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

31 December 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on Form F-3 (File No. 333-162219) and to be a part thereof from the date which it was filed, to the extent not superseded by documents or reports subsequently filed or furnished.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 31 December 2010 (the "unaudited pro forma balance sheet") and the unaudited pro forma condensed consolidated income statements for the years ended 31 December 2010, 31 December 2009 and 31 December 2008 (the "pro forma income statements") based on the published audited and unaudited 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 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 series of divestments to be completed within four years from December 2009, as follows:

·  
RBS Insurance
·  
Global Merchant Services (sold November 2010)
·  
RBS Sempra Commodities (acquired April 2008; majority sold during 2010)
·  
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 sheets: the distribution to the other Consortium Members and EC State Aid Divestments had occurred on 31 December 2010;

·  
pro forma income statements: the distribution to the other Consortium Members and EC State Aid Divestments had occurred on 1 January 2008;
 
 
 
 
 
Article 11 unaudited pro forma information

Unaudited proforma condensed consolidated financial information (continued)

Basis of preparation (continued)

·  
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; and

·  
the UK Retail and UK Corporate business outlined for disposal represents a carve-out from existing RBS businesses and therefore discrete financial information for this divestment which is factually supportable is not currently available. Accordingly, the pro forma financial information in respect of the EC State Aid Divestments excludes this business.

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

   
Year
ended
31 December
2010
    
Year
ended
 31 December
2009
    
Year
ended
 31 December
 2008
  
      £m       £m       £m  
UK Retail and UK Corporate businesses outlined for disposal
                        
                         
Total income
     902       925       1,082  
Operating profit before impairment losses
     439       451       567  
Operating profit/(loss) before tax
     160       (55 )     347  
                         
Total assets at 31 December 2010 were estimated to be £19.9 billion
                  


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.
 
 
 
 
 
Article 11 unaudited pro forma information (continued)

Unaudited pro forma balance sheet as at 31 December 2010

   
RBS (1)
    
RFS
 Minority
Interest (2)
    
Pro forma
RBS (3)
    
EC
State Aid
Divestments (4)
    
 
Pro forma
RBS (5)
  
      £m       £m       £m       £m       £m  
                                         
Assets
                                        
Cash and balances at central banks
     57,014       -       57,014       4,332       61,346  
Loans and advances to banks
     100,518       (2 )     100,516       (2,484 )     98,032  
Loans and advances to customers
     555,260       -       555,260       (2,353 )     552,907  
Debt securities and equity shares
     239,678       -       239,678       (7,868 )     231,810  
Derivatives
     427,077       -       427,077       (69 )     427,008  
Intangible assets
     14,448       -       14,448       (984 )     13,464  
Property, plant and equipment
     16,543       -       16,543       (138 )     16,405  
Other assets
     43,038       (940 )     42,098       (8,320 )     33,778  
                                         
Total assets
     1,453,576       (942 )     1,452,634       (17,884 )     1,434,750  
                                         
Liabilities
                                        
Deposits by banks
     98,790       (113 )     98,677       -       98,677  
Customer accounts
     510,693       -       510,693       -       510,693  
Debt securities in issue
     218,372       -       218,372       -       218,372  
Settlement balances
     10,991       -       10,991       -       10,991  
Short positions
     43,118       -       43,118       -       43,118  
Derivatives
     423,967       -       423,967       -       423,967  
Subordinated liabilities
     27,053       -       27,053       -       27,053  
Other liabilities
     43,741       (534 )     43,207       (17,108 )     26,099  
                                         
Total liabilities
     1,376,725       (647 )     1,376,078       (17,108 )     1,358,970  
                                         
Non-controlling interests
     1,719       (295 )     1,424       (776 )     648  
Equity owners
     75,132       -       75,132       -       75,132  
                                         
Total equity
     76,851       (295 )     76,556       (776 )     75,780  
                                         
Total liabilities and equity
     1,453,576       (942 )     1,452,634       (17,884 )     1,434,750  

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 211 of the Form 20-F filed with the SEC on 31 March 2011.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2010 without adjustment and represents those parts of the ABN AMRO businesses attributable to the other Consortium Members.
(3)
Pro forma unaudited balance sheet of RBS as at 31 December 2010 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 2010 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 any remaining parts of RBS Sempra Commodities.
(5)
Adjusted pro forma unaudited balance sheet of RBS as at 31 December 2010 excluding those parts of the ABN AMRO businesses attributable to the other Consortium Members and the EC State Aid Divestments.
 
