RBS 2012 Annual Report Download - page 154

Liquidity and funding risk: Analyses: Encumbrance continued
Assets encumbrance
Encumbered assets relating to:
Debt securities in issue Other secured liabilities
Securitisations
and conduits
Covered
bonds Derivatives Repos
Secured
borrowings
Total
encumbered
assets
Liquidity
portfolio Other Total
£bn £bn £bn £bn £bn £bn
Encumbered
assets as a
% of related
total assets £bn £bn £bn
Cash and balances at central banks 5.3 0.5 — — — 5.8 7 70.2 3.3 79.3
Loans and advances to banks (1) — — 12.8 — — 12.8 41 — 18.5 31.3
Loans and advances to customers (1)
- UK residential mortgages 16.4 16.0 — — — 32.4 30 58.7 18.0 109.1
- Irish residential mortgages 10.6 — — — 1.8 12.4 81 — 2.9 15.3
- US residential mortgages — — — — — — — 7.6 14.1 21.7
- UK credit cards 3.0 — — — — 3.0 44 — 3.8 6.8
- UK personal loans 4.7 — — — — 4.7 41 — 6.8 11.5
- other 20.7 — 22.5 — 0.8 44.0 16 6.5 217.1 267.6
Debt securities 1.0 — 8.3 91.2 15.2 115.7 70 22.3 26.6 164.6
Equity shares — — 0.7 6.8 — 7.5 49 — 7.7 15.2
61.7 16.5 44.3 98.0 17.8 238.3 165.3 318.8 722.4
Own asset securitisations 22.6
Total liquidity portfolio 187.9
Liabilities secured
Intra-Group - used for secondary
liquidity (22.6)— — — — (22.6)
Intra-Group - other (23.9)— — — — (23.9)
Third-party (2) (12.0)(10.1) (60.4)(132.4)(15.3)(230.2)
(58.5)(10.1) (60.4)(132.4)(15.3)(276.7)
Total assets 1,312
Total assets excluding derivatives 870
Total assets excluding derivatives and reverse repos 766
Notes:
(1) Excludes reverse repos.
(2) In accordance with market practice the Group employs its own assets and securities received under reverse repo transactions as collateral for repos.
Key points
x The Group’s encumbrance ratio dropped marginally from 19% to
18%.
x 30% of the Group’s residential mortgage portfolio was encumbered
at 31 December 2012.
152
Business review Risk and balance sheet management continued