Major franchise in the U.K. and northeastern U.S. Very strong business diversification Growing geographic diversity Successful acquisition and integration track-record Strong profitability and efficiency Capital more tightly managed compared with that of peers Ambitious growth strategy carries some execution risk The ratings on Royal Bank of Scotland Group PLC (RBSG)--the ultimate holding company of The Royal Bank of Scotland PLC (RBS; AA/Stable/A-1+) and National Westminster Bank PLC (NatWest; AA/Stable/A-1+)--reflect its very strong business profile, strong risk management, and strong profitability. Capitalization is a relative weakness. With total reported assets of £839.3 billion ($1,526 billion) at June 30, 2006, RBSG is one of the world's largest universal banks. It enjoys a prominent position in U.K. financial services, which includes being the