 
 
 
 
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)
    
RBS
excluding
RFS
Minority
Interest (3)
    
EC
State Aid
Divestments
 (4)
    
Pro forma
RBS (5)
  
Continuing operations
     £m       £m       £m       £m       £m  
                                         
Net interest income
     14,209       (9 )     14,200       (450 )     13,750  
                                         
Net fees and commissions
     5,982       1       5,983       (108 )     5,875  
Income from trading activities
     4,517       (4 )     4,513       (390 )     4,123  
Gain on redemption of own debt
     553       -       553       -       553  
Other operating income (excluding insurance premium income)
     1,479       154       1,633       (155 )     1,478  
Insurance net premium income
     5,128       -       5,128       (5,013 )     115  
                                         
Non-interest income
     17,659       151       17,810       (5,666 )     12,144  
                                         
Total income
     31,868       142       32,010       (6,116 )     25,894  
Operating expenses
     (18,228 )     8       (18,220 )     1,381       (16,839 )
                                         
Profit before other operating charges and impairment
  losses
     13,640       150       13,790       (4,735 )     9,055  
Insurance net claims
     (4,783 )     -       (4,783 )     4,698       (85 )
Impairment (losses)/gains
     (9,256 )     -       (9,256 )     21       (9,235 )
                                         
Operating loss before tax
     (399 )     150       (249 )     (16 )     (265 )
Tax
     (634 )     (29 )     (663 )     (14 )     (677 )
                                         
Loss from continuing operations
     (1,033 )     121       (912 )     (30 )     (942 )
                                         
Loss attributable to:
                                        
Non-controlling interests
     (60 )     121       61       (55 )     6  
Preference shareholders
     105       -       105       -       105  
Paid-in equity holders
     19       -       19       -       19  
Ordinary shareholders
     (1,097 )     -       (1,097 )     25       (1,072 )
                                         
      (1,033 )     121       (912 )     (30 )     (942 )
                                         
Per 25p ordinary share (pence)
                                        
                                         
Continuing operations
                                        
Basic
     (0.5 )             (0.5 )             (0.4 )
Fully diluted
     (0.5 )             (0.5 )             (0.4 )
                                         
Number of shares (million)
                                        
Weighted average ordinary shares
     107,245               107,245               107,245  
Weighted average diluted ordinary shares
     107,245               107,245               107,245  

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 209 of the Form 20-F filed with the SEC on 31 March 2011.
(2)
The financial information for the RFS Minority Interest has been extracted from RBS's accounting records for the year ended 31 December 2010 without adjustment and represents 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 2010 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 2010  without adjustment and represents 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, RBS Sempra Commodities and Global Merchant Services.
(5)
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 the EC State Aid Divestments.
 
 
 
 
 
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)
    
RBS
excluding
RFS
Minority
Interest (3)
    
EC
State Aid
Divestments
 (4)
    
Adjusted
Pro forma
RBS (5)
  
Continuing operations
     £m       £m       £m       £m       £m  
                                         
Net interest income
     13,388       179       13,567       (477 )     13,090  
                                         
Net fees and commissions
     5,948       -       5,948       67       6,015  
Income from trading activities
     3,761       45       3,806       (799 )     3,007  
Gain on redemption of own debt
     3,790       -       3,790       -       3,790  
Other operating income (excluding insurance premium income)
     873       97       970       (376 )     594  
Insurance net premium income
     5,266       -       5,266       (5,138 )     128  
                                         
Non-interest income
     19,638       142       19,780       (6,246 )     13,534  
                                         
Total income
     33,026       321       33,347       (6,723 )     26,624  
Operating expenses
     (17,417 )     35       (17,382 )     1,615       (15,767 )
                                         
