429 
  
(90)
  
61 
  
400 
                 
Loss from continuing operations
  
(2,218)
  
266 
  
(307)
  
(2,259)
                 
Loss attributable to:
                
Non-controlling interests
  
382 
  
266 
  
- 
  
648 
Preference shareholders
  
878 
  
- 
  
- 
  
878 
Paid-in equity holders
  
57 
  
- 
  
- 
  
57 
Ordinary shareholders
  
(3,535)
  
- 
  
(307)
  
(3,842)
                 
   
(2,218)
  
266 
  
(307)
  
(2,259)
                 
Per 100p ordinary share (pence)
                
                 
Continuing operations (5)
                
Basic
  
(63.1)
          
(68.9)
Fully diluted
  
(63.1)
          
(68.9)
                 
Number of shares (million) (5)
                
Weighted average ordinary shares and effect of convertible B shares
  
5,289 
          
5,289 
Weighted average diluted ordinary shares and
  effect of convertible B shares
  
5,289 
          
5,289 

Notes:
(1)
The financial information for RBS has been extracted from the audited financial statements for the year to 31 December 2009 included on page 266 of the Form 20-F filed with the SEC on 27 March 2012.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2009 and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
The financial information for Direct Line Group has been extracted from RBS’s accounting records for the year ended 31 December 2009 and represents the business agreed with the European Commission to be divested.
(4)
Pro forma unaudited income statement of RBS for the year ended 31 December 2009 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and Direct Line Group.
(5)
Prior period data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012.
 
 
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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant was duly caused this report to be signed on behalf by the undersigned, thereunto duly authorised.


The Royal Bank of Scotland Group plc
Registrant



 
/s/ Rajan Kapoor
  
Rajan Kapoor
Group Chief Accountant
10 August 2012
  
 
 
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