RBS 2005 Annual Report Download - page 203

section
03
Financial
statements
201
Notes on the accounts
Annual Report and Accounts 2005
Group
Loans and Treasury bills,
advances to banks debt securities Netting and
and customers and equity shares Derivatives Other (1) Total offset (2)
2005 £m £m £m £m £m £m
Total
Central and local government 5,094 49,491 1,554 519 56,658 1,705
Manufacturing 24,761 551 1,186 — 26,498 4,727
Construction 11,566 83 134 — 11,783 3,586
Finance 144,873 78,651 89,333 5,958 318,815 112,273
Service industries and business activities 75,462 4,099 2,289 162 82,012 10,036
Agriculture, forestry and fishing 3,294 17 2 — 3,313 842
Property 51,479 455 1,162 — 53,096 5,855
Individuals
Home mortgages 109,133 922 3 — 110,058 14,000
Other 45,760 669 — 186 46,615 2,272
Finance lease and instalment credit 18,193 4 — — 18,197 —
Interest accruals 2,085 994 — — 3,079 2
491,700 135,936 95,663 6,825 730,124 155,298
(1) Includes settlement balances of £6,005 million.
(2) This column shows the amount by which exposures to counterparties are reduced by the existence of a legal right of set off (on the basis that the financial asset will be collected
in accordance with its terms) and under master netting arrangements. The credit risk of financial assets subject to a master netting arrangement is eliminated only to the extent
that financial liabilities due to the same counterparty will be settled after the assets are realised. The extent to which the Group's credit risk is reduced through a master netting
arrangement may change substantially within a short period following the balance sheet date because the exposure is affected by each transaction subject to the arrangement.
35 Memorandum items
Contingent liabilities and commitments
The amounts shown in the table below are intended only to provide an indication of the volume of business outstanding at
31 December. Although the Group is exposed to credit risk in the event of non-performance of the obligations undertaken by
customers, the amounts shown do not, and are not intended to, provide any indication of the Group’s expectation of future losses.
Group Company
2005 2004 2005 2004
£m £m £m £m
Contingent liabilities:
Guarantees and assets pledged as collateral security 12,253 10,438 448 448
Other contingent liabilities 6,394 5,655 ——
18,647 16,093 448 448
Commitments:
Undrawn formal standby facilities, credit lines and other commitments to lend
– less than one year 121,911 109,653 ——
– one year and over 81,110 69,577 ——
Other commitments 3,529 1,547 ——
206,550 180,777 ——