RBS 2009 Annual Report Download - page 340

RBS Group Annual Report and Accounts 2009338
Notes on the accounts continued
Pre-acquisition Recognised
carrying Disposal Fair value acquisition
amounts groups (1) adjustments values
£m £m £m £m
Cash and balances at central banks 7,263 (186) — 7,077
Loans and advances to banks 120,120 (3,646) — 116,474
Loans and advances to customers 314,287 (26,158) (2,542) 285,587
Treasury and other eligible bills and debt and equity securities 166,018 (3,804) — 162,214
Derivatives 86,695 (322) — 86,373
Intangible assets 4,239 (3,522) 5,070 5,787
Property, plant and equipment 2,062 (747) 170 1,485
Other assets 32,710 (7) 1,177 33,880
Assets of disposal groups (1) 2,987 38,392 689 42,068
Deposits by banks (160,906) 2,808 1 (158,097)
Customer accounts (253,583) 13,786 (150) (239,947)
Debt securities in issue (134,630) 5,937 225 (128,468)
Settlement balances and short positions (44,748) 36 — (44,712)
Derivatives (85,491) 417 — (85,074)
Subordinated liabilities (11,748) 868 624 (10,256)
Other liabilities (21,268) 271 (1,928) (22,925)
Liabilities of disposal groups (1) (2,377) (24,123) — (26,500)
Net identifiable assets and liabilities 21,630 — 3,336 24,966
Minority interests (242)
Goodwill on acquisition 23,851
Consideration 48,575
Satisfied by:
Issue of 531 million ordinary shares of the company 2,719
Cash 45,786
Fees and expenses relating to the acquisition 70
Consideration 48,575
Net cash:
Cash consideration 45,856
Cash acquired (60,093)
(14,237)
Note:
(1) Banca Antonveneta SpA. and ABN AMRO’s asset management business were identified as disposal groups on the acquisition of ABN AMRO and sold during 2008. In addition, under the terms of
the Consortium and Shareholders’ Agreement, consortium members other than the Group agreed to acquire, in due course, various ABN AMRO businesses including operations in Brazil (sold 1
July 2008), the commercial and retail businesses in the Netherlands, the private clients business and Interbanca.
It is estimated that the Group would have reported total income of £37.2 billion and profit after tax of £7.7 billion from continuing operations for the year
ended 31 December 2007 had all acquisitions occurred on 1 January 2007.
34 Analysis of the net investment in business interests and
intangible assets
(a) Acquisition of ABN AMRO
On 17 October 2007, the Group, through its subsidiary RFS Holdings
B.V. (RFS), acquired 99% of the ordinary shares of ABN AMRO Holding
N.V., the holding company of a major European banking group based in
the Netherlands with subsidiaries that undertake commercial banking
operations, investment banking and other related financial activities.
During 2008, RFS acquired the remaining 1% of the ordinary shares of
ABN AMRO.
The fair values of ABN AMRO’s assets and liabilities at the date of
acquisition were as follows: