RBS 2011 Annual Report Download - page 250

248 RBS Group 2011
Risk management: Asset Protection Scheme* continued
Covered assets
The table below shows the movement in covered assets.
£bn
At 1 January 2009 282.0
Disposals (3.0)
Non-contractual early repayments (8.9)
Maturities and amortisation (26.1)
Rollovers and covered amount cap adjustments (1.7)
Currency translation and other adjustments (11.8)
At 31 December 2009 230.5
Disposals (9.7)
Maturities, amortisation and early repayments (28.7)
Reclassified assets 3.1
Withdrawals (2.9)
Currency translation and other adjustments 2.4
At 31 December 2010 194.7
Disposals (5.3)
Maturities, amortisation and early repayments (42.4)
Withdrawals (12.4)
Currency translation and other adjustments (2.8)
At 31 December 2011 131.8
Key points
xThe reduction in covered assets was due to run-off of the portfolio, disposals, early repayments and maturing loans.
xThe Group continues to take advantage of market conditions and execute sales from a number of its portfolios.
xThe Group withdrew £12.4 billion of covered assets with a lower than average risk profile from the Scheme.
Credit impairments and write-downs
The table below analyses the credit impairment provision (adjusted for write-downs) and adjustments to par value (including available-for-sale reserves)
relating to covered assets.
2011 2010 2009
£m £m £m
Loans and advances 20,586 18,033 14,240
Debt securities 10,703 11,747 7,816
Derivatives 3,056 2,043 6,834
34,345 31,823 28,890
Core 7,626 6,646 5,552
Non-Core 26,719 25,177 23,338
34,345 31,823 28,890
Key points
xThe increase in Non-Core impairments of £1.5 billion accounted for the majority of the increase in credit impairments and write-downs in 2011.
xThe increase in Core is largely accounted for by impairments offset by asset withdrawals.
*unaudited
Business review Risk and balance sheet management continued