RBS 2005 Annual Report Download - page 237

section
04
Additional
information
235
Additional information
Annual Report and Accounts 2005
Loan impairment provisions
For a discussion of the factors considered in determining the amount of the provisions, see ‘Loan impairment’ on page 93 and
‘Critical accounting polices – Loan impairment provisions on page 142.
The following table shows the elements of loan impairment provisions.
IFRS
2005 2004
£m £m
Provisions at the beginning of the year
Domestic 2,675 2,408
Foreign 1,470 1,477
4,145 3,885
Currency translation and other adjustments
Domestic (7) (8)
Foreign 58 (90)
51 (98)
Acquisitions of businesses
Domestic — 2
Foreign — 288
—290
Amounts written-off
Domestic (1,252) (901)
Foreign (788) (548)
(2,040) (1,449)
Recoveries of amounts written-off in previous years
Domestic 97 85
Foreign 75 59
172 144
Charged to income statement
Domestic 1,376 960
Foreign 327 442
1,703 1,402
Unwind of discount
Domestic (130) —
Foreign (14) —
(144) —
Provisions at the end of the year (1)
Domestic 2,759 2,546
Foreign 1,128 1,628
3,887 4,174
Gross loans and advances to customers
Domestic 232,319 194,654
Foreign 188,791 156,765
421,110 351,419
Closing customer provisions as a % of gross loans and advances to customers (2)
Domestic 1.19% 1.31%
Foreign 0.60% 1.04%
Total 0.92% 1.19%
Customer charge to income statement as a % of gross loans and advances to customers
Domestic 0.59% 0.49%
Foreign 0.17% 0.28%
Total 0.40% 0.40%
Notes:
(1) Includes closing provisions against loans and advances to banks of £3 million (2004 – £6 million).
(2) Closing customer provisions exclude closing provisions against loans and advances to banks.