RBS 2009 Annual Report Download - page 182

Business review continued
RBS Group Annual Report and Accounts 2009180
Asset Protection Scheme* continued
Covered assets continued
Undrawn
Provisions and commitments
Carrying adjustments and other Covered
value (2) to par value (3) Par value (4) adjustments (5) amount
£m £m £m £m £m
2008 (a) (b) (a)+(b)=(c) (d) (c)+(d)=(e)
Residential mortgages 15,283 144 15,427 — 15,427
Consumer finance 45,691 2,346 48,037 6,506 54,543
personal loans 10,267 1,687 11,954 1,440 13,394
business and commercial loans 35,424 659 36,083 5,066 41,149
Commercial real estate finance 32,131 847 32,978 6,872 39,850
Leveraged finance 19,792 2,875 22,667 5,067 27,734
Lease finance 2,012 138 2,150 288 2,438
Project finance 1,761 58 1,819 424 2,243
Structured finance 10,370 8,012 18,382 809 19,191
structured loans 2,761 155 2,916 597 3,513
RMBS 1,232 1,547 2,779 — 2,779
CMBS 1,481 371 1,852 — 1,852
CDOs & CLOs 2,390 5,168 7,558 212 7,770
other ABS 2,506 771 3,277 — 3,277
Loans 50,563 1,142 51,705 28,272 79,977
Bonds (6) 1,467 85 1,552 11 1,563
Derivatives 21,093 6,575 27,668 11,325 38,993
monoline insurers 5,620 5,892 11,512 10,758 22,270
other counterparties 15,473 683 16,156 567 16,723
200,163 22,222 222,385 59,574 281,959
Further analysed:
Loans and advances 169,994 7,705 177,699 48,026 225,725
Debt securities 9,076 7,942 17,018 223 17,241
Derivatives 21,093 6,575 27,668 11,325 38,993
200,163 22,222 222,385 59,574 281,959
By division:
UK Retail 18,982 1,492 20,474 1,415 21,889
UK Corporate 39,608 285 39,893 12,243 52,136
Global Banking & Markets 47,230 1,640 48,870 21,987 70,857
Ulster Bank 11,705 234 11,939 1,163 13,102
Non-Core 82,638 18,571 101,209 22,766 123,975
200,163 22,222 222,385 59,574 281,959
Notes:
(1) The balances at 31 December 2008 and 31 December 2009 within specific asset classes reflect the Group’s application of the asset class definitions in the Scheme rules, particularly in relation to
consumer finance, commercial real estate finance and loans.
(2) Carrying value represents the amounts recorded on the balance sheet and includes assets classified as loans and receivables (LAR), fair value through profit or loss (FVTPL) and available-for-sale (AFS).
(3) Provisions and adjustments to par value comprise:
•impairments on LAR and AFS debt securities;
•credit valuation adjustments relating to derivatives;
•adjustment to par value on other FVTPL assets;
•add-back of write-offs of £6,079 million, as these are covered by the Scheme rules; and
•available-for-sale reserves on debt securities of £1,113 million (2008 – £1,315 million).
(4) Undrawn commitments and other adjustments include:
•undrawn commitments and other contingent liabilities;
•potential future exposures and other adjustments to covered amount relating to derivative contracts; and
•adjustments to covered amount in accordance with the Scheme rules (restriction of cover for rollovers (loans and commercial real estate), maintenance of covered amount as at
31 December 2008 for two years (consumer finance)
(5) Comprises non asset-backed securities.
* unaudited