o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Name of each exchange on which registered | |
American Depositary Shares, each representing Ordinary shares, nominal value American Depositary Shares Series F, H, L, M, N, P, Q, R, S, T and U each representing one Non-Cumulative Dollar Preference Share, Series F, H, L, M, N, P, Q, R, S, T and U respectively Senior Floating Rate Notes due 2013 3.400% Senior Notes due 2013 3.250% Senior Notes due 2014 3.950% Senior Notes due 2015 4.875% Senior Notes due 2015 4.375% Senior Notes due 2016 5.625% Senior Notes due 2020 6.125% Senior Notes due 2021 | 6.125% Subordinated Tier 2 Notes due 2022 2.550% Senior Notes due 2015 Structured HybrId Equity LinkeD Securities (SHIELDS) due January 16, 2014 linked to the S&P 500 Index Leveraged CPI Linked Securities due January 13, 2020 RBS US Large Cap TrendpilotTM Exchange Traded Notes due December 7, 2040 RBS US Mid Cap TrendpilotTM Exchange Traded Notes due January 25, 2041 RBS Gold TrendpilotTM Exchange Traded Notes due February 15, 2041 RBS Oil TrendpilotTM Exchange Traded Notes due September 13, 2041 RBS Global Big Pharma Exchange Traded Notes due October 25, 2041 RBS NASDAQ-100® TrendpilotTM Exchange Traded Notes due December 13, 2041 RBS China TrendpilotTM Exchange Traded Notes due April 18, 2042 RBS US Large Cap Alternator Exchange Traded NotesTMdue September 5, 2042 RBS Rogers Enhanced Commodity Index Exchange Traded Notes due October 29, 2042 RBS Rogers Enhanced Agriculture Exchange Traded Notes due October 29, 2042 RBS Rogers Enhanced Energy Exchange Traded Notes due October 29, 2042 RBS Rogers Enhanced Precious Metals Exchange Traded Notes due October 29, 2042 RBS Rogers Enhanced Industrial Metals Exchange Traded Notes due October 29, 2042 | New York Stock Exchange New York Stock Exchange* New York Stock ExchangeNew York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange NYSE MKT NYSE MKTNYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca |
* Not for trading, but only in connection with the registration of American Depositary Shares representing such ordinary shares pursuant to the requirements of the Securities and Exchange Commission. |
(Title of each class) | (Number of outstanding shares) | |
Ordinary shares of B Shares Dividend Access Share 11% cumulative preference shares 5½% cumulative preference shares Non-cumulative dollar preference shares, Series F, H and L to U Non-cumulative convertible dollar preference shares, Series 1 Non-cumulative euro preference shares, Series 1 to 3 Non-cumulative convertible sterling preference shares, Series 1 Non-cumulative sterling preference shares, Series 1 | 51,000,000,000 1 500,000 400,000 209,609,154 64,772 2,044,418 14,866 54,442 |
x Yes |
o Yes |
x Yes |
o Yes |
Large accelerated filer x | Accelerated filer o | Non-Accelerated filer o |
o Item 17 | o Item 18 |
o Yes | x No |
Item | Item Caption | Pages | ||
PART I | ||||
1 | Identity of Directors, Senior Management, | Not applicable | ||
2 | Offer Statistics and Expected Timetable | Not applicable | ||
3 | Key Information | |||
Selected financial data | 9-10, 401-404, 443-444, 453, 477-479 | |||
Capitalisation and indebtedness | Not applicable | |||
Reasons for the offer and use of proceeds | Not applicable | |||
Risk factors | 8, 459-471 | |||
4 | Information on the Company | |||
History and development of the Company | 2-3, 5-7, 305-307, 387-389, 414, 456, 492, 505 | |||
Business overview | 5-8, 26-58, 244-248, 305-307, 424-431, 454-457 | |||
Organisational structure | 5-6, 424 | |||
Property, plant and equipment | ||||
4A | Unresolved Staff Comments | Not applicable | ||
5 | Operating and Financial Review and Prospects | |||
Operating results | 7, 9-63, 244-246, 377-378, 454-455 | |||
Liquidity and capital resources | 62-63, 87-115, 348-375, 377-380, 384-386, 394-399, 401-403, 414, 422-423, 452 | |||
Research and development, patents, licences etc | Not applicable | |||
Trend information | 5-7, 459-471 | |||
Off balance sheet arrangements | ||||
Contractual obligations | 97-111, 405-408 | |||
6 | Directors, Senior Management and Employees | |||
Directors and senior management | ||||
Compensation | 279-301, 335-345, 432 | |||
Board practices | 262-274, 279-280, 289-290, 309 | |||
Employees | 28, 306, 335-337 | |||
Share ownership | 297-299 | |||
7 | Major Shareholders and Related Party Transactions | |||
Major shareholders | 309, 456 | |||
Related party transactions | 433-434 | |||
Interests of experts and counsel | Not applicable | |||
8 | Financial Information | |||
Consolidated statements and other financial information | 305, 311-441, 479 | |||
6, 434 |
Item | Item Caption | Pages |
9 | The Offer and Listing | |
Offer and listing details | 477-478 | |
Plan of distribution | Not applicable | |
Markets | 476 | |
Selling shareholders | Not applicable | |
Dilution | Not applicable | |
Expenses of the issue | Not applicable | |
10 | Additional Information | |
Share capital | Not applicable | |
Memorandum and articles of association | 484-492 | |
Material contracts | 456-457 | |
Exchange controls | 484 | |
Taxation | 480-483 | |
Dividends and paying agents | Not applicable | |
Statement of experts | Not applicable | |
Documents on display | 492 | |
Subsidiary information | Not applicable | |
11 | Quantitative and Qualitative Disclosure about Market Risk | 66-252, 348-375, 377-378 |
12 | Description of Securities other than Equity Securities | 458 |
PART II | ||
13 | Defaults, Dividend Arrearages and Delinquencies | Not applicable |
14 | Material Modifications to the Rights of Security Holders and Use of Proceeds | Not applicable |
15 | Controls and Procedures | 271-273, 302-304, 312 |
16 | [Reserved] | |
16 | A Audit Committee financial expert | 268-274 |
16 | B Code of ethics | 307 |
16 | C Principal Accountant Fees and services | 268-274, 345 |
16 | D Exemptions from the Listing Standards for Audit Committees | Not applicable |
16 | E Purchases of Equity Securities by the Issuer and Affiliated Purchasers | Not applicable |
16 | F Change in Registrant’s Certifying Accountant | Not applicable |
16 | G Corporate Governance | 262-267 |
16 | H Mine Safety Disclosure | Not applicable |
PART III | ||
17 | Financial Statements | Not applicable |
18 | Financial Statements | 311-441 |
19 | Exhibits | 506 |
Signature | 507 |
Item | Item Caption | Pages | ||
9 | The Offer and Listing Offer and listing details Plan of distribution Markets Selling shareholders Dilution Expenses of the issue | 423-424 Not applicable 422 Not applicable Not applicable Not applicable | ||
10 | Additional Information Share capital Memorandum and articles of association Material contracts Exchange controls Taxation Dividends and paying agents Statement of experts Documents on display Subsidiary information | Not applicable 430-438 398-403 429 426-429 Not applicable Not applicable 439 Not applicable | ||
11 | Quantitative and Qualitative Disclosure about Market Risk | 58-207, 299-320, 325-326 | ||
12 | Description of Securities other than Equity Securities | 404 | ||
PART II | ||||
13 | Defaults, Dividend Arrearages and Delinquencies | Not applicable | ||
14 | Material Modifications to the Rights of Security Holders and Use of Proceeds | Not applicable | ||
15 | Controls and Procedures | 223-225, 265 | ||
16 | [Reserved] | |||
A Audit Committee financial expert B Code of ethics C Principal Accountant Fees and services D Exemptions from the Listing Standards for Audit Committees E Purchases of Equity Securities by the F Change in Registrant’s Certifying Accountant G Corporate Governance H Mine Safety Disclosure | 221-225 259 221-225, 296 Not applicable Not applicable Not applicable 216-220 Not applicable | |||
PART III | ||||
17 | Financial Statements | Not applicable | ||
18 | Financial Statements | 264-384 | ||
19 | Exhibits | 452-455 | ||
Signature | 456 |
2 | Presentation of information |
Forward-looking statements | |
Description of business | |
Competition | |
Risk factors | |
Key financials | |
Summary consolidated income statement | |
Results summary | |
Analysis of results | |
Divisional performance | |
Consolidated balance sheet | |
Cash flow | |
Capital resources | |
Analysis of balance sheet pre and post disposal groups | |
66 | Risk and balance sheet management |
· | The ‘Markets’ business maintains its focus on fixed income, with strong positions in debt capital raising, securitisation, risk management, foreign exchange and rates. It will serve the corporate and institutional clients of all Group businesses. |
· | GBM's corporate banking business has been combined with the international businesses of the GTS arm into a new ‘International Banking’ unit and provides clients with a 'one-stop shop' access to the Group’s debt financing, risk management and payments services. This international corporate business will be self-funded through its stable corporate deposit base. |
· | The domestic small and mid-size corporates previously served by GTS are now managed within RBS's domestic corporate banking businesses in the UK, Ireland (Ulster Bank) and the US (US Retail & Commercial). |
· | The Group’s businesses, earnings and financial condition have been and will continue to be negatively affected by |
· | The actual or perceived failure or worsening credit of the Group’s counterparties or borrowers and depressed asset valuations resulting from poor market conditions have adversely affected and could continue to adversely affect the Group. |
· | The Group’s ability to meet its obligations’ including its funding commitments |
· | The Group is subject to a number of regulatory initiatives which may adversely affect its business, including the UK Government’s implementation of the final recommendations of the Independent Commission on |
· | The Group’s business performance, financial condition and capital and liquidity ratios could be adversely affected if its capital is not managed effectively or as a result of changes to capital adequacy and liquidity requirements, including those arising out of Basel III implementation (globally or by European or UK authorities), or if the Group is unable to issue Contingent B Shares to HM Treasury under certain circumstances. |
· | As a result of the UK Government’s majority shareholding in the Group it can, and in the future may decide to, exercise a significant degree of influence over the Group including on dividend policy, modifying or cancelling contracts or limiting the Group’s operations. The offer or sale by the UK Government of all or a portion of its shareholding in the company could affect the market price of the equity shares and other securities and acquisitions of ordinary shares by the UK Government (including through conversions of other securities or further purchases of shares) may result in the delisting of the Group from the Official List. |
· | The Group or any of its UK bank subsidiaries may face the risk of full nationalisation or other resolution procedures and various actions could be taken by or on behalf of the UK Government, including actions in relation to any securities issued, new or existing contractual arrangements and transfers of part or all of the Group’s businesses. |
· | The Group is subject to substantial regulation and oversight, and any significant regulatory or legal developments could have an adverse effect on how the Group conducts its business and on its results of operations and financial condition. In addition, the Group is, and may be, subject to litigation and regulatory investigations that may impact its business, results of operations and financial condition. |
· | The Group’s ability to implement its Strategic Plan depends on the success of its efforts to refocus on its core strengths and its balance sheet reduction programme. As part of the Group’s Strategic Plan and implementation of the State Aid restructuring plan agreed with the European Commission and HM Treasury, the Group is undertaking an extensive restructuring which may adversely affect the Group’s business, results of operations and financial condition and give rise to increased operational |
· | The |
· |
· |
The value of certain financial instruments recorded at fair value is determined using financial models incorporating assumptions, judgements and estimates that may change over time or may ultimately not turn out to be accurate. |
· | The Group’s insurance businesses are subject to inherent risks involving claims on insured events. |
· |
Any significant developments in regulatory or tax legislation could have an effect on how the Group conducts its business and on its results of operations and financial condition, and the recoverability of certain deferred tax assets recognised by the Group is subject to uncertainty. |
· |
The Group may be required to make contributions to its pension schemes and government compensation schemes, either of which may have an adverse impact on the Group’s results of operations, cash flow and financial condition. |
for the year ended 31 December | 2011 £m | 2010 £m | 2009 £m | 2012 £m | 2011 £m | 2010 £m |
Total income | 28,937 | 31,868 | 33,026 | 17,941 | 24,651 | 26,622 |
Operating loss before tax | (766) | (399) | (2,647) | (5,165) | (1,190) | (154) |
Loss attributable to ordinary and B shareholders | (1,997) | (1,125) | (3,607) | (5,971) | (1,997) | (1,125) |
Cost:income ratio | 62% | 57% | 52% | 99% | 70% | 66% |
Basic loss per ordinary and B share from continuing operations (pence) | (1.8p) | (0.5p) | (6.3p) | |||
Basic and diluted loss from continuing operations per ordinary and B share (1) | (53.7p) | (21.3p) | (2.9p) |
at 31 December | 2011 £m | 2010 £m | 2009 £m |
Funded balance sheet (1) | 977,249 | 1,026,499 | 1,255,032 |
Total assets | 1,506,867 | 1,453,576 | 1,696,486 |
Loans and advances to customers | 515,606 | 555,260 | 728,393 |
Deposits | 611,759 | 609,483 | 756,346 |
Owners' equity | 74,819 | 75,132 | 77,736 |
Risk asset ratios | - Core Tier 1 | 10.6% | 10.7% | 11.0% |
- Tier 1 | 13.0% | 12.9% | 14.1% | |
- Total | 13.8% | 14.0% | 16.1% |
at 31 December | 2012 £m | 2011 £m | 2010 £m | |
Funded balance sheet (2) | 870,392 | 977,249 | 1,026,499 | |
Total assets | 1,312,295 | 1,506,867 | 1,453,576 | |
Loans and advances to customers | 500,135 | 515,606 | 555,260 | |
Deposits | 622,684 | 611,759 | 609,483 | |
Owners' equity | 68,130 | 74,819 | 75,132 | |
Risk asset ratios | - Core Tier 1 | 10.3% | 10.6% | 10.7% |
- Tier 1 | 12.4% | 13.0% | 12.9% | |
- Total | 14.5% | 13.8% | 14.0% |
(1) | Prior year data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012. |
(2) | Funded balance sheet represents total assets less derivatives. |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Net interest income | 11,402 | 12,303 | 13,782 |
Fees and commissions receivable | 5,709 | 6,379 | 8,193 |
Fees and commissions payable | (834) | (962) | (1,892) |
Other non-interest income | 1,664 | 6,931 | 6,425 |
Insurance net premium income | — | — | 114 |
Non-interest income | 6,539 | 12,348 | 12,840 |
Total income | 17,941 | 24,651 | 26,622 |
Operating expenses | (17,827) | (17,134) | (17,456) |
Profit before insurance net claims and impairment losses | 114 | 7,517 | 9,166 |
Insurance net claims | — | — | (85) |
Impairment losses | (5,279) | (8,707) | (9,235) |
Operating loss before tax | (5,165) | (1,190) | (154) |
Tax charge | (469) | (1,127) | (703) |
Loss from continuing operations | (5,634) | (2,317) | (857) |
(Loss)/profit from discontinued operations, net of tax | |||
- Direct Line Group | (184) | 301 | (176) |
- Other | 12 | 47 | (633) |
(Loss)/profit from discontinued operations, net of tax | (172) | 348 | (809) |
Loss for the year | (5,806) | (1,969) | (1,666) |
Non-controlling interests | 123 | (28) | 665 |
Other owners’ dividends | (288) | — | (124) |
Loss attributable to ordinary and B shareholders | (5,971) | (1,997) | (1,125) |
Basic and diluted loss from continuing operations per ordinary and B share (1) | (53.7p) | (21.3p) | (2.9p) |
(1) | Prior year data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012. |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Net interest income | 12,679 | 14,209 | 13,388 |
Fees and commissions receivable | 6,384 | 8,193 | 8,738 |
Fees and commissions payable | (1,460) | (2,211) | (2,790) |
Other non-interest income | 7,078 | 6,549 | 8,424 |
Insurance net premium income | 4,256 | 5,128 | 5,266 |
Non-interest income | 16,258 | 17,659 | 19,638 |
Total income | 28,937 | 31,868 | 33,026 |
Operating expenses | (18,026) | (18,228) | (17,417) |
Profit before insurance net claims and impairment losses | 10,911 | 13,640 | 15,609 |
Insurance net claims | (2,968) | (4,783) | (4,357) |
Impairment losses | (8,709) | (9,256) | (13,899) |
Operating loss before tax | (766) | (399) | (2,647) |
Tax (charge)/credit | (1,250) | (634) | 429 |
Loss from continuing operations | (2,016) | (1,033) | (2,218) |
Profit/(loss) from discontinued operations, net of tax | 47 | (633) | (105) |
Loss for the year | (1,969) | (1,666) | (2,323) |
Non-controlling interests | (28) | 665 | (349) |
Other owners’ dividends | — | (124) | (935) |
Loss attributable to ordinary and B shareholders | (1,997) | (1,125) | (3,607) |
Basic loss per ordinary and B share from continuing operations | (1.8p) | (0.5p) | (6.3p) |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Interest receivable | 21,410 | 22,776 | 33,836 | 18,530 | 21,036 | 22,352 |
Interest payable | (8,731) | (8,567) | (17,332) | (7,128) | (8,733) | (8,570) |
Net interest income | 12,679 | 14,209 | 16,504 | 11,402 | 12,303 | 13,782 |
% | ||||||
Yields, spreads and margins of the banking business | % | % | ||||
Gross yield on interest-earning assets of the banking business | 3.24 | 3.30 | 3.76 | 3.13 | 3.23 | 3.29 |
Cost of interest-bearing liabilities of the banking business | (1.68) | (1.47) | (2.18) | (1.55) | (1.68) | (1.47) |
Interest spread of the banking business | 1.56 | 1.83 | 1.58 | 1.58 | 1.55 | 1.82 |
Benefit from interest-free funds | 0.36 | 0.23 | 0.25 | 0.34 | 0.34 | 0.21 |
Net interest margin of the banking business | 1.92 | 2.06 | 1.83 | 1.92 | 1.89 | 2.03 |
Yields, spreads and margins of the banking business | % | % | ||||
Gross yield (1) | ||||||
Gross yield (2) | ||||||
- Group | 3.24 | 3.30 | 3.76 | 3.13 | 3.23 | 3.29 |
- UK | 3.56 | 3.42 | 3.35 | 3.49 | 3.57 | 3.40 |
- Overseas | 2.77 | 3.15 | 4.09 | 2.56 | 2.77 | 3.14 |
Interest spread (2) | ||||||
Interest spread (3) | ||||||
- Group | 1.56 | 1.83 | 1.58 | 1.58 | 1.55 | 1.82 |
- UK | 1.81 | 2.01 | 1.50 | 1.84 | 1.82 | 1.99 |
- Overseas | 1.22 | 1.59 | 1.67 | 1.25 | 1.22 | 1.58 |
Net interest margin (3) | ||||||
Net interest margin (4) | ||||||
- Group | 1.92 | 2.06 | 1.83 | 1.92 | 1.89 | 2.03 |
- UK | 2.07 | 2.22 | 1.81 | 2.04 | 2.04 | 2.17 |
- Overseas | 1.70 | 1.84 | 1.85 | 1.74 | 1.69 | 1.84 |
The Royal Bank of Scotland plc base rate (average) | 0.50 | 0.50 | 0.64 | 0.50 | 0.50 | |
London inter-bank three month offered rates (average) | ||||||
- Sterling | 0.87 | 0.70 | 1.21 | 0.82 | 0.87 | 0.70 |
- Eurodollar | 0.33 | 0.34 | 0.69 | 0.43 | 0.33 | 0.34 |
- Euro | 1.36 | 0.75 | 1.21 | 0.53 | 1.36 | 0.75 |
(1) | Interest income includes £565 million (2011 - £627 million; 2010 - £588 million) in respect of loan fees forming part of the effective interest rate of loans and receivables. |
(2) | Gross yield is the interest earned on average interest-earning assets of the banking book. |
Interest spread is the difference between the gross yield and the interest rate paid on average interest-bearing liabilities of the banking business. |
Net interest margin is net interest income of the banking business as a percentage of average interest-earning assets of the banking business. |
The analysis into UK and overseas has been compiled on the basis of location of office. |
Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities. |
(7) | Interest income includes amounts (unwind of discount) recognised on impaired loans and receivables. The average balances of such loans are included in average loans and advances to banks and loans and advances to customers. |
2012 | 2011 | ||||||||
Average balance | Interest | Rate | Average balance | Interest | Rate | ||||
£m | £m | % | £m | £m | % | ||||
Assets | |||||||||
Loans and advances to banks | - UK | 33,656 | 248 | 0.74 | 29,852 | 277 | 0.93 | ||
- Overseas | 40,342 | 245 | 0.61 | 41,716 | 403 | 0.97 | |||
Loans and advances to customers | - UK | 277,321 | 11,326 | 4.08 | 293,777 | 11,970 | 4.07 | ||
- Overseas | 151,692 | 4,862 | 3.21 | 171,938 | 5,857 | 3.41 | |||
Debt securities | - UK | 49,872 | 1,015 | 2.04 | 55,074 | 1,258 | 2.28 | ||
- Overseas | 40,077 | 834 | 2.08 | 58,027 | 1,271 | 2.19 | |||
Interest-earning assets | - UK | 360,849 | 12,589 | 3.49 | 378,703 | 13,505 | 3.57 | ||
- Overseas | 232,111 | 5,941 | 2.56 | 271,681 | 7,531 | 2.77 | |||
Total interest-earning assets | - banking business (1) | 592,960 | 18,530 | 3.13 | 650,384 | 21,036 | 3.23 | ||
- trading business (6) | 240,131 | 278,975 | |||||||
Interest-earning assets | 833,091 | 929,359 | |||||||
Non-interest-earning assets | 597,281 | 605,796 | |||||||
Total assets | 1,430,372 | 1,535,155 | |||||||
Percentage of assets applicable to overseas operations | 37.8% | 40.2% | |||||||
Liabilities | |||||||||
Deposits by banks | - UK | 18,276 | 196 | 1.07 | 17,224 | 242 | 1.41 | ||
- Overseas | 20,200 | 404 | 2.00 | 47,371 | 740 | 1.56 | |||
Customer accounts: demand deposits | - UK | 121,252 | 643 | 0.53 | 112,777 | 666 | 0.59 | ||
- Overseas | 35,087 | 210 | 0.60 | 43,177 | 483 | 1.12 | |||
Customer accounts: savings deposits | - UK | 84,972 | 1,479 | 1.74 | 76,719 | 1,177 | 1.53 | ||
