RBS 2009 Annual Report Download - page 302

RBS Group Annual Report and Accounts 2009300
Notes on the accounts continued
16 Investments in Group undertakings
Investments in Group undertakings are carried at cost less impairment. Movements during the year were as follows:
Company
2009 2008 2007
£m £m £m
At 1 January 42,196 43,542 21,784
Currency translation and other adjustments (566) 2,839 535
Additional investments in Group undertakings 36,202 10,323 3,663
Additions —26 17,566
Redemption of investments in Group undertakings (7,908) ——
Disposals (19) (213) (6)
Impairment of investment in RFS Holdings B.V. (5,025) (14,321) —
Other impairments (114) ——
At 31 December 64,766 42,196 43,542
Country of
incorporation
Nature of and principal Group
business area of operation interest
The Royal Bank of Scotland plc Banking Great Britain 100%
National Westminster Bank Plc (1) Banking Great Britain 100%
Citizens Financial Group, Inc. Banking US 100%
Coutts & Company (2) Private banking Great Britain 100%
RBS Securities Inc. Broker dealer US 100%
RBS Insurance Group Limited Insurance Great Britain 100%
Ulster Bank Limited (3) Banking Northern Ireland 100%
ABN AMRO Holding N.V. (4) Banking The Netherlands 38%
Notes:
(1) The company does not hold any of the NatWest preference shares in issue.
(2) Coutts & Company is incorporated with unlimited liability. Its registered office is 440 Strand, London WC2R 0QS.
(3) Ulster Bank Limited and its subsidiaries also operate in the Republic of Ireland.
(4) RFS Holdings B.V. (RFS) owns 100% of the outstanding shares of ABN AMRO Holding N.V. (ABN AMRO). The company owns 38% of RFS; the balance of shares is held by the State of the
Netherlands, successor to Fortis N.V., Fortis SA/NV, and Banco Santander S.A. (the consortium members). Although the company does not control a majority of the voting rights in RFS, through the
terms of the Consortium and Shareholders’ Agreement and RFS’s Articles of Association, it controls the board of RFS and RFS is a subsidiary of the company. The capital and income rights of
shares issued by RFS are linked to the net assets and income of the ABN AMRO business units which the individual consortium members have agreed to acquire. In preparation for the divestment
of the ABN AMRO businesses to be acquired by the Dutch State, on 6 February 2010, the businesses of ABN AMRO acquired by the Dutch State were legally demerged from the RBS acquired
businesses. As a result, there are now two separate banks within ABN AMRO Holding N.V., The Royal Bank of Scotland N.V. and the new entity named ABN AMRO Bank N.V., each licensed
separately by the Dutch Central Bank. Both banks will be governed by the current managing and supervisory boards of ABN AMRO Holding N.V. until the legal separation of the new ABN AMRO
Bank N.V. from ABN AMRO Holding N.V., which is expected to take place within two months of the legal demerger and is subject to approval by the Dutch Central Bank. From that point RBS will
cease to consolidate the Consortium Members’ interest in ABN AMRO in the RBS Group statutory results.
The principal subsidiary undertakings of the company are shown below.
Their capital consists of ordinary and preference shares which are
unlisted with the exception of certain preference shares issued by
NatWest and ABN AMRO. The Royal Bank of Scotland plc, RBS
Insurance Group Limited and RFS Holdings B.V. are directly owned by
the company, and all of the other subsidiary undertakings are owned
directly, or indirectly through intermediate holding companies, by these
companies. All of these subsidiaries are included in the Group’s
consolidated financial statements and have an accounting reference
date of 31 December.
The above information is provided in relation to the principal related undertakings as permitted by Section 410 (2) of the Companies Act 2006.
Full information on all related undertakings will be included in the Annual Return delivered to the Registrar of Companies for Scotland.