RBS 2008 Annual Report Download - page 99

98
Business review continued
RBS Group Annual Report and Accounts 2008
Industry risk – geographical analysis (continued)
Group
Loans and Debt
advances to banks securities and Netting and
and customers equity shares Derivatives Other(1) Total offset(2)
2007 £m £m £m £m £m £m
Europe
Central and local government 2,371 30,593 132 — 33,096 9
Manufacturing 15,159 13 361 — 15,533 214
Construction 4,779 — 13 — 4,792 —
Finance 40,481 42,418 6,285 157 89,341 84,200
Service industries and business activities 46,500 540 481 — 47,521 24,648
Agriculture, forestry and fishing 4,650 2 42 — 4,694 —
Property 15,768 67 8—15,843 —
Individuals:
Home mortgages 81,557 18 ——81,575 —
Other 16,292 3,292 ——19,584 —
Finance leases and instalment credit 1,620 ———1,620 —
Interest accruals 2,872 1,101 ——3,973 —
Total Europe 232,049 78,044 7,322 157 317,572 109,071
Rest of the World
Central and local government 2,592 18,821 94 — 21,507 —
Manufacturing 8,078 46 738 — 8,862 —
Construction 825 79 3—907 1
Finance 37,502 16,919 3,797 1,210 59,428 6,059
Service industries and business activities 14,449 1,825 661 — 16,935 103
Agriculture, forestry and fishing 1,941 ———1,941 —
Property 2,898 217 28 — 3,143 —
Individuals:
Home mortgages 1,740 ———1,740 —
Other 12,261 ———12,261 3
Finance leases and instalment credit 18 — 254 45 317 —
Interest accruals 945 11 ——956 —
Total Rest of the World 83,249 37,918 5,575 1,255 127,997 6,166
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 442,532 204,587 259,294 17,178 923,591 299,705
Service industries and business activities 151,822 21,356 5,787 1 178,966 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
1,054,450 347,756 277,402 17,466 1,697,074 340,799
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.