RBS 2008 Annual Report Download - page 214

213RBS Group Annual Report and Accounts 2008
The following table shows analysis of impaired financial assets.
Group
2008 2007
Net book Net book
Cost Provision value Cost Provision value
£m £m £m £m £m £m
Impaired financial assets
Loans and advances to banks (1) 129 127 2 25 3 22
Loans and advances to customers (2) 19,350 8,945 10,405 10,337 5,399 4,938
Debt securities (1) 52 37 15 541
Equity shares (1) 260 173 87 142 70 72
19,791 9,282 10,509 10,509 5,476 5,033
Notes:
(1) Impairment provisions individually assessed.
(2) Impairment provisions individually assessed on balances of £11.313 million (2007 – £3,178 million).
2008 2007
Group £m £m
Residential property 41 32
Other property 6 8
Cash 59 18
Other assets 30 5
136 63
In general, the Group seeks to dispose of property and other assets obtained by taking possession of collateral that are not readily convertible into
cash as rapidly as the market for the individual asset permits.
Loans that have been renegotiated in the past 12 months that would otherwise have been past due or impaired amounted to £2,637 million as at
31 December 2008 (2007 – £930 million).
The Group holds collateral in respect of certain loans and advances to
banks and to customers that are past due or impaired. Such 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 following table shows financial and non-financial assets, recognised
on the Group's balance sheet, obtained during the year by taking
possession of collateral or calling on other credit enhancements.