- Overseas | 26,989 | 133 | 0.49 | 25,257 | 130 | 0.51 | |||
Customer accounts: other time deposits | - UK | 35,848 | 522 | 1.46 | 39,672 | 481 | 1.21 | ||
- Overseas | 23,776 | 504 | 2.12 | 33,971 | 594 | 1.75 | |||
Debt securities in issue | - UK | 60,709 | 1,681 | 2.77 | 108,406 | 2,606 | 2.40 | ||
- Overseas | 22,294 | 342 | 1.53 | 42,769 | 765 | 1.79 | |||
Subordinated liabilities | - UK | 15,609 | 435 | 2.79 | 16,874 | 470 | 2.79 | ||
- Overseas | 5,461 | 380 | 6.96 | 5,677 | 270 | 4.76 | |||
Internal funding of trading business | - UK | (21,140) | 264 | (1.25) | (40,242) | 149 | (0.37) | ||
- Overseas | 11,992 | (65) | (0.54) | (8,783) | (40) | 0.46 | |||
Interest-bearing liabilities | - UK | 315,526 | 5,220 | 1.65 | 331,430 | 5,791 | 1.75 | ||
- Overseas | 145,799 | 1,908 | 1.31 | 189,439 | 2,942 | 1.55 | |||
Total interest-bearing liabilities | - banking business | 461,325 | 7,128 | 1.55 | 520,869 | 8,733 | 1.68 | ||
- trading business (6) | 248,647 | 307,564 | |||||||
Interest-bearing liabilities | 709,972 | 828,433 | |||||||
Non-interest-bearing liabilities: | |||||||||
Demand deposits | - UK | 46,420 | 46,495 | ||||||
- Overseas | 27,900 | 19,909 | |||||||
Other liabilities (2) | 572,820 | 565,279 | |||||||
Owners' equity | 73,260 | 75,039 | |||||||
Total liabilities and owners' equity | 1,430,372 | 1,535,155 | |||||||
Percentage of liabilities applicable to overseas operations | 33.9% | 37.1% |
2011 | 2010 | |||||||
Average Balance | Interest | Rate | Average balance | Interest | Rate | |||
£m | £m | % | £m | £m | % | |||
Assets | ||||||||
Loans and advances to banks | - UK | 31,994 | 293 | 0.92 | 22,714 | 222 | 0.98 | |
- Overseas | 41,840 | 404 | 0.97 | 30,148 | 369 | 1.22 | ||
Loans and advances to customers | - UK | 294,301 | 12,105 | 4.11 | 310,712 | 11,989 | 3.86 | |
- Overseas | 171,979 | 5,864 | 3.41 | 195,858 | 6,900 | 3.52 | ||
Debt securities | - UK | 62,231 | 1,449 | 2.33 | 66,765 | 1,459 | 2.19 | |
- Overseas | 58,773 | 1,295 | 2.20 | 63,334 | 1,837 | 2.90 | ||
Interest-earning assets | - UK | 388,526 | 13,847 | 3.56 | 400,191 | 13,670 | 3.42 | |
- Overseas | 272,592 | 7,563 | 2.77 | 289,340 | 9,106 | 3.15 | ||
Total interest-earning assets | - banking business | 661,118 | 21,410 | 3.24 | 689,531 | 22,776 | 3.30 | |
- trading business | 278,975 | 276,330 | ||||||
Interest-earning assets | 940,093 | 965,861 | ||||||
Non-interest-earning assets (5) | 595,062 | 706,343 | ||||||
Total assets | 1,535,155 | 1,672,204 | ||||||
Percentage of assets applicable to overseas operations | 40.2% | 44.0% | ||||||
Liabilities | ||||||||
Deposits by banks | - UK | 17,224 | 242 | 1.41 | 21,816 | 334 | 1.53 | |
- Overseas | 47,371 | 740 | 1.56 | 59,799 | 999 | 1.67 | ||
Customer accounts: demand deposits | - UK | 112,522 | 664 | 0.59 | 120,796 | 621 | 0.51 | |
- Overseas | 43,177 | 483 | 1.12 | 39,127 | 607 | 1.55 | ||
Customer accounts: savings deposits | - UK | 76,719 | 1,177 | 1.53 | 68,142 | 935 | 1.37 | |
- Overseas | 25,257 | 130 | 0.51 | 25,587 | 213 | 0.83 | ||
Customer accounts: other time deposits | - UK | 39,672 | 481 | 1.21 | 39,934 | 431 | 1.08 | |
- Overseas | 33,971 | 594 | 1.75 | 43,996 | 914 | 2.08 | ||
Debt securities in issue | - UK | 108,406 | 2,606 | 2.40 | 111,277 | 2,212 | 1.99 | |
- Overseas | 42,769 | 765 | 1.79 | 72,175 | 1,065 | 1.48 | ||
Subordinated liabilities | - UK | 16,874 | 470 | 2.79 | 19,442 | 398 | 2.05 | |
- Overseas | 5,677 | 270 | 4.76 | 8,714 | 19 | 0.22 | ||
Internal funding of trading business | - UK | (40,242) | 149 | (0.37) | (41,451) | (140) | 0.34 | |
- Overseas | (8,783) | (40) | 0.46 | (6,864) | (41) | 0.60 | ||
Interest-bearing liabilities | - UK | 331,175 | 5,789 | 1.75 | 339,956 | 4,791 | 1.41 | |
- Overseas | 189,439 | 2,942 | 1.55 | 242,534 | 3,776 | 1.56 | ||
Total interest-bearing liabilities | - banking business | 520,614 | 8,731 | 1.68 | 582,490 | 8,567 | 1.47 | |
- trading business (5) | 307,564 | 293,993 | ||||||
Interest-bearing liabilities | 828,178 | 876,483 | ||||||
Non-interest-bearing liabilities: | ||||||||
Demand deposits | - UK | 46,495 | 46,692 | |||||
- Overseas | 19,909 | 23,994 | ||||||
Other liabilities (5) | 565,534 | 648,129 | ||||||
Owners' equity | 75,039 | 76,906 | ||||||
Total liabilities and owners' equity | 1,535,155 | 1,672,204 | ||||||
Percentage of liabilities applicable to overseas operations | 37.1% | 41.7% |
2009 | 2010 | |||||||
Average balance | Interest | Rate | Average balance | Interest | Rate | |||
£m | % | £m | % | |||||
Assets | ||||||||
Loans and advances to banks | - UK | 21,616 | 310 | 1.43 | - UK | 20,334 | 207 | 1.02 |
- Overseas | 32,367 | 613 | 1.89 | - Overseas | 30,031 | 368 | 1.23 | |
Loans and advances to customers | - UK | 333,230 | 11,940 | 3.58 | - UK | 309,764 | 11,818 | 3.82 |
- Overseas | 376,382 | 16,339 | 4.34 | - Overseas | 195,822 | 6,894 | 3.52 | |
Debt securities | - UK | 52,470 | 1,414 | 2.69 | - UK | 60,209 | 1,253 | 2.08 |
- Overseas | 84,822 | 3,220 | 3.80 | - Overseas | 62,671 | 1,812 | 2.89 | |
Interest-earning assets | - UK | 407,316 | 13,664 | 3.35 | - UK | 390,307 | 13,278 | 3.40 |
- Overseas | 493,571 | 20,172 | 4.09 | - Overseas | 288,524 | 9,074 | 3.14 | |
Total interest-earning assets | - banking business | 900,887 | 33,836 | 3.76 | - banking business (1) | 678,831 | 22,352 | 3.29 |
- trading business (5) | 291,092 | - trading business (6) | 276,330 | |||||
Interest-earning assets | 1,191,979 | 955,161 | ||||||
Non-interest-earning assets | 831,501 | 717,043 | ||||||
Total assets | 2,023,480 | 1,672,204 | ||||||
Percentage of assets applicable to overseas operations | 47.4% | 44.1% | ||||||
Liabilities | ||||||||
Deposits by banks | - UK | 24,837 | 679 | 2.73 | - UK | 21,816 | 334 | 1.53 |
- Overseas | 104,396 | 2,362 | 2.26 | - Overseas | 59,799 | 999 | 1.67 | |
Customer accounts: demand deposits | - UK | 110,294 | 569 | 0.52 | - UK | 121,186 | 624 | 0.51 |
- Overseas | 82,177 | 1,330 | 1.62 | - Overseas | 39,127 | 607 | 1.55 | |
Customer accounts: savings deposits | - UK | 54,270 | 780 | 1.44 | - UK | 68,142 | 935 | 1.37 |
- Overseas | 83,388 | 2,114 | 2.54 | - Overseas | 25,587 | 213 | 0.83 | |
Customer accounts: other time deposits | - UK | 68,625 | 932 | 1.36 | - UK | 39,934 | 431 | 1.08 |
- Overseas | 71,315 | 2,255 | 3.16 | - Overseas | 43,996 | 914 | 2.08 | |
Debt securities in issue | - UK | 116,536 | 2,830 | 2.43 | - UK | 111,277 | 2,212 | 1.99 |
- Overseas | 117,428 | 2,500 | 2.13 | - Overseas | 72,175 | 1,065 | 1.48 | |
Subordinated liabilities | - UK | 26,053 | 834 | 3.20 | - UK | 19,442 | 398 | 2.05 |
- Overseas | 12,468 | 656 | 5.26 | - Overseas | 8,714 | 19 | 0.22 | |
Internal funding of trading business | - UK | (60,284) | (317) | 0.53 | - UK | (41,451) | (140) | 0.34 |
- Overseas | (14,845) | (192) | 1.29 | - Overseas | (6,864) | (41) | 0.60 | |
Interest-bearing liabilities | - UK | 340,331 | 6,307 | 1.85 | - UK | 340,346 | 4,794 | 1.41 |
- Overseas | 456,327 | 11,025 | 2.42 | - Overseas | 242,534 | 3,776 | 1.56 | |
Total interest-bearing liabilities | - banking business | 796,658 | 17,332 | 2.18 | - banking business | 582,880 | 8,570 | 1.47 |
- trading business (5) | 331,380 | - trading business (6) | 293,993 | |||||
Interest-bearing liabilities | 1,128,038 | 876,873 | ||||||
Non-interest-bearing liabilities: | ||||||||
Demand deposits | - UK | 38,220 | - UK | 46,692 | ||||
- Overseas | 27,149 | - Overseas | 23,994 | |||||
Other liabilities | 772,770 | 647,739 | ||||||
Owners' equity | 57,303 | 76,906 | ||||||
Total liabilities and owners' equity | 2,023,480 | 1,672,204 | ||||||
Percentage of liabilities applicable to overseas operations | 45.8% | 41.3% |
2011 over 2010 | 2012 over 2011 | |||||
Increase/(decrease) due to changes in: | Increase/(decrease) due to changes in: | |||||
Average volume | Average rate | Net change | Average volume | Average rate | Net change | |
£m | £m | |||||
Interest-earning assets | ||||||
Loans and advances to banks | ||||||
UK | 86 | (15) | 71 | 32 | (61) | (29) |
Overseas | 124 | (89) | 35 | (13) | (145) | (158) |
Loans and advances to customers | ||||||
UK | (652) | 768 | 116 | (673) | 29 | (644) |
Overseas | (820) | (216) | (1,036) | (664) | (331) | (995) |
Debt securities | ||||||
UK | (102) | 92 | (10) | (115) | (128) | (243) |
Overseas | (125) | (417) | (542) | (376) | (61) | (437) |
Total interest receivable of the banking business | ||||||
UK | (668) | 845 | 177 | (756) | (160) | (916) |
Overseas | (821) | (722) | (1,543) | (1,053) | (537) | (1,590) |
(1,809) | (697) | (2,506) | ||||
(1,489) | 123 | (1,366) | ||||
Interest-bearing liabilities | ||||||
Deposits by banks | ||||||
UK | 66 | 26 | 92 | (14) | 60 | 46 |
Overseas | 197 | 62 | 259 | 505 | (169) | 336 |
Customer accounts: demand deposits | ||||||
UK | 45 | (88) | (43) | (48) | 71 | 23 |
Overseas | (58) | 182 | 124 | 78 | 195 | 273 |
Customer accounts: savings deposits | ||||||
UK | (125) | (117) | (242) | (133) | (169) | (302) |
Overseas | 3 | 80 | 83 | (8) | 5 | (3) |
Customer accounts: other time deposits | ||||||
UK | 3 | (53) | (50) | 50 | (91) | (41) |
Overseas | 189 | 131 | 320 | 200 | (110) | 90 |
Debt securities in issue | ||||||
UK | 58 | (452) | (394) | 1,279 | (354) | 925 |
Overseas | 494 | (194) | 300 | 325 | 98 | 423 |
Subordinated liabilities | ||||||
UK | 58 | (130) | (72) | 35 | — | 35 |
Overseas | 9 | (260) | (251) | 11 | (121) | (110) |
Internal funding of trading business | ||||||
UK | (4) | (285) | (289) | 99 | (214) | (115) |
Overseas | 10 | (11) | (1) | 13 | 12 | 25 |
Total interest payable of the banking business | ||||||
UK | 101 | (1,099) | (998) | 1,268 | (697) | 571 |
Overseas | 844 | (10) | 834 | 1,124 | (90) | 1,034 |
945 | (1,109) | (164) | 2,392 | (787) | 1,605 | |
Movement in net interest income | ||||||
UK | (567) | (254) | (821) | 512 | (857) | (345) |
Overseas | 23 | (732) | (709) | 71 | (627) | (556) |
(544) | (986) | (1,530) | 583 | (1,484) | (901) |
2010 over 2009 | 2011 over 2010 | |||||
Increase/(decrease) due to changes in: | Increase/(decrease) due to changes in: | |||||
Average volume | Average rate | Net change | Average volume | Average rate | Net change�� | |
£m | £m | |||||
Interest-earning assets | ||||||
Loans and advances to banks | ||||||
UK | 15 | (103) | (88) | 90 | (20) | 70 |
Overseas | (40) | (204) | (244) | 124 | (89) | 35 |
Loans and advances to customers | ||||||
UK | (836) | 885 | 49 | (616) | 768 | 152 |
Overseas | (6,776) | (2,663) | (9,439) | (825) | (212) | (1,037) |
Debt securities | ||||||
UK | 342 | (297) | 45 | (111) | 116 | 5 |
Overseas | (716) | (667) | (1,383) | (127) | (414) | (541) |
Total interest receivable of the banking business | ||||||
UK | (479) | 485 | 6 | (637) | 864 | 227 |
Overseas | (7,532) | (3,534) | (11,066) | (828) | (715) | (1,543) |
(1,465) | 149 | (1,316) | ||||
(8,011) | (3,049) | (11,060) | ||||
Interest-bearing liabilities | ||||||
Deposits by banks | ||||||
UK | 75 | 270 | 345 | 67 | 25 | 92 |
Overseas | 845 | 518 | 1,363 | 197 | 62 | 259 |
Customer accounts: demand deposits | ||||||
UK | (54) | 2 | (52) | 47 | (89) | (42) |
Overseas | 670 | 53 | 723 | (58) | 182 | 124 |
Customer accounts: savings deposits | ||||||
UK | (192) | 37 | (155) | (126) | (116) | (242) |
Overseas | 965 | 936 | 1,901 | 3 | 80 | 83 |
Customer accounts: other time deposits | ||||||
UK | 336 | 165 | 501 | 3 | (53) | (50) |
Overseas | 708 | 633 | 1,341 | 189 | 131 | 320 |
Debt securities in issue | ||||||
UK | 123 | 495 | 618 | 58 | (452) | (394) |
Overseas | 799 | 636 | 1,435 | 494 | (194) | 300 |
Subordinated liabilities | ||||||
UK | 180 | 256 | 436 | 58 | (130) | (72) |
Overseas | 152 | 485 | 637 | 9 | (260) | (251) |
Internal funding of trading business | ||||||
UK | (83) | (94) | (177) | (4) | (285) | (289) |
Overseas | (75) | (76) | (151) | 10 | (11) | (1) |
Total interest payable of the banking business | ||||||
UK | 385 | 1,131 | 1,516 | 103 | (1,100) | (997) |
Overseas | 4,064 | 3,185 | 7,249 | 844 | (10) | 834 |
4,449 | 4,316 | 8,765 | 947 | (1,110) | (163) | |
Movement in net interest income | ||||||
UK | (94) | 1,616 | 1,522 | (534) | (236) | (770) |
Overseas | (3,468) | (349) | (3,817) | 16 | (725) | (709) |
(3,562) | 1,267 | (2,295) | (518) | (961) | (1,479) |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Fees and commissions receivable | 6,384 | 8,193 | 8,738 |
Fees and commissions payable | (1,460) | (2,211) | (2,790) |
Income from trading activities | |||
- managed basis | 3,382 | 6,142 | 3,954 |
- Asset Protection Scheme | (906) | (1,550) | — |
- movements in the fair value of own debt | 225 | (75) | (193) |
2,701 | 4,517 | 3,761 | |
Gain on redemption of own debt | 255 | 553 | 3,790 |
Other operating income (excluding insurance net premium income) | |||
- managed basis | 2,525 | 1,059 | 690 |
- strategic disposals | (24) | 171 | 132 |
- movements in the fair value of own debt | 1,621 | 249 | 51 |
4,122 | 1,479 | 873 | |
Insurance net premium income | 4,256 | 5,128 | 5,266 |
Total non-interest income | 16,258 | 17,659 | 19,638 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Fees and commissions receivable | |||
- managed basis | 5,715 | 6,384 | 8,194 |
- Direct Line Group discontinued operations | (6) | (5) | — |
- RFS Holdings minority interest | — | — | (1) |
Statutory basis | 5,709 | 6,379 | 8,193 |
Fees and commissions payable | |||
- managed basis | (1,269) | (1,460) | (2,211) |
- Direct Line Group discontinued operations | 436 | 498 | 319 |
- RFS Holdings minority interest | (1) | — | — |
Statutory basis | (834) | (962) | (1,892) |
Income from trading activities | |||
- managed basis | 3,531 | 3,313 | 6,070 |
- own credit adjustments | (1,813) | 293 | (7) |
- Asset Protection Scheme | (44) | (906) | (1,550) |
- Direct Line Group discontinued operations | 2 | — | — |
- RFS Holdings minority interest | (1) | 1 | 4 |
Statutory basis | 1,675 | 2,701 | 4,517 |
Gain on redemption of own debt - statutory basis | 454 | 255 | 553 |
Other operating income | |||
- managed basis | 2,397 | 2,527 | 1,213 |
- own credit adjustments | (2,836) | 1,621 | 249 |
- integration and restructuring costs | — | 78 | — |
- strategic disposals | 113 | (104) | 171 |
- Direct Line Group discontinued operations | (138) | (147) | (124) |
- RFS Holdings minority interest | (1) | — | (154) |
Statutory basis | (465) | 3,975 | 1,355 |
Non-interest income (excluding insurance net premium income) | 6,539 | 12,348 | 12,726 |
Insurance net premium income | |||
- managed basis | 3,718 | 4,256 | 5,128 |
- Direct Line Group discontinued operations | (3,718) | (4,256) | (5,014) |
Statutory basis | — | — | 114 |
Total non-interest income - managed basis | 14,092 | 15,020 | 18,394 |
Total non-interest income - statutory basis | 6,539 | 12,348 | 12,840 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Staff costs | |||
- excluding gains on pensions curtailment | 8,678 | 9,671 | 9,993 |
- gains on pensions curtailment | — | — | (2,148) |
8,678 | 9,671 | 7,845 | |
Premises and equipment | 2,451 | 2,402 | 2,594 |
Other administrative expenses | |||
- managed basis | 2,722 | 2,963 | 3,163 |
- Payment Protection Insurance costs | 850 | — | — |
- integration and restructuring costs | 1,059 | 1,032 | 1,286 |
- bank levy | 300 | — | — |
4,931 | 3,995 | 4,449 | |
Administrative expenses | 16,060 | 16,068 | 14,888 |
Depreciation and amortisation | 1,875 | 2,150 | 2,166 |
Write-down of goodwill and other intangible assets | 91 | 10 | 363 |
Operating expenses | 18,026 | 18,228 | 17,417 |
General insurance | 2,968 | 4,698 | 4,223 |
Bancassurance | — | 85 | 134 |
Insurance net claims | 2,968 | 4,783 | 4,357 |
Staff costs as a percentage of total income | 30% | 30% | 30% |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Staff costs | |||
- managed basis | 7,639 | 8,163 | 8,956 |
- integration and restructuring costs | 885 | 489 | 614 |
- bonus tax | — | 27 | 99 |
- Direct Line Group discontinued operations | (447) | (322) | (292) |
- RFS Holdings minority interest | (1) | (1) | 2 |
Statutory basis | 8,076 | 8,356 | 9,379 |
Premises and equipment | |||
- managed basis | 2,198 | 2,278 | 2,276 |
- integration and restructuring costs | 152 | 173 | 126 |
- Direct Line Group discontinued operations | (118) | (28) | (22) |
- RFS Holdings minority interest | — | — | — |
Statutory basis | 2,232 | 2,423 | 2,380 |
Other administrative expenses | |||
- managed basis | 3,248 | 3,395 | 3,716 |
- Payment Protection Insurance costs | 1,110 | 850 | — |
- Interest Rate Hedging Products redress and related costs | 700 | — | — |
- regulatory fines | 381 | — | — |
- integration and restructuring costs | 371 | 386 | 272 |
- bank levy | 175 | 300 | — |
- Direct Line Group discontinued operations | (395) | (495) | (424) |
- RFS Holdings minority interest | 3 | — | 7 |
Statutory basis | 5,593 | 4,436 | 3,571 |
Administrative expenses | 15,901 | 15,215 | 15,330 |
Depreciation and amortisation | |||
- managed basis | 1,534 | 1,642 | 1,762 |
- Direct Line Group discontinued operations | (52) | (36) | (25) |
- amortisation of purchased intangible assets | 178 | 222 | 369 |
- integration and restructuring costs | 142 | 11 | 20 |
- RFS Holdings minority interest | — | — | (1) |
Statutory basis | 1,802 | 1,839 | 2,125 |
Write-down of goodwill and other intangible assets - statutory basis | 124 | 80 | 1 |
Operating expenses | 17,827 | 17,134 | 17,456 |
Insurance net claims | |||
- managed basis | 2,427 | 2,968 | 4,783 |
- Direct Line Group discontinued operations | (2,427) | (2,968) | (4,698) |
Statutory basis | — | — | 85 |
Staff costs as a percentage of total income | 45% | 34% | 35% |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Staff costs | 38 | 210 | 365 |
Premises and equipment | 6 | 3 | 78 |
Other administrative expenses | 51 | 143 | 398 |
Depreciation and amortisation | 11 | 20 | 18 |
106 | 376 | 859 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Staff costs | — | 38 | 210 |
Premises and equipment | (2) | 6 | 3 |
Other administrative expenses | 2 | 51 | 143 |
Depreciation and amortisation | — | 11 | 20 |
— | 106 | 376 |
(1) | Integration costs |
At 1 January | Charge to income | Utilised during | At 31 December | |
2011 | statement | the year | 2011 | |
£m | £m | £m | £m | |
Staff costs - redundancy | — | 8 | (8) | — |
Staff costs - other | — | 30 | (30) | — |
Premises and equipment | 24 | 6 | (19) | 11 |
Other administrative expenses | — | 51 | (48) | 3 |
Depreciation and amortisation | — | 11 | (11) | — |
24 | 106 | (116) | 14 |
At 1 January 2012 | (Credit)/charge to income statement - continuing operations | Utilised during the year | At 31 December 2012 | |
£m | £m | £m | £m | |
Premises and equipment | 11 | (2) | — | 9 |
Other administrative expenses | 3 | 2 | — | 5 |
14 | — | — | 14 |
2011 | 2010 | 2009 | 2012 (managed) | Discontinued operations | Continuing operations (statutory) | 2011 (managed) | Discontinued operations | Continuing operations (statutory) | 2010 (managed) | Discontinued operations | Continuing operations (statutory) | |
£m | £m | £m | £m | £m | £m | £m | £m | |||||
Staff costs | 356 | 353 | 328 | 737 | (37) | 700 | 356 | (14) | 342 | 353 | (12) | 341 |
Premises and equipment | 156 | 117 | 48 | 145 | (4) | 141 | 156 | (1) | 155 | 117 | — | 117 |
Other administrative expenses | 276 | 104 | 51 | 270 | (9) | 261 | 276 | (8) | 268 | 104 | (8) | 96 |
Depreciation and amortisation | 142 | — | 142 | — | — | — | — | — | ||||
788 | 574 | 427 | 1,294 | (50) | 1,244 | 788 | (23) | 765 | 574 | (20) | 554 |
At | Currency | Charge | Utilised | At | ||||||||
1 January | translation | to income | during | 31 December | ||||||||
2011 | adjustments | statement | the year | 2011 | At 1 January 2012 | Currency translation adjustments | Charge to income statement - continuing operations | Charge to income statement - discontinued operations | Utilised during the year | Transfer to disposal groups | At 31 December 2012 | |
£m | £m | £m | £m | |||||||||
Staff costs - redundancy | 201 | — | 274 | (349) | 126 | 126 | 5 | 626 | 37 | (336) | (24) | 434 |
Staff costs - other | 17 | (1) | 82 | (58) | 40 | 40 | — | 74 | — | (3) | — | 111 |
Premises and equipment | 117 | — | 156 | (107) | 166 | 166 | — | 141 | 4 | (22) | — | 289 |
Other administrative expenses | 46 | (2) | 276 | (210) | 110 | 110 | (2) | 261 | 9 | (107) | (7) | 264 |
Depreciation and amortisation | — | 142 | — | (142) | — | |||||||
381 | (3) | 788 | (724) | 442 | 442 | 3 | 1,244 | 50 | (641) | (31) | 1,067 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Staff costs | 95 | 51 | — |
Premises and equipment | 11 | 6 | — |
Other administrative expenses | 59 | 25 | — |
165 | 82 | — |
2012 (managed) | Discontinued operations | Continuing operations (statutory) | 2011 (managed) | Discontinued operations | Continuing operations (statutory) | 2010 (managed) | Discontinued operations | Continuing operations (statutory) | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
Staff costs | 148 | (37) | 111 | 95 | (11) | 84 | 51 | — | 51 |
Premises and equipment | 9 | (11) | (2) | 11 | — | 11 | 6 | — | 6 |
Other administrative expenses | 99 | (37) | 62 | 59 | (9) | 50 | 25 | — | 25 |
256 | (85) | 171 | 165 | (20) | 145 | 82 | — | 82 |
At | Charge | Utilised | At | |
1 January | to income | during | 31 December | |
2011 | statement | the year | 2011 | |
£m | £m | £m | £m | |
Staff costs - redundancy | 22 | 36 | (13) | 45 |
Staff costs - other | 8 | 59 | (66) | 1 |
Premises and equipment | — | 11 | (11) | — |
Other administrative expenses | 2 | 59 | (40) | 21 |
32 | 165 | (130) | 67 |
