RBS 2011 Annual Report Download - page 207

RBS Group 2011 205
UK
Retail
UK
Corporate Wealth GTS (1)
Ulster
Bank
US
R&C (2)
Total
R&C (2) GBM (3)
Total
Core Non-Core RFS MI Group
2009 £m £m £m £m £m £m £m £m £m £m £m £m
At 1 January 2,086 696 34 43 491 298 3,648 621 4,269 5,182 1,565 11,016
Transfers to disposal
groups — — — — — — — (16) (16) (305) (3) (324)
Currency translation
and other adjustments 67 5 1 128 (109) (34) 58 365 423 (851) (102) (530)
Disposal of subsidiaries — — — — — — — (62) (62) (3) — (65)
Amounts written-off (1,150) (352) (12) (23) (34) (546) (2,117) (169) (2,286) (4,192) (461) (6,939)
Recoveries of
amounts previously
written-off 97 20 — 2 1 58 178 11 189 136 74 399
Charged to income
statement
-continuing operations 1,679 923 33 39 649 702 4,025 542 4,567 8,523 — 13,090
- discontinued operations — — — — — — — — — — 1,044 1,044
Unwind of discount (4) (102) (21) (1) — (36) — (160) (3) (163) (238) (7) (408)
At 31 December 2,677 1,271 55 189 962 478 5,632 1,289 6,921 8,252 2,110 17,283
Individually assessed
-banks — — 2 8 — — 10 125 135 22 — 157
- customers —205 44 156 280 14 699 573 1,272 6,229 1,295 8,796
Collectively assessed 2,475 475 — 17 412 130 3,509 — 3,509 1,266 479 5,254
Latent 202 591 9 8 270 334 1,414 591 2,005 735 336 3,076
2,677 1,271 55 189 962 478 5,632 1,289 6,921 8,252 2,110 17,283
Notes:
(1) Global Transaction Services.
(2) Retail & Commercial.
(3) Global Banking & Markets.
(4) Recognised in interest income.
Analysis of loan impairment charge
The following table analyses impairment losses.
2011
£m
2010
£m
2009
£m
Latent loss (545) (121) 1,184
Collectively assessed 2,591 3,070 3,994
Individually assessed 5,195 6,208 7,878
Customer loans 7,241 9,157 13,056
Bank loans —(13) 34
Securities 1,468 112 809
Charge to income statement 8,709 9,256 13,899
Charge relating to customer loans as a % of gross customer loans (1) 1.5% 1.7% 2.3%
Note:
(1) Customer loan impairment charge as a percentage of gross loans and advances to customers including assets of disposal groups and excluding reverse repos.
Key points
xImpairment provisions, net of £0.8 billion relating to disposal groups,
increased by £1.7 billion during 2011.
xUlster Bank Group’s provisions increased by £3.1 billion during the
year (Core - £1.1 billion; Non-Core - £2.0 billion), with provision
coverage increasing to 53% (Core - 50%; Non-Core - 54%) from
44% at the end of 2010, predominantly reflecting the deterioration in
the value of the commercial real estate development portfolio.