RBS 2012 Annual Report Download - page 271

RBS GROUP 2012
269
Key points*
x The Portuguese portfolio, which is managed out of Spain, mainly
consists of corporate lending and derivative trading with the largest
local banks. Medium-term activity has ceased with the exception of
collateralised business.
x Exposure declined further during 2012, with continued reductions in
lending and off-balance sheet exposure, and sales of Group
Treasury’s AFS bonds.
Government and central bank
x The Group’s exposure to the Portuguese government at 31
December 2012 was £102 million, comprising a very small derivative
exposure and a small net long debt securities position, an increase
from the net short debt securities position at 31 December 2011.
Financial institutions
x The remaining exposure is largely focused on the top four
systemically important banks. Exposures generally consist of
collateralised trading products.
Corporate
x The largest exposure is to the land transport and logistics, electricity
and telecommunications sectors, concentrated on a few large, highly
creditworthy clients.
Non-Core (included above)
x Non-Core lending exposure to Portugal decreased by £0.1 billion
during 2012, to £0.3 billion. The portfolio largely comprised lending
exposure to the land transport and logistics (40%), electricity (37%)
and commercial real estate (18%) sectors.
*unaudited