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

April 27, 2010
 
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Form F-3 (File No. 333-162219) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
 
 
 
 
 
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 31 December 2009 (the "unaudited proforma balance sheet") and the unaudited pro forma condensed consolidated income statements for the years ended 31 December 2009, 31 December 2008 and 31 December 2007 (the "pro forma income statements") based on the published audited financial statements of RBS, prepared in accordance with IFRS, after giving effect to:

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

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

n
RBS Insurance
n
Global Merchant Services
n
RBS Sempra Commodities (acquired April 2008)
n
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')

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 31 December 2009

- 
pro forma income statements: the distribution to the other Consortium members had occurred on acquisition of ABN AMRO on 17 October 2007 and the EC State Aid Divestments had occurred on 1 January 2007

-
sale proceeds in respect of the EC State Aid Divestments are received in cash and are equal to the net asset values of the businesses to be disposed of

-
Global Merchant Services and the UK Retail and UK Corporate businesses outlined for disposal represent carve-outs from existing RBS businesses and therefore discrete financial information for these divestments which is factually supportable is not currently available.  Accordingly, the pro forma financial information in respect of the EC State Aid Divestments excludes these businesses.

The tables below show best estimates regarding certain key line items in respect of Global Merchant Services and the UK Retail and UK Corporate businesses outlined for disposal.  Detailed financial information about these businesses on a stand alone basis is currently being prepared and therefore the estimates are subject to change.

 
Year
Year
 
ended
ended
 
31 December
31 December
 
2009
2008
 
£m
£m
Global Merchant Services (1)
    
     
Total income
527
535
Operating profit before impairment losses
266
281
Operating profit before tax
249
267
     
Total assets at 31 December 2009 were estimated to be £1.6 billion.
    
     
UK Retail and UK Corporate businesses outlined for disposal
    
     
Total income
946
1,082
Operating profit before impairment losses
468
567
Operating (loss) / profit before tax
(146)
347
     
Total assets at 31 December 2009 were estimated to be £23.5 billion.
    

Note:
(1) 
Global Merchant Services business units are reported within the Global Transaction Services, Ulster Bank and Non-Core divisions.
 
The pro forma financial information and accompanying notes should be read in conjunction with the audited financial statements of RBS for the year ended 31 December 2009, filed with the SEC on a Form 20-F dated 27 April 2010.
 
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 of financial position that may or may be expected to be achieved in the future.

 
 
 
Unaudited pro forma balance sheet as at 31 December 2009
 
 
   
RBS(1)
£m
    
RFS
Minority
Interest(2)
£m
    
RBS excluding
RFS Minority
Interest(3)
£m
    
EC
State Aid
Divestment(4)
£m
    
Pro forma
RBS(5)
£m
  
Assets
                              
                               
Cash and balances at central banks
     52,261       (713 )     51,548       4,555       56,103  
Loans and advances to banks
     91,753       (7,879 )     83,874       (2,134 )     81,740  
Loans and advances to customers
     728,393       (132,699 )     595,694       (575 )     595,119  
Debt securities and equity shares
     286,782       (21,727 )     265,055       (7,347 )     257,708  
Derivatives
     441,454       (3,255 )     438,199       10       438,209  
Intangible assets
     17,847       (3,061 )     14,786       (288 )     14,498  
Property, plant and equipment
     19,397       (1,624 )     17,773       (146 )     17,627  
Other assets
     58,599       (3,047 )     55,552       (15,473 )     40,079  
Total assets
     1,696,486       (174,005 )     1,522,481       (21,398 )     1,501,083  
                                         
