RBS 2009 Annual Report Download - page 155

Business review
Risk, capital and liquidity management
153RBS Group Annual Report and Accounts 2009
Loans and
advances Netting
to banks and and
customers Securities Derivatives Other
(1) Total off-set(2)
2008 £m £m £m £m £m £m
UK 538,917 135,668 569,098 8,059 1,251,742 499,426
US 132,107 64,476 366,113 6,829 569,525 326,473
Europe 293,498 71,293 12,209 3,718 380,718 843
RoW 59,413 22,652 45,139 552 127,756 31,926
1,023,935 294,089 992,559 19,158 2,329,741 858,668
Central and local government 15,712 102,293 6,382 197 124,584 1,987
Manufacturing 75,489 2,136 14,160 308 92,093 6,498
Construction 20,907 214 984 32 22,137 1,488
Finance 285,550 160,842 939,154 16,039 1,401,585 836,428
Service industries and business activities 190,537 24,355 25,933 2,470 243,295 10,858
Agriculture, forestry and fishing 9,055 144 45 16 9,260 87
Property 106,633 2,512 5,586 71 114,802 1,067
Individuals:
Home mortgages 234,598 50 18 — 234,666 52
Other 55,960 279 272 25 56,536 84
Finance lease and instalment credit 22,355 23 25 — 22,403 119
Interest accruals 7,139 1,241 — — 8,380 —
1,023,935 294,089 992,559 19,158 2,329,741 858,668
2007
UK 595,347 161,873 254,797 12,746 1,024,763 202,503
US 143,805 69,921 9,708 3,308 226,742 23,059
Europe 232,049 78,044 7,322 157 317,572 109,071
RoW 83,249 37,918 5,575 1,255 127,997 6,166
1,054,450 347,756 277,402 17,466 1,697,074 340,799
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 (3) 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 lease 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 £12,033 million at 31 December 2009 (2008 – £17,832 million; 2007 – £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 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.
(3) Loans made by the Group’s consolidated conduits to asset owning companies are included within finance.