RBS 2010 Annual Report Download - page 184

Risk management: Credit risk continued
REIL, provisions and reserves continued
Movement in REIL and PPL
The table below details the movement in REIL and PPL during the year ended 31 December 2010.
REIL PPL Total
Core Non-Core Total Core Non-Core Total Core Non-Core Total
£m £m £m £m £m £m £m £m £m
At 1 January 2010 12,089 22,900 34,989 272 652 924 12,361 23,552 35,913
Intra-group transfers (142) 142 — 147 (147) — 5 (5) —
Currency translation and other
adjustments 22 (124) (102) (1) 2 1 21 (122) (101)
Additions 11,435 11,915 23,350 1,539 502 2,041 12,974 12,417 25,391
Transfers 69 (185) (116) (85) (61) (146) (16) (246) (262)
Disposals, restructurings and
repayments (5,385) (6,694) (12,079) (1,399) (788) (2,187) (6,784) (7,482) (14,266)
Amounts written-off (2,881) (4,563) (7,444) — — — (2,881) (4,563) (7,444)
At 31 December 2010 15,207 23,391 38,598 473 160 633 15,680 23,551 39,231
Key points
xREIL increased by £3.1 billion or 26% in Core reflecting net
increases in impaired loans in UK Corporate (£1.6 billion) and Ulster
Bank (£1.4 billion).
xIn UK Corporate impaired loans increased reflecting a number of
specific cases which resulted in REIL/PPL as a % of loans
increasing from 2.2% to 3.7%.
xProvisions, REIL and related coverage ratios in Ulster Bank
increased reflecting a deterioration in customer credit quality due to
afall in Irish property prices.
xIn US Retail & Commercial, impairment losses declined following a
gradual improvement in the underlying credit environment,
throughout 2010.
xIncrease in provisions and related REIL in Non-Core reflected
difficult conditions in specific sectors, particularly UK and Irish
commercial property.
Past due analysis
The table belowshows loans and advances to customers that were past due at the balance sheet date but not considered impaired:
2009
2010
Core Non-Core Total Core Non-Core
Group
before
RFS MI RFS MI Group
2008
Group
£m £m £m £m £m £m £m £m £m
Past due 1-29 days 6,401 822 7,223 5,101 1,486 6,587 1,209 7,796 9,517
Past due 30-59 days 1,725 392 2,117 1,943 357 2,300 424 2,724 2,941
Past due 60-89 days 922 271 1,193 2,203 207 2,410 177 2,587 1,427
Past due 90 days or more 1,696 1,201 2,897 1,358 1,820 3,178 46 3,224 1,782
10,744 2,686 13,430 10,605 3,870 14,475 1,856 16,331 15,667
Note:
(1) The amounts shown above include loans and advances to customers that are past due through administrative and other delays in recording payments or in finalising documentation and other events
unrelated to credit quality.
*unaudited
RBS Group 2010182
Business review continued