RBS 2013 Annual Report Download - page 163
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Business review
161
Roll forward of funded assets
Note £bn
Estimated balance at 30 June 2013 46.8
Disposals (a) (6.0)
Run-off (b) (4.8)
Impairments (c) (5.2)
Other (d) (1.9)
Balance at 31 December 2013 28.9
Notes
(a) disposals in the second half of the year, predominantly in Non-Core.
(b) represents repayments and amortisations, partially offset by draw down of facilities across the portfolios.
(c) includes all impairments in the second half of 2013, predominately in Non-Core, and reflects increased impairments relating to the creation of RCR and the related strategy.
(d) other includes fair value adjustments, foreign exchange movements (£1.2 billion) and finalisation of the asset pool.
Roll forward of FLB3 RWAe
Note £bn
Estimated balance at 30 June 2013 136.8
Disposals (a) (11.9)
Run-off (b) (10.9)
Impairments (c) (45.1)
Other (d) (3.9)
Balance at 31 December 2013 65.0
Notes:
(a) includes all aspects relating to disposals including associated removal of deductions from regulatory capital.
(b) represents RWAe on repayments and amortisations, partially offset by draw down of facilities across the portfolios.
(c) RWAe impairment charge.
(d) other includes fair value adjustments; changes to inputs for RWA calculation (including LGD, PD, and slotting category); the implementation of a new RWA model or modification of an existing model
approved by the PRA, foreign exchange movements and finalisation of the asset pool.
The £18 billion decrease in funded assets in the second half of the year resulted in a significantly higher reduction of £72 billion in RWAe. This was due
to:
• impairments of £5 billion recognised in the second half of 2013 resulted in a lower capital deduction for the excess of expected loss over
provisions. Allowing for a restriction in provisions allowable against expected losses, the benefit was £4.5 billion or £45 billion of RWAe.
• disposals of £6 billion resulting in RWAe of £12 billion.
• run-off of £5 billion with a corresponding RWAe of £11 billion.
Capital deductions comprised expected losses less impairment provisions (31 December 2013 - £1,774 million; 30 June 2013 - £6,047 million) and
allocation of defined pension fund deficit (31 December 2013 - £58 million; 30 June 2013 - £38 million).
Additional details are set out on the following pages.