At 1 January 2012 | Charge/(credit) to income statement - continuing operations | Charge to income statement - discontinued operations | Utilised during the year | Transfer to disposal groups | At 31 December 2012 | |
£m | £m | £m | £m | £m | £m | |
Staff costs - redundancy | 45 | 47 | 37 | (41) | (1) | 87 |
Staff costs - other | 1 | 64 | — | (19) | — | 46 |
Premises and equipment | — | (2) | 11 | (9) | — | — |
Other administrative expenses | 21 | 62 | 37 | (43) | (4) | 73 |
67 | 171 | 85 | (112) | (5) | 206 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
New impairment losses | 9,236 | 9,667 | 14,224 |
Less: recoveries of amounts previously written-off | (527) | (411) | (325) |
Charge to income statement | 8,709 | 9,256 | 13,899 |
Comprising: | |||
Loan impairment losses | 7,241 | 9,144 | 13,090 |
Securities | |||
- managed bases | 200 | 112 | 809 |
- sovereign debt impairment | 1,099 | — | — |
- interest rate hedge adjustments on impaired available-for-sale Greek government bonds | 169 | — | — |
1,468 | 112 | 809 | |
Charge to income statement | 8,709 | 9,256 | 13,899 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
New impairment losses | 5,620 | 9,234 | 9,646 |
Less: recoveries of amounts previously written-off | (341) | (527) | (411) |
Charge to income statement | 5,279 | 8,707 | 9,235 |
Comprising: | |||
Loan impairment losses | 5,315 | 7,241 | 9,144 |
Securities | |||
- managed basis | (36) | 198 | 112 |
- sovereign debt impairment | — | 1,099 | — |
- interest rate hedge adjustments on impaired available-for-sale sovereign debt | — | 169 | — |
Direct Line Group discontinued operations | — | — | (21) |
Statutory basis | (36) | 1,466 | 91 |
Charge to income statement | 5,279 | 8,707 | 9,235 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | £m | £m | |
Tax (charge)/credit | (1,250) | (634) | 429 | |||
Tax charge | (469) | (1,127) | (703) | |||
% | % | % | % | % | ||
UK corporation tax rate | 26.5 | 28.0 | 28.0 | 24.5 | 26.5 | 28.0 |
Effective tax rate | nm | nm | 16.2 | nm | nm |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Expected tax credit | 203 | 112 | 741 | 1,265 | 315 | 44 |
Sovereign debt impairment where no deferred tax asset recognised | (275) | — | — | (275) | — | |
Other losses in year where no deferred tax asset recognised | (530) | (450) | (780) | (511) | (530) | (450) |
Foreign profits taxed at other rates | (417) | (517) | (276) | (383) | (417) | (517) |
UK tax rate change - deferred tax impact | (110) | (82) | — | |||
UK tax rate change impact | (149) | (112) | (83) | |||
Unrecognised timing differences | (20) | 11 | 274 | 59 | (20) | 11 |
Non-deductible goodwill impairment | (24) | (3) | (102) | — | (24) | (3) |
Items not allowed for tax | ||||||
- losses on strategic disposals and write-downs | (72) | (311) | (152) | |||
- UK Bank levy | (80) | — | ||||
- losses on disposals and write-downs | (49) | (72) | (311) | |||
- UK bank levy | (43) | (80) | — | |||
- regulatory fines | (93) | — | ||||
- employee share schemes | (113) | (32) | (29) | (9) | (113) | (32) |
- other disallowable items | (271) | (296) | (327) | (246) | (258) | (296) |
Non-taxable items | ||||||
- gain on sale of RBS Aviation Capital | 26 | — | ||||
- gain on sale of Global Merchant Services | 12 | 221 | — | — | 12 | 221 |
- gain on redemption of own debt | — | 11 | 693 | — | — | 11 |
- other non-taxable items | 245 | 341 | 410 | 104 | 242 | 341 |
Taxable foreign exchange movements | 4 | 4 | 1 | (1) | 4 | |
Losses brought forward and utilised | 2 | 2 | 94 | 2 | 2 | |
Reduction in carrying value of deferred tax asset in respect of losses in | ||||||
- Australia | (191) | — | ||||
- Ireland | (203) | — | ||||
Adjustments in respect of prior years | 196 | 355 | (118) | (47) | 199 | 355 |
Actual tax (charge)/credit | (1,250) | (634) | 429 | |||
Actual tax charge | (469) | (1,127) | (703) |
Operating profit/(loss) by division | 2012 | 2011 | 2010 | |||
2011 £m | 2010 £m | 2009 £m | £m | £m | ||
UK Retail | 1,991 | 1,372 | 229 | 1,891 | 2,021 | 1,348 |
UK Corporate | 1,414 | 1,463 | 1,125 | 1,796 | 1,924 | 1,893 |
Wealth | 321 | 304 | 420 | 253 | 248 | 283 |
Global Transaction Services | 743 | 1,088 | 973 | |||
International Banking | 594 | 755 | 1,311 | |||
Ulster Bank | (1,024) | (761) | (368) | (1,040) | (984) | (683) |
US Retail & Commercial | 479 | 306 | (113) | 754 | 537 | 349 |
Retail & Commercial | 3,924 | 3,772 | 2,266 | 4,248 | 4,501 | |
Global Banking & Markets | 1,561 | 3,364 | 5,758 | |||
RBS Insurance | 454 | (295) | 58 | |||
Markets | 1,509 | 899 | 2,724 | |||
Direct Line Group | 441 | 454 | (295) | |||
Central items | 156 | 577 | 385 | 143 | 191 | 630 |
Core | 6,095 | 7,418 | 8,467 | 6,341 | 6,045 | 7,560 |
Non-Core | (4,203) | (5,505) | (14,557) | (2,879) | (4,221) | (5,715) |
Managed basis | 1,892 | 1,913 | (6,090) | 3,462 | 1,824 | 1,845 |
Reconciling items | ||||||
Fair value of own debt | 1,846 | 174 | (142) | |||
Own credit adjustments | (4,649) | 1,914 | 242 | |||
Asset Protection Scheme | (906) | (1,550) | — | (44) | (906) | (1,550) |
Payment Protection Insurance costs | (850) | — | (1,110) | (850) | — | |
Interest Rate Hedging Products redress and related costs | (700) | — | — | |||
Regulatory fines | (381) | — | — | |||
Sovereign debt impairment | (1,099) | — | — | (1,099) | — | |
Interest rate hedge adjustments on impaired available-for-sale sovereign debt | — | (169) | — | |||
Amortisation of purchased intangible assets | (222) | (369) | (272) | (178) | (222) | (369) |
Integration and restructuring costs | (1,064) | (1,032) | (1,286) | (1,550) | (1,064) | (1,032) |
Gain on redemption of own debt | 255 | 553 | 3,790 | 454 | 255 | 553 |
Strategic disposals | (104) | 171 | 132 | 113 | (104) | 171 |
Bank levy | (300) | — | (175) | (300) | — | |
Other | (214) | (259) | 1,221 | |||
Group operating loss before tax | (766) | (399) | (2,647) | |||
Bonus tax | — | (27) | (99) | |||
Write-down of goodwill and other intangible assets | (518) | (11) | (10) | |||
RFS Holdings minority interest | (20) | (7) | (150) | |||
Operating loss including the results of Direct Line Group discontinued operations | (5,296) | (766) | (399) | |||
Direct Line Group discontinued operations* | 131 | (424) | 245 | |||
Group | (5,165) | (1,190) | (154) |
Impairment losses/(recoveries) by division | 2012 £m | 2011 £m | 2010 £m |
UK Retail | 529 | 788 | 1,160 |
UK Corporate | 838 | 793 | 767 |
Wealth | 46 | 25 | 18 |
International Banking | 111 | 168 | 86 |
Ulster Bank | 1,364 | 1,384 | 1,161 |
US Retail & Commercial | 91 | 326 | 519 |
Retail & Commercial | 2,979 | 3,484 | 3,711 |
Markets | 37 | 38 | 65 |
Central items | 40 | (2) | 4 |
Core | 3,056 | 3,520 | 3,780 |
Non-Core | 2,223 | 3,919 | 5,476 |
Managed basis | 5,279 | 7,439 | 9,256 |
Reconciling items | |||
Sovereign debt impairment | — | 1,099 | — |
Interest rate hedge adjustments on impaired available-for-sale sovereign debt | — | 169 | — |
Group | 5,279 | 8,707 | 9,256 |
Impairment losses/(recoveries) by division | 2011 £m | 2010 £m | 2009 £m |
UK Retail | 788 | 1,160 | 1,679 |
UK Corporate | 785 | 761 | 927 |
Wealth | 25 | 18 | 33 |
Global Transaction Services | 166 | 9 | 39 |
Ulster Bank | 1,384 | 1,161 | 649 |
US Retail & Commercial | 325 | 517 | 702 |
Retail & Commercial | 3,473 | 3,626 | 4,029 |
Global Banking & Markets | 49 | 151 | 640 |
RBS Insurance | — | — | 8 |
Central items | (2) | 3 | 1 |
Core | 3,520 | 3,780 | 4,678 |
Non-Core | 3,919 | 5,476 | 9,221 |
Managed basis | 7,439 | 9,256 | 13,899 |
Reconciling items | |||
Sovereign debt impairment | 1,099 | — | — |
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds | 169 | — | — |
RFS Holdings minority interest | 2 | — | — |
Group impairment losses | 8,709 | 9,256 | 13,899 |
Net interest margin by division | 2012 % | 2011 % | 2010 % |
UK Retail | 3.58 | 3.95 | 3.89 |
UK Corporate | 3.06 | 3.06 | 2.89 |
Wealth | 3.73 | 3.23 | 3.26 |
International Banking | 1.64 | 1.73 | 1.92 |
Ulster Bank | 1.88 | 1.87 | 2.03 |
US Retail & Commercial | 3.00 | 3.06 | 2.82 |
Retail & Commercial | 2.92 | 2.97 | 2.91 |
Non-Core | 0.31 | 0.63 | 1.02 |
Group net interest margin | 1.92 | 1.89 | 2.03 |
Net interest margin by division | 2011 % | 2010 % | 2009 % |
UK Retail | 3.92 | 3.91 | 3.59 |
UK Corporate | 2.58 | 2.51 | 2.22 |
Wealth | 3.59 | 3.37 | 4.38 |
Global Transaction Services | 5.52 | 6.73 | 9.22 |
Ulster Bank | 1.77 | 1.84 | 1.87 |
US Retail & Commercial | 3.06 | 2.85 | 2.37 |
Retail & Commercial | 3.21 | 3.14 | 2.89 |
Global Banking & Markets | 0.73 | 1.05 | 1.38 |
Non-Core | 0.64 | 1.16 | 0.69 |
Group net interest margin | 1.92 | 2.06 | 1.76 |
Risk-weighted assets by division | 2011 £bn | 2010 £bn | 2009 £bn | 2012 £bn | 2011 £bn | 2010 £bn |
UK Retail | 48.4 | 48.8 | 51.3 | 45.7 | 48.4 | 48.8 |
UK Corporate | 76.1 | 81.4 | 90.2 | 86.3 | 79.3 | 84.2 |
Wealth | 12.9 | 12.5 | 11.2 | 12.3 | 12.9 | 12.5 |
Global Transaction Services | 17.3 | 18.3 | 19.1 | |||
International Banking | 51.9 | 43.2 | 51.7 | |||
Ulster Bank | 36.3 | 31.6 | 29.9 | 36.1 | 36.3 | 31.6 |
US Retail & Commercial | 58.8 | 57.0 | 59.7 | 56.5 | 59.3 | 57.4 |
Retail & Commercial | 249.8 | 249.6 | 261.4 | 288.8 | 279.4 | 286.2 |
Global Banking & Markets | 151.1 | 146.9 | 123.7 | |||
Markets | 101.3 | 120.3 | 110.3 | |||
Other | 10.8 | 18.0 | 9.4 | 5.8 | 12.0 | 18.0 |
Core | 411.7 | 414.5 | 394.5 | 395.9 | 411.7 | 414.5 |
Non-Core | 93.3 | 153.7 | 171.3 | 60.4 | 93.3 | 153.7 |
Group before benefit of Asset Protection Scheme | 505.0 | 568.2 | 565.8 | 456.3 | 505.0 | 568.2 |
Benefit of Asset Protection Scheme | (69.1) | (105.6) | (127.6) | — | (69.1) | (105.6) |
Group before RFS Holdings minority interest | 435.9 | 462.6 | 438.2 | 456.3 | 435.9 | 462.6 |
RFS Holdings minority interest | 3.1 | 2.9 | 102.8 | 3.3 | 3.1 | 2.9 |
Group | 439.0 | 465.5 | 541.0 | 459.6 | 439.0 | 465.5 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
UK Retail | 27,700 | 28,200 | 30,000 | 26,000 | 27,700 | 28,200 |
UK Corporate | 13,500 | 13,100 | 12,300 | 13,300 | 13,600 | 13,200 |
Wealth | 5,700 | 5,200 | 4,600 | 5,300 | 5,700 | 5,200 |
Global Transaction Services | 2,600 | 2,600 | 3,500 | |||
International Banking | 4,400 | 5,400 | 5,300 | |||
Ulster Bank | 4,200 | 4,200 | 4,500 | 4,500 | 4,200 | |
US Retail & Commercial | 15,200 | 15,700 | 15,500 | 14,700 | 15,400 | 15,900 |
Retail & Commercial | 68,900 | 69,000 | 70,400 | 68,200 | 72,000 | |
Global Banking & Markets | 17,000 | 18,700 | 17,900 | |||
RBS Insurance | 14,900 | 14,500 | 13,900 | |||
Markets | 11,200 | 13,900 | 15,700 | |||
Direct Line Group | 14,200 | 14,900 | 14,500 | |||
Central items | 6,200 | 4,700 | 4,200 | 6,800 | 6,200 | 4,700 |
Core | 107,000 | 106,900 | 106,400 | 100,400 | 107,000 | 106,900 |
Non-Core | 4,700 | 6,900 | 15,100 | 3,100 | 4,700 | 6,900 |
111,700 | 113,800 | 121,500 | 103,500 | 111,700 | 113,800 | |
Business Services | 34,000 | 34,400 | 38,600 | 33,200 | 34,000 | 34,400 |
Integration and restructuring | 1,100 | 300 | 500 | 500 | 1,100 | 300 |
RFS Holdings minority interest | — | — | 300 | |||
Group | 146,800 | 148,500 | 160,900 | 137,200 | 146,800 | 148,500 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Net interest income | 3,990 | 4,302 | 4,054 |
Net fees and commissions | 884 | 1,066 | 1,100 |
Other non-interest income | 95 | 140 | 322 |
Non-interest income | 979 | 1,206 | 1,422 |
Total income | 4,969 | 5,508 | 5,476 |
Direct expenses | |||
- staff | (800) | (839) | (889) |
- other | (372) | (437) | (480) |
Indirect expenses | (1,377) | (1,423) | (1,514) |
(2,549) | (2,699) | (2,883) | |
Profit before impairment losses and insurance net claims | 2,420 | 2,809 | 2,593 |
Insurance net claims | — | — | (85) |
Impairment losses | (529) | (788) | (1,160) |
Operating profit | 1,891 | 2,021 | 1,348 |
Analysis of income by product | |||
Personal advances | 916 | 1,089 | 993 |
Personal deposits | 661 | 961 | 1,102 |
Mortgages | 2,367 | 2,277 | 1,984 |
Cards | 863 | 950 | 962 |
Other, including bancassurance in 2010 | 162 | 231 | 435 |
Total income | 4,969 | 5,508 | 5,476 |
Analysis of impairments by sector | |||
Mortgages | 92 | 182 | 177 |
Personal | 307 | 437 | 682 |
Cards | 130 | 169 | 301 |
Total impairment losses | 529 | 788 | 1,160 |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector | |||
Mortgages | 0.1% | 0.2% | 0.2% |
Personal | 3.5% | 4.3% | 5.8% |
Cards | 2.3% | 3.0% | 4.9% |
Total | 0.5% | 0.7% | 1.1% |
Performance ratios | |||
Return on equity (1) | 24.4% | 24.5% | 16.3% |
Net interest margin | 3.58% | 3.95% | 3.89% |
Cost:income ratio | 51% | 49% | 53% |
2012 £bn | 2011 £bn | 2010 £bn | |
Capital and balance sheet | |||
Loans and advances to customers (gross) (2) | |||
- mortgages | 99.1 | 95.0 | 90.6 |
- personal | 8.8 | 10.1 | 11.7 |
- cards | 5.7 | 5.7 | 6.1 |
113.6 | 110.8 | 108.4 | |
Loan impairment provisions | (2.6) | (2.7) | (2.7) |
Net loans and advances to customers | 111.0 | 108.1 | 105.7 |
Risk elements in lending (2) | 4.6 | 4.6 | 4.6 |
Provision coverage (3) | 58% | 58% | 59% |
Customer deposits (2) | 107.6 | 101.9 | 96.1 |
Assets under management (excluding deposits) | 6.0 | 5.5 | 5.7 |
Loan:deposit ratio (excluding repos) | 103% | 106% | 110% |
Risk-weighted assets | 45.7 | 48.4 | 48.8 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Net interest income | 4,272 | 4,078 | 3,452 |
Net fees and commissions | 1,066 | 1,100 | 1,244 |
Other non-interest income | 140 | 322 | 391 |
Non-interest income | 1,206 | 1,422 | 1,635 |
Total income | 5,478 | 5,500 | 5,087 |
Direct expenses | |||
- staff | (839) | (889) | (968) |
- other | (437) | (480) | (458) |
Indirect expenses | (1,423) | (1,514) | (1,619) |
(2,699) | (2,883) | (3,045) | |
Insurance net claims | — | (85) | (134) |
Impairment losses | (788) | (1,160) | (1,679) |
Operating profit | 1,991 | 1,372 | 229�� |
Analysis of income by product | |||
Personal advances | 1,089 | 993 | 1,192 |
Personal deposits | 961 | 1,102 | 1,349 |
Mortgages | 2,277 | 1,984 | 1,214 |
Cards | 950 | 962 | 869 |
Other, including bancassurance | 201 | 459 | 463 |
Total income | 5,478 | 5,500 | 5,087 |
Analysis of impairments by sector | |||
Mortgages | 182 | 177 | 124 |
Personal | 437 | 682 | 1,023 |
Cards | 169 | 301 | 532 |
Total impairment losses | 788 | 1,160 | 1,679 |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector | |||
Mortgages | 0.2% | 0.2% | 0.1% |
Personal | 4.3% | 5.8% | 7.5% |
Cards | 3.0% | 4.9% | 8.6% |
Total | 0.7% | 1.1% | 1.6% |
Performance ratios | |||
Return on equity (1) | 26.4% | 18.0% | 3.0% |
Net interest margin | 3.92% | 3.91% | 3.59% |
Cost:income ratio | 49% | 52% | 60% |
Adjusted cost:income ratio (2) | 49% | 53% | 61% |
£bn | £bn | £bn | |
Capital and balance sheet | |||
Loans and advances to customers (gross) (3) | |||
- mortgages | 95.0 | 90.6 | 83.2 |
- personal | 10.1 | 11.7 | 13.6 |
- cards | 5.7 | 6.1 | 6.2 |
110.8 | 108.4 | 103.0 | |
Customer deposits (excluding bancassurance) (3) | 101.9 | 96.1 | 87.2 |
Assets under management (excluding deposits) | 5.5 | 5.7 | 5.3 |
Risk elements in lending(3) | 4.6 | 4.6 | 5.7 |
Loan:deposit ratio (excluding repos) | 106% | 110% | 115% |
Risk-weighted assets | 48.4 | 48.8 | 51.3 |
(1) | Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on |
(2) |
(3) |
· | Continued progress on the RBS and NatWest Customer Charter commitments supporting our goal of becoming Britain’s most helpful retail bank; |
· | Providing more than £500 million of cheaper mortgages through the Government’s Funding for Lending Scheme (FLS), launched at the end of June 2012 and opened for drawings in August 2012, which represents 14% of all completions in the last quarter of 2012; |
· | Seeking and responding to customer feedback to enhance the retail mobile banking app which is used by more than two million customers to manage their money and complete over one million transactions every week; |
· | Increasing online banking webchat functionality to allow customers real-time access to an advisor, direct from their computer, who can answer queries and action basic account services 24 hours a day; and |
· | Continued to invest in simplifying processes to make it easier for customers to bank with us, including introducing more than 200 cash deposit machines and ATMs to further reduce queuing times in branches. |
· | lower unauthorised overdraft fees as we continue to help customers manage their finances by providing mobile text alerts and further improving mobile banking functionality; |
· | weak consumer confidence lowering spending and associated fees on cards; and |
· | lower investment income as a result of weak customer demand and less advisor availability due to restructuring and retraining in preparation for regulatory changes in 2013. |
Mortgage growth reflected continued strong new business levels. Gross mortgage lending market share of 10% continues above our stock position of 8%. |
Customer deposits grew 6%, outperforming the market total deposit growth of 3%. Savings balances grew by £6 billion, or 9%, with 1.5 million accounts opened, demonstrating the strength of our customer franchise and our strategy to further develop primary banking relationships. |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net interest income | 2,585 | 2,572 | 2,292 | 2,974 | 3,092 | 3,000 |
Net fees and commissions | 948 | 952 | 858 | 1,365 | 1,375 | 1,353 |
Other non-interest income | 327 | 371 | 432 | 384 | 396 | 443 |
Non-interest income | 1,275 | 1,323 | 1,290 | 1,749 | 1,771 | 1,796 |
Total income | 3,860 | 3,895 | 3,582 | 4,723 | 4,863 | 4,796 |
Direct expenses | ||||||
- staff | (780) | (778) | (753) | (928) | (922) | (912) |
- other | (335) | (359) | (260) | (364) | (390) | (411) |
Indirect expenses | (546) | (534) | (517) | (797) | (834) | (813) |
(1,661) | (1,671) | (1,530) | (2,089) | (2,146) | (2,136) | |
Profit before impairment losses | 2,634 | 2,717 | 2,660 | |||
Impairment losses | (785) | (761) | (927) | (838) | (793) | (767) |
Operating profit | 1,414 | 1,463 | 1,125 | 1,796 | 1,924 | 1,893 |
Analysis of income by business | ||||||
Corporate and commercial lending | 2,676 | 2,598 | 2,131 | 2,636 | 2,643 | 2,571 |
Asset and invoice finance | 660 | 617 | 501 | 685 | 660 | 616 |
Corporate deposits | 683 | 728 | 986 | 568 | 694 | 738 |
Other | (159) | (48) | (36) | 834 | 866 | 871 |
Total income | 3,860 | 3,895 | 3,582 | 4,723 | 4,863 | 4,796 |
Analysis of impairments by sector | ||||||
Banks and financial institutions | 20 | 20 | 15 | |||
Financial institutions | 15 | 20 | ||||
Hotels and restaurants | 59 | 52 | 98 | 52 | 59 | 52 |
Housebuilding and construction | 103 | 131 | 106 | 143 | 103 | 131 |
Manufacturing | 34 | 1 | 51 | 49 | 34 | 1 |
Other | 163 | 127 | 150 | |||
Private sector education, health, social work, recreational and community services | 113 | 30 | 59 | 37 | 113 | 30 |
Property | 170 | 245 | 259 | 252 | 170 | 245 |
Wholesale and retail trade, repairs | 85 | 91 | 76 | 112 | 85 | 91 |
Asset and invoice finance | 38 | 64 | 113 | 40 | 38 | 64 |
Shipping | 82 | 22 | 4 | |||
Other | 56 | 149 | 129 | |||
Total impairment losses | 785 | 761 | 927 | 838 | 793 | 767 |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector | ||||||
Banks and financial institutions | 0.4% | 0.3% | 0.2% | |||
Financial institutions | 0.3% | 0.3% | ||||
Hotels and restaurants | 1.0% | 0.8% | 1.5% | 0.9% | 1.0% | 0.8% |
Housebuilding and construction | 2.6% | 2.9% | 2.5% | 4.2% | 2.6% | 2.9% |
Manufacturing | 0.7% | — | 0.9% | 1.0% | 0.7% | — |
Other | 0.5% | 0.4% | 0.5% | |||
Private sector education, health, social work, recreational and community services | 1.3% | 0.3% | 0.9% | 0.4% | 1.3% | 0.3% |
Property | 0.6% | 0.8% | 1.0% | 0.6% | 0.8% | |
Wholesale and retail trade, repairs | 1.0% | 0.9% | 0.7% | 1.3% | 1.0% | 0.9% |
Asset and invoice finance | 0.4% | 0.6% | 1.3% | 0.4% | 0.4% | 0.6% |
Shipping | 1.1% | 0.3% | 0.1% | |||
Other | 0.2% | 0.6% | 0.5% | |||
Total | 0.7% | 0.7% | 0.8% | 0.8% | 0.7% | |
Performance ratios | ||||||
Return on equity (1) | 12.4% | 12.1% | 9.4% | 14.5% | 15.2% | 13.6% |
Net interest margin | 2.58% | 2.51% | 2.22% | 3.06% | 3.06% | 2.89% |
Cost:income ratio | 43% | 43% | 44% | 44% | 45% |
(1) | Divisional return on equity is based on divisional operating profit after tax, |
2011 | 2010 | 2009 | |
£bn | £bn | £bn | |
Capital and balance sheet | |||
Total third party assets | 111.8 | 114.6 | 114.9 |
Loans and advances to customers (gross) (1) | |||
- banks and financial institutions | 5.7 | 6.1 | 6.3 |
- hotels and restaurants | 6.1 | 6.8 | 6.7 |
- housebuilding and construction | 3.9 | 4.5 | 4.3 |
- manufacturing | 4.6 | 5.3 | 5.9 |
- other | 32.6 | 31.0 | 29.9 |
- private sector education, health, social work, recreational and community services | 8.7 | 9.0 | 6.5 |
- property | 28.2 | 29.5 | 33.0 |
- wholesale and retail trade, repairs | 8.5 | 9.6 | 10.2 |
- asset and invoice finance | 10.4 | 9.9 | 8.8 |
108.7 | 111.7 | 111.6 | |
Customer deposits (1) | 100.9 | 100.0 | 87.8 |
Risk elements in lending (1) | 5.0 | 4.0 | 2.3 |
Loan:deposit ratio (excluding repos) | 106% | 110% | 126% |
Risk-weighted assets | 76.1 | 81.4 | 90.2 |
2012 | 2011 | 2010 | |
£bn | £bn | £bn | |
Capital and balance sheet | |||
Loans and advances to customers (gross) (1) | |||
- financial institutions | 5.8 | 5.8 | 6.2 |
- hotels and restaurants | 5.6 | 6.1 | 6.8 |
- housebuilding and construction | 3.4 | 3.9 | 4.5 |
- manufacturing | 4.7 | 4.7 | 5.4 |
- private sector education, health, social work, recreational and community services | 8.7 | 8.7 | 9.0 |
- property | 24.8 | 28.2 | 29.5 |
- wholesale and retail trade, repairs | 8.5 | 8.7 | 9.9 |
- asset and invoice finance | 11.2 | 10.4 | 9.9 |
- shipping | 7.6 | 7.8 | 7.5 |
- other | 26.7 | 26.4 | 25.1 |
107.0 | 110.7 | 113.8 | |
Loan impairment provisions | (2.4) | (2.1) | (1.7) |
