RBS 2005 Annual Report Download - page 247

section
04
Additional
information
245
Additional information
Annual Report and Accounts 2005
Provisions for bad and doubtful debts
The following table shows the elements of provisions for bad and doubtful debts under UK GAAP.
UK GAAP
2004 2003 2002 2001
£m £m £m £m
Provisions at the beginning of the year
Domestic 2,452 2,581 2,467 2,370
Foreign 1,477 1,346 1,186 783
3,929 3,927 3,653 3,153
Currency translation and other adjustments
Domestic (8) (2) (4) 4
Foreign (90) (60) (58) 13
(98) (62) (62) 17
Acquisitions of businesses
Domestic 2 — 11 83
Foreign 288 50 12 171
290 50 23 254
Amounts written-off
Domestic (920) (1,097) (743) (645)
Foreign (548) (422) (293) (190)
(1,468) (1,519) (1,036) (835)
Recoveries of amounts written-off in previous years
Domestic 88 38 37 54
Foreign 59 34 26 26
147 72 63 80
Charged to profit and loss account
Domestic 986 932 813 601
Foreign 442 529 473 383
1,428 1,461 1,286 984
Provisions at the end of the year (1)
Domestic 2,600 2,452 2,581 2,467
Foreign 1,628 1,477 1,346 1,186
4,228 3,929 3,927 3,653
Gross loans and advances to customers
Domestic 196,589 167,377 145,274 127,650
Foreign 153,102 89,076 81,970 66,487
349,691 256,453 227,244 194,137
Closing customer provisions as a % of gross loans and advances to customers (2)
Domestic 1.32% 1.46% 1.78% 1.93%
Foreign 1.06% 1.65% 1.63% 1.77%
Total 1.21% 1.53% 1.72% 1.88%
Customer charge against profit as a % of gross loans and advances to customers
Domestic 0.50% 0.56% 0.56% 0.47%
Foreign 0.29% 0.59% 0.58% 0.58%
Total 0.41% 0.57% 0.57% 0.51%
Notes:
(1) Includes closing provisions against loans and advances to banks of £6 million in 2004 (2003 – £7 million; 2002 – £7 million; 2001 – £8 million).
(2) Closing customer provisions exclude closing provisions against loans and advances to banks.