Liabilities
                                        
                                         
Deposits by banks
     142,144       11,504       153,648       -       153,648  
Customer accounts
     614,202       (131,598 )     482,604       -       482,604  
Debt securities in issue
     267,568       (21,239 )     246,329       -       246,329  
Settlement balances and short positions
     50,876       (1 )     50,875       -       50,875  
Derivatives
     424,141       (2,607 )     421,534       -       421,534  
Subordinated liabilities
     37,652       (6,114 )     31,538       -       31,538  
Other liabilities
     65,272       (9,282 )     55,990       (20,032 )     35,958  
Total liabilities
     1,601,855       (159,337 )     1,442,518       (20,032 )     1,422,486  
Minority interests
     16,895       (14,668 )     2,227       (1,366 )     861  
Equity owners
     77,736       -       77,736       -       77,736  
Total equity
     94,631       (14,668 )     79,963       (1,366 )     78,597  
Total liabilities and equity
     1,696,486       (174,005 )     1,522,481       (21,398 )     1,501,083  
 
Notes:

(1) 
The financial information for RBS has been extracted from the audited financial statements for the year to 31 December 2009 included in its Form 20-F dated 27 April 2010.

(2) 
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2009 without adjustment and represent those parts of the ABN AMRO businesses attributable to the other Consortium members.

(3) 
Pro forma unaudited balance sheet of RBS for the year ended 31 December 2009 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members.

(4) 
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the year ended 31 December 2009 without adjustment and represents those parts of the businesses agreed with the European Commission as being for disposal for which information is currently available, namely RBS Insurance and RBS Sempra Commodities

(5) 
Pro forma unaudited balance sheet of RBS for the year ended 31 December 2009 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members and the EC State Aid Divestments.

 
 
 
 
Unaudited pro forma income statement for the year ended 31 December 2009
 
 
         
RFS
    
RBS
    
EC
    
 
  
         
Minority
    
excluding RFS
    
State Aid
    
Pro forma
  
   
RBS(1)
    
Interest(2)
    
Minority Interest(3)
    
Divestments(4)
    
RBS(5)
  
      £m       £m       £m       £m       £m  
                                         
Continuing operations
                                        
                                         
Net interest income
     16,504       (2,937 )     13,567       (460 )     13,107  
                                         
Net fee and commission income
     7,009       (1,061 )     5,948       528       6,476  
Income from trading activities
     3,881       (75 )     3,806       (799 )     3,007  
Gain on redemption of own debt
     3,790       -       3,790       -       3,790  
Other operating income (excluding insurance premium income)
     1,962       (992 )     970       (325 )     645  
Insurance net premium income
     5,544       (278 )     5,266       (5,138 )     128  
                                         
Non-interest income
     22,186       (2,406 )     19,780       (5,734 )     14,046  
                                         
Total income
     38,690       (5,343 )     33,347       (6,194 )     27,153  
                                         
Operating expenses
     (21,478 )     4,096       (17,382 )     1,309       (16,073 )
                                         
Profit/(loss) before other operating charges and impairment
     17,212       (1,247 )     15,965       (4,885 )     11,080  
                                         
Insurance net claims
     (4,857 )     500       (4,357 )     4,223       (134 )
Impairment losses
     (14,950 )     1,051       (13,899 )     8       (13,891 )
                                         
Operating loss before tax
     (2,595 )     304       (2,291 )     (654 )     (2,945 )
                                         
Tax
     371       (32 )     339       87       426  
                                         
(Loss)/profit from continuing operations, net of tax
     (2,224 )     272       (1,952 )     (567 )     (2,519 )
                                         
Profit/(loss) attributable to:
                                        
                                         
Minority interests
     376       272       648       (234 )     414  
Preference shareholders
     878       -       878       -       878  
Paid-in equity holders
     57       -       57       -       57  
Ordinary shareholders
     (3,535 )     -       (3,535 )     (333 )     (3,868 )
                                         
      (2,224 )     272       (1,952 )     (567 )     (2,519 )
                                         
Per 25p ordinary and B share (pence)
                                        
                                         
Continuing operations
                                        
                                         
Basic
     (6.3 )             (6.3 )             (6.9 )
                                         
Fully diluted
     (6.3 )             (6.3 )             (6.9 )
                                         
Number of shares (million)
                                        
                                         
Weighted average ordinary and B shares
     52,891               52,891               52,891  
                                         
Weighted average diluted ordinary and B shares
     53,329               53,329               53,329  

Notes:
 
(1) 
The financial information for RBS has been extracted from the audited financial statements for the year to 31 December 2009 included in its Form 20-F dated 27 April 2010.

