RBS 2012 Annual Report Download - page 93

RBS GROUP 2012
91
Central items
2012 2011 2010
£m £m £m
Central items not allocated 143 191 630
Funding and operating costs have been allocated to operating divisions, based on direct service usage, requirement for market funding and other
appropriate drivers where services span more than one division.
Residual unallocated items relate to volatile corporate items that do not naturally reside within a division.
2012 compared with 2011
Central items not allocated represented a credit of £143 million compared
with £191 million in 2011.
Significant central costs included the Group technology incident cost of
£175 million, a £160 million provision for various litigation and legacy
conduct issues, as well as unallocated Treasury costs of circa £390
million. VAT recoveries of £85 million and Group Pension fund
adjustment of circa £50 million in 2011 were not repeated.
Offsetting these costs, profits on Group Treasury available-for-sale bond
disposals totalled £880 million compared with £516 million in 2011, as
active management of the liquid assets portfolio as well as favourable
market conditions enabled the Group to crystallise gains on some
holdings.
2011 compared with 2010
Central items not allocated represented a credit of £191 million in 2011, a
decline of £439 million compared with 2010.
2010 benefited from c.£300 million of accounting gains on hybrid
securities, c.£150 million of which was amortised during 2011.
A VAT recovery of £176 million in 2010 compared with £85 million
recovered in 2011.