RBS 2012 Annual Report Download - page 195

RBS GROUP 2012
193
Key points
x Commercial real estate continues to be the primary sector driving
the Ulster Bank Group non-performing loan book. A reduction over
the year of £1.8 billion primarily reflects Ulster Bank’s continuing
strategy to reduce concentration risk to this sector.
x The outlook for the property sector remains challenging. While there
may be some signs of stabilisation in main urban centres, the
outlook continues to be negative for secondary property locations on
the island of Ireland.
x During the year, Ulster Bank experienced further migration of
commercial real estate exposures to its problem management
framework, where various measures may be agreed to assist
customers whose loans are performing but who are experiencing
temporary financial difficulties. For further details on Wholesale
renegotiations refer to page 173.
Residential mortgages
The mortgage lending portfolio analysis by country of location of the underlying security is set out below.
2012 2011
£m £m
ROI 16,873 17,767
NI 2,289 2,253
19,162 20,020