(2) 
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2009 without adjustment and represent those parts of the ABN AMRO businesses attributable to the other Consortium members.

(3) 
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.

(4) 
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the year ended 31 December 2009 without adjustment and represents those parts of the businesses agreed with the European Commission as being for disposal for which information is currently available, namely RBS Insurance and RBS Sempra Commodities

(5) 
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 the EC State Aid Divestments.

 
 
 
 
Unaudited pro forma income statement for the year ended 31 December 2008

               
RBS
              
               
excluding
              
         
RFS
    
RFS
    
EC
    
 
  
         
Minority
    
Minority
    
State Aid
    
Pro forma
  
   
RBS (1)
    
Interest(2)
    
Interest(3)
    
Divestments(4)
    
RBS(5)
  
      £m       £m       £m       £m       £m  
                                         
Continuing operations
                                        
                                         
Net interest income
     18,675       (2,911 )     15,764       (635 )     15,129  
                                         
Net fees and commissions
     7,445       (1,011 )     6,434       426       6,860  
Income from trading activities
     (8,477 )     (352 )     (8,829 )     (792 )     (9,621 )
Other operating income (excluding insurance premium income)
     1,899       64       1,963       (25 )     1,938  
Insurance net premium income
     6,326       (617 )     5,709       (5,293 )     416  
                                         
Non-interest income
     7,193       (1,916 )     5,277       (5,684 )     (407 )
                                         
Total income
     25,868       (4,827 )     21,041       (6,319 )     14,722  
                                         
Operating expenses
     (54,202 )     19,303       (34,899 )     1,403       (33,496 )
                                         
Loss before other operating charges and impairment losses
     (28,334 )     14,476       (13,858 )     (4,916 )     (18,774 )
                                         
Insurance net claims
     (4,430 )     513       (3,917 )     3,733       (184 )
Impairment losses
     (8,072 )     640       (7,432 )     45       (7,387 )
                                         
Operating loss before tax
     (40,836 )     15,629       (25,207 )     (1,138 )     (26,345 )
                                         
Tax
     2,323       (328 )     1,995       230       2,225  
                                         
Loss from continuing operations
     (38,513 )     15,301       (23,212 )     (908 )     (24,120 )
                                         
Loss attributable to:
                                        
                                         
Minority interests
     (14,889 )     15,301       412       (164 )     248  
Preference shareholders
     536       -       536       -       536  
Paid-in equity holders
     60       -       60       -       60  
Ordinary shareholders
     (24,220 )     -       (24,220 )     (744 )     (24,964 )
                                         
      (38,513 )     15,301       (23,212 )     (908 )     (24,120 )
                                         
Per 25p ordinary share (pence)
                                        
                                         
Continuing operations
                                        
                                         
Basic
     (146.2 )             (146.2 )             (150.7 )
                                         
Fully diluted
     (146.2 )             (146.2 )             (150.7 )
                                         
Number of shares (million)
                                        
                                         
Weighted average ordinary shares
     16,563               16,563               16,563  
                                         
Weighted average diluted ordinary shares
     16,563               16,563               16,563  

Notes:

(1) 
The financial information for RBS has been extracted from the audited financial statements for the year ended 31 December 2009 included on page 197 of its Form 20-F filed on 27 April 2010.

(2) 
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2008 without adjustment and represent those parts of the ABN AMRO businesses attributable to the other Consortium members.

(3) 
Pro forma unaudited income statement of RBS for the year ended 31 December 2008 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members.

