RBS 2009 Annual Report Download - page 124

Business review continued
Capital* continued
Capital resources continued
The Group’s regulatory capital resources on a full consolidation basis at 31 December 2009 and in accordance with the FSA definitions were
as follows:
2009 2008
Composition of regulatory capital (statutory) £m £m
Tier 1
Ordinary and B shareholders' equity 69,890 45,525
Minority interests 16,895 21,619
Adjustments for:
– Goodwill and other intangible assets – continuing (17,847) (20,049)
– Goodwill and other intangible assets of discontinued businesses (238) —
– Unrealised losses on available-for-sale debt securities 1,888 3,687
– Reserves arising on revaluation of property and unrealised gains on available-for-sale equities (207) (984)
– Reallocation of preference shares and innovative securities (656) (1,813)
– Other regulatory adjustments (1,184) (362)
Less excess of expected losses over provisions net of tax (2,558) (770)
Less securitisation positions (1,353) (663)
Less APS first loss (5,106) —
Core Tier 1 capital 59,524 46,190
Preference shares 11,265 16,655
Innovative Tier 1 securities 5,213 7,383
Tax on the excess of expected losses over provisions 1,020 308
Less deductions from Tier 1 capital (601) (689)
Total Tier 1 capital 76,421 69,847
Tier 2
Reserves arising on revaluation of property and unrealised gains on available-for-sale equities 207 984
Collective impairment allowances 796 666
Perpetual subordinated debt 4,950 9,829
Term subordinated debt 20,063 23,162
Minority and other interests in Tier 2 capital 11 11
Less deductions from Tier 2 capital (5,532) (2,429)
Less APS first loss (5,106) —
Total Tier 2 capital 15,389 32,223
Tier 3 —260
Supervisory deductions
Unconsolidated investments (4,472) (4,044)
Other (93) (111)
Deductions from total capital (4,565) (4,155)
Total regulatory capital 87,245 98,175
Risk-weighted assets
Credit risk 513,200 551,300
Counterparty risk 56,500 61,100
Market risk 65,000 46,500
Operational risk 33,900 36,900
668,600 695,800
APS relief (127,600) —
541,000 695,800
Risk asset ratio
Core Tier 1 11.0% 6.6%
Tier 1 14.1% 10.0%
Total 16.1% 14.1%
RBS Group Annual Report and Accounts 2009122
* unaudited