RBS 2008 Annual Report Download - page 72

71RBS Group Annual Report and Accounts 2008
Movements in the value of derivatives, assets and liabilities, primarily
reflect changes in interest and exchange rates, together with growth in
trading volumes.
Intangible assets declined by £29.9 billion, 60% to £20.0 billion,
reflecting impairment of £32.6 billion and the disposals of the Asset
Management business of ABN AMRO, Banca Antonveneta and the
Banco Real and other businesses of ABN AMRO acquired by
Santander, £7.2 billion. This was offset by exchange rate movements of
£11.8 billion, goodwill of £0.2 billion arising on the Sempra joint venture
and £0.3 billion on the buyout of the outstanding ABN AMRO
shareholdings not previously owned by the Group.
Deferred tax assets increased £4.0 billion to £7.1 billion principally due
to carried forward trading losses.
Prepayments, accrued income and other assets were up £8.7 billion,
56% to £24.4 billion.
Assets and liabilities of disposal groups decreased following
completion of the sales of the Asset Management business of ABN
AMRO to Fortis, Banca Antonveneta to Monte dei Paschi di Sienna and
the majority of ABN AMRO’s Private Equity business to third parties.
Deposits by banks declined by £54.3 billion, 17% to £258.0 billion. This
reflected decreased repurchase agreements and stock lending
(‘repos’), down £79.4 billion, 49% to £83.7 billion partly offset by
increased inter-bank deposits, up £25.1 billion, 17% to £174.4 billion.
Customer accounts were down £42.9 billion, 6% to £639.5 billion or
£21.6 billion, 3% excluding disposals of subsidiaries. Within this, repos
decreased £76.8 billion, 57% to £58.1 billion. Excluding repos, deposits
rose by £33.9 billion, 6%, to £581.4 billion.
Debt securities in issue were up £26.1 billion, 10% to £300.3 billion
mainly resulting from the effect of exchange rate movements.
Settlement balances and short positions were down £36.7 billion, 40%,
to £54.3 billion reflecting reduced customer activity.
Accruals, deferred income and other liabilities decreased £2.7 billion,
8%, to £31.5 billion primarily as a result of disposals.
Retirement benefit liabilities increased by £1.6 billion to £2.0 billion due
to reduced asset values only partly offset by the effect of increased
discount rates.
Deferred taxation liabilities decreased by £1.2 billion, 23% to £4.2 billion
due in part to the sale of Angel Trains.
Subordinated liabilities were up £11.1 billion, 29% to £49.2 billion. The
issue of £2.4 billion dated loan capital and the effect of exchange rate
and other adjustments, £11.3 billion, were partially offset by the
redemption of £1.6 billion of dated loan capital, £0.1 billion undated
loan capital and £0.9 billion in respect of the disposal of the Banco
Real and other businesses of ABN AMRO to Santander.
Equity minority interests decreased by £16.8 billion, 44% to £21.6
billion. Attributable losses of £10.8 billion, including £15.7 billion of write
downs of goodwill and other intangible assets in respect of the State of
the Netherlands investment in RFS Holdings, equity withdrawals of
£13.6 billion, including £12.3 billion by Santander following the
disposals of Banca Antonveneta and Banco Real, reductions in the
market value of available-for-sale securities of £1.4 billion, mainly the
investment in Bank of China attributable to minority shareholders,
movements in cash flow hedging reserves, £0.8 billion, actuarial losses
on defined benefit pension schemes net of tax of £0.5 billion and
dividends paid of £0.3 billion, were partially offset by effect of
exchange rate movements of £9.1 billion of which £8.0 billion related to
the State of the Netherlands and Santander investments in RFS
Holdings, the £0.8 billion equity raised as part of the Sempra joint
venture and £0.4 billion additional equity in respect of the buy-out of the
ABN AMRO minority shareholders.
Owners’ equity increased by £5.8 billion, 11% to £58.9 billion. Proceeds
of £12.0 billion from the rights issue, net of £246 million expenses, and
£19.7 billion from the placing and open offer, net of expenses of £265
million, together with exchange rate movements of £6.8 billion were
partially offset by the attributable loss for the period of £23.5 billion, a
£4.6 billion decrease in available-for-sale reserves, net of tax, reflecting
£1.0 billion in the Group’s share in the investment in Bank of China and
£3.6 billion in other securities, the majority of which related to Global
Banking & Markets, actuarial losses net of tax of £1.3 billion, the
payment of the 2007 final ordinary dividend of £2.3 billion and other
dividends of £0.6 billion, and a reduction in the cash flow hedging
reserve of £0.3 billion.