RBS 2011 Annual Report Download - page 120

118 RBS Group 2011
Balance sheet management: Liquidity and funding risk continued
Funding sources
The table below shows the Group’s primary funding sources including deposits in disposal groups and excluding repurchase agreements.
2011 2010 2009
£m % £m % £m %
Deposits by banks
-central banks 3,680 0.5 6,655 0.9 8,535 1.0
- derivative cash collateral 31,807 4.6 28,074 3.8 32,552 4.0
- other 33,627 4.8 31,588 4.3 75,173 9.2
69,114 9.9 66,317 9.0 116,260 14.2
Debt securities in issue
-conduit asset backed commercial paper (ABCP) 11,164 1.6 17,320 2.3 25,583 3.1
- other commercial paper (CP) 5,310 0.8 8,915 1.2 18,724 2.3
- certificates of deposit (CDs) 16,367 2.4 37,855 5.1 58,195 7.1
- medium-term notes (MTNs) 105,709 15.2 131,026 17.6 125,800 15.4
- covered bonds 9,107 1.3 4,100 0.6 — —
- securitisations 14,964 2.1 19,156 2.6 18,027 2.2
162,621 23.4 218,372 29.4 246,329 30.1
Subordinated liabilities 26,319 3.8 27,053 3.6 31,538 3.9
Notes issued 188,940 27.2 245,425 33.0 277,867 34.0
Wholesale funding 258,054 37.1 311,742 42.0 394,127 48.2
Customer deposits
-cash collateral 9,242 1.4 10,433 1.4 9,934 1.2
- other 427,511 61.5 420,433 56.6 413,224 50.6
Total customer deposits 436,753 62.9 430,866 58.0 423,158 51.8
Total funding 694,807 100.0 742,608 100.0 817,285 100.0
Disposal group deposits included above
- banks 1
266 618
- customers 22,610 2,267 8,907
22,611 2,533 9,525
Short-term wholesale funding 2011
£bn
2010
£bn
2009
£bn
Deposits 32.9 34.7 77.3
Notes issued 69.5 95.0 139.0
STWF excluding derivative collateral 102.4 129.7 216.3
Derivative collateral 31.8 28.1 32.6
STWF including derivative collateral 134.2 157.8 248.9
Interbank funding excluding derivative collateral
- bank deposits 37.3 38.2 83.7
- bank loans (24.3) (31.3) (31.3)
Net interbank funding 13.0 6.9 52.4
Key points
xShort-term wholesale funding excluding derivative collateral declined
£27.3 billion in 2011, from £129.7 billion to £102.4 billion. This is
£52.9 billion lower than the Group’s liquidity portfolio. Deleveraging
in Non-Core and GBM has led to the reduced need for funding.
xThe Group’s customer deposits excluding cash collateral grew by
approximately £7.1 billion in 2011.
*unaudited
Business review Risk and balance sheet management continued