Net loans and advances to customers | 104.6 | 108.6 | 112.1 |
Total third party assets | 110.2 | 114.2 | 117.0 |
Risk elements in lending (1) | 5.5 | 5.0 | 4.0 |
Provision coverage (2) | 45% | 40% | 44% |
Customer deposits (1) | 127.1 | 126.3 | 124.5 |
Loan:deposit ratio (excluding repos) | 82% | 86% | 90% |
Risk-weighted assets | 86.3 | 79.3 | 84.2 |
(1) | Includes |
(2) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
· |
· |
· |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net interest income | 718 | 609 | 663 | 720 | 645 | 588 |
Net fees and commissions | 375 | 376 | 363 | 366 | 375 | 376 |
Other non-interest income | 84 | 71 | 83 | 84 | 84 | 71 |
Non-interest income | 459 | 447 | 446 | 450 | 459 | 447 |
Total income | 1,177 | 1,056 | 1,109 | 1,170 | 1,104 | 1,035 |
Direct expenses | ||||||
- staff | (413) | (382) | (357) | (424) | (413) | (382) |
- other | (195) | (142) | (144) | (223) | (195) | (142) |
Indirect expenses | (223) | (210) | (155) | (224) | (223) | (210) |
(831) | (734) | (656) | (871) | (831) | (734) | |
Profit before impairment losses | 299 | 273 | 301 | |||
Impairment losses | (25) | (18) | (33) | (46) | (25) | (18) |
Operating profit | 321 | 304 | 420 | 253 | 248 | 283 |
Analysis of income | ||||||
Private banking | 975 | 857 | 916 | 956 | 902 | 836 |
Investments | 202 | 199 | 193 | 214 | 202 | 199 |
Total income | 1,177 | 1,056 | 1,109 | 1,170 | 1,104 | 1,035 |
Performance ratios | ||||||
Return on equity (1) | 18.7% | 18.9% | 30.3% | 13.7% | 13.1% | 15.9% |
Net interest margin | 3.59% | 3.37% | 4.38% | 3.73% | 3.23% | 3.26% |
Cost:income ratio | 71% | 70% | 59% | 74% | 75% | 71% |
£bn | £bn | £bn | £bn | |||
Capital and balance sheet | ||||||
Loans and advances to customers (gross) | ||||||
- mortgages | 8.3 | 7.8 | 6.5 | 8.8 | 8.3 | 7.8 |
- personal | 6.9 | 6.7 | 4.9 | 5.5 | 6.9 | 6.7 |
- other | 1.7 | 1.6 | 2.3 | 2.8 | 1.7 | 1.6 |
16.9 | 16.1 | 13.7 | 17.1 | 16.9 | 16.1 | |
Customer deposits (2) | 38.2 | 37.1 | 35.7 | |||
Assets under management (excluding deposits) (2) | 30.9 | 33.9 | 32.5 | |||
Loan impairment provisions | (0.1) | (0.1) | ||||
Net loans and advances to customers | 17.0 | 16.8 | 16.0 | |||
Risk elements in lending | 0.2 | 0.2 | 0.2 | 0.2 | ||
Loan:deposit ratio (excluding repos) (2) | 44% | 43% | 38% | |||
Provision coverage (2) | 44% | 38% | 30% | |||
Assets under management (excluding deposits) | 28.9 | 30.9 | 33.9 | |||
Customer deposits | 38.9 | 38.2 | 37.1 | |||
Loan:deposit ratio (excluding repos) | 44% | 44% | 43% | |||
Risk-weighted assets | 12.9 | 12.5 | 11.2 | 12.3 | 12.9 | 12.5 |
(1) | Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on |
(2) |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net interest income from banking activities | 922 | 1,199 | 1,353 | |||
Funding costs of rental assets | (9) | (42) | (37) | |||
Net interest income | 1,076 | 974 | 912 | 913 | 1,157 | 1,316 |
Non-interest income | 1,175 | 1,587 | 1,575 | 1,209 | 1,398 | 1,961 |
Total income | 2,251 | 2,561 | 2,487 | 2,122 | 2,555 | 3,277 |
Direct expenses | ||||||
- staff | (375) | (411) | (371) | (577) | (706) | (871) |
- other | (113) | (159) | (161) | (162) | (226) | (274) |
Indirect expenses | (854) | (894) | (943) | (678) | (700) | (735) |
(1,342) | (1,464) | (1,475) | (1,417) | (1,632) | (1,880) | |
Profit before impairment losses | 705 | 923 | 1,397 | |||
Impairment losses | (166) | (9) | (39) | (111) | (168) | (86) |
Operating profit | 743 | 1,088 | 973 | 594 | 755 | 1,311 |
Of which: | ||||||
Ongoing businesses | 602 | 773 | 1,348 | |||
Run-off businesses | (8) | (18) | (37) | |||
Analysis of income by product | ||||||
Domestic cash management | 866 | 818 | 805 | |||
International cash management | 868 | 801 | 734 | |||
Cash management | 943 | 940 | 1,368 | |||
Trade finance | 318 | 309 | 290 | 291 | 275 | 243 |
Merchant acquiring | 16 | 451 | 505 | |||
Commercial cards | 183 | 182 | 153 | |||
Loan portfolio | 865 | 1,265 | 1,578 | |||
Ongoing businesses | 2,099 | 2,480 | 3,189 | |||
Run-off businesses | 23 | 75 | 88 | |||
Total income | 2,251 | 2,561 | 2,487 | 2,122 | 2,555 | 3,277 |
Performance ratios | ||||||
Analysis of impairments by sector | ||||||
Manufacturing and infrastructure | 42 | 254 | (17) | |||
Property and construction | 7 | 17 | 102 | |||
Transport and storage | (3) | 11 | — | |||
Telecommunications, media and technology | 12 | — | 7 | |||
Banks and financial institutions | 43 | (42) | 49 | |||
Other | 10 | (72) | (55) | |||
Total impairment losses | 111 | 168 | 86 | |||
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) | 0.3% | 0.3% | 0.2% | |||
Performance ratios (ongoing businesses) | ||||||
Return on equity (1) | 30.4% | 42.8% | 42.2% | 9.2% | 11.5% | 15.4% |
Net interest margin | 5.52% | 6.73% | 9.22% | 1.64% | 1.73% | 1.92% |
Cost:income ratio | 60% | 57% | 59% | 66% | 62% | 55% |
£bn | £bn | |||||
Capital and balance sheet | ||||||
Total third party assets | 25.9 | 25.2 | 18.4 | |||
Loans and advances | 15.8 | 14.4 | 12.7 | |||
Customer deposits | 71.7 | 69.9 | 61.8 | |||
Risk elements in lending | 0.2 | 0.1 | 0.2 | |||
Loan:deposit ratio (excluding repos) | 22% | 21% | ||||
Risk-weighted assets | 17.3 | 18.3 | 19.1 |
(1) | Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on |
2012 £bn | 2011 £bn | 2010 £bn | |
Capital and balance sheet | |||
Loans and advances to customers (gross) (1) | 42.2 | 57.7 | 62.9 |
Loan impairment provisions | (0.4) | (0.8) | (0.8) |
Net loans and advances to customers | 41.8 | 56.9 | 62.1 |
Loans and advances to banks | 4.7 | 3.4 | 3.9 |
Securities | 2.6 | 6.0 | 6.8 |
Cash and eligible bills | 0.5 | 0.3 | 0.7 |
Other | 3.4 | 3.3 | 4.4 |
Total third party assets (excluding derivatives mark-to-market) | 53.0 | 69.9 | 77.9 |
Risk elements in lending | 0.4 | 1.6 | 1.5 |
Provision coverage (2) | 93% | 52% | 58% |
Customer deposits (excluding repos) | 46.2 | 45.1 | 43.7 |
Bank deposits (excluding repos) | 5.6 | 11.4 | 7.3 |
Loan:deposit ratio (excluding repos and conduits) | 85% | 103% | 112% |
Risk-weighted assets | 51.9 | 43.2 | 51.7 |
£m | £m | £m | |
Run-off businesses (1) | |||
Total income | 23 | 75 | 88 |
Direct expenses | (31) | (93) | (125) |
Operating loss | (8) | (18) | (37) |
(1) | Excludes disposal groups. |
(2) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
(3) | Run-off businesses consist of the exited corporate finance businesses. |
· | Top European investment grade corporate bond bookrunner (Dealogic). |
· | Number one cash management manager in the UK and number two in Europe (Euromoney Cash Management Survey). |
· | Quality Leader in Large Corporate Trade Finance in the UK, and number one for Large Corporate Trade Finance Penetration in the UK (Greenwich). |
· | Loan portfolio decreased by 32%, mainly due to a strategic reduction in assets, in order to allocate capital more efficiently, and the effect of portfolio credit hedging and lower corporate appetite for risk management activities. |
· | Cash management was broadly in line with the previous year. Deposit margins declined following reductions in both three month LIBOR and five year fixed rates across Europe; however, this was offset by lower liquidity costs due to the strategic initiative to reduce short-term bank deposits. |
· | Trade finance increased by 6% as a result of increased activity, particularly in Asia. |
· | The restructuring in 2012 led to a reduction in activities undertaken in the division, which contributed to a decline in income. |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net interest income | 696 | 761 | 780 | 649 | 736 | 839 |
Net fees and commissions | 142 | 156 | 228 | 145 | 142 | 156 |
Other non-interest income | 69 | 58 | 26 | 51 | 69 | 58 |
Non-interest income | 211 | 214 | 254 | 196 | 211 | 214 |
Total income | 907 | 975 | 1,034 | 845 | 947 | 1,053 |
Direct expenses | ||||||
- staff | (221) | (237) | (325) | (211) | (221) | (237) |
- other | (67) | (74) | (86) | (49) | (67) | (74) |
Indirect expenses | (259) | (264) | (342) | (261) | (259) | (264) |
(547) | (575) | (753) | (521) | (547) | (575) | |
Profit before impairment losses | 324 | 400 | 478 | |||
Impairment losses | (1,384) | (1,161) | (649) | (1,364) | (1,384) | (1,161) |
Operating loss | (1,024) | (761) | (368) | (1,040) | (984) | (683) |
Analysis of income by business | ||||||
Corporate | 435 | 521 | 580 | 360 | 435 | 521 |
Retail | 428 | 465 | 412 | 360 | 428 | 465 |
Other | 44 | (11) | 42 | 125 | 84 | 67 |
Total income | 907 | 975 | 1,034 | 845 | 947 | 1,053 |
Analysis of impairments by sector | ||||||
Mortgages | 570 | 294 | 74 | 646 | 570 | 294 |
Corporate | ||||||
- property | 324 | 375 | 306 | 276 | 324 | 375 |
- other corporate | 434 | 444 | 203 | 389 | 434 | 444 |
Other lending | 56 | 48 | 66 | 53 | 56 | 48 |
Total impairment losses | 1,384 | 1,161 | 649 | 1,364 | 1,384 | 1,161 |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector | ||||||
Mortgages | 2.8% | 1.4% | 0.5% | 3.4% | 2.9% | 1.4% |
Corporate | ||||||
- property | 6.8% | 6.9% | 3.0% | 6.4% | 6.8% | 6.9% |
- other corporate | 5.6% | 4.9% | 1.8% | 5.0% | 5.6% | 4.9% |
Other lending | 3.5% | 3.7% | 2.7% | 3.8% | 3.5% | 3.7% |
Total | 4.1% | 3.1% | 1.6% | 4.2% | 4.1% | 3.1% |
Performance ratios | ||||||
Return on equity (1) | (26.1%) | (21.0%) | (11.7%) | (21.8%) | (22.8%) | (16.8%) |
Net interest margin | 1.77% | 1.84% | 1.87% | 1.88% | 1.87% | 2.03% |
Cost:income ratio | 60% | 59% | 73% | 62% | 58% | 55% |
(1) | Divisional return on equity is based on divisional operating loss after tax divided by average notional equity (based on |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£bn | £bn | £bn | £bn | |||
Capital and balance sheet | ||||||
Loans and advances to customers (gross) | ||||||
- mortgages | 20.0 | 21.2 | 16.2 | 19.2 | 20.0 | 21.2 |
- corporate | ||||||
- property | 4.8 | 5.4 | 10.1 | 4.3 | 4.8 | 5.4 |
- other corporate | 7.7 | 9.0 | 11.0 | 7.8 | 7.7 | 9.0 |
- other lending | 1.6 | 1.3 | 2.4 | 1.3 | 1.6 | 1.3 |
34.1 | 36.9 | 39.7 | 32.6 | 34.1 | 36.9 | |
Loan impairment provisions | (3.9) | (2.7) | (1.6) | |||
Net loans and advances to customers | 28.7 | 31.4 | 35.3 | |||
Customer deposits | 21.8 | 23.1 | 21.9 | |||
Risk elements in lending | ||||||
- mortgages | 2.2 | 1.5 | 0.6 | 3.1 | 2.2 | 1.5 |
- corporate | ||||||
- property | 1.3 | 0.7 | 1.9 | 1.3 | 0.7 | |
- other corporate | 1.8 | 1.2 | 0.8 | 2.3 | 1.8 | 1.2 |
- other lending | 0.2 | 0.2 | 0.2 | 0.2 | ||
Total risk elements in lending | 7.5 | 5.5 | 3.6 | |||
Provision coverage (1) | 52% | 50% | 45% | |||
5.5 | 3.6 | 2.3 | ||||
Total risk elements in lending | ||||||
Customer deposits | 22.1 | 21.8 | 23.1 | |||
Loan:deposit ratio (excluding repos) | 143% | 152% | 177% | 130% | 143% | 152% |
Risk-weighted assets | 36.3 | 31.6 | 29.9 | 36.1 | 36.3 | 31.6 |
Spot exchange rate - €/£ | 1.196 | 1.160 | 1.126 | 1.227 | 1.196 | 1.160 |
(1) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||
US$m | US$m | £m | £m | US$m | US$m | £m | £m | |||||||
Net interest income | 3,042 | 2,962 | 2,777 | 1,896 | 1,917 | 1,775 | 3,087 | 3,048 | 2,940 | 1,948 | 1,900 | 1,902 | ||
Net fees and commissions | 1,138 | 1,126 | 1,119 | 709 | 729 | 714 | 1,233 | 1,350 | 1,328 | 778 | 841 | 859 | ||
Other non-interest income | 473 | 465 | 368 | 295 | 300 | 235 | 579 | 473 | 464 | 365 | 296 | 301 | ||
Non-interest income | 1,611 | 1,591 | 1,487 | 1,004 | 1,029 | 949 | 1,812 | 1,823 | 1,792 | 1,143 | 1,137 | 1,160 | ||
Total income | 4,653 | 4,553 | 4,264 | 2,900 | 2,946 | 2,724 | 4,899 | 4,871 | 4,732 | 3,091 | 3,037 | 3,062 | ||
Direct expenses | ||||||||||||||
- staff | (1,313) | (1,212) | (1,214) | (819) | (784) | (776) | (1,313) | (1,344) | (1,238) | (828) | (838) | (801) | ||
- other | (874) | (880) | (929) | (544) | (569) | (593) | (833) | (893) | (897) | (526) | (557) | (580) | ||
- litigation settlement | (138) | — | (88) | — | ||||||||||
Indirect expenses | (1,176) | (1,189) | (1,196) | (733) | (770) | (766) | (1,274) | (1,250) | (1,255) | (804) | (779) | (813) | ||
(3,363) | (3,281) | (3,339) | (2,096) | (2,123) | (2,135) | (3,558) | (3,487) | (3,390) | (2,246) | (2,174) | (2,194) | |||
Profit before impairment losses | 1,341 | 1,384 | 1,342 | 845 | 863 | 868 | ||||||||
Impairment losses | (521) | (799) | (1,099) | (325) | (517) | (702) | (145) | (524) | (802) | (91) | (326) | (519) | ||
Operating profit/(loss) | 769 | 473 | (174) | 479 | 306 | (113) | ||||||||
Operating profit | 1,196 | 860 | 540 | 754 | 537 | 349 | ||||||||
Average exchange rate - US$/£ | 1.604 | 1.546 | 1.566 | 1.585 | 1.604 | 1.546 | ||||||||
Analysis of income by product | ||||||||||||||
Mortgages and home equity | 744 | 786 | 781 | 464 | 509 | 499 | 856 | 744 | 786 | 541 | 463 | 509 | ||
Personal lending and cards | 673 | 735 | 706 | 420 | 476 | 451 | 643 | 709 | 761 | 405 | 442 | 492 | ||
Retail deposits | 1,474 | 1,397 | 1,296 | 918 | 903 | 828 | 1,364 | 1,487 | 1,465 | 860 | 927 | 948 | ||
Commercial lending | 931 | 896 | 848 | 580 | 580 | 542 | 965 | 936 | 901 | 609 | 584 | 583 | ||
Commercial deposits | 469 | 495 | 624 | 292 | 320 | 398 | 698 | 667 | 627 | 441 | 416 | 406 | ||
Other | 362 | 244 | 9 | 226 | 158 | 6 | 373 | 328 | 192 | 235 | 205 | 124 | ||
Total income | 4,653 | 4,553 | 4,264 | 2,900 | 2,946 | 2,724 | 4,899 | 4,871 | 4,732 | 3,091 | 3,037 | 3,062 | ||
Analysis of impairments by sector | ||||||||||||||
Residential mortgages | 56 | 90 | 113 | 35 | 58 | 72 | (2) | 44 | 85 | (1) | 28 | 55 | ||
Home equity | 160 | 194 | 261 | 99 | 126 | 167 | 150 | 165 | 164 | 95 | 103 | 106 | ||
Corporate and commercial | 87 | 312 | 510 | 54 | 202 | 326 | (120) | 88 | 354 | (77) | 55 | 228 | ||
Other consumer | 92 | 150 | 215 | 57 | 97 | 137 | 104 | 101 | 146 | 65 | 61 | 96 | ||
Securities | 126 | 53 | — | 80 | 34 | — | 13 | 126 | 53 | 9 | 79 | 34 | ||
Total impairment losses | 521 | 799 | 1,099 | 325 | 517 | 702 | 145 | 524 | 802 | 91 | 326 | 519 | ||
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) by sector | ||||||||||||||
Residential mortgages | 0.6% | 1.0% | 1.1% | 0.6% | 1.0% | 1.1% | — | 0.5% | 0.9% | — | 0.5% | 0.9% | ||
Home equity | 0.7% | 0.8% | 1.0% | 0.7% | 0.8% | 1.1% | 0.7% | 0.7% | 0.7% | 0.7% | ||||
Corporate and commercial | 0.2% | 1.0% | 1.6% | 0.2% | 1.0% | 1.7% | (0.3%) | 0.2% | 1.1% | (0.3%) | 0.2% | 1.1% | ||
Other consumer | 0.8% | 1.4% | 1.8% | 0.8% | 1.4% | 1.8% | 0.8% | 0.8% | 1.4% | 0.8% | 0.8% | 1.4% | ||
Total | 0.5% | 1.0% | 1.4% | 0.5% | 1.0% | 1.4% | 0.2% | 0.5% | 1.0% | 0.2% | 0.5% | 1.0% | ||
Performance ratios | ||||||||||||||
Return on equity (1) | 6.3% | 3.6% | (1.3%) | 6.3% | 3.6% | (1.3%) | 8.3% | 6.3% | 3.7% | 8.3% | 6.3% | 3.7% | ||
Adjusted return on equity (non-GAAP) (2) | 8.9% | 6.3% | 3.7% | 8.9% | 6.3% | 3.7% | ||||||||
Net interest margin | 3.06% | 2.85% | 2.37% | 3.06% | 2.85% | 2.37% | 3.00% | 3.06% | 2.82% | 3.00% | 3.06% | 2.82% | ||
Cost:income ratio | 72% | 72% | 78% | 72% | 72% | 78% | 73% | 72% | 73% | 72% | ||||
Adjusted cost:income ratio (2) | 71% | 72% | 71% | 72% |
(1) | Divisional return on equity is based on divisional operating |
(2) | Excludes litigation settlement and net gain on sale of Visa B shares in 2012 of £88 million (US$138 million) and £39 million (US$62 million) . |
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||
US$bn | US$bn | £bn | £bn | US$bn | US$bn | £bn | £bn | |||||||
Capital and balance sheet | ||||||||||||||
Total third party assets | 115.3 | 110.5 | 122.3 | 74.5 | 71.2 | 75.4 | ||||||||
Loans and advances to customers (gross) | ||||||||||||||
- residential mortgages | 9.4 | 9.4 | 10.6 | 6.1 | 6.1 | 6.5 | 9.4 | 9.4 | 5.8 | 6.1 | ||||
- home equity | 23.1 | 23.6 | 25.0 | 14.9 | 15.2 | 15.4 | 21.5 | 23.1 | 23.6 | 13.3 | 14.9 | 15.2 | ||
- corporate and commercial | 35.3 | 31.7 | 31.6 | 22.8 | 20.4 | 19.5 | 38.5 | 35.3 | 31.7 | 23.8 | 22.9 | 20.5 | ||
- other consumer | 11.8 | 10.6 | 12.1 | 7.6 | 6.9 | 7.5 | 13.5 | 12.0 | 10.7 | 8.4 | 7.7 | 6.9 | ||
79.6 | 75.3 | 79.3 | 51.4 | 48.6 | 48.9 | 82.9 | 79.8 | 75.4 | 51.3 | 51.6 | 48.7 | |||
Customer deposits (excluding repos) | 92.1 | 91.2 | 97.4 | 59.5 | 58.7 | 60.1 | ||||||||
Loan impairment provisions | (0.9) | (1.1) | (1.2) | (0.5) | (0.7) | (0.8) | ||||||||
Net loans and advances to customers | 82.0 | 78.7 | 74.2 | 50.8 | 50.9 | 47.9 | ||||||||
Total third party assets | 117.3 | 117.3 | 112.4 | 72.5 | 75.8 | 72.4 | ||||||||
Investment securities | 19.5 | 23.5 | 21.4 | 12.0 | 15.2 | 13.8 | ||||||||
Risk elements in lending | ||||||||||||||
- retail | 1.0 | 0.7 | 0.6 | 0.6 | 0.4 | 1.3 | 1.0 | 0.7 | 0.8 | 0.6 | 0.4 | |||
- commercial | 0.6 | 0.7 | 0.4 | 0.4 | 0.5 | 0.2 | 0.6 | 0.6 | 0.7 | 0.3 | 0.4 | 0.5 | ||
Total risk elements in lending | 1.6 | 1.4 | 1.0 | 1.0 | 0.9 | 0.6 | 1.9 | 1.6 | 1.4 | 1.1 | 1.0 | 0.9 | ||
Provision coverage (1) | 48% | 72% | 85% | 48% | 72% | 85% | ||||||||
Customer deposits (excluding repos) | 95.6 | 92.8 | 92.1 | 59.2 | 60.0 | 59.3 | ||||||||
Bank deposits (excluding repos) | 2.9 | 8.0 | 9.5 | 1.8 | 5.2 | 6.1 | ||||||||
Loan:deposit ratio (excluding repos) | 85% | 81% | 80% | 85% | 81% | 80% | 86% | 85% | 81% | 86% | 85% | 81% | ||
Risk-weighted assets | 91.1 | 88.4 | 96.9 | 58.8 | 57.0 | 59.7 | 91.3 | 91.8 | 89.1 | 56.5 | 59.3 | 57.4 | ||
Spot exchange rate - US$/£ | 1.548 | 1.552 | 1.622 | 1.616 | 1.548 | 1.552 |
(1) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
· | At the end of 2012, 77% of customers surveyed externally were ‘completely satisfied’ or ‘very satisfied’, compared with the peer average of 71%. |
· | RBS Citizens’ net promoter score, a measure of how likely customers are to recommend the bank, increased to 20% over the course of 2012 and was over ten percentage points above the peer average. |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Net interest income from banking activities | 707 | 1,252 | 2,424 |
Funding costs of rental assets | (42) | (37) | (49) |
Net interest income | 665 | 1,215 | 2,375 |
Net fees and commissions receivable | 1,049 | 1,283 | 1,335 |
Income from trading activities | 4,735 | 5,218 | 7,812 |
Other operating income | (508) | 196 | (464) |
Non-interest income | 5,276 | 6,697 | 8,683 |
Total income | 5,941 | 7,912 | 11,058 |
Direct expenses | |||
- staff | (2,454) | (2,693) | (2,904) |
- other | (928) | (842) | (777) |
Indirect expenses | (949) | (862) | (979) |
(4,331) | (4,397) | (4,660) | |
Impairment losses | (49) | (151) | (640) |
Operating profit | 1,561 | 3,364 | 5,758 |
Analysis of income by product | |||
Rates - money markets | (212) | 65 | 1,714 |
Rates - flow | 1,668 | 1,985 | 3,142 |
Currencies | 868 | 870 | 1,277 |
Credit and asset-backed markets | 1,424 | 2,215 | 2,255 |
Fixed income & currencies | 3,748 | 5,135 | 8,388 |
Portfolio management and origination | 1,343 | 1,777 | 1,185 |
Equities | 781 | 933 | 1,474 |
Total excluding fair value derivative liabilities | 5,872 | 7,845 | 11,047 |
Fair value derivative liabilities | 69 | 67 | 11 |
Total income | 5,941 | 7,912 | 11,058 |
Analysis of impairments by sector | |||
Manufacturing and infrastructure | (139) | 51 | (91) |
Property and construction | (42) | (74) | (49) |
Banks and financial institutions | 54 | (177) | (348) |
Other | 78 | 49 | (152) |
Total impairment losses | (49) | (151) | (640) |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) | 0.1% | 0.2% | 0.6% |
Performance ratios | |||
Return on equity (1) | 7.7% | 16.6% | 29.8% |
Net interest margin | 0.73% | 1.05% | 1.38% |
Cost:income ratio | 73% | 56% | 42% |
Compensation ratio (2) | 41% | 34% | 26% |
Compensation ratio - continuing business | 39% | 32% |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Net interest income | 111 | 67 | 581 |
Net fees and commissions receivable | 128 | 371 | 520 |
Income from trading activities | 4,105 | 3,846 | 5,020 |
Other operating income | 139 | 131 | 112 |
Non-interest income | 4,372 | 4,348 | 5,652 |
Total income | 4,483 | 4,415 | 6,233 |
Direct expenses | |||
- staff | (1,453) | (1,963) | (2,082) |
- other | (721) | (746) | (663) |
Indirect expenses | (763) | (769) | (699) |
(2,937) | (3,478) | (3,444) | |
Profit before impairment losses | 1,546 | 937 | 2,789 |
Impairment losses | (37) | (38) | (65) |
Operating profit | 1,509 | 899 | 2,724 |
Of which: | |||
Ongoing businesses | 1,564 | 943 | 2,743 |
Run-off businesses | (55) | (44) | (19) |
Analysis of income by product | |||
Rates | 2,006 | 1,474 | 2,312 |
Currencies | 757 | 1,060 | 1,047 |
Asset backed products (ABP) | 1,318 | 1,254 | 1,479 |
Credit markets | 862 | 616 | 1,350 |
Investor products and equity derivatives | 224 | 593 | 672 |
Total income ongoing businesses | 5,167 | 4,997 | 6,860 |
Inter-divisional revenue share | (691) | (767) | (883) |
Run-off businesses | 7 | 185 | 256 |
Total income | 4,483 | 4,415 | 6,233 |
Memo - fixed income and currencies | |||
Rate/currencies/ABP/credit markets | 4,943 | 4,404 | 6,188 |
Less: primary credit markets | (568) | (688) | (863) |
Total fixed income and currencies | 4,375 | 3,716 | 5,325 |
Performance ratios (ongoing businesses) | |||
Return on equity (1) | 10.0% | 6.1% | 19.1% |
Cost:income ratio | 64% | 77% | 53% |
Compensation ratio (2) | 32% | 42% | 31% |
(1) | Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on 10% of the monthly average of divisional RWAs, adjusted for capital deductions) |
(2) | Compensation ratio is based on staff costs as a percentage of total income. |
2012 | 2011 | 2010 | |
£bn | £bn | £bn | |
Capital and balance sheet (ongoing businesses) | |||
Loans and advances to customers (gross) | 29.8 | 31.5 | 24.4 |
Loan impairment provisions | (0.2) | (0.2) | (0.2) |
Net loans and advances to customers | 29.6 | 31.3 | 24.2 |
