RBS 2011 Annual Report Download - page 208

206 RBS Group 2011
Risk management: Credit risk continued
Balance sheet analysis: REIL, provisions and reserves continued
2011 2010 2009
Core Non-Core
RFS
MI Total Core Non-Core Total Core Non-Core Total
£m £m £m £m £m £m £m £m £m £m
Loan impairment losses
-customers 3,403 3,838 — 7,241 3,742 5,415 9,157 4,555 8,501 13,056
- banks — — — — (5) (8) (13) 12 22 34
3,403 3,838 — 7,241 3,737 5,407 9,144 4,567 8,523 13,090
Impairment losses on securities
- debt securities 1,381 50 2 1,433 40 41 81 98 503 601
- equity securities 4 31 — 35 4 27 31 13 195 208
1,385 81 2 1,468 44 68 112 111 698 809
Charge to income statement 4,788 3,919 2 8,709 3,781 5,475 9,256 4,678 9,221 13,899
Key points
xThe impairment charge, excluding securities, decreased by £1.9 billion or 21% compared with 2010, driven largely by a £1.6 billion reduction in
Non-Core, despite continuing challenges in Ulster Bank and corporate real estate portfolios.
xThe Group’s customer loan impairment charge as a percentage of loans and advances was 1.5% compared with 1.7% for 2010.
xThe securities impairment in 2011 primarily reflects an impairment charge of £1.3 billion in respect of the Group’s holdings of Greek sovereign
bonds and related interest rate hedges.
Available-for-sale debt securities and reserves
The table below analyses available-for-sale debt securities and related reserves, gross of tax.
2011 2010
US UK Other (1) Total US UK Other (1) Total
£m £m £m £m £m £m £m £m
Central and local government 20,848 13,436 25,552 59,836 22,244 8,377 32,865 63,486
Banks 376 1,391 11,408 13,175 704 4,297 11,981 16,982
Other financial institutions 17,453 3,100 11,199 31,752 15,973 1,662 11,513 29,148
Corporate 131 1,105 1,299 2,535 65 438 1,011 1,514
Total 38,808 19,032 49,458 107,298 38,986 14,774 57,370 111,130
Of which ABS 20,256 3,659 16,820 40,735 20,872 4,002 17,641 42,515
AFS reserves (gross) 486 845 (1,815) (484) (304) 158 (2,559) (2,705)
Note:
(1) Includes eurozone countries as detailed on pages 211 to 228.
Business review Risk and balance sheet management continued