RBS 2004 Annual Report Download - page 217

section
04
215
Annual Report and Accounts 2004
Additional information
Additional
information
standby letters of credit, performance and customs bonds,
warranties and indemnities. In accepting a bill of exchange
drawn on it by a customer a bank undertakes to pay the holder
of the bill at maturity. Most acceptances are presented for
payment and reimbursement by the customer is usually
immediate. In the UK, bills accepted by certain banks
designated by the Bank of England are eligible for rediscount
at the Bank of England. In endorsing a bill of exchange, a
bank accepts liability for payment of any shortfall on the bill at
maturity. Unlike acceptances, the endorsing bank receives
value for the bill, which is then rediscounted.
The Group’s contingent liabilities and commitments are set out below.
More than More than
1 year but 3 years but
Less than less than less than Over
1 year 3 years 5 years 5 years Total
2004 £m £m £m £m £m
Acceptances and endorsements 362———362
Guarantees and assets pledged as collateral security 3,974 1,729 1,893 2,842 10,438
Other contingent liabilities 2,714 785 293 1,501 5,293
Documentary credits and trade related transactions 135 30 6 11 182
Undrawn formal standby facilities, credit lines and other commitments to lend 118,367 23,045 21,216 16,602 179,230
Other commitments 746 385 — 234 1,365
Total 126,298 25,974 23,408 21,190 196,870
More than More than
1 year but 3 years but
Less than less than less than Over
1 year 3 years 5 years 5 years Total
2003 £m £m £m £m £m
Acceptances and endorsements 595———595
Guarantees and assets pledged as collateral security 4,632 1,422 782 1,951 8,787
Other contingent liabilities 1,872 987 351 2,272 5,482
Documentary credits and trade related transactions 368 210 2 25 605
Undrawn formal standby facilities, credit lines and other commitments to lend 95,062 18,082 14,053 10,054 137,251
Other commitments 1,304 476 15 42 1,837
Total 103,833 21,177 15,203 14,344 154,557
Contractual obligations
The table below summarises the Group’s contractual cash obligations by remaining maturity.
More than More than
1 year but 3 years but
Less than less than less than Over
1 year 3 years 5 years 5 years Total
2004 £m £m £m £m £m
Contractual cash obligations
Dated loan capital 371 527 2,863 7,252 11,013
Operating leases 328 597 535 2,246 3,706
Finance leases 17 38 11 126 192
Unconditional obligations to purchase goods or services 552 346 148 152 1,198
Total 1,268 1,508 3,557 9,776 16,109
More than More than
1 year but 3 years but
Less than less than less than Over
1 year 3 years 5 years 5 years Total
2003 £m £m £m £m £m
Contractual cash obligations
Dated loan capital 709 691 1,034 6,878 9,312
Operating leases 262 479 434 2,124 3,299
Finance leases 19 29 8 126 182
Unconditional obligations to purchase goods or services 661 211 3 — 875
Total 1,651 1,410 1,479 9,128 13,668
The tables above do not include undated loan capital. The maturity of deposits by banks is given in Note 23 on the accounts, of
customer accounts in Note 24, and of debt securities in issue in Note 25.