RBS 2008 Annual Report Download - page 213

RBS Group Annual Report and Accounts 2008212
Notes on the accounts continued
12 Past due and impaired financial assets
The following table shows the movement in the provision for impairment losses for loans and advances.
Group
Individually Collectively Total
assessed assessed Latent 2008 2007 2006
£m £m £m £m £m £m
At 1 January 1,568 3,834 1,050 6,452 3,935 3,887
Transfer to disposal groups (222) (351) (194) (767) ——
Currency translation and other adjustments 1,065 81 295 1,441 137 (61)
Acquisition of subsidiaries ————2,221 —
Disposal of subsidiaries — (149) (29) (178) ——
Net increase in provisions of discontinued operations ————46 —
Amounts written-off (1,165) (1,983) — (3,148) (2,011) (1,841)
Recoveries of amounts previously written-off 113 206 — 319 342 215
Charged to the income statement 3,663 2,606 822 7,091 1,946 1,877
Unwind of discount (52) (142) — (194) (164) (142)
At 31 December (1) 4,970 4,102 1,944 11,016 6,452 3,935
Notes:
(1) The provision for impairment losses at 31 December 2008 includes £127 million relating to loans and advances to banks (2007 – £3 million; 2006 – £2 million).
(2) There is no provision for impairment losses in the company.
Group
2008 2007 2006
Impairment losses charged to the income statement £m £m £m
Loans and advances to customers 6,973 1,946 1,877
Loans and advances to banks 118 ——
7,091 1,946 1,877
Debt securities 878 20 —
Equity shares 103 21
981 22 1
8,072 1,968 1,878
Group
2008 2007 2006
£m £m £m
Gross income not recognised but which would have been recognised under the
original terms of non-accrual and restructured loans
Domestic 393 390 370
Foreign 342 155 77
735 545 447
Interest on non-accrual and restructured loans included in net interest income
Domestic 150 165 142
Foreign 43 16 15
193 181 157