(4) 
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the year ended 31 December 2008 without adjustment and represent those parts of RBS attributable to the businesses agreed with the European Commission as being for disposal for which information is currently available, namely RBS Insurance and RBS Sempra Commodities.

(5) 
Pro forma unaudited income statement of RBS for the year ended 31 December 2008 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members and the EC State Aid Divestments.

 
 
 
 
Unaudited pro forma income statement for the year ended 31 December 2007

               
RBS
              
               
excluding
              
         
RFS
    
RFS
    
EC
    
 
  
         
Minority
    
Minority
    
State Aid
    
Pro forma
  
   
RBS(1)
    
Interest(2)
    
Interest(3)
    
Divestments(4)
    
RBS(5)
  
      £m       £m       £m       £m       £m  
                                         
Continuing operations
                                        
                                         
Net interest income
     12,069       (545 )     11,524       (599 )     10,925  
                                         
Net fees and commissions
     6,085       (224 )     5,861       465       6,326  
Income from trading activities
     1,292       139       1,431       6       1,437  
Other operating income (excluding insurance premium income)
     4,833       (97 )     4,736       (196 )     4,540  
Insurance net premium income
     6,087       (105 )     5,982       (5,387 )     595  
                                         
Non-interest income
     18,297       (287 )     18,010       (5,112 )     12,898  
                                         
Total income
     30,366       (832 )     29,534       (5,711 )     23,823  
                                         
Operating expenses
     (13,942 )     620       (13,322 )     952       (12,370 )
                                         
Profit/(loss) before other operating charges and impairment losses
     16,424       (212 )     16,212       (4,759 )     11,453  
                                         
Insurance net claims
     (4,624 )     96       (4,528 )     4,010       (518 )
Impairment losses
     (1,968 )     38       (1,930 )     -       (1,930 )
                                         
Operating profit/(loss) before tax
     9,832       (78 )     9,754       (749 )     9,005  
                                         
Tax
     (2,044 )     (6 )     (2,050 )     204       (1,846 )
                                         
Profit/(loss) from continuing operations
     7,788       (84 )     7,704       (545 )     7,159  
                                         
Profit/(loss) attributable to:
                                        
                                         
Minority interests
     239       (84 )     155       -       155  
Preference shareholders
     246       -       246       -       246  
Ordinary shareholders
     7,303       -       7,303       (545 )     6,758  
                                         
      7,788       (84 )     7,704       (545 )     7,159  
                                         
Per 25p ordinary share (pence)
                                        
                                         
Continuing operations
                                        
                                         
Basic
     64.0               64.0               59.2  
                                         
Fully diluted
     63.4               63.4               58.7  
                                         
Number of shares (million)
                                        
                                         
Weighted average ordinary shares
     11,413               11,413               11,413  
                                         
Weighted average diluted ordinary shares
     11,611               11,611               11,611  

Notes:

(1) 
The financial information for RBS has been extracted from the audited financial statements for the year ended 31 December 2009 included on page 197 of its Form 20-F filed on 27 April 2010.

(2) 
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2007 without adjustment and represent those parts of the ABN AMRO businesses attributable to the other Consortium members.

(3) 
Pro forma unaudited income statement of RBS for the year ended 31 December 2007 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members.

(4) 
The financial information for the EC State Aid Divestments has been extracted from RBS's accounting records for the year ended 31 December 2007 without adjustment and represent those parts of RBS attributable to the businesses agreed with the European Commission as being for disposal for which information is currently available, namely RBS Insurance.

(5) 
Pro forma unaudited income statement of RBS for the year ended 31 December 2007 excluding those parts of the ABN AMRO businesses attributable to the other Consortium members and the EC State Aid Divestments.
 
 
 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorised.


 
The Royal Bank of Scotland Group plc
Registrant
 
 

 
/s/ Bruce Van Saun
  
Bruce Van Saun  
Group Finance Director  
April 27, 2010