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26
RBS – Interim Results 2015
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
The following key portfolios are discussed in more detail: commercial real estate (within property); oil and
gas (within natural resources); shipping (within other); and personal portfolios.
Commercial real estate (CRE)
The CRE sector comprises exposures to entities involved in the development of, or investment in,
commercial and residential properties (including house builders). The analysis of lending below is gross of
impairment provisions and excludes rate risk management and contingent obligations
Investment Development
Commercial Residential Total Commercial Residential Total Total
By geography £m £m £m £m £m £m £m
30 June 2015
UK (excluding NI (1)) 15,959 4,351 20,310 541 3,393 3,934 24,244
Ireland (ROI and NI (1)) 1,519 312 1,831 614 2,022 2,636 4,467
Western Europe (other) 947 29 976 110 22 132 1,108
US 4,489 1,362 5,851 - 5 5 5,856
RoW (1) 415 16 431 41 249 290 721
23,329 6,070 29,399 1,306 5,691 6,997 36,396
31 December 2014
UK (excluding NI (1)) 17,327 4,757 22,084 600 3,446 4,046 26,130
Ireland (ROI and NI (1)) 2,864 740 3,604 1,499 4,469 5,968 9,572
Western Europe (other) 1,222 53 1,275 189 24 213 1,488
US 4,063 1,358 5,421 - 59 59 5,480
RoW (1) 406 22 428 34 185 219 647
25,882 6,930 32,812 2,322 8,183 10,505 43,317
Note:
(1) ROI: Republic of Ireland; NI: Northern Ireland; RoW: Rest of World.
Key points
• Overall gross CRE lending fell in the first half of 2015 mostly in RCR (£6.5 billion) due to asset sales,
repayments, and write-offs.
• The RCR portfolio contains legacy CIB, Commercial Bank and Ulster Bank assets and now represents
17% of the total portfolio (2014 - 29%). Geographically, 57% (£3.5 billion) of the remaining RCR
portfolio is located in Ireland (ROI and NI), with the UK (excluding NI) accounting for 28% (£1.7 billion)
and the remainder (£1.0 billion) in Western Europe and the RoW.
• The reduction of the commercial investment UK sub-sector is almost entirely driven by reductions o
f
£1.3 billion in RCR. RCR divestments in the development sub-sector have also led to the portfolio
being more weighted towards the investment sub-sector.
• The increase in US exposure was predominantly driven by higher business volumes in CFG, in line
with risk appetite and business strategy.
*Not within the scope of Deloitte LLP’s review report