RBS 2012 Annual Report Download - page 240

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Business review Risk and balance sheet management continued
Balance sheet analysis: REIL, provisions and AFS reserves continued
UK
Retail
UK
Corporate Wealth
International
Banking
Ulster
Bank
US
R&C (1)
Total
R&C (1)Markets
Total
Core Non-Core RFS MI Group
£m £m £m £m £m £m £m £m £m £m £m £m
At 1 January 2010 2,677 1,287 55 1,139 962 482 6,602 319 6,921 8,553 2,110 17,584
Transfers to disposal groups — — — — — — — — — (72)— (72)
Intra-group transfers — — — (217) (351) — (568) — (568) 568 — —
Currency translation
and other adjustments — 71 4 (98) (22)20 (25) 9 (16) (206) — (222)
Disposal of subsidiaries — — — — — — — — — (20)(2,152)(2,172)
Amounts written-off (1,135) (357) (9) (92) (48) (550)(2,191) (33) (2,224) (3,818) — (6,042)
Recoveries of amounts
previously written-off 128 8
— 2 1 72 211 2 213 198 — 411
Charged to income statement
- continuing operations 1,160 768 18 125 1,161 485 3,717 20 3,737 5,407 — 9,144
- discontinued operations — — — — — — — — — — 42 42
Unwind of discount (2) (89) (31)(2) (4) (70)— (196) (1)(197) (258) — (455)
At 31 December 2010 2,741 1,746 66 855 1,633 509 7,550 316 7,866 10,352 — 18,218
Individually assessed
- banks — — 2 46 — — 48 78 126 1 — 127
- customers — 546 57 572 502 56 1,733 215 1,948 8,176 — 10,124
Collectively assessed 2,526 703 — — 733 177 4,139 — 4,139 1,170 — 5,309
Latent 215 497 7 237 398 276 1,630 23 1,653 1,005 — 2,658
2,741 1,746 66 855 1,633 509 7,550 316 7,866 10,352 — 18,218
Notes:
(1) Retail & Commercial.
(2) Recognised in interest income.
Impairment provisions
The table below analyses impairment provisions in respect of loans and advances to banks and customers.
2012 2011 2010
Core Non-CoreTotal Core Non-Core Total Core Non-Core Total
£m £m £m £m £m £m £m £m £m
Individually assessed 2,839 9,805 12,644 2,833 9,965 12,798 1,948 8,176 10,124
Collectively assessed 5,785 757 6,5424,814 874 5,688 4,139 1,170 5,309
Latent loss 1,325 637 1,9621,418 647 2,065 1,653 1,005 2,658
Loans and advances to customers 9,949 11,199 21,148 9,065 11,486 20,551 7,740 10,351 18,091
Loans and advances to banks 113 1 114122 1 123 126 1 127
Total provisions 10,062 11,200 21,2629,187 11,487 20,674 7,866 10,352 18,218
Provisions as a % of REIL 51% 52% 52%50% 48% 49% 52% 44% 47%
Customer provisions as a % of customer loans (1) 2.5% 20.0% 4.7% 2.2% 14.4% 4.2% 1.9% 9.1% 3.4%
Note:
(1) Includes disposal groups and excludes reverse repos.
Key points
x Within Core, the increase in collectively assessed provisions related
primarily to Ulster Bank’s mortgage and corporate portfolio reflecting
a continuation of difficult conditions in Ireland.
x Non-Core individually assessed provisions decreased by £0.2 billion,
principally reflecting write-offs in Markets and UK Corporate.