Loans and advances to banks | 16.6 | 29.9 | 44.4 |
Reverse repos | 103.8 | 100.4 | 94.7 |
Securities | 92.4 | 108.1 | 115.8 |
Cash and eligible bills | 30.2 | 28.1 | 38.8 |
Other | 11.8 | 14.8 | 20.1 |
Total third party assets (excluding derivatives mark-to-market) | 284.4 | 312.6 | 338.0 |
Net derivative assets (after netting) | 21.9 | 37.0 | 37.4 |
Provision coverage (1) | 77% | 75% | 86% |
Customer deposits (excluding repos) | 26.3 | 36.8 | 37.4 |
Bank deposits (excluding repos) | 45.4 | 48.2 | 50.6 |
Risk-weighted assets | 101.3 | 120.3 | 110.3 |
Run-off businesses (2) | £m | £m | £m |
Total income | 7 | 185 | 256 |
Direct expenses | (62) | (229) | (275) |
Operating loss | (55) | (44) | (19) |
Balance sheet - run-off businesses (2) | £bn | £bn | £bn |
Total third party assets (excluding derivatives mark-to-market) | 0.1 | 1.3 | 2.4 |
(1) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
(2) | Run-off businesses consist of the exited cash equities, corporate banking and equity capital market operations. |
2011 | 2010 | 2009 | |
£bn | £bn | £bn | |
Capital and balance sheet | |||
Loans and advances to customers | 74.7 | 75.1 | 90.9 |
Loans and advances to banks | 29.9 | 44.5 | 36.9 |
Reverse repos | 100.5 | 94.8 | 73.3 |
Securities | 111.0 | 119.2 | 106.0 |
Cash and eligible bills | 28.1 | 38.8 | 74.0 |
Other | 17.5 | 24.3 | 31.1 |
Total third party assets (excluding derivatives mark-to-market) | 361.7 | 396.7 | 412.2 |
Net derivative assets (after netting) | 37.0 | 37.4 | 68.0 |
Customer deposits (excluding repos) | 37.4 | 38.9 | 46.9 |
Risk elements in lending | 1.8 | 1.7 | 1.8 |
Risk-weighted assets | 151.1 | 146.9 | 123.7 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Earned premiums | 4,221 | 4,459 | 4,519 |
Reinsurers' share | (252) | (148) | (165) |
Net premium income | 3,969 | 4,311 | 4,354 |
Fees and commissions | (400) | (410) | (367) |
Instalment income | 138 | 159 | 171 |
Investment income | 265 | 277 | 214 |
Other income | 100 | 179 | 242 |
Total income | 4,072 | 4,516 | 4,614 |
Direct expenses | |||
- staff expenses | (288) | (287) | (304) |
- other expenses | (333) | (325) | (368) |
Indirect expenses | (225) | (267) | (270) |
(846) | (879) | (942) | |
Impairment losses | — | — | (8) |
Net claims | (2,772) | (3,932) | (3,606) |
Operating profit/(loss) | 454 | (295) | 58 |
Analysis of income by product | |||
Personal lines motor excluding broker | |||
- own brands | 1,874 | 1,962 | 1,814 |
- partnerships | 228 | 373 | 360 |
Personal lines home excluding broker | |||
- own brands | 490 | 488 | 442 |
- partnerships | 378 | 408 | 389 |
Personal lines rescue and other excluding broker | |||
- own brands | 185 | 197 | 191 |
- partnerships | 132 | 168 | 220 |
Commercial | 365 | 341 | 305 |
International | 346 | 333 | 288 |
Other (1) | 74 | 246 | 605 |
Total income | 4,072 | 4,516 | 4,614 |
In-force policies (000s) | |||
Personal lines motor excluding broker | |||
- own brands | 3,787 | 4,162 | 4,762 |
- partnerships | 320 | 645 | 844 |
Personal lines home excluding broker | |||
- own brands | 1,811 | 1,797 | 1,774 |
- partnerships | 2,497 | 2,530 | 2,566 |
Personal lines rescue and other excluding broker | |||
- own brands | 1,844 | 1,966 | 2,262 |
- partnerships | 7,307 | 7,497 | 6,688 |
Commercial | 422 | 352 | 346 |
International | 1,387 | 1,082 | 944 |
Other (1) | 1 | 644 | 1,049 |
Total in-force policies (2) | 19,376 | 20,675 | 21,235 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Earned premiums | 4,044 | 4,221 | 4,459 |
Reinsurers' share | (326) | (252) | (148) |
Net premium income | 3,718 | 3,969 | 4,311 |
Fees and commissions | (430) | (400) | (410) |
Instalment income | 126 | 138 | 159 |
Investment income | 243 | 265 | 277 |
Other income | 60 | 100 | 179 |
Total income | 3,717 | 4,072 | 4,516 |
Direct expenses | |||
- staff expenses | (338) | (288) | (287) |
- other expenses | (387) | (333) | (325) |
Total direct expenses | (725) | (621) | (612) |
Indirect expenses | (124) | (225) | (267) |
(849) | (846) | (879) | |
Net claims | (2,427) | (2,772) | (3,932) |
Operating profit/(loss) | 441 | 454 | (295) |
Analysis of income by product | |||
Personal lines motor excluding broker | |||
- own brands | 1,733 | 1,874 | 1,962 |
- partnerships | 138 | 228 | 373 |
Personal lines home excluding broker | |||
- own brands | 475 | 490 | 488 |
- partnerships | 377 | 378 | 408 |
Personal lines rescue and other excluding broker | |||
- own brands | 182 | 185 | 197 |
- partnerships | 184 | 132 | 168 |
Commercial | 347 | 346 | 333 |
International | 337 | 365 | 341 |
Other (1) | (56) | 74 | 246 |
Total income | 3,717 | 4,072 | 4,516 |
In-force policies (000s) | |||
Personal lines motor excluding broker | |||
- own brands | 3,714 | 3,787 | 4,162 |
- partnerships | 336 | 320 | 645 |
Personal lines home excluding broker | |||
- own brands | 1,754 | 1,811 | 1,797 |
- partnerships | 2,485 | 2,497 | 2,530 |
Personal lines rescue and other excluding broker | |||
- own brands | 1,803 | 1,844 | 1,966 |
- partnerships | 7,628 | 7,307 | 7,497 |
Commercial | 466 | 422 | 352 |
International | 1,462 | 1,387 | 1,082 |
Other (1) | 50 | 1 | 644 |
Total in-force policies (2) | 19,698 | 19,376 | 20,675 |
2012 | 2011 | 2010 | ||||
2011 £m | 2010 £m | 2009 £m | £m | £m | ||
Gross written premium | ||||||
Personal lines motor excluding broker | ||||||
- own brand | 1,584 | 1,647 | 1,738 | 1,494 | 1,584 | 1,647 |
- partnerships | 137 | 257 | 311 | 136 | 137 | 257 |
Personal lines home excluding broker | ||||||
- own brand | 474 | 478 | 462 | 455 | 474 | 478 |
- partnerships | 549 | 556 | 560 | 534 | 549 | 556 |
Personal lines rescue and other excluding broker | ||||||
- own brand | 174 | 178 | 176 | 177 | 174 | 178 |
- partnerships | 174 | 159 | 141 | 176 | 174 | 159 |
Commercial | 435 | 397 | 395 | 436 | 435 | 397 |
International | 570 | 425 | 354 | 557 | 570 | 425 |
Other (1) | 1 | 201 | 343 | 1 | 1 | 201 |
Total gross written premium | 4,098 | 4,298 | 4,480 | 3,966 | 4,098 | 4,298 |
Performance ratios | ||||||
Return on regulatory capital (3) | 11.3% | (7.9%) | 1.7% | |||
Return on tangible equity | 10.3% | (6.8%) | 1.4% | 11.7% | 10.3% | (6.8%) |
Loss ratio | 70% | 91% | 83% | 65% | 70% | 91% |
Commission ratio | 10% | 10% | 8% | 12% | 10% | |
Expense ratio | 20% | 20% | 21% | 23% | 21% | 20% |
Combined operating ratio | 100% | 121% | 112% | 100% | 101% | 121% |
Balance sheet | ||||||
Total insurance reserves (£m) | 7,284 | 7,643 | 7,139 | 8,066 | 7,284 | 7,643 |
(1) | ‘Other’ predominately consists of the personal lines broker |
(2) | Total in-force policies include travel and creditor policies sold through RBS Group. These comprise travel policies included in bank accounts e.g. Royalties Gold Account, and creditor policies sold with bank products including mortgage, loan and card payment protection. |
(3) |
Return on tangible equity is based on annualised operating |
Loss ratio is based on net claims divided by net premium income. |
Commission ratio is based on fees and commissions divided by |
Expense ratio is based on expenses divided by |
Combined operating ratio is the sum of the loss, commission and expense ratios. |
Consists of general and life insurance liabilities, unearned premium reserves and liability adequacy reserve. |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Central items not allocated | 156 | 577 | 385 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Central items not allocated | 143 | 191 | 630 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net interest income | 876 | 1,959 | 1,506 | 346 | 863 | 1,756 |
Funding costs of rental assets | (210) | (276) | (256) | (102) | (215) | (283) |
Net interest income | 666 | 1,683 | 1,250 | 244 | 648 | 1,473 |
Net fees and commissions | (38) | 471 | 510 | 105 | (38) | 471 |
Loss from trading activities | (721) | (31) | (5,161) | (654) | (721) | (31) |
Insurance net premium income | 286 | 695 | 784 | — | 286 | 702 |
Other operating income | ||||||
- rental income | 953 | 1,035 | 690 | 523 | 958 | 1,035 |
- other (1) | 60 | (889) | (443) | 70 | 55 | (896) |
Non-interest income | 540 | 1,281 | (3,620) | 44 | 540 | 1,281 |
Total income/(loss) | 1,206 | 2,964 | (2,370) | |||
Total income | 288 | 1,188 | 2,754 | |||
Direct expenses | ||||||
- staff | (375) | (731) | (851) | (272) | (375) | (731) |
- operating lease depreciation | (347) | (452) | (402) | (246) | (347) | (452) |
- other | (256) | (573) | (163) | (256) | (573) | |
Indirect expenses | (317) | (500) | (552) | (263) | (317) | (500) |
(1,295) | (2,256) | (2,378) | (944) | (1,295) | (2,256) | |
(Loss)/profit before insurance net claims and impairment losses | (656) | (107) | 498 | |||
Insurance net claims | (195) | (737) | (588) | — | (195) | (737) |
Impairment losses | (3,919) | (5,476) | (9,221) | (2,223) | (3,919) | (5,476) |
Operating loss | (4,203) | (5,505) | (14,557) | (2,879) | (4,221) | (5,715) |
Analysis of income/(loss) by business | ||||||
Banking & portfolios | 1,474 | 1,673 | (155) | 40 | 1,465 | 1,463 |
International businesses | 419 | 778 | 1,204 | 250 | 411 | 778 |
Markets | (687) | 513 | (3,419) | (2) | (688) | 513 |
Total income/(loss) | 1,206 | 2,964 | (2,370) | |||
Total income | 288 | 1,188 | 2,754 | |||
Loss from trading activities | ||||||
Monoline exposures | (670) | (5) | (2,387) | (205) | (670) | (5) |
Credit derivative product companies | (85) | (139) | (947) | (205) | (85) | (139) |
Asset-backed products (2) | 29 | 235 | (288) | 101 | 29 | 235 |
Other credit exotics | (175) | 77 | (558) | (28) | (175) | 77 |
Equities | (11) | (17) | (47) | (2) | (11) | (17) |
Banking book hedges | (1) | (82) | (1,613) | (38) | (1) | (82) |
Other (3) | 192 | (100) | 679 | |||
Other | (277) | 192 | (100) | |||
(721) | (31) | (5,161) | (654) | (721) | (31) | |
Impairment losses | ||||||
Banking & portfolios | 3,833 | 5,328 | 8,350 | 2,346 | 3,833 | 5,328 |
International businesses | 82 | 200 | 499 | 56 | 82 | 200 |
Markets | 4 | (52) | 372 | (179) | 4 | (52) |
Total impairment losses | 3,919 | 5,476 | 9,221 | 2,223 | 3,919 | 5,476 |
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) (4) | ||||||
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase agreements) (3) | ||||||
Banking & portfolios | 4.9% | 5.0% | 5.8% | 4.2% | 4.9% | 5.0% |
International businesses | 3.7% | 4.4% | 4.1% | 5.1% | 3.7% | 4.4% |
Markets | (3.0%) | 0.2% | 7.5% | — | (3.0%) | 0.2% |
Total | 4.8% | 4.9% | 5.7% | 4.2% | 4.8% | 4.9% |
(1) | Includes losses on disposals of |
(2) | Asset-backed products include super asset backed structures and other asset-backed products. |
(3) | Includes |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
Performance ratios | ||||||
Net interest margin | 0.64% | 1.16% | 0.69% | 0.31% | 0.63% | 1.02% |
Cost:income ratio | 107% | 76% | (100%) | nm | 109% | 82% |
Adjusted cost:income ratio | 128% | 101% | (80%) | nm | 130% | 112% |
nm = not meaningful | ||||||
£bn | £bn | £bn | £bn | £bn | ||
Capital and balance sheet | ||||||
Total third party assets (excluding derivatives) (1) | 93.7 | 137.9 | 201.0 | |||
Total third party assets (including derivatives) (1) | 104.7 | 153.9 | 220.9 | |||
Loans and advances to customers (gross) (2) | 79.4 | 108.4 | 149.5 | 55.4 | 79.4 | 108.4 |
Loan impairment provisions | (11.2) | (11.5) | (10.3) | |||
Net loans and advances to customers | 44.2 | 67.9 | 98.1 | |||
Total third party assets (excluding derivatives) | 57.4 | 93.7 | 137.9 | |||
Total third party assets (including derivatives) | 63.4 | 104.7 | 153.9 | |||
Risk elements in lending (2) | 21.4 | 24.0 | 23.4 | |||
Provision coverage (3) | 52% | 48% | 44% | |||
Customer deposits (2) | 3.5 | 6.7 | 12.6 | 2.7 | 3.5 | 6.7 |
Risk elements in lending (2) | 24.0 | 23.4 | 22.9 | |||
Risk-weighted assets (1) | 93.3 | 153.7 | 171.3 | |||
Risk-weighted assets | 60.4 | 93.3 | 153.7 | |||
Gross customer loans and advances | ||||||
Banking & portfolios | 77.3 | 104.9 | 138.3 | 54.5 | 77.3 | 104.9 |
International businesses | 2.0 | 3.5 | 9.4 | 0.9 | 2.0 | 3.5 |
Markets | 0.1 | — | 1.8 | — | 0.1 | — |
79.4 | 108.4 | 149.5 | 55.4 | 79.4 | 108.4 | |
Risk-weighted assets | ||||||
Banking & portfolios | 64.8 | 83.5 | 92.5 | 53.3 | 64.8 | 83.5 |
International businesses | 4.1 | 5.6 | 11.5 | 2.4 | 4.1 | 5.6 |
Markets | 24.4 | 64.6 | 67.3 | 4.7 | 24.4 | 64.6 |
93.3 | 153.7 | 171.3 | 60.4 | 93.3 | 153.7 | |
Third party assets (excluding derivatives) | ||||||
Banking & portfolios | 81.3 | 113.9 | 58.2 | 51.1 | 81.3 | 113.9 |
International businesses | 2.9 | 4.4 | 43.8 | 1.2 | 2.9 | 4.4 |
Markets | 9.5 | 19.6 | 69.3 | 5.1 | 9.5 | 19.6 |
93.7 | 137.9 | 171.3 | 57.4 | 93.7 | 137.9 |
31 December 2010 £bn | Run-off £bn | Disposals/ restructuring £bn | Drawings/ roll overs £bn | Impairments £bn | FX £bn | 31 December 2011 £bn | ||||||||
Third party assets (excluding derivatives) | 31 December 2011 £bn | Run-off £bn | Disposals/ restructuring £bn | Drawings/ roll overs £bn | Impairments £bn | Foreign exchange £bn | 31 December 2012 £bn | |||||||
Commercial real estate | 42.6 | (5.6) | (2.4) | 0.7 | (3.4) | (0.4) | 31.5 | 31.5 | (5.0) | (2.2) | 0.1 | (1.7) | (0.6) | 22.1 |
Corporate | 59.8 | (8.5) | (11.3) | 2.5 | (0.1) | (0.2) | 42.2 | 42.2 | (7.3) | (9.8) | 1.6 | (0.4) | (0.8) | 25.5 |
SME | 3.7 | (1.6) | — | 0.1 | (0.1) | — | 2.1 | 2.1 | (1.0) | (0.3) | 0.2 | — | 1.0 | |
Retail | 9.0 | (1.1) | (1.4) | — | (0.3) | (0.1) | 6.1 | 6.1 | (0.8) | (1.9) | 0.1 | (0.2) | (0.1) | 3.2 |
Other | 2.5 | (0.6) | — | 1.9 | 1.9 | (1.3) | — | (0.1) | 0.5 | |||||
Markets | 13.6 | (2.9) | (1.8) | 1.0 | — | (0.1) | 9.8 | 9.8 | (1.0) | (3.9) | 0.3 | 0.1 | (0.2) | 5.1 |
Total (excluding derivatives) | 131.2 | (20.3) | (16.9) | 4.3 | (3.9) | (0.8) | 93.6 | 93.6 | (16.4) | (18.1) | 2.3 | (2.2) | (1.8) | 57.4 |
Markets - RBS Sempra Commodities JV | 6.7 | (1.3) | (5.0) | — | (0.3) | 0.1 | 0.1 | (0.1) | — | |||||
Total (3) | 137.9 | (21.6) | (21.9) | 4.3 | (3.9) | (1.1) | 93.7 | |||||||
Total (4) | 93.7 | (16.5) | (18.1) | 2.3 | (2.2) | (1.8) | 57.4 |
(1) |
(2) |
(3) | Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending. |
(4) | Disposals of £0.2 billion have been signed as at 31 December |
Commercial real estate third party assets | 2012 | 2011 | 2010 |
£bn | £bn | £bn | |
UK (excluding NI) | 8.9 | 11.4 | 16.7 |
Ireland (ROI and NI) | 5.8 | 7.7 | 10.2 |
Spain | 1.4 | 1.8 | 1.3 |
Rest of Europe | 4.9 | 7.9 | 9.4 |
USA | 0.9 | 2.2 | 3.6 |
RoW | 0.2 | 0.5 | 1.4 |
Total (excluding derivatives) | 22.1 | 31.5 | 42.6 |
Impairment losses by donating division and sector | 2012 | 2011 | 2010 |
£m | £m | £m | |
UK Retail | |||
Mortgages | — | 5 | 5 |
Personal | 4 | (27) | 8 |
Total UK Retail | 4 | (22) | 13 |
UK Corporate | |||
Manufacturing and infrastructure | 19 | 76 | 26 |
Property and construction | 88 | 224 | 437 |
Transport | 16 | 52 | 3 |
Financial institutions | (38) | 5 | 69 |
Lombard | 48 | 75 | 129 |
Other | 107 | 96 | 166 |
Total UK Corporate | 240 | 528 | 830 |
Ulster Bank | |||
Mortgages | — | — | 42 |
Commercial real estate | |||
- investment | 288 | 609 | 630 |
- development | 611 | 1,552 | 1,759 |
Other corporate | 77 | 173 | 251 |
Other EMEA | 7 | 15 | 52 |
Total Ulster Bank | 983 | 2,349 | 2,734 |
US Retail & Commercial | |||
Auto and consumer | 49 | 58 | 82 |
Cards | 1 | (9) | 23 |
SBO/home equity | 130 | 201 | 277 |
Residential mortgages | 21 | 16 | 4 |
Commercial real estate | (12) | 40 | 185 |
Commercial and other | (12) | (3) | 17 |
Total US Retail & Commercial | 177 | 303 | 588 |
Markets | |||
Manufacturing and infrastructure | 3 | 57 | (290) |
Property and construction | 623 | 752 | 1,296 |
Transport | 199 | (3) | 33 |
Telecoms, media and technology | 32 | 68 | 9 |
Banking and financial institutions | (58) | (98) | 196 |
Other | 18 | (19) | 14 |
Total Markets | 817 | 757 | 1,258 |
Other | |||
Wealth | 1 | 1 | 51 |
Central items | 1 | 3 | 2 |
Total Other | 2 | 4 | 53 |
Total impairment losses | 2,223 | 3,919 | 5,476 |
Impairment losses by donating division and sector | 2011 £m | 2010 £m | 2009 £m |
UK Retail | |||
Mortgages | 5 | 5 | 6 |
Personal | (27) | 8 | 47 |
Total UK Retail | (22) | 13 | 53 |
UK Corporate | |||
Manufacturing and infrastructure | 76 | 26 | 87 |
Property and construction | 224 | 437 | 651 |
Transport | 52 | 3 | 10 |
Banking and financial institutions | 5 | 69 | 102 |
Lombard | 75 | 129 | 95 |
Other | 96 | 166 | 732 |
Total UK Corporate | 528 | 830 | 1,677 |
Ulster Bank | |||
Mortgages | — | 42 | 42 |
Commercial real estate | |||
- investment | 609 | 630 | 286 |
- development | 1,552 | 1,759 | 733 |
Other corporate | 173 | 251 | 217 |
Other EMEA | 15 | 52 | 106 |
Total Ulster Bank | 2,349 | 2,734 | 1,384 |
US Retail & Commercial | |||
Auto and consumer | 58 | 82 | 136 |
Cards | (9) | 23 | 130 |
SBO/home equity | 201 | 277 | 452 |
Residential mortgages | 16 | 4 | 54 |
Commercial real estate | 40 | 185 | 224 |
Commercial and other | (3) | 17 | 83 |
Total US Retail & Commercial | 303 | 588 | 1,079 |
Global Banking & Markets | |||
Manufacturing and infrastructure | 57 | (290) | 1,404 |
Property and construction | 752 | 1,296 | 1,413 |
Transport | (3) | 33 | 178 |
Telecoms, media and technology | 68 | 9 | 545 |
Banking and financial institutions | (98) | 196 | 620 |
Other | (20) | 14 | 567 |
Total Global Banking & Markets | 756 | 1,258 | 4,727 |
Other | |||
Wealth | 1 | 51 | 251 |
Global Transaction Services | 1 | — | 49 |
Central items | 3 | 2 | 1 |
Total Other | 5 | 53 | 301 |
Total impairment losses | 3,919 | 5,476 | 9,221 |
Gross loans and advances to customers (excluding reverse repurchase agreements) by donating division and sector | 2011 £bn | 2010 £bn | 2009 £bn |
UK Retail | |||
Mortgages | 1.4 | 1.6 | 1.9 |
Personal | 0.1 | 0.4 | 0.7 |
Total UK Retail | 1.5 | 2.0 | 2.6 |
UK Corporate | |||
Manufacturing and infrastructure | 0.1 | 0.3 | 0.3 |
Property and construction | 5.9 | 11.4 | 14.1 |
Transport | 4.5 | 5.4 | — |
Banking and financial institutions | 0.6 | 0.8 | — |
Lombard | 1.0 | 1.7 | 2.9 |
Other | 7.5 | 7.4 | 17.6 |
Total UK Corporate | 19.6 | 27.0 | 34.9 |
Ulster Bank | |||
Mortgages | — | — | 6.0 |
Commercial real estate | |||
- investment | 3.9 | 4.0 | 2.1 |
- development | 8.5 | 8.4 | 6.3 |
Other corporate | 1.6 | 2.2 | 1.3 |
Other EMEA | 0.4 | 0.4 | 1.0 |
Total Ulster Bank | 14.4 | 15.0 | 16.7 |
US Retail & Commercial | |||
Auto and consumer | 0.8 | 2.6 | 3.2 |
Cards | 0.1 | 0.1 | 0.5 |
SBO/home equity | 2.5 | 3.2 | 3.7 |
Residential mortgages | 0.6 | 0.7 | 0.8 |
Commercial real estate | 1.0 | 1.5 | 1.9 |
Commercial and other | 0.4 | 0.5 | 0.9 |
Total US Retail & Commercial | 5.4 | 8.6 | 11.0 |
Global Banking & Markets | |||
Manufacturing and infrastructure | 6.6 | 8.7 | 17.5 |
Property and construction | 15.3 | 19.6 | 25.7 |
Transport | 3.2 | 5.5 | 5.8 |
Telecoms, media and technology | 0.7 | 0.9 | 3.2 |
Banking and financial institutions | 5.6 | 12.0 | 16.0 |
Other | 6.8 | 9.0 | 13.5 |
Total Global Banking & Markets | 38.2 | 55.7 | 81.7 |
Other | |||
Wealth | 0.2 | 0.4 | 2.6 |
Global Transaction Services | 0.2 | 0.3 | 0.8 |
RBS Insurance | — | 0.2 | 0.2 |
Central items | (0.2) | (1.0) | (3.2) |
Total Other | 0.2 | (0.1) | 0.4 |
Gross loans and advances to customers (excluding reverse repurchase agreements) | 79.3 | 108.2 | 147.3 |
Gross loans and advances to customers (excluding reverse repurchase agreements) by donating division and sector | 2012 | 2011 | 2010 |
£m | £m | £m | |
UK Retail | |||
Mortgages | — | 1.4 | 1.6 |
Personal | — | 0.1 | 0.4 |
Total UK Retail | — | 1.5 | 2.0 |
UK Corporate | |||
Manufacturing and infrastructure | 0.1 | 0.1 | 0.3 |
Property and construction | 3.6 | 5.9 | 11.4 |
Transport | 3.8 | 4.5 | 5.4 |
Financial institutions | 0.2 | 0.6 | 0.8 |
Lombard | 0.4 | 1.0 | 1.7 |
Other | 4.2 | 7.5 | 7.4 |
Total UK Corporate | 12.3 | 19.6 | 27.0 |
Ulster Bank | |||
Commercial real estate | |||
- investment | 3.4 | 3.9 | 4.0 |
- development | 7.6 | 8.5 | 8.4 |
Other corporate | 1.6 | 1.6 | 2.2 |
Other EMEA | 0.3 | 0.4 | 0.4 |
Total Ulster Bank | 12.9 | 14.4 | 15.0 |
US Retail & Commercial | |||
Auto and consumer | 0.6 | 0.8 | 2.6 |
Cards | — | 0.1 | 0.1 |
SBO/home equity | 2.0 | 2.5 | 3.2 |
Residential mortgages | 0.4 | 0.6 | 0.7 |
Commercial real estate | 0.4 | 1.0 | 1.5 |
Commercial and other | 0.1 | 0.4 | 0.5 |
Total US Retail & Commercial | 3.5 | 5.4 | 8.6 |
Markets | |||
Manufacturing and infrastructure | 3.9 | 6.6 | 8.7 |
Property and construction | 12.3 | 15.3 | 19.6 |
Transport | 1.7 | 3.2 | 5.5 |
Telecoms, media and technology | 0.4 | 0.7 | 0.9 |
Banking and financial institutions | 4.7 | 5.6 | 12.0 |
Other | 3.7 | 7.0 | 9.3 |
Total Markets | 26.7 | 38.4 | 56.0 |
Other | |||
Wealth | — | 0.2 | 0.4 |
Direct Line Group | — | — | 0.2 |
Central items | — | (0.2) | (1.0) |
Total Other | — | — | (0.4) |
Gross loans and advances to customers (excluding reverse repurchase agreements) | 55.4 | 79.3 | 108.2 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | £m | ||
Assets | ||||||
Cash and balances at central banks | 79,269 | 57,014 | 52,261 | 79,290 | 79,269 | 57,014 |
Net loans and advances to banks | 43,870 | 57,911 | 56,656 | 29,168 | 43,870 | 57,911 |
Reverse repurchase agreements and stock borrowing | 39,440 | 42,607 | 35,097 | 34,783 | 39,440 | 42,607 |
Loans and advances to banks | 83,310 | 100,518 | 91,753 | 63,951 | 83,310 | 100,518 |
Net loans and advances to customers | 454,112 | 502,748 | 687,353 | 430,088 | 454,112 | 502,748 |
Reverse repurchase agreements and stock borrowing | 61,494 | 52,512 | 41,040 | 70,047 | 61,494 | 52,512 |
Loans and advances to customers | 515,606 | 555,260 | 728,393 | 500,135 | 515,606 | 555,260 |
Debt securities | 209,080 | 217,480 | 267,254 | 157,438 | 209,080 | 217,480 |
