RBS 2009 Annual Report Download - page 274

Notes on the accounts continued
RBS Group Annual Report and Accounts 2009272
11 Financial instruments continued
Group
Designated Other
as at fair financial Non
value instruments financial
Held-for- through Hedging Available- Loans and (amortised Finance assets/
trading profit or loss derivatives for-sale receivables cost) leases liabilities Total
2007 £m £m £m £m £m £m £m £m £m
Assets
Cash and balances at central banks — — — 17,866 17,866
Loans and advances to banks (1) 71,639 — — 147,821 219,460
Loans and advances to customers (2, 3) 103,811 3,067 — 709,090 12,570 828,538
Debt securities (4) 190,671 5,777 95,536 2,672 294,656
Equity shares 37,546 7,866 7,614 — 53,026
Settlement balances — — — 16,589 16,589
Derivatives 274,849 2,553 277,402
Intangible assets 49,916 49,916
Property, plant and equipment 18,745 18,745
Deferred taxation 3,119 3,119
Prepayments, accrued income
and other assets — — — 877 14,785 15,662
Assets of disposal groups 45,850 45,850
678,516 16,710 2,553 103,150 894,915 12,570 132,415 1,840,829
Liabilities
Deposits by banks (5) 65,491 — 246,803 312,294
Customer accounts (6, 7) 60,426 7,505 614,432 682,363
Debt securities in issue (8, 9) 9,455 41,834 222,883 274,172
Settlement balances
and short positions 73,501 — 17,520 91,021
Derivatives 269,343 2,709 272,052
Accruals, deferred income
and other liabilities 209 — 1,545 19 32,435 34,208
Retirement benefit liabilities 460 460
Deferred taxation 5,400 5,400
Insurance liabilities 10,162 10,162
Subordinated liabilities — 897 37,146 38,043
Liabilities of disposal groups 29,228 29,228
478,425 50,236 2,709 1,140,329 19 77,685 1,749,403
Equity 91,426
1,840,829
Notes:
(1) Includes reverse repurchase agreements of £35,097 million (2008 – £58,771 million; 2007 – £175,941 million) and items in the course of collection from other banks of £2,533 million (2008 –
£2,888 million; 2007 – £3,095 million).
(2) Includes reverse repurchase agreements of £41,040 million (2008 – £39,313 million; 2007 – £142,357 million).
(3) The change in fair value of loans and advances to customers designated as at fair value through profit and loss attributable to changes in credit risk was £157 million income for the year and
cumulatively a credit of £140 million (2008 – charge £328 million; cumulative £440 million credit; 2007 – not material).
(4) Includes treasury bills and similar securities of £45,617 million (2008 – £31,509 million; 2007 – £16,315 million) and other eligible bills of £34,794 million (2008 – £25,028 million; 2007 – £1,914
million).
(5) Includes repurchase agreements of £38,006 million (2008 – £83,666 million; 2007 – £163,038 million) and items in the course of transmission to other banks of £770 million (2008 – £542 million;
2007 – £372 million).
(6) Includes repurchase agreements of £68,353 million (2008 – £58,143 million; 2007 – £134,916 million).
(7) The carrying amount of other customer accounts designated as at fair value through profit or loss is £101 million higher (2008 – £47 million lower; 2007 – £77 million higher) than the principal
amount. No amounts have been recognised in profit or loss for changes in credit risk associated with these liabilities as the changes are immaterial measured as the change in fair value from
movements in the period in the credit risk premium payable. The amounts include investment contracts with a carrying value of £5,170 million (2008 – £5,364 million; 2007 – £5,555 million).
(8) Comprises bonds and medium term notes of £164,900 million (2008 – £156,841 million; 2007 – £119,578 million) and certificates of deposit and other commercial paper of £102,668 million (2008
– £143,448 million; 2007 – £154,594 million).
(9) £155 million (2008 – £1,054 million; 2007 – £162 million) has been recognised in profit or loss for changes in credit risk associated with debt securities in issue designated as at fair value through
profit or loss measured as the change in fair value from movements in the period in the credit risk premium payable by the Group. The carrying amount is £810 million (2008 – £1,145 million; 2007
– £317 million) lower than the principal amount.
(10) During 2009 and 2008 the Group reclassified financial assets from the held-for-trading and available-for-sale categories into the loans and receivables category and during 2008 from the
held-for-trading category into the available-for-sale category (see pages 275 to 277).