RBS 2012 Annual Report Download - page 492

490
Additional information continued
Financial summary continued
Analysis of loans and advances to customers
The following table analyses loans and advances to customers before impairment provisions by remaining maturity, geographical area and type of
customer.
Within
1 year
£m
After 1 year
but within
5 years
£m
After
5 years
£m
2012
Total
£m
2011
£m
2010
£m
2009
£m
2008
£m
UK
Central and local government 1,636 12 1,852 3,500 4,617 3,919 3,174 3,091
Finance 7,399 3,874 2,451 13,724 39,158 38,975 36,283 42,432
Residential mortgages 2,612 6,463 100,117109,192 100,376 101,157 92,583 80,967
Personal lending 12,957 4,906 1,82319,686 19,802 23,236 25,25426,989
Property 16,957 15,606 12,584 45,147 35,654 41,957 48,89552,127
Construction 3,606 1,279 6415,526 5,004 6,340 7,78010,171
Manufacturing 5,730 2,587 1,038 9,355 7,083 9,111 11,43215,074
Service industries and business activities 17,372 17,289 15,339 50,000 35,364 45,685 51,855 58,638
Agriculture, forestry and fishing 947 531 1,221 2,699 2,505 2,758 2,9132,972
Finance leases and instalment credit 2,867 4,451 3,198 10,516 11,216 13,374 16,186 17,363
Accrued interest 305 26 34 365 423 558 9922,463
Total domestic 72,388 57,024 140,298 269,710 261,202 287,070 297,347 312,287
Overseas residents 74,159 7,776 2,83284,767 89,943 87,750 89,891119,656
Total UK offices 146,547 64,800 143,130354,477 351,145 374,820 387,238 431,943
Overseas
US 33,854 31,290 21,164 86,308 90,331 90,753 93,569 126,277
Rest of the World 38,587 15,981 25,91880,486 93,890 107,742 264,712 327,391
Total Overseas offices 72,441 47,271 47,082166,794 184,221 198,495 358,281453,668
Loans and advances to customers - gross 218,988 112,071 190,212 521,271 535,366 573,315 745,519885,611
Loan impairment provisions (21,136)(19,760) (18,055) (17,126)(10,889)
Loans and advances to customers - net 500,135 515,606 555,260 728,393 874,722
Fixed rate 37,374 22,437 64,130123,941 88,429 95,000 223,902 168,982
Variable rate 111,567 89,634 126,082327,283 385,443 425,803 480,577 677,316
Reverse repos 70,047 — — 70,047 61,494 52,512 41,04039,313
Loans and advances to customers – gross 218,988 112,071 190,212 521,271 535,366 573,315 745,519885,611
The Group provides credit facilities at variable rates to its corporate and
retail customers. Variable rate credit extended to the Group’s corporate
and commercial customers includes bullet and instalment loans, finance
lease agreements and overdrafts; interest is generally charged at a
margin over a bench mark rate such as LIBOR or base rate. Interest on
variable rate retail loans may also be based on LIBOR or base rate; other
variable rate retail lending is charged at variable interest rates set by the
Group such as its mortgage standard variable rate in the UK.
The scheduled repayments for retail loans generally include an
amortisation of principal. However, the Group has a portfolio of interest
only loans including mortgages linked to endowment policies and to
personal equity plans, individual savings accounts and personal pension
arrangements. From December 2012, the Royal Bank and NatWest no
longer offer interest only residential mortgages: buy-to-let interest only
mortgages are still available. The Ulster Bank Group and Coutts continue
to offer their high net worth customers interest only mortgages. In the US,
Citizens Financial Group provides its customers with mortgages, home
equity lines of credit and student loans with flexible payment schedules
including interest only periods. The Group also offers interest only
personal loans. As discussed on page 176, as part of its retail
forbearance programmes the Group may agree conversions to interest
only. Interest only retail loans at 31 December 2012 amounted to £60.0
billion. Included within this total are £8.8 billion of mortgages which are on
mixed repayment, split between interest only and capital repayment and
£2.1 billion of forbearance interest only arrangements.