RBS 2011 Annual Report Download - page 165

RBS Group 2011 163
Loans and advances Securities
Reverse
repos Core Non-Core Total Debt Equity Total Derivatives Other (1) Total
Netting
and
offset (2) Net
2009 £m £m £m £m £m £m £m £m £m £m £m £m
Central and local
government 260 6,128 1,532 7,660 142,032 780 142,812 6,998 205 157,935 1,725 156,210
Finance - banks 34,698 47,574 1,360 48,934 24,550 — 24,550 — 52,261 160,443 2,546 157,897
- other (3) 40,188 50,673 9,713 60,386 68,824 6,627 75,451 409,452 12,110 597,587 369,797 227,790
Residential mortgages —127,975 12,932 140,907 — — — 11 — 140,918 7 140,911
Personal lending —35,313 6,358 41,671 1 — 1 38 40 41,750 21 41,729
Property —49,054 50,372 99,426 4,028 469 4,497 4,184 108 108,215 1,114 107,101
Construction —9,502 5,258 14,760 295 320 615 923 63 16,361 1,450 14,911
Manufacturing 182 30,272 14,402 44,674 878 1,076 1,954 5,353 116 52,279 3,184 49,095
Service industries and
business activities
-retail, wholesale and
repairs —23,385 5,082 28,467 602 283 885 996 29 30,377 2,550 27,827
- transport and storage —16,693 8,812 25,505 607 198 805 1,820 17 28,147 201 27,946
- health, education and
recreation 22 18,797 3,743 22,540 2,055 188 2,243 1,300 — 26,105 1,057 25,048
- hotels and restaurants —9,699 1,710 11,409 418 595 1,013 832 90 13,344 284 13,060
- utilities —6,772 3,106 9,878 1,298 2,379 3,677 2,613 296 16,464 445 16,019
- other 293 25,092 11,185 36,277 2,814 3,082 5,896 3,619 362 46,447 1,274 45,173
Agriculture, forestry and
fishing —3,726 553 4,279 44 210 254 44 9 4,586 76 4,510
Finance lease and
instalment credit —8,147 11,956 20,103 291 15 306 16 — 20,425 39 20,386
Interest accruals 494 1,179 549 1,728 1,571 — 1,571 — — 3,793 — 3,793
Total gross of provisions 76,137 469,981 148,623 618,604 250,308 16,222 266,530 438,199 65,706 1,465,176 385,770 1,079,406
Provisions —(6,921) (8,252) (15,173) (1,198) (277) (1,475) — — (16,648) n/a (16,648)
Group before RFS MI 76,137 463,060 140,371 603,431 249,110 15,945 265,055 438,199 65,706 1,448,528 385,770 1,062,758
RFS MI gross of provisions — — — 142,688 18,144 3,586 21,730 3,255 9 167,682 55 167,627
RFS MI provision — — — (2,110) — (3) (3) — — (2,113) n/a (2,113)
Group 76,137 463,060 140,371 744,009 267,254 19,528 286,782 441,454 65,715 1,614,097 385,825 1,228,272
For notes relating to this table refer to page 170.
Key points
xFinancial assets, after taking account of netting and offset
arrangements, decreased from £974 billion at 2010 to £903 billion at
2011 (£923 billion including disposal groups), principally reflecting
reductions in loans and advances, including planned reductions of
£29 billion in Non-Core reflecting disposal strategy as well as
reductions in securities. Debt securities declined by £8 billion
reflecting lower government and financial institution bond holdings.
Equity shares decreased by £7 billion reflecting closure of GBM's
global index and emerging markets positions in order to mitigate the
potential impact of unfavourable market conditions.
xIn terms of sector concentration, 37% of net financial assets related
to financial institutions, including central banks, down from 38% in
2010. However, overall balances increased, principally reflecting
higher central bank deposits in the Group's liquidity portfolio.
xCentral and local government assets represented 16% of total
financial assets, broadly unchanged from 2010, predominantly
reflecting the Group's government bond holdings, most of which are
issued by G10 governments, despite a reduction in holdings in both
Group Treasury and GBM.
xPersonal sector lending (residential mortgages and other lending)
remained broadly flat.
xCommercial and other property related lending declined from £102.1
billion to £86.2 billion, including disposal groups (£4.7 billion). The
decline was driven by Non-Core reductions.