RBS 2006 Annual Report Download - page 156
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155
RBS Group • Annual Report and Accounts 2006
Financial statements
2006 2005 2004
£m £m £m
Gross income not recognised but which would have been
recognised under the original terms of non-accrual and restructured loans
Domestic 370 334 235
Foreign 77 62 58
447 396 293
Interest on non-accrual and restructured loans included in net interest income
Domestic 142 130 58
Foreign 15 14 7
157 144 65
16 Impaired and past-due financial assets 2006 2005
Net book Net book
Cost Provision value Cost Provision value
Group £m £m £m £m £m £m
Impaired financial assets
Loans and receivables and finance leases 6,232 3,342 2,890 5,926 3,344 2,582
Available-for-sale 185 88 97 316 132 184
6,417 3,430 2,987 6,242 3,476 2,766
Group
2006 2005 2004
£m £m £m
Impairment losses charged to the income statement
Loans and receivables and finance leases (see table below) 1,877 1,703
Available-for-sale 14
Loans and advances 1,402
Amounts written-off fixed asset investments 83
Total 1,878 1,707 1,485
The following table shows the movement in the provision for impairment losses for loans and receivables and finance leases.
Group
Individually Collectively Total
assessed assessed Latent 2006 2005 2004
£m £m £m £m £m £m
At 1 January 757 2,587 543 3,887 4,174 3,885
Implementation of IAS 39 on 1 January 2005 — — — — (29) —
Currency translation and other adjustments (19) (5) (37) (61) 51 (98)
Acquisitions — — — — — 290
Amounts written-off(1) (255) (1,586) — (1,841) (2,040) (1,449)
Recoveries of amounts previously written-off 24 191 — 215 172 144
Charged to the income statement 217 1,573 87 1,877 1,703 1,402
Unwind of discount (27) (115) — (142) (144) —
At 31 December(2) 697 2,645 593 3,935 3,887 4,174
Notes:
(1) Amounts written-off include £2 million in 2005 relating to loans and advances to banks.
(2) Impairment losses at 31 December 2006 include £2 million relating to loans and advances to banks (2005 – £3 million).
Loan impairment
At 31 December 2006, the Group’s non-accrual loans, loans
past due 90 days and troubled debt restructurings amounted
to £6,337 million (2005 – £5,937 million). Loan impairment
provisions of £3,342 million (2005 – £3,344 million) were held
against these loans. Average non-accrual loans, loans past due
90 days and troubled debt restructurings for the year ended
31 December 2006 were £6,163 million (2005 – £5,923 million;
2004 – £5,264 million).