RBS 2005 Annual Report Download - page 93

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section
01
Operating and
financial review
91
Operating and financial review
Annual Report and Accounts 2005
Individuals
Public sectors and quasi government
Property
Banks
Financial services
Transport and storage
Manufacturing
Wholesale and retail trade
Tourism and leisure
Building and construction
Business services
Technology, media and telecommunications
Power and water
Natural resources and nuclear
Agriculture and fisheries
5% 10% 15% 20% 25% 30%
2005
2004
Note: Graph data are shown net of provisions and reverse repurchase agreements.
As at 31 December 2005, 30% of credit risk assets (2004 – 30%) relate to individuals (personal and retail customers) and include
mortgage lending and other smaller loans that are intrinsically well-diversified. Corporate industry sectors, including public sector
and quasi government, account for 48% (2004 – 46%) of credit risk assets, with banks and other financial institutions representing
the remaining 22% (2004 – 24%) of credit risk assets.
Distribution of credit risk assets by industry sector
Industry analysis plays an important part in assessing potential concentration risk from within the loan portfolio. Particular attention
is given to industry sectors where the Group believes there is a high degree of risk or potential for volatility in the future.
The Group also uses scenario analysis and stress testing in order to monitor the risk to clusters of correlated industry sectors.