RBS 2012 Annual Report Download - page 151

RBS GROUP 2012
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Net stable funding ratio*
The table below shows the composition of the Group’s net stable funding ratio (NSFR), estimated by applying the Basel III guidance issued in December
2010. The Group’s NSFR will also continue to be refined over time in line with regulatory developments and related interpretations. It may also be
calculated on a basis that may differ from other financial institutions.
2012 2011 2010
ASF(1) ASF(1) ASF(1) Weighting
£bn £bn £bn £bn £bn £bn %
Equity 70 70 76 76 77 77 100
Wholesale funding > 1 year 109 109 124 124 154 154 100
Wholesale funding < 1 year 70 — 134 — 157 — —
Derivatives 434 — 524 — 424 — —
Repurchase agreements 132 — 129 — 115 — —
Deposits
- retail and SME - more stable 203 183 227 204 172 155 90
- retail and SME - less stable 66 53 31 25 51 41 80
- other 164 82 179 89 206 103 50
Other (2) 64 —
83 — 98 — —
Total liabilities and equity 1,312 497 1,507 518 1,454 530
Cash 79 — 79 — 57 — —
Inter-bank lending 29 — 44 — 58 — —
Debt securities > 1 year
- governments AAA to AA- 64 3 77 4 89 4 5
- other eligible bonds 48 10 73 15 75 15 20
- other bonds 19 19 14 14 10 10 100
Debt securities < 1 year 26 — 45 — 43 — —
Derivatives 442 — 530 — 427 — —
Reverse repurchase agreements 105 — 101 — 95 — —
Customer loans and advances > 1 year
- residential mortgages 145 94 145 94 145 94 65
- other 136 136 173 173 211 211 100
Customer loans and advances < 1 year
- retail loans 18 15 19 16 22 19 85
- other 131 66 137 69 125 63 50
Other (3) 70 70
70 70 97 97 100
Total assets 1,312 413 1,507 455 1,454 513
Undrawn commitments 216 11 240 12 267 13 5
Total assets and undrawn commitments 1,528 424 1,747 467 1,721 526
Net stable funding ratio 117% 111% 101%
Notes:
(1) Available stable funding.
(2) Deferred tax, insurance liabilities and other liabilities.
(3) Prepayments, accrued income, deferred tax, settlement balances and other assets.
Key point
x NSFR improved from 111% at 31 December 2011 to 117% at the end of 2012. Long-term wholesale funding declined by £15 billion in line with
Markets' strategy, and funding requirement relating to long-term lending decreased by £37 billion, reflecting de-risking, sales and repayments in
Non-Core.
*unaudited