12 May 2017

The Royal Bank of Scotland Group plc

Legal Entity Identifier: 2138005O9XJIJN4JPN90

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INITIAL NOTIFICATION OF TRANSACTIONS OF PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY ("PDMRs") in accordance with Article 19 of the EU Market Abuse Regulation 596/2014

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1.�� The Royal Bank of Scotland Group plc (the "Company") announces that ordinary shares of �1 each in the Company ("Shares") (ISIN: GB00B7T77214) were delivered to PDMRs on 12 May 2017, as set out below.�

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Unless otherwise stated, the Shares delivered represent payment of a fixed share allowance for the six month period ending 30 June 2017 and have been calculated using a share price of �2.6642.

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The number of Shares delivered, the number of Shares withheld to meet associated tax liabilities and the number of Shares retained by each PDMR is as follows:-

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Name of PDMR	Position of PDMR	No. of Shares delivered	No. of Shares withheld to satisfy associated tax liability	No. of Shares retained
Mark Bailie	Chief Operating Officer	150,139	70,566	79,573
Helen Cook ¹	Chief HR Officer	19,941	9,373	10,568
Christopher Marks	Chief Executive, NatWest Markets	150,139	70,566	79,573
Leslie Matheson	Chief Executive, Personal & Business Banking	112,605	52,925	59,680
Ross McEwan	Chief Executive	187,674	88,207	99,467
Simon McNamara	Chief Administrative Officer	121,988	57,335	64,653
Alison Rose	Chief Executive, Commercial & Private Banking	136,064	63,951	72,113
David Stephen	Chief Risk Officer	131,372	61,745	69,627
Ewen Stevenson	Chief Financial Officer	150,139	70,566	79,573
David Wheldon	Chief Marketing Officer	42,227	19,847	22,380

¹ Helen Cook's fixed share allowance represents payment for the three month period ending 30 June 2017, which coincides with her appointment into role.

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The above transactions took place outside of a trading venue.� The opening p rice on the date that the Shares were delivered and some were withheld to meet associated tax liabilities was �2.6010. Shares retained after payment of associated tax liabilities will be held on behalf of PDMRs in the Computershare Retained Share Nominee account and will be released in instalments over a three year period.

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2.�� The Company announces that on 11 May 2017 Ross McEwan, Chief Executive, transferred 27,602 Shares to charity for nil consideration.� The transfer is in line with the commitments Mr McEwan made in February 2015 and February 2016 to transfer all of his 2015 fixed share allowance and half of his 2016 fixed share allowance to charity.� Following the transfer to charity, Mr McEwan has relinquished all legal and beneficial rights to the Shares.� The transfer took place outside of a trading venue.� ��

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For further information contact:-

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RBS Investor Relations
Alexander Holcroft
Head of Equity Investor Relations
+44 20 7672 1758

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RBS Media Relations �

+44(0)131 523 4205

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