RBS 2013 Annual Report Download - page 234
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Business review Risk and balance sheet management
232
Credit risk continued
Credit risk assets* continued
Divisional analysis
2013 2012 2011
£m £m £m
UK Retail 113,223 114,120 111,070
UK Corporate 97,166 101,148 105,078
Wealth 19,819 19,913 20,079
International Banking 60,438 64,518 72,737
Ulster Bank 33,129 34,232 37,781
US Retail & Commercial 53,411 55,036 56,546
Retail & Commercial 377,186 388,967 403,291
Markets 81,021 106,336 114,327
Other 71,409 65,186 64,517
Core 529,616 560,489 582,135
Non-Core 43,340 65,220 92,709
572,956 625,709 674,844
Key points
• Overall, CRA fell by 8% during the year. 59% of the £52.8 billion
reduction was in the Core divisions.
• CRA in the Retail & Commercial divisions continued to increase as a
proportion of the Core portfolio, accounting for 71% of the Core CRA
(2012 - 69%).
• The reduction in the Core portfolio was mostly driven by the
implementation of a risk reduction strategy in Markets. CRA in
Markets fell by 24% during the year, affected by a contraction in
lending and rate risk management activities. Markets represented
15% of Core CRA (2012 - 19%). CRA decreased in all Core
divisions with the exception of ‘other’.
*unaudited
• The increase in CRA in ‘other’ predominantly related to Group
Treasury’s exposure to central banks in the UK and US and was a
function of the Group’s liquidity requirements and cash positions.
Exposures to central banks in Western Europe decreased by 76%
year-on-year and at the year end represented 7% of ‘other’
exposure (2012 - 32%).
• At the year end, Non-Core accounted for 8% of total CRA (2012 -
10%) as asset disposals and run-offs continued. Some 50% of the
reduction in Non-Core was in the property sector as the Group
continued to reduce its concentration in this sector, in particular
commercial real estate.