RBS 2007 Annual Report Download - page 154

RBS Group • Annual Report and Accounts 2007
152
Notes on the accounts continued
Financial statements
11 Asset quality (continued)
Industry risk – geographical analysis
Group
Loans and Treasury bills,
advances to banks debt securities Netting and
and customers and equity shares Derivatives Other(1) Total offset(2)
2007 £m £m £m £m £m £m
Total
Central and local government 10,077 103,205 4,148 212 117,642 1,540
Manufacturing 51,719 3,418 6,010 — 61,147 4,259
Construction 18,760 631 757 — 20,148 1,685
Finance 443,233 204,587 319,303 17,178 984,301 359,713
Service industries and business activities 151,822 21,356 5,786 1 178,965 31,456
Agriculture, forestry and fishing 9,181 72 100 — 9,353 104
Property 88,837 5,013 1,005 7 94,862 2,033
Individuals
Home mortgages 185,095 1,813 5 — 186,913 _
Other 68,179 4,432 15 23 72,649 10
Finance leases and instalment credit 19,498 131 281 45 19,955 5
Interest accruals 8,750 3,098 — — 11,848 2
1,055,151 347,756 337,410 17,466 1,757,783 400,807
Notes:
(1) Includes settlement balances of £16,589 million.
(2) This column shows the amount by which the Group’s credit risk exposure is reduced through arrangements, such as master netting agreements, which give the Group a legal
right to set-off the financial asset against a financial liability due to the same counterparty. In addition, the Group holds collateral in respect of individual loans and advances to
banks and to customers. This collateral includes mortgages over property (both personal and commercial); charges over business assets such as plant, inventories and trade
debtors; and guarantees of lending from parties other than the borrower. The Group obtains collateral in the form of securities in reverse repurchase agreements. Cash and
securities are received as collateral in respect of derivative transactions.
Group
Loans and Treasury bills,
advances to banks debt securities Netting and
and customers and equity shares Derivatives Other(1) Total offset(2)
2006 £m £m £m £m £m £m
UK
Central and local government 7,629 28,211 345 1,624 37,809 1,553
Manufacturing 15,259 521 915 49 16,744 4,540
Construction 9,667 115 179 3 9,964 1,458
Finance 128,463 47,274 80,577 2,199 258,513 93,403
Service industries and business activities 57,895 4,330 2,616 769 65,610 5,289
Agriculture, forestry and fishing 2,819 61 3 — 2,883 99
Property 51,303 561 646 11 52,521 1,291
Individuals
Home mortgages 70,884 — 1 — 70,885 —
Other 28,594 861 29 58 29,542 61
Finance leases and instalment credit 14,218 5 — — 14,223 189
Interest accruals 1,890 62 — — 1,952 —
Total UK 388,621 82,001 85,311 4,713 560,646 107,883
US
Central and local government 435 24,013 — 102 24,550 1
Manufacturing 3,842 251 157 — 4,250 52
Construction 790 48 12 — 850 —
Finance 31,785 28,333 29,989 3,495 93,602 26,037
Service industries and business activities 10,678 1,267 168 — 12,113 22
Agriculture, forestry and fishing 64———64—
Property 5,781 — 24 — 5,805 19
Individuals
Home mortgages 34,230———34,230 —
Other 11,643———11,643 —
Finance leases and instalment credit 2,282———2,282 —
Interest accruals 526 343 — — 869 2
Total US 102,056 54,255 30,350 3,597 190,258 26,133