RBS 2009 Annual Report Download - page 358

Additional information continued
RBS Group Annual Report and Accounts 2009356
2009 2008 2007 2006 2005
£m £m £m £m £m
Loans accounted for on a non-accrual basis (2):
Domestic 13,572 8,588 5,599 5,420 4,977
Foreign 21,453 10,891 4,763 812 949
Total 35,025 19,479 10,362 6,232 5,926
Accruing loans which are contractually overdue
90 days or more as to principal or interest (3):
Domestic 2,224 1,201 217 81 2
Foreign 1,000 581 152 24 7
Total 3,224 1,782 369 105 9
Loans not included above which are classified as
‘troubled debt restructurings’ by the SEC:
Domestic ———— 2
Foreign —————
Total ———— 2
Total risk elements in lending 38,249 21,261 10,731 6,337 5,937
Potential problem loans (4)
Domestic 424 218 63 47 14
Foreign 585 860855
Total potential problem loans 1,009 226 671 52 19
Closing provisions for impairment as a % of total risk elements in lending 46% 52% 60% 62% 65%
Closing provisions for impairment as a % of total risk elements in lending
and potential problem loans 45% 51% 57% 62% 65%
Risk elements in lending as a % of gross lending to customers excluding
reverse repos (5) 5.35% 2.51% 1.55% 1.55% 1.60%
Notes:
(1) For the analysis above, ‘Domestic’ consists of the United Kingdom domestic transactions of the Group. ‘Foreign’ comprises the Group’s transactions conducted through offices outside the UK and
through those offices in the UK specifically organised to service international banking transactions.
(2) All loans against which an impairment provision is held are reported in the non-accrual category.
(3) Loans where an impairment event has taken place but no impairment recognised. This category is used for fully collateralised non-revolving credit facilities.
(4) Loans for which an impairment event has occurred but no impairment provision is necessary. This category is used for fully collateralised advances and revolving credit facilities where
identification as 90 days overdue is not feasible.
(5) Gross of provisions and excluding reverse repurchase agreements. Includes gross lending relating to disposal groups in 2009.
2009 2008 2007 2006 2005
£m £m £m £m £m
Gross income not recognised but which would have been recognised
under the original terms of non-accrual and restructured loans:
Domestic 625 393 390 370 334
Foreign 1,079 342 155 77 62
1,704 735 545 447 396
Interest on non-accrual and restructured loans included in net interest income:
Domestic 226 150 165 142 130
Foreign 182 43 16 15 14
408 193 181 157 144
Financial summary continued
Risk elements in lending and potential problem loans
The Group’s loan control and review procedures do not include the
classification of loans as non-accrual, accruing past due, restructured
and potential problem loans, as defined by the SEC in the US.
The following table shows the estimated amount of loans that would be
reported using the SEC’s classifications. The figures are stated before
deducting the value of security held or related provisions.