RBS 2012 Annual Report Download - page 206

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Business review Risk and balance sheet management continued
Balance sheet analysis: Financial assets: Sector and geographic concentration continued
Lending Securities
Reverse
repos Core Non-Core Total Debt Equity Derivatives Other
Balance
sheet value
Non-IFRS
offset (1)
Exposure
post offset
2010 £m £m £m £m £m £m £m £m £m £m £m
Europe
Government (2) — 365 1,017 1,382 18,648 — 66 — 20,096 — 20,096
Financial institutions - banks (3) 94 10,219 313 10,532 11,843 322 — 7,974 30,765 — 30,765
- other (4) — 2,642 1,019 3,6614,886 64 746 53 9,410 (1) 9,409
Personal - mortgages —19,473 621 20,094 — — — — 20,094 (5) 20,089
- unsecured — 2,270 600 2,870 — — — 25 2,895 — 2,895
Property —5,139 12,636 17,775 — 43 — — 17,818 (5) 17,813
Construction —1,014 873 1,887 — 27 1 — 1,915 (14) 1,901
Manufacturing — 5,853 4,440 10,293 18 87 39 — 10,437 (6) 10,431
Finance leases (5) — 370 744 1,114— —— — 1,114 — 1,114
Retail, wholesale and repairs —4,126 999 5,125 32 2 33 — 5,192 (15) 5,177
Transport and storage — 5,625 1,369 6,994 141 22 2 — 7,159 (5) 7,154
Health, education and leisure —1,442 496 1,938 27 9 — — 1,974 — 1,974
Hotels and restaurants —1,055 535 1,590 — 120 — — 1,710 (4) 1,706
Utilities —1,412 683
2,095 74 188 10 — 2,367 — 2,367
Other 28 4,869 2,219 7,088 746 138 54 — 8,054 (45) 8,009
Total gross of provisions 122 65,874 28,564 94,438 36,415 1,022 951 8,052 141,000 (100) 140,900
Provisions —(1,984) (5,243) (7,227) — — — — (7,227) n/a (7,227)
Total including disposal groups
before RFS MI 122 63,890 23,321 87,211 36,415 1,022 951 8,052 133,773 (100) 133,673
RFS Minority Interest — — 2 2 — — — — 2 — 2
Total 122 63,890 23,323 87,213 36,415 1,022 951 8,052 133,775 (100) 133,675
RoW
Government (2) 34 425 428 853 14,073 — 189 6 15,155 — 15,155
Financial institutions - banks (3) 5,129 4,453 219 4,672 3,299 548 24,183 1,641 39,472 (22,063) 17,409
- other (4) 2,088 6,751 93 6,844 145 160 3,354 1,792 14,383 (512) 13,871
Personal - mortgages —410 203 613— —— — 613 — 613
- unsecured —1,460 2 1,462 — — — — 1,462 — 1,462
Property — 735 1,205 1,940 303 15 68 — 2,326 — 2,326
Construction —183 91 274 12 4 22 — 312 — 312
Manufacturing —2,185 686 2,871— 4 448 — 3,323 — 3,323
Finance leases (5) — 47 — 47 — — — — 47 — 47
Retail, wholesale and repairs —1,030 102 1,132 13 28 149 — 1,322 (1)1,321
Transport and storage — 430 403 833 398 27 199 — 1,457 — 1,457
Health, education and leisure —132 17 149 — 8 29 — 186 — 186
Hotels and restaurants — 90 13 103 — 3 4 — 110 — 110
Utilities —1,468 480 1,948 33 34 97 — 2,112 — 2,112
Other 12,196 2,596 4,792 167 6 1,006 9 5,981 (1) 5,980
Total gross of provisions 7,252 21,995 6,538 28,533 18,443 837 29,748 3,448 88,261 (22,577) 65,684
Provisions —(121) (549) (670) — — — — (670) n/a (670)
Total 7,252 21,874 5,989 27,863 18,443 837 29,748 3,448 87,591 (22,577) 65,014
Notes:
(1) This reflects the amount by which the Group’s credit risk exposure is reduced through arrangements, such as master netting agreements, which give the Group a legal right to set off the financial
asset against a financial liability due to the same counterparty. In addition, the Group holds collateral in respect of individual loans and advances to banks and customers. This collateral includes
mortgages over property (both personal and commercial); charges over business assets such as plant, inventories and trade debtors; and guarantees of lending from parties other than the borrower.
The Group obtains collateral in the form of securities relating to reverse repurchase agreements. Cash and securities are received as collateral in respect of derivative transactions.
(2) Includes central and local government.
(3) Includes £79.3 billion (2011 - £79.4 billion; 2010 - £57.2 billion) relating to cash and balances at central banks.
(4) Loans made by the Group's consolidated conduits to asset owning companies are included within Financal institutions - other.
(5) Includes instalment credit.