Equity shares | 15,183 | 22,198 | 19,528 | 15,232 | 15,183 | 22,198 |
Settlement balances | 7,771 | 11,605 | 12,033 | 5,741 | 7,771 | 11,605 |
Derivatives | 529,618 | 427,077 | 441,454 | 441,903 | 529,618 | 427,077 |
Intangible assets | 14,858 | 14,448 | 17,847 | 13,545 | 14,858 | 14,448 |
Property, plant and equipment | 11,868 | 16,543 | 19,397 | 9,784 | 11,868 | 16,543 |
Deferred tax | 3,878 | 6,373 | 7,039 | 3,443 | 3,878 | 6,373 |
Prepayments, accrued income and other assets | 10,976 | 12,576 | 20,985 | 7,820 | 10,976 | 12,576 |
Assets of disposal groups | 25,450 | 12,484 | 18,542 | 14,013 | 25,450 | 12,484 |
Total assets | 1,506,867 | 1,453,576 | 1,696,486 | 1,312,295 | 1,506,867 | 1,453,576 |
Liabilities | ||||||
Bank deposits | 69,113 | 66,051 | 104,138 | 57,073 | 69,113 | 66,051 |
Repurchase agreements and stock lending | 39,691 | 32,739 | 38,006 | 44,332 | 39,691 | 32,739 |
Deposits by banks | 108,804 | 98,790 | 142,144 | 101,405 | 108,804 | 98,790 |
Customers deposits | 414,143 | 428,599 | 545,849 | 433,239 | 414,143 | 428,599 |
Repurchase agreements and stock lending | 88,812 | 82,094 | 68,353 | 88,040 | 88,812 | 82,094 |
Customer accounts | 502,955 | 510,693 | 614,202 | 521,279 | 502,955 | 510,693 |
Debt securities in issue | 162,621 | 218,372 | 267,568 | 94,592 | 162,621 | 218,372 |
Settlement balances | 7,477 | 10,991 | 10,413 | 5,878 | 7,477 | 10,991 |
Short positions | 41,039 | 43,118 | 40,463 | 27,591 | 41,039 | 43,118 |
Derivatives | 523,983 | 423,967 | 424,141 | 434,333 | 523,983 | 423,967 |
Accruals, deferred income and other liabilities | 23,125 | 23,089 | 30,327 | 14,801 | 23,125 | 23,089 |
Retirement benefit liabilities | 2,239 | 2,288 | 2,963 | 3,884 | 2,239 | 2,288 |
Deferred tax | 1,945 | 2,142 | 2,811 | 1,141 | 1,945 | 2,142 |
Insurance liabilities | 6,312 | 6,794 | 10,281 | — | 6,312 | 6,794 |
Subordinated liabilities | 26,319 | 27,053 | 37,652 | 26,773 | 26,319 | 27,053 |
Liabilities of disposal groups | 23,995 | 9,428 | 18,890 | 10,170 | 23,995 | 9,428 |
Total liabilities | 1,430,814 | 1,376,725 | 1,601,855 | 1,241,847 | 1,430,814 | 1,376,725 |
Non-controlling interests | 1,234 | 1,719 | 16,895 | 2,318 | 1,234 | 1,719 |
Owners’ equity | 74,819 | 75,132 | 77,736 | 68,130 | 74,819 | 75,132 |
Total equity | 76,053 | 76,851 | 94,631 | 70,448 | 76,053 | 76,851 |
Total liabilities and equity | 1,506,867 | 1,453,576 | 1,696,486 | 1,312,295 | 1,506,867 | 1,453,576 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Net cash flows from operating activities | 3,325 | 19,291 | (992) | (45,113) | 3,325 | 19,291 |
Net cash flows from investing activities | 14 | 3,351 | 54 | 27,175 | 14 | 3,351 |
Net cash flows from financing activities | (1,741) | (14,380) | 18,791 | 2,017 | (1,741) | (14,380) |
Effects of exchange rate changes on cash and cash equivalents | (1,473) | 82 | (8,592) | (3,893) | (1,473) | 82 |
Net increase in cash and cash equivalents | 125 | 8,344 | 9,261 | |||
Net (decrease)/increase in cash and cash equivalents | (19,814) | 125 | 8,344 |
2011 | 2010 | 2009 | 2008 | 2007 | |
£m | £m | £m | £m | £m | |
Capital base | |||||
Tier 1 capital | 56,990 | 60,124 | 76,421 | 69,847 | 44,364 |
Tier 2 capital | 8,546 | 9,897 | 15,389 | 32,223 | 33,693 |
Tier 3 capital | — | — | — | 260 | 200 |
65,536 | 70,021 | 91,810 | 102,330 | 78,257 | |
Less: Supervisory deductions | (4,828) | (4,732) | (4,565) | (4,155) | (10,283) |
Total regulatory capital | 60,708 | 65,289 | 87,245 | 98,175 | 67,974 |
Risk-weighted assets (1) | |||||
Credit risk | 344,300 | 385,900 | 513,200 | 551,300 | |
Counterparty risk | 61,900 | 68,100 | 56,500 | 61,100 | |
Market risk | 64,000 | 80,000 | 65,000 | 46,500 | |
Operational risk | 37,900 | 37,100 | 33,900 | 36,900 | |
508,100 | 571,100 | 668,600 | 695,800 | ||
Asset Protection Scheme relief | (69,100) | (105,600) | (127,600) | n/a | |
439,000 | 465,500 | 541,000 | 695,800 |
Risk asset ratios | % | % | % | % | % |
Core Tier 1 | 10.6 | 10.7 | 11.0 | 6.6 | 4.5 |
Tier 1 | 13.0 | 12.9 | 14.1 | 10.0 | 7.3 |
Total | 13.8 | 14.0 | 16.1 | 14.1 | 11.2 |
2012 | 2011 | 2010 | 2009 | 2008 | |
£m | £m | £m | £m | £m | |
Capital base | |||||
Tier 1 capital | 57,135 | 56,990 | 60,124 | 76,421 | 69,847 |
Tier 2 capital | 12,152 | 8,546 | 9,897 | 15,389 | 32,223 |
Tier 3 capital | — | — | — | — | 260 |
69,287 | 65,536 | 70,021 | 91,810 | 102,330 | |
Less: Supervisory deductions | (2,487) | (4,828) | (4,732) | (4,565) | (4,155) |
Total regulatory capital | 66,800 | 60,708 | 65,289 | 87,245 | 98,175 |
Risk-weighted assets | |||||
Credit risk | 323,200 | 344,300 | 385,900 | 513,200 | 551,300 |
Counterparty risk | 48,000 | 61,900 | 68,100 | 56,500 | 61,100 |
Market risk | 42,600 | 64,000 | 80,000 | 65,000 | 46,500 |
Operational risk | 45,800 | 37,900 | 37,100 | 33,900 | 36,900 |
459,600 | 508,100 | 571,100 | 668,600 | 695,800 | |
Asset Protection Scheme relief | — | (69,100) | (105,600) | (127,600) | n/a |
459,600 | 439,000 | 465,500 | 541,000 | 695,800 | |
Risk asset ratios | % | % | % | % | % |
Core Tier 1 | 10.3 | 10.6 | 10.7 | 11.0 | 6.6 |
Tier 1 | 12.4 | 13.0 | 12.9 | 14.1 | 10.0 |
Total | 14.5 | 13.8 | 14.0 | 16.1 | 14.1 |
2012 | 2011 | 2010 | |||||||||
Balance sheet | Disposal groups (1) | Gross of disposal groups | Balance sheet | Disposal groups (2) | Gross of disposal groups | Balance sheet | Disposal groups (3) | Gross of disposal groups | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Assets | |||||||||||
Cash and balances at central banks | 79,290 | 18 | 79,308 | 79,269 | 127 | 79,396 | 57,014 | 184 | 57,198 | ||
Net loans and advances to banks | 29,168 | 2,112 | 31,280 | 43,870 | 87 | 43,957 | 57,911 | 651 | 58,562 | ||
Reverse repurchase agreements and stock borrowing | 34,783 | — | 34,783 | 39,440 | — | 39,440 | 42,607 | — | 42,607 | ||
Loans and advances to banks | 63,951 | 2,112 | 66,063 | 83,310 | 87 | 83,397 | 100,518 | 651 | 101,169 | ||
Net loans and advances to customers | 430,088 | 1,863 | 431,951 | 454,112 | 19,405 | 473,517 | 502,748 | 5,013 | 507,761 | ||
Reverse repurchase agreements and stock borrowing | 70,047 | — | 70,047 | 61,494 | — | 61,494 | 52,512 | — | 52,512 | ||
Loans and advances to customers | 500,135 | 1,863 | 501,998 | 515,606 | 19,405 | 535,011 | 555,260 | 5,013 | 560,273 | ||
Debt securities | 157,438 | 7,186 | 164,624 | 209,080 | — | 209,080 | 217,480 | — | 217,480 | ||
Equity shares | 15,232 | 5 | 15,237 | 15,183 | 5 | 15,188 | 22,198 | 20 | 22,218 | ||
Settlement balances | 5,741 | — | 5,741 | 7,771 | 14 | 7,785 | 11,605 | 555 | 12,160 | ||
Derivatives | 441,903 | 15 | 441,918 | 529,618 | 439 | 530,057 | 427,077 | 5,148 | 432,225 | ||
Intangible assets | 13,545 | 750 | 14,295 | 14,858 | 15 | 14,873 | 14,448 | — | 14,448 | ||
Property, plant and equipment | 9,784 | 223 | 10,007 | 11,868 | 4,749 | 16,617 | 16,543 | 18 | 16,561 | ||
Deferred tax | 3,443 | — | 3,443 | 3,878 | — | 3,878 | 6,373 | — | 6,373 | ||
Other financial assets | — | 924 | 924 | 1,309 | — | 1,309 | 1,306 | — | 1,306 | ||
Prepayments, accrued income and other assets | 7,820 | 742 | 8,562 | 9,667 | 456 | 10,123 | 11,270 | 704 | 11,974 | ||
Assets of disposal groups | 14,013 | (13,838) | 175 | 25,450 | (25,297) | 153 | 12,484 | (12,293) | 191 | ||
Total assets | 1,312,295 | — | 1,312,295 | 1,506,867 | — | 1,506,867 | 1,453,576 | — | 1,453,576 | ||
Liabilities | |||||||||||
Bank deposits | 57,073 | 1 | 57,074 | 69,113 | 1 | 69,114 | 66,051 | 266 | 66,317 | ||
Repurchase agreements and stock lending | 44,332 | — | 44,332 | 39,691 | — | 39,691 | 32,739 | — | 32,739 | ||
Deposits by banks | 101,405 | 1 | 101,406 | 108,804 | 1 | 108,805 | 98,790 | 266 | 99,056 | ||
Customer deposits | 433,239 | 753 | 433,992 | 414,143 | 22,610 | 436,753 | 428,599 | 2,267 | 430,866 | ||
Repurchase agreements and stock lending | 88,040 | — | 88,040 | 88,812 | — | 88,812 | 82,094 | — | 82,094 | ||
Customer accounts | 521,279 | 753 | 522,032 | 502,955 | 22,610 | 525,565 | 510,693 | 2,267 | 512,960 | ||
Debt securities in issue | 94,592 | — | 94,592 | 162,621 | — | 162,621 | 218,372 | — | 218,372 | ||
Settlement balances | 5,878 | — | 5,878 | 7,477 | 8 | 7,485 | 10,991 | 907 | 11,898 | ||
Short positions | 27,591 | — | 27,591 | 41,039 | — | 41,039 | 43,118 | — | 43,118 | ||
Derivatives | 434,333 | 7 | 434,340 | 523,983 | 126 | 524,109 | 423,967 | 5,042 | 429,009 | ||
Accruals, deferred income and other liabilities | 14,801 | 2,679 | 17,480 | 23,125 | 1,233 | 24,358 | 23,089 | 925 | 24,014 | ||
Retirement benefit liabilities | 3,884 | — | 3,884 | 2,239 | — | 2,239 | 2,288 | — | 2,288 | ||
Deferred tax | 1,141 | — | 1,141 | 1,945 | — | 1,945 | 2,142 | — | 2,142 | ||
Insurance liabilities | — | 6,193 | 6,193 | 6,312 | — | 6,312 | 6,794 | — | 6,794 | ||
Subordinated liabilities | 26,773 | 529 | 27,302 | 26,319 | — | 26,319 | 27,053 | — | 27,053 | ||
Liabilities of disposal groups | 10,170 | (10,162) | 8 | 23,995 | (23,978) | 17 | 9,428 | (9,407) | 21 | ||
Total liabilities | 1,241,847 | — | 1,241,847 | 1,430,814 | — | 1,430,814 | 1,376,725 | — | 1,376,725 |
2012 | 2011 | 2010 | |||||||||
Balance sheet | Disposal groups (1) | Gross of disposal groups | Balance sheet | Disposal groups (2) | Gross of disposal groups | Balance sheet | Disposal groups (3) | Gross of disposal groups | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Selected financial data | |||||||||||
Gross loans and advances to customers | 451,224 | 1,875 | 453,099 | 473,872 | 20,196 | 494,068 | 520,803 | 5,049 | 525,852 | ||
Customer loan impairment provisions | (21,136) | (12) | (21,148) | (19,760) | (791) | (20,551) | (18,055) | (36) | (18,091) | ||
Net loans and advances to customers | 430,088 | 1,863 | 431,951 | 454,112 | 19,405 | 473,517 | 502,748 | 5,013 | 507,761 | ||
Gross loans and advances to banks | 29,282 | 2,112 | 31,394 | 43,993 | 87 | 44,080 | 58,038 | 651 | 58,689 | ||
Bank loan impairment provisions | (114) | — | (114) | (123) | — | (123) | (127) | — | (127) | ||
Net loans and advances to banks | 29,168 | 2,112 | 31,280 | 43,870 | 87 | 43,957 | 57,911 | 651 | 58,562 | ||
Total loan impairment provisions | (21,250) | (12) | (21,262) | (19,883) | (791) | (20,674) | (18,182) | (36) | (18,218) | ||
Customer REIL | 40,993 | 13 | 41,006 | 40,708 | 1,549 | 42,257 | 38,453 | 53 | 38,506 | ||
Bank REIL | 134 | — | 134 | 137 | — | 137 | 145 | — | 145 | ||
REIL | 41,127 | 13 | 41,140 | 40,845 | 1,549 | 42,394 | 38,598 | 53 | 38,651 | ||
Gross unrealised gains on debt securities | 3,946 | 230 | 4,176 | 4,978 | — | 4,978 | 2,595 | — | 2,595 | ||
Gross unrealised losses on debt securities | (1,832) | (15) | (1,847) | (3,408) | — | (3,408) | (4,097) | — | (4,097) |
Notes: |
(1) | Primarily Direct Line Group. |
(2) | Primarily UK branch-based businesses, RBS Aviation Capital, sold in 2012, and remainder of RBS Sempra Commodities JV. |
(3) | Primarily RBS Sempra Commodities JV, Non-Core project finance assets and certain interests in Latin America, Europe and the Middle East. |
68 | Our business and our strategy |
68 | Strategic risk objectives |
72 | Risk appetite and risk governance |
86 | Capital management |
96 | Liquidity, funding and related risks |
116 | Credit risk |
153 | Balance sheet analysis |
201 | Market risk |
211 | Country risk |
240 | Other risks |
Strategic risk objectives | |
68 | Our business and our strategy |
68 | Strategic risk objectives |
68 | Key developments |
69 | Top and emerging risk scenarios |
· |
· |
· |
· |
· | each business to understand its acceptable levels of risk; and |
· | commercial strategies to be aligned with the use of available financial resources. |
· | reducing exposures in line with the objective of being safe and sustainable; |
· | improving the quality of data, including forward-looking measures; |
· | developing a framework for the effective management of conduct risk; |
· | strengthening the credit risk and country risk appetite and management frameworks and ensuring consistent application across the Group; and |
· | further realigning the Group Policy Framework to the business model and continuing assurance. |
· | Macro-economic risks. |
· | Regulatory and legal risks. |
· | Risks related to the Group’s operations. |
· | If borrowers are unable to refinance existing debt, they may default. Further, if the value of collateral they have provided continues to decline, the resulting impairments may be larger than expected. In addition, as other lenders seek to sell assets, the Group may find it more difficult to meet its own targets for a reduction in its exposure to certain sectors. |
· | The Group is mitigating its risks by monitoring exposures carefully and achieving reductions through a combination of repayments, roll-offs and asset sales whenever possible. In addition, it has placed limits on the origination of new business of this type. |
· | If a peripheral eurozone sovereign defaults on its debt, the Group could experience unexpected impairments, either as a result of its exposure to the sovereign or as a result of its exposure to financial institutions or corporations located in that country. |
· | If one or more sovereigns exit the eurozone, credit ratings for eurozone borrowers more broadly may be downgraded, resulting in increases in credit spreads and decreases in security values, giving rise to market value losses. |
· | If one or more peripheral eurozone sovereigns redenominates its currency, resulting in a devaluation, the Group could experience losses to the extent that its exposures to these sovereigns are not funded by liabilities that similarly redenominate. |
· | To mitigate the impact of a eurozone sovereign default, the Group has reduced its exposures to peripheral eurozone countries. To mitigate the impact of the exit from the eurozone of one or more countries, and the sovereign ratings downgrade that would likely result, the Group has extended its limit control framework to include all eurozone countries. |
· | Finally, to mitigate the impact of redenomination, the Group has reduced exposures and sought where possible to reduce mismatches between the currencies in which assets and liabilities are denominated. |
· | If the UK experiences an unexpectedly severe economic downturn, the Group is exposed to the risk of losses largely as a result of increased impairments in its retail and commercial businesses in the UK. Its investment banking activities in the UK could also be adversely affected. |
· | A worsening of the already difficult economic environment in Ireland could result in increased impairments in Ulster Bank. In addition, it could make the sale or refinancing of related exposures in Non-Core more difficult, slowing progress towards the elimination of these exposures. |
· | To mitigate the risk, the Group actively monitors its risk positions with respect to country, sector, counterparty and product relative to risk appetite, placing exposures on Watch and subjecting them to greater scrutiny. In addition, the Group reduces exposures when appropriate and practicable. |
· | If the value of the pension scheme assets is not adequate to fund pension scheme liabilities, the Group may be required to set aside additional capital in support of the schemes. The amount of additional capital that may be required depends on the size of the shortfall when the assets are valued. However, as asset values are lower and liabilities higher than they were when the fund was last valued, an increase in capital required is a possibility. |
· | In addition, the Group may be required to increase its cash contributions to the schemes. Similarly, the amount of additional cash contributions that may be required depends on the size of the shortfall when the assets are valued. If interest rates fall further, the value of the schemes’ assets may decline as the value of their liabilities increases, leading to the need to increase cash contributions still further. |
· | In order to mitigate the risk, the Group has taken a number of steps, including changing the terms of its pension schemes to reduce the rate at which liabilities are increasing. These include: capping the growth rate of pensionable salary at two percent, and changing the retirement age to 65 with same contributions, with the option for individuals to retire at age 60 and pay an extra five percent of their salary to fund it. |
· | If the Group sells unsuitable products and services to customers or if the sales process is flawed, it may incur regulatory censure, including fines. In addition, it may suffer serious reputational damage. |
· | If the Group fails to handle customer complaints appropriately, it may incur regulatory censure, including fines. In addition, it may incur increased costs as it investigates these complaints and compensates customers. Further, it may suffer serious reputational damage. |
· | In order to mitigate the risk of mis-selling, affected divisions are exiting some businesses and improving staff training and controls in others. |
· | In order to improve the handling of customer complaints, divisions have detailed action plans in place to meet or exceed customer and regulatory requirements and address known shortcomings. |
· | If the Group sells products and services to sanctioned individuals or groups, it may expose itself to the risk of litigation as well as regulatory censure. Its reputation would also suffer materially. |
· | If the Group, as a result of a systems failure, is unable to provide banking services to customers, it may incur regulatory fines and censure as well as suffer significant reputational damage. |
· | The Group is in the process of installing a new global client screening program, the objective of which is to prevent the inadvertent provision of products and services to sanctioned individuals or groups. |
· | The Group has also established and is implementing a plan to enhance the resilience of information technology and payment processing systems. |
· | As a result of litigation, the Group may incur fines, suffer reputational damage, or face limitations on its ability to operate. In the case of LIBOR, the Group reached settlements with the Financial Services Authority, the Commodity Futures Trading Association and the US Department of Justice. It continues to cooperate with other governmental and regulatory authorities in relation to LIBOR investigations; the probable outcome is that the Group will incur additional financial penalties at the conclusion of these investigations. |
· | The Group defends claims against it to the best of its ability. |
· | Compliance with the regulation will require substantial changes in the Group’s systems. As a result, the Group may not be able to meet the deadline for implementation, giving rise to the risk of regulatory fines and censure. In addition, as such a failure would affect customers, it could also have a material negative impact on the Group’s reputation. |
· | The Group has a project in train to design, develop and deliver the required systems changes. |
· | A failure could prevent the Group from making or receiving payments, processing vouchers or providing other types of services to its customers. |
· | A failure could also prevent the Group from managing its liquidity position, giving rise to the risk of illiquidity. |
· | A lack of management information could lead to an inadvertent breach of regulations governing capital or liquidity. |
· | A failure could also leave the Group vulnerable to cyber crime. The Group is also exposed to this risk indirectly, through outsourcing arrangements with third parties. |
· | The Group has developed a risk appetite framework to manage these risks and is implementing a plan to bring its risk position within risk appetite by improving batch processing through process redesign and simplification. The Group expects these investments to result in improvements over the course of 2013 and 2014. |
· | If one or more individuals deviate from procedures, the Group may take excessively large positions. If market prices change adversely, the Group may incur losses. Such losses may be substantial if the positions themselves are very large relative to the relevant market. |
· | Markets has developed a plan for addressing identified weaknesses, has benchmarked it against those of its peers and is implementing it. |
Risk appetite and risk governance | |
73 | Risk appetite |
75 | Risk organisation |
76 | Risk governance |
80 | Stress testing |
81 | Risk coverage |
· | meet its strategic objectives |
· | meet its wider obligations to stakeholders - a bank that is safe and sound and puts serving customers at the heart of its thinking should also perform well for its owners, employees, regulators and communities. |
· | Risk envelope metrics - RBS has set sustainable business goals over a medium-term horizon (including a target for the capital ratio, leverage ratio, loan:deposit ratio, liquidity portfolio and use of wholesale funding. These effectively set the broad boundaries within which the Group operates. The Non-Core division also acts as a primary driver for reducing risk and the size of the balance sheet. |
· | Quantitative risk appetite targets - Risk appetite is also aligned to potential risk exposures and vulnerabilities under severe but plausible stress conditions. Quantitative targets, under stress conditions, are set around the Group’s strategic risk objectives (refer to page 68). |
· | Qualitative risk appetite targets - The third strategic risk objective of maintaining stakeholder confidence covers qualitative aspects relating to the culture of risk management and controls and meeting stakeholder expectations. Risk appetite is based around identified expectations across a range of stakeholders (e.g. customers, employees, investors and the general public) and is closely aligned with key risk policies and controls (e.g. the Group Policy Framework, conduct risk, reputational risk). |
