RBS 2012 Annual Report Download - page 152

Liquidity and funding risk: Analyses continued
Maturity analysis
The contractual maturity of balance sheet assets and liabilities highlights the maturity transformation which underpins the role of banks to lend long-
term, but to fund themselves predominantly through short-term liabilities such as customer deposits. This is achieved through the diversified funding
franchise of the Group across an extensive customer base, and across a wide geographic network. In practice, the behavioural profiles of many
liabilities exhibit greater stability and longer maturity than the contractual maturity. This is particularly true of many types of retail and corporate deposits
which whilst may be repayable on demand or at short notice, have demonstrated very stable characteristics even in periods of acute stress such as
those experienced in 2008.
Retail & Commercial*
The table below illustrates the contractual and behavioural maturity analysis of Retail & Commercial customer deposits.
Less than
1 year 1-5 years
More than
5 years Total
£bn £bn £bn £bn
Contractual maturity 381 20 1 402
Behavioural maturity 146 219 37 402
Contractual maturity
The following table shows the residual maturity of financial instruments, based on contractual date of maturity. Held-for-trading (HFT) assets and
liabilities have been excluded from the maturity analysis in view of their short-term nature and are shown in total in the table below. Hedging derivatives
are included within the relevant maturity bands.
Other than held-for-trading (HFT)
Less than
1 month 1-3 months 3-6 months
6 months
-1 year 1-3 years 3-5 years
More than
5 years
Total
excluding
HFT HFT Total
2012 £m £m £m £m £m £m £m £m £m £m
Cash and balances at central banks 79,308 — — — — — — 79,308 — 79,308
Bank reverse repos 1,302 87 — — — — — 1,389 33,394 34,783
Customer reverse repos 22 — — — — — — 22 70,025 70,047
Loans to banks (1) 14,519 1,879 1,005 206 269 35 102 18,015 13,265 31,280
Loans to customers (1) 40,883 18,324 19,269 27,377 58,503 52,930 189,824 407,110 24,841 431,951
Debt securities 2,206 1,869 1,279 1,676 11,847 17,929 49,478 86,284 78,340 164,624
Equity shares — — — — — — 1,908 1,908 13,329 15,237
Settlement balances 5,741 — — — — — — 5,741 — 5,741
Derivatives — 571 626 1,252 3,803 1,879 508 8,639 433,279 441,918
Other assets 72 28 32 106 3138 617 924 — 924
Total financial assets 144,053 22,758 22,211 30,617 74,453 72,811 242,437 609,340 666,473 1,275,813
Bank repos 3,551 3,261 — — 1,150 — — 7,962 36,370 44,332
Customer repos 2,733 3,083 — — — — — 5,816 82,224 88,040
Deposits by banks 15,046 1,409 564 489 7,127 336 1,532 26,503 30,571 57,074
Customer accounts 359,157 14,773 8,933 15,662 18,932 3,660 798 421,915 12,077 433,992
Debt securities in issue 2,248 2,639 7,996 6,263 21,220 12,038 31,309 83,713 10,879 94,592
Settlement balances 5,875 — — — 3 — — 5,878 — 5,878
Short positions — — — — — — — — 27,591 27,591
Derivatives — 310 251 501 1,790 1,262 1,682 5,796 428,544 434,340
Subordinated liabilities 231 184 1,352 620 7,070 862 16,983 27,302 — 27,302
Other liabilities 1,684 — — — 8 1 3 1,696 — 1,696
Total financial liabilities 390,525 25,659 19,096 23,535 57,300 18,159 52,307 586,581 628,256 1,214,837
Note:
(1) Excludes reverse repos.
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Business review Risk and balance sheet management continued
*unaudited