RBS 2009 Annual Report Download - page 149

Business review
Risk, capital and liquidity management
147RBS Group Annual Report and Accounts 2009
Movement in loan impairment provisions
The following table shows the movement in the provision for impairment losses for loans and advances.
Individually assessed Collectively 2009 2008 2007
Banks Customers assessed Latent Total Total Total
£m £m £m £m £m £m £m
Group before RFS Holdings minority interest
At 1 January 127 3,913 3,692 1,719 9,451 4,972 4,501
Transfers to disposal groups — (152) (111) (58) (321) ——
Currency translation and other adjustments (4) (263) (56) (105) (428) 1,007 72
Acquisition of subsidiaries —————— 129
Disposals — (65) — — (65) (178) —
Amounts written-off — (3,609) (2,869) — (6,478) (2,897) (1,914)
Recoveries of amounts previously written-off — 38 287 — 325 261 275
Charge to income statement (1) 34 7,878 3,994 1,184 13,090 6,478 2,082
Discount unwind — (239) (162) — (401) (192) (173)
At 31 December (2) 157 7,501 4,775 2,740 15,173 9,451 4,972
Group
At 1 January 127 4,843 4,102 1,944 11,016 6,452 3,935
Transfers to disposal groups — (155) (111) (58) (324) (767) —
Currency translation and other adjustments (4) (326) (78) (122) (530) 1,441 183
Acquisition of subsidiaries —————— 2,221
Disposals — (65) — — (65) (178) —
Amounts written-off — (3,940) (2,999) — (6,939) (3,148) (2,011)
Recoveries of amounts previously written-off — 94 305 — 399 319 342
Charge to income statement (1) 34 8,591 4,197 1,312 14,134 7,091 1,946
Discount unwind — (246) (162) — (408) (194) (164)
At 31 December (2) 157 8,796 5,254 3,076 17,283 11,016 6,452
Notes:
(1) Includes charge relating to loans and advances to banks of £34 million (2008 – £118 million; 2007 – nil).
(2) Includes closing provisions relating to loans and advances to banks of £157 million (2008 – £127 million; 2007 – £3 million).