· | Risk control frameworks and limits - Risk control frameworks set granular tolerances and limits for material risk types (e.g. credit risk, market risk, conduct risk and operational risk) that are used to manage risk on a day-to-day basis. These limits support and are required to be consistent with the high-level risk appetite targets. |
· | Integrated stress testing |
· | Economic capital - provides complementary insights, with a breadth of understanding of risk profile changes and |
· | Sensitivity analysis - provides ‘ready reckoners’ around changes in key variables. It offers a |
· |
· |
· |
· |
· |
· | For each policy standard, appropriate risk-based assurance activity was introduced to ensure each division is appropriately controlled and compliance with policy can be |
· | Following external benchmarking exercises, additional policy standards were introduced setting out new mandatory controls required to mitigate key risks to the Group. |
· | A conduct risk |
· | The Group’s key credit risk policies and mandatory controls were restructured and realigned to reflect the |
· | Certain procedural-related policy standards were removed from the framework to reduce bureaucracy and |
· | All activities undertaken by the individual divisions are consistent with the Group’s risk appetite targets; |
· | Group policies and resulting operating frameworks, including delegated authorities and limits, are complied with through effective monitoring and exception reporting; and |
· | There is the effective operation of Group-wide risk processes such as the Group Policy Framework and the New Product Risk Assessment Process. |
(1) | The |
(2) | The following |
Board/Committee | Risk focus | Membership |
Group Board | The Group Board ensures that the Group manages risk effectively | The Board of directors |
Executive Committee | The Executive Committee considers recommendations on risk management matters referred by the Executive Risk Forum and/or Group Risk Committee, including recommendations on risk appetite, risk policies and risk management strategies. It operates under delegated authority from the Group Board. | Group Chief Executive Group Finance Director Chief Chief Executive Officers of divisions Head of Restructuring and Risk |
Board Risk Committee | The Board Risk Committee provides oversight and advice to the Group Board on current and potential future risk | At least three independent non-executive directors, one of whom is the Chairman of the Group Audit Committee. |
Group Audit Committee | The Group Audit Committee reviews accounting policies, financial reporting and regulatory compliance practices of the Group, as well as its systems and standards of internal controls and | At least three independent non-executive directors, at least one of whom is a financial expert as defined in the SEC rules under the US Exchange Act |
Group Performance and Remuneration Committee | The Group Performance and Remuneration Committee | At least three independent non-executive directors |
Group Sustainability Committee | The Group Sustainability Committee is responsible for overseeing and challenging how management is addressing sustainability and reputation issues related to all stakeholder groups. This includes customer and related citizenship activities, oversight of the delivery of the Purpose, Vision and Values cultural and behavioural change, and oversight of the sustainability aspects of the people agenda. It operates under delegated authority from the Group Board. | Independent non-executive directors |
Board/Committee | Risk focus | Membership | |
The Executive Risk Forum | Group Chief Executive Group Finance Director Chief Chief Executive Officers of divisions Head of Restructuring and Risk Deputy Group Chief Risk Officer |
Group Asset and Liability Management Committee | The Group Asset and Liability Management Committee | Group Finance Director Group Treasurer Chief Executive Officers of divisions Head of Restructuring and Risk Key Group Finance function heads | |
Group Risk Committee | The Group Risk Committee | Deputy Group Chief Risk Officer Divisional Chief Risk Officers Key Group Risk function heads | |
Conduct Risk Committee | The Conduct Risk Committee is responsible for the governance, leadership and strategic oversight of the Group’s conduct risk agenda, as well as escalating and reporting any material or strategically significant issues or matters to the Executive Risk Forum. It operates under delegated authority from the Executive Risk Forum. | Head of Restructuring and Risk Group General Counsel Deputy Group Chief Risk Officer Global Head of Compliance Director, Group Regulatory Affairs Chief Executive Officer, Wealth Management Managing Director, Products and Marketing, UK Retail Chief Executive Officer, Corporate Banking Vice Chairman, RBS Citizens Financial Group Co-Head, M&IB Americas Director, Group Operations, Business Services Chief Operating Officer, Ulster Bank Group Chief Executive Officer, RBS England & Wales and NatWest Scotland Head of Group Internal Audit | |
Pension Risk Committee | The Pension Risk Committee considers the Group-wide view of pension risk appetite, mechanisms that could potentially be used for managing risk within the funds, and implications of the pension schemes’ financial strategy. It also reviews actuarial funding assumptions from a Group perspective as appropriate. The Pension Risk Committee consults with the Trustee’s Investment Executive where necessary. The Pension Risk Committee operates under delegated authority from the Group Asset and Liability Management Committee. | Group Finance Director Head of Restructuring and Risk Group Treasurer Global Head of Market and Insurance Risk Group Chief Accountant Chief Executive Officer, Markets, M&IB Global Head of Markets, M&IB Group Head of Pension Risk Deputy Group Chief Risk Officer Head of Group Pensions |
Board/Committee | Risk focus | Membership |
Capital and Stress Testing Committee | The Capital and Stress Testing Committee leads the integrated development and maintenance of risk capital approaches, frameworks and standards. It reviews positions and plans, agrees approaches and standards and provides cross-functional challenge on the topics outlined in its terms of reference. It is | Group Finance Director Key Group Finance function heads Key Group Risk function heads |
Executive Credit Group | The Executive Credit Group decides on requests for the extension of existing or new credit limits on behalf of the Group Board where the proposed aggregate facility limits are in excess of the credit approval authorities granted to individuals in divisions or in | Group A members (1) Head of Restructuring and Risk Deputy Chief Risk Officer Group Chief Credit Officer/Chief Credit Officer N.V. Head of Global Restructuring Group Chief Risk Officer, Group B members (1) Group Chief Executive Group Finance Director Deputy Chief Executive (1)Decisions require input from at least one member from each of Group A and Group B. |
Divisional Risk and Audit Committees | Divisional Risk and Audit Committees report to the Board Risk Committee and the Group Audit Committee on a quarterly basis. Their main responsibilities are to: · monitor the performance of the divisions relative to divisional and Group risk appetite; and ·review | Members: at least three non-executive members who are executives of the Group who do not have executive responsibility in the relevant division. Attendees: at least two executives of the division, as appropriate. Representatives from finance, risk, internal audit and external audit. Members of the Board Risk Committee and Group Audit Committee also have the right to attend. |
· | As part of the financial planning and strategy cycle, stress tests are conducted by divisions and aggregated to produce firm-wide results. These stress tests are also used for monitoring divisional and Group risk appetite. |
· | Stress testing is performed centrally by Group functions both to meet regulatory requirements and for ad-hoc business analysis and decision-making. These stress tests also include reverse stress tests, which identify scenarios and circumstances that could render RBS’s business model unviable. |
· | Division-specific stress testing is undertaken to support risk identification and risk management decision-making. |
· | Risk-type specific stress testing is also conducted. For example, within the market risk management framework, a comprehensive programme of stress tests covers a variety of historical and hypothetical scenarios, including reverse stress tests. |
Risk type | Definition | Features | How the Group managed risk and the focus in |
Capital | The risk that the Group has insufficient capital | Potential to disrupt the business model and stop normal functions of the Group. Potential to cause the Group to fail to meet the supervisory requirements of regulators. Significantly driven by credit risk losses. | Refer to pages |
Liquidity and funding | The risk that the | The Group’s performance in 2012 represented a new benchmark in the management of liquidity risk as the Group began operating under normalised market practices for the management of liquidity and funding risk despite a backdrop of continued market uncertainty and certain Group-specific factors such as a downgrade of the Group’s The Group met or exceeded its medium term strategic funding and liquidity targets by 2012 year end. This included a loan:deposit ratio of Refer to pages | |
Credit risk | The risk that the Group will incur losses owing to the failure of a customer or counterparty to meet its obligation to settle outstanding amounts. | Loss characteristics vary materially across portfolios. Significant link between losses and the macroeconomic environment. Can include concentration risk - the risk of loss due to the concentration of credit risk to a specific product, asset class, sector or counterparty. | The Group manages credit risk based on a suite of credit approval, With a view to strengthening its credit risk management framework and ensuring consistent application across the Group, during 2012 the Group Credit Risk function launched a set of credit control standards with which divisions must comply, to supplement the existing policy suite. These standards comprise not only governance and policy but also During Refer to pages |
Risk type | Definition | Features | How the Group managed risk and the focus in 2012 |
Country risk | The risk of material losses arising from significant country-specific events. | Can arise from sovereign events, economic events, political events, natural disasters or conflicts. Potential to affect parts of the Group’s credit portfolio that are directly or indirectly linked to the country in question. Primarily present in credit portfolios of Markets, International Banking, Ulster Bank (Ireland), Group Centre (mainly Treasury) and Non-Core. | Under the Group's country risk framework, all countries except the UK and the US are currently under limit control. All Refer to pages |
Insurance risk | The risk of financial loss through fluctuations in the timing, frequency and/or severity of insured events, relative to the expectations at the time of underwriting. | Frequent small losses which are material in aggregate. Infrequent large material losses. | The Group’s insurance risk resides principally in its majority owned subsidiary, Direct Line Insurance Group plc (DLG), which is listed on the London Stock Exchange. DLG ensures that it prices its policies and invests its resources appropriately to minimise the risk of potential loss. The risks are mitigated by agreeing policies and minimum standards that are regularly reviewed. The controls are supplemented by reviews by external experts. |
Risk type | Definition | Features | How the Group managed risk and the focus in |
Market risk | The risk arising from | Frequent small losses which are material in aggregate. Infrequent large material losses due to stress events. The majority of the Group’s market risk exposure is in the Markets, International Banking and Non-Core divisions and Group Treasury. The Group is also exposed to market risk through interest rate risk and foreign exchange risk on its non-trading activities in the retail and commercial businesses. | A comprehensive structure is in place aimed at ensuring the Group does not exceed its qualitative and quantitative tolerance for market risk. The Group’s market risk policy statements set out its qualitative tolerance for market risk. They define the governance, responsibilities and requirements for the identification, measurement, analysis, management and communication of The Group During Refer to pages |
Operational risk | The risk of loss resulting from inadequate or failed processes, people, systems or from external events. | Frequent small losses. Infrequent | The During Operational risk data have been enriched by the outputs from these enhancements, resulting in a more complete view of the Group’s operational The level of operational risk remains high due to the scale of Refer to pages |
Risk type | Definition | Features | How the Group managed risk and the focus in |
The risk arising from non-compliance with | Adverse impacts on strategy, capital structure, business models and operational effectiveness. Financial cost of adapting to changes in laws, rules or regulations or of penalties for non-compliance. Financial cost and reputational damage in respect of penalties for non-compliance/breach of regulations. | Management of Within the During Refer to pages 244 to 248. | |
Conduct risk | The risk that the conduct of the Group and its staff towards its customers, or within the markets in which it operates, leads to reputational damage and/or financial loss. | Arises from breaches of regulatory rules or laws by individual employees, or as a result of the Group’s retail or wholesale market conduct. It may also arise from the failure to meet customers’ or regulators’ expectations of the Group. Non-compliance may result in regulator enforcement, adverse publicity and financial penalties. | A defined and measurable appetite for conduct risk has been established to ensure commercial decisions take account of conduct risk implications. A management framework has been developed to enable the consistent identification, assessment and mitigation of conduct risks. Embedding of this framework started during 2012 and is continuing in 2013. Grouped under four pillars (employee conduct, corporate conduct, market conduct and conduct towards the Group’s customers), each conduct risk policy is designed to ensure the Group meets its obligations and expectations. Awareness initiatives and targeted conduct risk training for each policy, aligned to the phased policy roll-out, have been developed and are being delivered to help embed understanding and provide the necessary clarity. These actions are designed to facilitate effective conduct risk management, and address shortcomings identified through recent instances of inappropriate conduct. Refer to page 249. |
Risk type | Definition | Features | How the Group managed risk and the | |
Reputational risk | The risk of brand damage | Can arise from a range of actions taken (or, in some cases, not taken) by the Group, as well as its wider policies and Can be detrimental to the business in a number of ways, including an inability to build or sustain customer relationships, low staff morale, regulatory censure, or reduced access to funding sources. | The Group Board has ultimate responsibility for managing the Group's reputation, although all parts of the Group have responsibility for any reputational impact arising from their operations. The Board's oversight is supported by executive risk committees (including a new Conduct Risk Committee) and by the Group Sustainability Committee. | |
Business risk | The risk of costs relative to its business plan and strategy. | May be caused by Influenced by other risks the Group faces that may contribute to adverse changes in revenues and/or costs, were these risks to crystallise. | The Group seeks to minimise its exposure to business risk, subject to its wider strategic objectives. Business risk is identified, measured and | managed through the Group’s planning cycles and performance management processes. The Group operates a rolling forecast process which identifies projected changes in, or risks to, operating profit and ensures appropriate action is taken. The management of Refer to page |
Pension risk | The risk arising from the Group’s contractual liabilities to or with respect to its defined benefit pension schemes, as well as the risk that | Funding position can be volatile due to the uncertainty of future investment returns and the projected value of schemes’ liabilities. | The Group manages In Refer to pages |
Capital management | |
87 | Introduction |
87 | 2012 achievements |
87 | Governance and approach |
88 | Capital ratios |
88 | Pillar 3 |
89 | Capital resources |
89 | Flow statement (Basel 2.5) |
90 | Reconciliation between accounting and regulatory consolidation |
91 | Reconciliation between accounting equity and regulatory capital |
93 | Risk-weighted assets |
93 | Divisional analysis |
94 | Flow statement |
94 | Looking forward |
94 | Basel III |
95 | Model changes |
95 | Other regulatory capital changes |
95 | European Banking Authority (EBA) recommendation |
Statutory | Proportional | ||||
Risk-weighted assets by risk | 2011 £bn | 2010 £bn | 2009 £bn | 2009 £bn | |
Credit risk | 344.3 | 385.9 | 513.2 | 410.4 | |
Counterparty risk | 61.9 | 68.1 | 56.5 | 56.5 | |
Market risk | 64.0 | 80.0 | 65.0 | 65.0 | |
Operational risk | 37.9 | 37.1 | 33.9 | 33.9 | |
508.1 | 571.1 | 668.6 | 565.8 | ||
Asset Protection Scheme relief | (69.1) | (105.6) | (127.6) | (127.6) | |
439.0 | 465.5 | 541.0 | 438.2 |
Risk asset ratios | % | % | % | |||||
Capital | 2012 £bn | 2011 £bn | 2010 £bn | |||||
Core Tier 1 | 10.6 | 10.7 | 11.0 | 11.0 | 47.3 | 46.3 | 49.6 | |
Core Tier 1 (excluding Asset Protection Scheme (APS)) | 47.3 | 49.1 | 53.8 | |||||
Tier 1 | 13.0 | 12.9 | 14.1 | 14.4 | 57.1 | 57.0 | 60.1 | |
Total | 13.8 | 14.0 | 16.1 | 16.3 | 66.8 | 60.7 | 65.3 |
Risk-weighted assets by risk | 2012 | 2011 | 2010 |
£bn | £bn | £bn | |
Credit risk | |||
- non-counterparty | 323.2 | 344.3 | 385.9 |
- counterparty | 48.0 | 61.9 | 68.1 |
Market risk | 42.6 | 64.0 | 80.0 |
Operational risk | 45.8 | 37.9 | 37.1 |
459.6 | 508.1 | 571.1 | |
APS relief | — | (69.1) | (105.6) |
459.6 | 439.0 | 465.5 |
Risk asset ratios | % | % | % |
Core Tier 1 | 10.3 | 10.6 | 10.7 |
Core Tier 1 (excluding APS) | 10.3 | 9.7 | 9.5 |
Tier 1 | 12.4 | 13.0 | 12.9 |
Total | 14.5 | 13.8 | 14.0 |
· |
Statutory | Proportional* | ||||
Shareholders’ equity (excluding non-controlling interests) | 2011 £m | 2010 £m | 2009 £m | 2009 £m | |
Shareholders’ equity per balance sheet | 74,819 | 75,132 | 77,736 | 77,736 | |
Preference shares - equity | (4,313) | (4,313) | (7,281) | (7,281) | |
Other equity instruments | (431) | (431) | (565) | (565) | |
70,075 | 70,388 | 69,890 | 69,890 | ||
Non-controlling interests | |||||
Non-controlling interests per balance sheet | 1,234 | 1,719 | 16,895 | 2,227 | |
Non-controlling preference shares | (548) | (548) | (656) | (656) | |
Other adjustments to non-controlling interests for regulatory purposes | (259) | (259) | (497) | (497) | |
427 | 912 | 15,742 | 1,074 | ||
Regulatory adjustments and deductions | |||||
Own credit | (2,634) | (1,182) | (1,057) | (1,057) | |
Unrealised losses on AFS debt securities | 1,065 | 2,061 | 1,888 | 1,888 | |
Unrealised gains on AFS equity shares | (108) | (25) | (134) | (134) | |
Cash flow hedging reserve | (879) | 140 | 252 | 252 | |
Other adjustments for regulatory purposes | 571 | 204 | (193) | 41 | |
Goodwill and other intangible assets | (14,858) | (14,448) | (17,847) | (14,786) | |
50% excess of expected losses over impairment provisions (net of tax) | (2,536) | (1,900) | (2,558) | (2,558) | |
50% of securitisation positions | (2,019) | (2,321) | (1,353) | (1,353) | |
50% of APS first loss | (2,763) | (4,225) | (5,106) | (5,106) | |
(24,161) | (21,696) | (26,108) | (22,813) | ||
Core Tier 1 capital | 46,341 | 49,604 | 59,524 | 48,151 | |
Other Tier 1 capital | |||||
Preference shares - equity | 4,313 | 4,313 | 7,281 | 7,281 | |
Preference shares - debt | 1,094 | 1,097 | 3,984 | 3,984 | |
Innovative/hybrid Tier 1 securities | 4,667 | 4,662 | 5,213 | 2,772 | |
10,074 | 10,072 | 16,478 | 14,037 | ||
Tier 1 deductions | |||||
50% of material holdings | (340) | (310) | (601) | (310) | |
Tax on excess of expected losses over impairment provisions | 915 | 758 | 1,020 | 1,020 | |
575 | 448 | 419 | 710 | ||
Total Tier 1 capital | 56,990 | 60,124 | 76,421 | 62,898 |
Statutory | Proportional* | ||||
Qualifying Tier 2 capital | 2011 £m | 2010 £m | 2009 £m | 2009 £m | |
Undated subordinated debt | 1,838 | 1,852 | 4,950 | 4,200 | |
Dated subordinated debt - net of amortisation | 14,527 | 16,745 | 20,063 | 18,120 | |
Reserves arising on revaluation of property | — | — | 73 | 73 | |
Unrealised gains on AFS equity shares | 108 | 25 | 134 | 134 | |
Collectively assessed impairment provisions | 635 | 778 | 796 | 796 | |
Non-controlling Tier 2 capital | 11 | 11 | 11 | 11 | |
17,119 | 19,411 | 26,027 | 23,334 | ||
Tier 2 deductions | |||||