Profit before other operating charges and impairment
  losses
     15,609       356       15,965       (5,108 )     10,857  
Insurance net claims
     (4,357 )     -       (4,357 )     4,223       (134 )
Impairment losses
     (13,899 )     -       (13,899 )     8       (13,891 )
                                         
Operating loss before tax
     (2,647 )     356       (2,291 )     (877 )     (3,168 )
Tax
     429       (90 )     339       148       487  
                                         
Loss from continuing operations
     (2,218 )     266       (1,952 )     (729 )     (2,681 )
                                         
Loss attributable to:
                                        
Non-controlling interests
     382       266       648       (234 )     414  
Preference shareholders
     878       -       878       -       878  
Paid-in equity holders
     57       -       57       -       57  
Ordinary shareholders
     (3,535 )     -       (3,535 )     (495 )     (4,030 )
                                         
      (2,218 )     266       (1,952 )     (729 )     (2,681 )
                                         
Per 25p ordinary share (pence)
                                        
                                         
Continuing operations
                                        
Basic
     (6.3 )             (6.3 )             (7.2 )
Fully diluted
     (6.3 )             (6.3 )             (7.2 )
                                         
Number of shares (million)
                                        
Weighted average ordinary shares
     52,891               52,891               52,891  
Weighted average diluted ordinary shares
     52,891               52,891               52,891  

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 209 of the Form 20-F filed with the SEC on 31 March 2011.
(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 represents 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, RBS Sempra Commodities and Global Merchant Services.
(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.
 
 
 
 
 
Article 11 unaudited pro forma information (continued)

Unaudited pro forma income statement for the year ended 31 December 2008
   
RBS (1)
    
RFS
 Minority
Interest (2)
    
RBS
excluding
RFS
Minority
Interest (3)
    
EC
State Aid
Divestments
 (4)
    
Adjusted
Pro forma
RBS (5)
  
Continuing operations
     £m       £m       £m       £m       £m  
                                         
Net interest income
     15,482       282       15,764       (669 )     15,095  
                                         
Net fees and commissions
     6,411       23       6,434       (29 )     6,405  
Income from trading activities
     (9,025 )     196       (8,829 )     (793 )     (9,622 )
Other operating income (excluding insurance premium income)
     2,153       (190 )     1,963       (78 )     1,885  
Insurance net premium income
     5,709       -       5,709       (5,293 )     416  
                                         
Non-interest income
     5,248       29       5,277       (6,193 )     (916 )
                                         
Total income
     20,730       311       21,041       (6,862 )     14,179  
Operating expenses
     (35,065 )     166       (34,899 )     1,716       (33,183 )
                                         
Loss before other operating charges and impairment
  losses
     (14,335 )     477       (13,858 )     (5,146 )     (19,004 )
Insurance net claims
     (3,917 )     -       (3,917 )     3,733       (184 )
Impairment (losses)/gains
     (7,439 )     7       (7,432 )     45       (7,387 )
                                         
Operating loss before tax
     (25,691 )     484       (25,207 )     (1,368 )     (26,575 )
Tax
     2,167       (172 )     1,995       291       2,286  
                                         
Loss from continuing operations
     (23,524 )     312       (23,212 )     (1,077 )     (24,289 )
                                         
Loss attributable to:
                                        
Non-controlling interests
     100       312       412       (164 )     248  
Preference shareholders
     536       -       536       -       536  
Paid-in equity holders
     60       -       60       -       60  
Ordinary shareholders
     (24,220 )     -       (24,220 )     (913 )     (25,133 )
                                         
      (23,524 )     312       (23,212 )     (1,077 )     (24,289 )
                                         
Per 25p ordinary share (pence)
                                        
                                         
Continuing operations
                                        
Basic
     (146.2 )             (146.2 )             (151.7 )
Fully diluted
     (146.2 )             (146.2 )             (151.7 )
                                         
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 2008 included on page 209 of the Form 20-F filed with the SEC on 31 March 2011.
(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 represents 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 represents 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, RBS Sempra Commodities and Global Merchant Services.
(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.

 
 
 
 
Signature

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


The Royal Bank of Scotland plc
Registrant



/s/ Rajan Kapoor              
Rajan Kapoor
Group Chief Accountant
31 March 2011