RBS 2014 Annual Report Download - page 25

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23
RBS – Interim Results 2015
Analysis of results
Key points
H1 2015 compared with H1 2014
• Net impairment releases of £232 million were recorded in H1 2015, compared with net impairment
losses of £269 million in H1 2014. Net loan impairment releases were recorded in all operating
segments except Commercial Banking and CFG, where impairments nevertheless remained low a
t
0.1% and 0.3% respectively of gross loans and advances.
• RCR saw loan impairment releases of £355 million, largely arising from disposals.
• REIL totalled £18.7 billion at 30 June 2015, and represented 4.8% of gross customer loans, down £9.5
billion from 31 December 2014, when they represented 6.8% of gross customer loans.
• The £112 million increase in securities impairments related to a small number of single name
exposures, predominantly an exposure in the RBS N.V. liquidity portfolio.
Q2 2015 compared with Q1 2015
• Net impairment releases of £141 million were up from net releases of £91 million in Q1 2015. Loan
impairment releases were lower, reflecting reduced latent releases, but securities impairments
recorded in Q1 2015 were not repeated on the same scale.
• REIL were £3.6 billion lower, representing 4.8% of gross customer loans, with the bulk of the reduction
in RCR.
• Provision coverage of REIL was 60%, compared with 62% at 31 March 2015, reflecting the continuing
reduction in the more heavily provisioned portfolios of RCR.
Q2 2015 compared with Q2 2014
• Net impairment releases of £141 million were up from Q2 2014, during which higher latent releases
were partially offset by greater collectively assessed impairment charges.