Citizens Reports 12% Increase in Operating Earnings.

Business Editors

PROVIDENCE, R.I.--(BUSINESS WIRE)--Aug. 1, 2000

Citizens Financial Group, Inc. ("Citizens") today reported operating earnings of $136.2 million for the six-month period ended June 30, 2000, up 12% compared to operating earnings of $121.5 million for the comparable prior year period.

Citizens recorded one-time merger and other costs, net of tax, of $29.9 million for six-month period ended June 30, 2000. These costs were primarily related to the acquisition of UST Corp. on January 11, 2000. Including the impact of these costs, net income was $106.3 million for the six-month period ended June 30, 2000.

At June 30, 2000 total assets were $30.2 billion for the four-state bank holding company, compared to $19.8 billion in 1999. The acquisition of UST Corp. and the purchase of State Street Bank's commercial banking business on October 1, 1999 added assets of $8.1 billion. Excluding the impact of UST and State Street, Citizens had strong organic growth in its commercial, lease and consumer loan portfolios. In addition to deposits gained through the acquisition of UST and State Street's commercial banking business, organic growth in both savings and demand deposits have increased significantly.

"Our strong results over the past six months reflect the confidence that business and retail customers throughout New England have in Citizens. Our acquisition and conversion of both UST and State Street's commercial banking business were highly successful, and we are continuing to attract new customers," said Lawrence K. Fish, Chairman, President and CEO of Citizens Financial Group, Inc.

Net interest income was up $171.9 million, or 51.3%, for the six-month period ended June 30, 2000 primarily due to the acquisitions noted above and strong organic loan and deposit growth.

Noninterest income increased $70.6 million, or 67%, for the six-month period ended June 30, 2000. In addition to the impact of UST and State Street, the growth in noninterest income is being driven by strong growth in International and Cash Management revenue along with growth in other fee based businesses.

Noninterest operating expense, which excludes the impact of one-time merger and other costs and the amortization of goodwill and core deposit intangible, was $383.3 million for the six-month period ended June 30, 2000, a $153 million increase. The increases are primarily related to the UST and State Street acquisitions.

Citizens Financial Group, Inc. is a $30 billion financial services company headquartered in Providence, RI. It operates as Citizens Bank in Connecticut, Massachusetts, New Hampshire and Rhode Island. Citizens is a wholly owned subsidiary of The Royal Bank of Scotland plc. With more than 330 branches and more than 800 ATMs in Connecticut, Massachusetts, New Hampshire, and Rhode Island, Citizens is the second largest bank holding company in New England.

For more information, please contact us at our website www.citizensbank.com.

                    CITIZENS FINANCIAL GROUP, INC.
                   CONSOLIDATED STATEMENTS OF INCOME
                              (unaudited)

                                                SIX MONTHS ENDED
                                                    JUNE 30,
 (In Thousands)                               2000            1999

Net interest income                        $506,867        $334,918
Provision for credit losses                  22,934           8,716
Net interest income after
 provision for credit losses                483,933         326,202
Noninterest income                          175,852         105,297
Noninterest expense
    Operating                               383,333         230,337
    Amortization of goodwill and
     core deposit intangible                 55,969          24,415
Total noninterest expense                   439,302         254,752
Earnings before income taxes                220,483         176,747
Income taxes                                 84,260          55,206
Net income-operating                       $136,223        $121,541
One-time merger and other costs,
 net of tax                                  29,889            --
Net Income-reported                        $106,334        $121,541

                    CITIZENS FINANCIAL GROUP, INC.
                      CONSOLIDATED BALANCE SHEETS
                              (unaudited)

                                                   June 30,
(In Thousands)                               2000           1999

Assets

  Cash and due from banks                $ 1,198,714    $   564,369
  Federal funds sold and
   other short-term investments               46,003         55,386
  Securities                               7,625,298      7,240,478

  Loans and leases                        17,950,661     10,543,444
          Less:  Allowance for
           possible credit losses            295,327        173,624

  Net loans and leases                    17,655,334     10,369,820

  Goodwill and core deposit
   intangible                              1,940,582        587,815
  Other assets                             1,759,188        947,898

         Total assets                    $30,225,119    $19,765,766

Liabilities and Stockholder's Equity


  Deposits                               $21,106,834    $14,353,876
  Borrowed funds                           5,992,623      3,376,150
  Other liabilities                          411,193        178,746

         Total liabilities                27,510,650     17,908,772

  Stockholder's  equity                    2,714,469      1,856,994

         Total liabilities and
          stockholder's equity           $30,225,119    $19,765,766