RBS 2011 Annual Report Download - page 366

364 RBS Group 2011
12 Financial instruments - maturity analysis continued
The tables above show the timing of cash outflows to settle financial
liabilities, prepared on the following basis:
Financial liabilities are included at the earliest date on which the
counterparty can require repayment regardless of whether or not such
early repayment results in a penalty. If repayment is triggered by, or is
subject to, specific criteria such as market price hurdles being reached,
the liability is included at the earliest possible date that the conditions
could be fulfilled without considering the probability of the conditions
being met. For example, if a structured note automatically prepays when
an equity index exceeds a certain level, the cash outflow will be included
in the less than three months period whatever the level of the index at the
year end. The settlement date of debt securities issued by certain
securitisation vehicles consolidated by the Group depends on when cash
flows are received from the securitised assets. Where these assets are
prepayable, the timing of the cash outflow relating to securities assumes
that each asset will be prepaid at the earliest possible date.
Liabilities with a contractual maturity of greater than 20 years - the
principal amounts of financial liabilities that are repayable after 20 years
or where the counterparty has no right to repayment of the principal, are
excluded from the table along with interest payments after 20 years.
Held-for-trading assets and liabilities - held-for-trading assets and
liabilities amounting to £763.3 billion (assets) and £708.0 billion
(liabilities) (2010 - £665.0 billion assets and £586.1 billion liabilities; 2009
-£650.5 billion assets and £568.5 billion liabilities) have been excluded
from the table in view of their short-term nature.
13 Financial assets - impairments
The following table shows the movement in the provision for impairment losses on loans and advances.
Individually
assessed
Collectively
assessed Latent 2011 2010 2009
£m £m £m £m £m £m
At 1 January 10,236 5,296 2,650 18,182 17,283 11,016
Transfers to disposal groups (158) (536) (79) (773) (72) (324)
Currency translation and other adjustments (244) 1 (40) (283) 43 (530)
Disposal of subsidiaries 8 — — 8 (2,172) (65)
Amounts written-off (2,205) (2,322) — (4,527) (6,042) (6,939)
Recoveries of amounts previously written-off 275 252 — 527 411 399
Charged to income statement
- continuing operations 5,195 2,591 (545) 7,241 9,144 13,090
- discontinued operations (8) — — (8) 42 1,044
Unwind of discount (recognised in interest income) (342) (142) — (484) (455) (408)
At 31 December (1) 12,757 5,140 1,986 19,883
18,182 17,283
Note:
(1) Includes £123 million relating to loans and advances to banks (2010 - £127 million; 2009 - £157 million).
Impairment losses charged to the income statement 2011
£m
2010
£m
2009
£m
Loans and advances to customers 7,241 9,157 13,056
Loans and advances to banks —(13) 34
7,241 9,144 13,090
Debt securities 1,433 81 601
Equity shares 35 31 208
1,468 112 809
8,709 9,256 13,899
Notes on the consolidated accounts continued