RBS 2011 Annual Report Download - page 172

170 RBS Group 2011
Risk management: Credit risk continued
Balance sheet analysis: Credit concentration: Sector and geographical region continued
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
Europe
Central and local government —334 1,164 1,498 25,328 — 25,328 68 24 26,918 — 26,918
Finance - banks —4,905 529 5,434 17,390 — 17,390 — 22,792 45,616 — 45,616
- other (3) 189 4,095 905 5,000 5,097 426 5,523 1,699 43 12,454 — 12,454
Residential mortgages —15,055 6,718 21,773 — — — — — 21,773 — 21,773
Personal lending —1,877 1,009 2,886 — — — — 17 2,903 — 2,903
Property —10,812 9,417 20,229 — 1 1 17 4 20,251 — 20,251
Construction —1,946 1,167 3,113 — 1 1 1 1 3,116 — 3,116
Manufacturing —7,311 8,609 15,920 19 23 42 123 — 16,085 — 16,085
Service industries and business
activities
-retail, wholesale and repairs —5,464 1,661 7,125 15 1 16 7 — 7,148 — 7,148
- transport and storage —4,385 1,463 5,848 15 4 19 — 2 5,869 — 5,869
- health, education and recreation —1,419 1,121 2,540 54 9 63 — — 2,603 — 2,603
- hotels and restaurants —1,221 568 1,789 — 19 19 — 4 1,812 — 1,812
- utilities —1,816 786 2,602 4 30 34 6 37 2,679 — 2,679
- other 12 4,783 4,284 9,067 156 24 180 75 8 9,342 — 9,342
Agriculture, forestry and fishing —737 356 1,093 — 1 1 — — 1,094 — 1,094
Finance lease and instalment credit —379 1,094 1,473 — 12 12 — — 1,485 — 1,485
Interest accruals 102 168 245 413 706 — 706 — — 1,221 — 1,221
Group before RFS MI 303 66,707 41,096 107,803 48,784 551 49,335 1,996 22,932 182,369 — 182,369
RFS MI — — — 140,098 21,681 3,232 24,913 165,020 — 330,031 — 330,031
Group 303 66,707 41,096 247,901 70,465 3,783 74,248 167,016 22,932 512,400 — 512,400
RoW
Central and local government 131 1,245 28 1,273 13,201 — 13,201 169 36 14,810 — 14,810
Finance - banks 5,277 4,946 331 5,277 3,332 — 3,332 — 1,243 15,129 — 15,129
- other (3) 847 7,776 1,033 8,809 — 440 440 25,045 796 35,937 19,747 16,190
Residential mortgages —390 1 391 — — — — — 391 — 391
Personal lending —1,450 613 2,063 — — — 29 1 2,093 — 2,093
Property —337 1,780 2,117 669 10 679 51 — 2,847 — 2,847
Construction —102 319 421 176 12 188 23 — 632 — 632
Manufacturing —2,604 1,338 3,942 1 25 26 428 14 4,410 — 4,410
Service industries and
business activities
-retail, wholesale and repairs —612 327 939 — 19 19 62 — 1,020 1 1,019
- transport and storage —563 505 1,068 115 30 145 94 — 1,307 — 1,307
- health, education and recreation — 232 41 273 — 15 15 23 — 311 — 311
- hotels and restaurants —131 21 152 — 3 3 1 — 156 — 156
- utilities —1,152 622 1,774 39 41 80 82 — 1,936 — 1,936
- other 11,836 1,869 3,705 106 221 327 495 1 4,529 — 4,529
Agriculture, forestry and fishing —16 59 75 — — — 3 — 78 — 78
Finance lease and instalment credit — 8 19 27 — — — — — 27 — 27
Interest accruals 55 94 32 126 74 — 74 — — 255 — 255
Group before RFS MI 6,311 23,494 8,938 32,432 17,713 816 18,529 26,505 2,091 85,868 19,748 66,120
RFS MI — — — 1,786 — 22 22 1,808 — 3,616 — 3,616
Group 6,311 23,494 8,938 34,218 17,713 838 18,551 28,313 2,091 89,484 19,748 69,736
Notes:
(1) Includes cash and balances at central banks of £79,269 million (2010 - £57,014 million; 2009 - £52,261 million) and settlement balances of £7,771 million (2010 - £11,605 million; 2009 - £12,033
million).
(2) This shows the amount by which the Group’s credit risk exposure is reduced through arrangements, such as master netting agreements, which give the Group a legal right to set off the financial
asset against a financial liability due to the same counterparty. In addition, the Group holds collateral in respect of individual loans and advances to banks and customers. This collateral includes
mortgages over property (both personal and commercial); charges over business assets such as plant, inventories and trade debtors; and guarantees of lending from parties other than the borrower.
The Group obtains collateral in the form of securities in reverse repurchase agreements. Cash and securities are received as collateral in respect of derivative transactions.
(3) Loans made by the Group's consolidated conduits to asset owning companies are included within Finance.
Business review Risk and balance sheet management continued