MUCH satisfaction was evident yesterday at Royal Bank of Scotland

after announcement that the first US banking group had been signed up to

use the IBOS high-speed international payments system it has pioneered

with partner Banco Santander.

It is a significant breakthrough, for even the Royal's own Citizens

banking subsidiary has no direct connection to the system in the States.

Instead, it has to operate through the UK link.

Until now the sophisticated inter-bank online system has served a

European business and personal banking base through its two founding

banks, plus Credit Commercial de France, Kredietbank of Belgium, and

Banco de Comercio Industria of Portugal.

First Fidelity executive vice-president Michael Gallagher said that

IBOS would help strengthen their position as a major provider of

international banking services in the Connecticut to Maryland corridor.

He believed that participation would allow them to play a leadership

role in developing a US network for the system.

US technology company EDS bought a one-third stake in the IBOS

operating company in February and Coley Clark its vice-president,

welcoming First Fidelity, described entry of the new network as a

significant step towards providing a globe-spanning payments network.

* CITIZENS Financial Group, the Rhode Island based subsidiary of the

Royal Bank, has reported net income of $12.3m for the third quarter of

the year ended June 30, 1994, compared to earnings of $7.2m for the

comparable quarter last year.

For the first nine months, net income was $37.4m, compared to $24.8m

for the same period of the previous year. The earnings increase

reflected increased interest income and non-interest income and also

acquisitions.