RBS 2008 Annual Report Download - page 57

RBS Group Annual Report and Accounts 200856
Business review continued
During 2008 the division almost doubled the number of branches open
on a Saturday and introduced 1,000 MoneySense advisers into branches
to provide impartial advice to customers on managing their money.
Impairment losses increased 8% to £1,281 million, with an increase in
small business delinquencies and personal impairments reflecting the
changed economic environment, particularly in the second half. In the
small business segment impairments increased to £158 million (2007 –
£80 million). In the personal segment the increase in impairments has
been more modest, with mortgage impairment charges at £33 million
(2007 – £21 million) on a total book of £74.9 billion, while unsecured
personal lending impairments remained level with 2007 at £1,091 million
(2007 – £1,084 million). Higher Loan-to-Value ratio mortgages have
been restricted and affordability criteria tightened. The average LTV for
new business was 67% (2007 – 62%). Repossessions represented
0.06% of outstanding mortgage balances at 31 December 2008,
compared with a Council of Mortgage Lenders’ average at December
2008 of 0.21%.
Risk weighted assets totalled £63.8 billion at year end, a fall of 3% from
1 January 2008. The upward pressure from procyclicality, especially on
the mortgage book, and book growth was offset by the disposal of TPF
and improvements in Basel II methodologies.