50% of securitisation positions | (2,019) | (2,321) | (1,353) | (1,353) | |
50% excess of expected losses over impairment provisions | (3,451) | (2,658) | (3,578) | (3,578) | |
50% of material holdings | (340) | (310) | (601) | (310) | |
50% of APS first loss | (2,763) | (4,225) | (5,106) | (5,106) | |
(8,573) | (9,514) | (10,638) | (10,347) | ||
Total Tier 2 capital | 8,546 | 9,897 | 15,389 | 12,987 | |
Supervisory deductions | |||||
Unconsolidated investments | |||||
- RBS Insurance | (4,354) | (3,962) | (4,068) | (4,068) | |
- Other investments | (239) | (318) | (404) | (404) | |
Other deductions | (235) | (452) | (93) | (93) | |
(4,828) | (4,732) | (4,565) | (4,565) | ||
Total regulatory capital (1) | 60,708 | 65,289 | 87,245 | 71,320 |
At | |
Attributable loss net of movements in fair value of own | |
Ordinary shares issued | 120 |
Share capital and reserve movements in respect of employee share schemes | 821 |
Foreign | |
Decrease in non-controlling interests | |
Decrease in capital deductions including APS first loss | 4,307 |
Decrease in goodwill and intangibles | 1,313 |
Defined pension fund movement (net of prudential filter adjustment) | (977) |
Other movements | |
At | |
Other Tier 1 capital | |
At 1 January 2012 | 10,649 |
Foreign currency reserve movements | (189) |
Decrease in Tier 1 deductions | (252) |
Other movements | (393) |
At 31 December 2012 | 9,815 |
Tier 2 capital | |
At 1 January 2012 | 8,546 |
Dated subordinated debt issued | 4,167 |
Dated subordinated debt redeemed/matured | (3,582) |
Foreign exchange movements | (643) |
Decrease in capital deductions including APS first loss | 4,649 |
Other movements | (985) |
At 31 December 2012 | 12,152 |
Supervisory deductions | |
At 1 January 2012 | (4,828) |
Decrease in deductions | 2,341 |
At 31 December 2012 | (2,487) |
Total regulatory capital at 31 December 2012 | 66,800 |
Credit risk | Counterparty risk | Market risk | Operational risk | Gross RWAs | APS relief | Net RWAs | |
2011 | £bn | £bn | £bn | £bn | £bn | £bn | £bn |
UK Retail | 41.1 | — | — | 7.3 | 48.4 | (9.4) | 39.0 |
UK Corporate | 69.4 | — | — | 6.7 | 76.1 | (15.5) | 60.6 |
Wealth | 10.9 | — | 0.1 | 1.9 | 12.9 | — | 12.9 |
Global Transaction Services | 12.4 | — | — | 4.9 | 17.3 | — | 17.3 |
Ulster Bank | 33.6 | 0.6 | 0.3 | 1.8 | 36.3 | (6.8) | 29.5 |
US Retail & Commercial | 53.4 | 1.0 | — | 4.4 | 58.8 | — | 58.8 |
Retail & Commercial | 220.8 | 1.6 | 0.4 | 27.0 | 249.8 | (31.7) | 218.1 |
Global Banking & Markets | 45.1 | 39.9 | 50.6 | 15.5 | 151.1 | (8.5) | 142.6 |
Other | 9.9 | 0.2 | — | 0.7 | 10.8 | — | 10.8 |
Core | 275.8 | 41.7 | 51.0 | 43.2 | 411.7 | (40.2) | 371.5 |
Non-Core | 65.6 | 20.2 | 13.0 | (5.5) | 93.3 | (28.9) | 64.4 |
Group before RFS MI | 341.4 | 61.9 | 64.0 | 37.7 | 505.0 | (69.1) | 435.9 |
RFS MI | 2.9 | — | — | 0.2 | 3.1 | — | 3.1 |
Group | 344.3 | 61.9 | 64.0 | 37.9 | 508.1 | (69.1) | 439.0 |
2012 | Accounting balance sheet | Deconsolidation of insurance and other entities (1) | Consolidation of banking associates/ other entities (2) | Regulatory consolidation |
£m | £m | £m | £m | |
Assets | ||||
Cash and balances at central banks | 79,290 | — | 544 | 79,834 |
Loans and advances to banks | 63,951 | (30) | 48 | 63,969 |
Loans and advances to customers | 500,135 | 1,438 | 2,883 | 504,456 |
Debt securities | 157,438 | (12) | 743 | 158,169 |
Equity shares | 15,232 | (194) | — | 15,038 |
Settlement balances | 5,741 | — | — | 5,741 |
Derivatives | 441,903 | — | — | 441,903 |
Intangible assets | 13,545 | — | — | 13,545 |
Property, plant and equipment | 9,784 | (1,320) | 32 | 8,496 |
Deferred tax | 3,443 | — | — | 3,443 |
Prepayments, accrued income and other assets | 7,820 | (77) | (320) | 7,423 |
Assets of disposal groups | 14,013 | (10,544) | — | 3,469 |
1,312,295 | (10,739) | 3,930 | 1,305,486 | |
Liabilities | ||||
Deposits by banks | 101,405 | — | 92 | 101,497 |
Customer accounts | 521,279 | — | 3,486 | 524,765 |
Debt securities in issue | 94,592 | — | — | 94,592 |
Settlement balances | 5,878 | — | — | 5,878 |
Short positions | 27,591 | — | — | 27,591 |
Derivatives | 434,333 | — | — | 434,333 |
Accruals, deferred income and other liabilities | 14,801 | (100) | 253 | 14,954 |
Retirement benefit liabilities | 3,884 | — | — | 3,884 |
Deferred tax | 1,141 | (5) | — | 1,136 |
Subordinated liabilities | 26,773 | — | 99 | 26,872 |
Liabilities of disposal groups | 10,170 | (9,267) | — | 903 |
1,241,847 | (9,372) | 3,930 | 1,236,405 | |
Non-controlling interests | 2,318 | (1,367) | — | 951 |
Owners’ equity | 68,130 | — | — | 68,130 |
Total equity | 70,448 | (1,367) | — | 69,081 |
1,312,295 | (10,739) | 3,930 | 1,305,486 |
2010 | |||||||
UK Retail | 41.7 | — | — | 7.1 | 48.8 | (12.4) | 36.4 |
UK Corporate | 74.8 | — | — | 6.6 | 81.4 | (22.9) | 58.5 |
Wealth | 10.4 | — | 0.1 | 2.0 | 12.5 | — | 12.5 |
Global Transaction Services | 13.7 | — | — | 4.6 | 18.3 | — | 18.3 |
Ulster Bank | 29.2 | 0.5 | 0.1 | 1.8 | 31.6 | (7.9) | 23.7 |
US Retail & Commercial | 52.0 | 0.9 | — | 4.1 | 57.0 | — | 57.0 |
Retail & Commercial | 221.8 | 1.4 | 0.2 | 26.2 | 249.6 | (43.2) | 206.4 |
Global Banking & Markets | 53.5 | 34.5 | 44.7 | 14.2 | 146.9 | (11.5) | 135.4 |
Other | 16.4 | 0.4 | 0.2 | 1.0 | 18.0 | — | 18.0 |
Core | 291.7 | 36.3 | 45.1 | 41.4 | 414.5 | (54.7) | 359.8 |
Non-Core | 91.3 | 31.8 | 34.9 | (4.3) | 153.7 | (50.9) | 102.8 |
Group before RFS MI | 383.0 | 68.1 | 80.0 | 37.1 | 568.2 | (105.6) | 462.6 |
RFS MI | 2.9 | — | — | — | 2.9 | — | 2.9 |
Group | 385.9 | 68.1 | 80.0 | 37.1 | 571.1 | (105.6) | 465.5 |
Notes: |
(1) | The Group must only include particular types of subsidiary undertaking in the regulatory consolidation. Insurance undertakings and non-financial undertakings are excluded from the regulatory consolidation, although they are included in the consolidation for financial reporting. |
(2) | The Group must proportionally consolidate its associated undertakings where they are classified as credit institutions or financial institutions for regulatory purposes. These will generally have been equity accounted for financial reporting purposes. |
2012 £m | 2011 £m | 2010 £m | |
Shareholders’ equity (excluding non-controlling interests) | |||
Called-up share capital | 6,582 | 15,318 | 15,125 |
Paid-in equity | 431 | 431 | 431 |
Share premium | 24,361 | 24,001 | 23,922 |
Retained earnings | 10,596 | 18,929 | 21,239 |
AFS reserve - debt securities | (409) | (1,065) | (2,061) |
AFS reserve - equity shares | 63 | 108 | 25 |
Cash flow hedging reserve | 1,666 | 879 | (140) |
Other reserves | 24,840 | 16,218 | 16,591 |
68,130 | 74,819 | 75,132 | |
Less: innovative securities transferred to other Tier 1 capital | (431) | (431) | (431) |
Less: preference shares transferred to other Tier 1 capital | (4,313) | (4,313) | (4,313) |
Non-controlling interests | 2,318 | 1,234 | 1,719 |
Less: innovative securities transferred to other Tier 1 capital | (548) | (548) | (548) |
Less: minority interest deconsolidated | (1,367) | (259) | (259) |
Regulatory adjustments and deductions | |||
Own credit | 691 | (2,634) | (1,182) |
Defined benefit pension adjustment | 913 | — | — |
Unrealised losses on AFS debt securities | 409 | 1,065 | 2,061 |
Unrealised gains on AFS equity shares | (63) | (108) | (25) |
Cash flow hedging reserve | (1,666) | (879) | 140 |
Other adjustments for regulatory purposes | (197) | 571 | 204 |
Goodwill and other intangible assets | (13,545) | (14,858) | (14,448) |
50% of expected loss | (13,954) | (15,316) | (12,827) |
Less: 50% of internal rating based impairment allowances | 11,432 | 11,865 | 10,169 |
Less: tax on 50% of expected loss over impairment provisions | 618 | 915 | 758 |
50% securitisation positions | (1,107) | (2,019) | (2,321) |
50% of APS first loss | — | (2,763) | (4,225) |
(16,469) | (24,161) | (21,696) | |
Core Tier 1 capital | 47,320 | 46,341 | 49,604 |
Other Tier 1 capital | |||
Preference shares - equity transferred from shareholders’ equity | 4,313 | 4,313 | 4,313 |
Preference shares - debt transferred from subordinated liabilities | 1,054 | 1,094 | 1,097 |
Innovative securities transferred from shareholders’ equity | 431 | 431 | 431 |
Innovative securities transferred from non-controlling interests | 548 | 548 | 548 |
Innovative/hybrid securities transferred from subordinated liabilities | 3,146 | 3,688 | 3,683 |
9,492 | 10,074 | 10,072 | |
Tier 1 deductions | |||
50% material holdings | (295) | (340) | (310) |
Tax on excess of expected losses over impairment provisions | 618 | 915 | 758 |
323 | 575 | 448 | |
Total Tier 1 capital | 57,135 | 56,990 | 60,124 |
2012 £m | 2011 £m | 2010 £m | |
Qualifying Tier 2 capital | |||
Subordinated debt | 26,773 | 26,319 | 27,053 |
Less: transferred to other Tier 1 capital | (4,200) | (4,782) | (4,780) |
Less: amortisation | (5,049) | (4,275) | (2,915) |
Less: other adjustments | (1,910) | (897) | (761) |
15,614 | 16,365 | 18,597 | |
Unrealised gains on AFS equity shares | 63 | 108 | 25 |
Collectively assessed impairment provisions | 399 | 635 | 778 |
Non-controlling Tier 2 capital | — | 11 | 11 |
16,076 | 17,119 | 19,411 | |
Tier 2 deductions | |||
50% of securitisation positions | (1,107) | (2,019) | (2,321) |
50% excess of expected losses over impairment provisions | (2,522) | (3,451) | (2,658) |
50% of material holdings | (295) | (340) | (310) |
50% of APS first loss | — | (2,763) | (4,225) |
(3,924) | (8,573) | (9,514) | |
Total Tier 2 capital | 12,152 | 8,546 | 9,897 |
Supervisory deductions | |||
Unconsolidated Investments | |||
- Direct Line Group | (2,081) | (4,354) | (3,962) |
- Other investments | (162) | (239) | (318) |
Other deductions | (244) | (235) | (452) |
(2,487) | (4,828) | (4,732) | |
Total regulatory capital | 66,800 | 60,708 | 65,289 |
· | Core Tier 1 capital increased by £1 billion during 2012. Excluding APS however, Core Tier 1 capital decreased by £1.8 billion. |
· | Attributable loss, net of fair value of own credit, of £2.6 billion was partially offset by lower Core Tier 1 deduction for securitisation positions of £1.1 billion, primarily relating to restructuring of monolines within Non-Core. |
Credit risk | Market risk | Operational risk | Gross RWAs | ||
Non-counterparty | Counterparty | ||||
2012 | £bn | £bn | £bn | £bn | £bn |
UK Retail | 37.9 | — | — | 7.8 | 45.7 |
UK Corporate | 77.7 | — | — | 8.6 | 86.3 |
Wealth | 10.3 | — | 0.1 | 1.9 | 12.3 |
International Banking | 46.7 | — | — | 5.2 | 51.9 |
Ulster Bank | 33.6 | 0.6 | 0.2 | 1.7 | 36.1 |
US Retail & Commercial | 50.8 | 0.8 | — | 4.9 | 56.5 |
Retail & Commercial | 257.0 | 1.4 | 0.3 | 30.1 | 288.8 |
Markets | 14.0 | 34.7 | 36.9 | 15.7 | 101.3 |
Other | 4.0 | 0.4 | — | 1.4 | 5.8 |
Core | 275.0 | 36.5 | 37.2 | 47.2 | 395.9 |
Non-Core | 45.1 | 11.5 | 5.4 | (1.6) | 60.4 |
Group before RFS Holdings MI | 320.1 | 48.0 | 42.6 | 45.6 | 456.3 |
RFS Holdings MI | 3.1 | — | — | 0.2 | 3.3 |
Group | 323.2 | 48.0 | 42.6 | 45.8 | 459.6 |
2011 | |||||
UK Retail | 41.1 | — | — | 7.3 | 48.4 |
UK Corporate | 71.2 | — | — | 8.1 | 79.3 |
Wealth | 10.9 | — | 0.1 | 1.9 | 12.9 |
International Banking | 38.9 | — | — | 4.3 | 43.2 |
Ulster Bank | 33.6 | 0.6 | 0.3 | 1.8 | 36.3 |
US Retail & Commercial | 53.6 | 1.0 | — | 4.7 | 59.3 |
Retail & Commercial | 249.3 | 1.6 | 0.4 | 28.1 | 279.4 |
Markets | 16.7 | 39.9 | 50.6 | 13.1 | 120.3 |
Other | 9.8 | 0.2 | — | 2.0 | 12.0 |
Core | 275.8 | 41.7 | 51.0 | 43.2 | 411.7 |
Non-Core | 65.6 | 20.2 | 13.0 | (5.5) | 93.3 |
Group before RFS Holdings MI | 341.4 | 61.9 | 64.0 | 37.7 | 505.0 |
RFS Holdings MI | 2.9 | — | — | 0.2 | 3.1 |
Group | 344.3 | 61.9 | 64.0 | 37.9 | 508.1 |
APS relief | (59.6) | (9.5) | — | — | (69.1) |
Net RWAs | 284.7 | 52.4 | 64.0 | 37.9 | 439.0 |
2010 | |||||
UK Retail | 41.7 | — | — | 7.1 | 48.8 |
UK Corporate | 76.4 | — | — | 7.8 | 84.2 |
Wealth | 10.4 | — | 0.1 | 2.0 | 12.5 |
International Banking | 44.0 | — | — | 7.7 | 51.7 |
Ulster Bank | 29.2 | 0.5 | 0.1 | 1.8 | 31.6 |
US Retail & Commercial | 52.1 | 0.9 | — | 4.4 | 57.4 |
Retail & Commercial | 253.8 | 1.4 | 0.2 | 30.8 | 286.2 |
Markets | 21.5 | 34.5 | 44.7 | 9.6 | 110.3 |
Other | 16.4 | 0.4 | 0.2 | 1.0 | 18.0 |
Core | 291.7 | 36.3 | 45.1 | 41.4 | 414.5 |
Non-Core | 91.3 | 31.8 | 34.9 | (4.3) | 153.7 |
Group before RFS Holdings MI | 383.0 | 68.1 | 80.0 | 37.1 | 568.2 |
RFS Holdings MI | 2.9 | — | — | — | 2.9 |
Group | 385.9 | 68.1 | 80.0 | 37.1 | 571.1 |
APS relief | (88.2) | (17.4) | — | — | (105.6) |
Net RWAs | 297.7 | 50.7 | 80.0 | 37.1 | 465.5 |
Credit risk | Market risk | Operational risk | Gross RWAs | ||
Non-counterparty | Counterparty | ||||
£bn | £bn | £bn | £bn | £bn | |
At 1 January 2012 | 344.3 | 61.9 | 64.0 | 37.9 | 508.1 |
Business and market movements (1) | (46.0) | (20.4) | (16.3) | 7.9 | (74.8) |
Disposals | (7.3) | (3.8) | (6.5) | — | (17.6) |
Model changes (2) | 32.2 | 10.3 | 1.4 | — | 43.9 |
At 31 December 2012 | 323.2 | 48.0 | 42.6 | 45.8 | 459.6 |
Notes: |
(1) | Represents changes in book size, composition, position changes and market movements. |
(2) | Refers to implementation of a new model or modification of an existing model after approval from the FSA. |
· | The £75 billion decrease due to business and market movements is driven by: |
- Market risk and counterparty risk decreased by £16 billion and £20 |
- Run-off of balances in Non-Core; |
- Declines in Retail and Commercial due to loans migrating into |
default and customer deleveraging; and |
- Reduction in credit risk in the Group liquidity portfolio as European |
peripheral exposures were sold. |
The increase in operational risk follows the recalibration based on the average of |
· | Disposals of £18 billion relate to Non-Core disposals, including RBS Aviation Capital and exposures relating to credit derivative product companies, monolines and other counterparties. |
· | Model changes of £44 billion reflect: |
- Changes to credit metrics applying to corporate, bank and |
sovereign exposures as models were updated to reflect more |
recent experience, |
- Application |
Notes: |
(1) | The capital conservation buffer is set at 2.5% of RWAs and is intended to be available in periods of stress. Drawing on the buffer would lead to a corresponding reduction in the ability to make discretionary payments such as dividends and variable compensation. |
(2) | The counter-cyclical buffer is institution specific and depends on the Group's geographical footprint and the macroeconomic conditions pertaining in the individual countries in which the Group operates. As there is a time lag involved in determining this ratio, it has been assumed that it will be zero for the time being. |
(3) | The G-SIB buffer is dependent on the regulatory assessment of the Group. The Group has been provisionally assessed as requiring additional CET1 of 1.5% in the list published by the Financial Stability Board (FSB) on 1 November 2012. The FSB list is updated annually. The actual requirement will be phased in from 2016, initially for those banks identified (in the list) as G-SIBs in November 2014. |
· |
The |
· | The application of the regulatory deductions and adjustments at the level of common equity, including the new deduction for deferred tax assets, will also be phased in over the five years from implementation; the current adjustment for unrealised gains and losses on available-for-sale securities will be phased out; and |
· | Subordinated debt instruments which do not meet the new eligibility criteria will be will be grandfathered on a reducing basis over ten years. |
Note: |
(1) | Based on the following principal assumptions: (i) divestment of Direct Line Group (ii) deductions for financial holdings of less than 10% of common equity Tier 1 capital have been excluded pending the finalisation of CRD IV rules (iii) RWA uplifts assume approval of all regulatory models and completion of planned management actions (iv) RWA uplifts include the impact of credit valuation adjustments (CVA) and asset valuation correlation on banks and central clearing counterparties (v) EU corporates, pension funds and sovereigns are assumed to be exempt from CVA volatility charge in calculating RWA impacts. |
Liquidity, funding and related risks | |
97 | Introduction |
97 | 2012 achievements and looking forward |
98 | Liquidity risk |
98 | Policy, framework and governance |
100 | Stress testing |
101 | Contingency planning |
101 | Liquidity reserves |
101 | Regulatory oversight |
102 | Funding risk |
102 | Funding sources |
102 | Central bank funding |
102 | Balance sheet composition |
103 | Liquidity and funding risk: Analyses |
103 | Funding sources |
103 | - Notes issued |
104 | - Deposit and repo funding |
104 | - Divisional loan:deposit ratios and funding gaps |
105 | - Long-term debt issuance |
106 | Liquidity |
106 | - Liquidity portfolio |
108 | - Net stable funding ratio |
109 | Maturity analysis |
110 | Encumbrance |
112 | Non-traded interest rate risk |
112 | - Introduction and methodology |
112 | - Analyses |
112 | Value-at-risk |
113 | Sensitivity of net interest income |
114 | Currency risk |
114 | - Structural foreign currency exposures |
115 | Non-traded equity risk |
· | The Group’s credit profile improved markedly during the year reflecting the success of its restructuring efforts. Credit default swaps spreads fell by 60% from their 2011 peak and secondary bond spreads on five year maturity have narrowed from c.450 basis points to c.100 basis points. |
· | The Group repaid all the remaining emergency UK Government funding and liquidity support that was provided to it during 2008-2009 under the Credit Guarantee Scheme and Special Liquidity Scheme. |
· | The Group resumed coupon payments on hybrid capital securities following the end of the two year coupon payment ban imposed by the European Commission as part of its 2009 State Aid ruling. Coupons remain suspended on Tier 1 instruments issued by RBS Holdings N.V. until the end of April 2013. |
· | The Group and |
· | The overall size of the liquidity buffer reduced modestly to £147.2 billion from £155.3 billion reflecting the lower levels of short-term wholesale funding and a smaller balance sheet. This also allowed the Group to alter the ratio of primary to secondary liquid assets within the liquidity buffer to 62%:38% from 77%:23%. This re-weighting, by reducing the holdings of the lowest yielding liquid assets, benefited the Group’s net interest margin, whilst maintaining a higher quality buffer. |
· | Retail & Commercial deposits grew by £8 billion to £401 billion, with particularly strong growth in UK Retail following successful savings campaigns. Wholesale deposits were allowed to run-off, declining by £11 billion to leave Group deposits £3 billion lower at £434 billion. |
· | The Group’s loan:deposit ratio improved from 108% in 2011 to reach management’s medium-term target of 100% at 31 December 2012, with lending fully funded by customer deposits and a corresponding reduction in more volatile short-term wholesale funding. |
· | The Group has taken advantage of market conditions through the course of the year to further supplement its capital base. |
· | RBS Group plc, RBS plc, RBS Citizens Financial Group Inc. and Direct Line Insurance Group plc in aggregate issued £4.8 billion of subordinated liabilities in 2012. |
· | The Group successfully undertook two public liability management exercises targeting Lower Tier 2 and senior unsecured debt in support of ongoing balance sheet restructuring initiatives. |
· |
· |
· |
· |
· | more conservative expectations from the Group’s various stakeholders. |
· | the Group’s main legal entities maintain adequate liquidity |
· | the |
· | the Group has in place robust strategies, policies, systems and procedures for identifying, measuring, monitoring and managing liquidity risk. |
· | Must complete and keep updated an Individual Liquidity Adequacy Assessment (ILAA); |
· | Submit itself to the Supervisory Liquidity Review Process which is a review of the ILAA and the Group’s liquidity policies and operational capacity and capability; and |
· | This in turn leads to the Group and the FSA agreeing the parameters of Group’s Individual Liquidity Guidance (ILG). Which influences the overall size of the Group’s liquidity buffer. |
· | Net wholesale funding - Outflows at contractual maturity of wholesale funding and conduit commercial paper, with no rollover/new issuance. Prime Brokerage, 100% loss of excess client derivative margin and 100% loss of excess client cash. |
· | Secured financing and increased haircuts - Loss of secured funding capacity at contractual maturity date and incremental haircut widening, depending upon collateral type. |
· | Retail and commercial bank deposits - Substantial outflows as the Group could be seen as a greater credit risk than competitors. |
· | Intra-day cashflows - Liquid collateral held against intra-day requirement at clearing and payment systems is regarded as encumbered with no liquidity value assumed. Liquid collateral is held against withdrawal of unsecured intra-day lines provided by third parties. |
· | Intra-group commitments and support - Risk of cash within subsidiaries becoming unavailable to the wider Group and contingent calls for funding on Group Treasury from subsidiaries and affiliates. |
· | Funding concentrations - Additional outflows recognised against concentration of providers of wholesale secured financing. |
· | Off-balance sheet activities - Collateral outflows due to market movements, and all collateral owed by the Group to counterparties but not yet called; anticipated increase in firm’s derivative initial margin requirement in stress scenarios; collateral outflows contingent upon a multi-notch credit rating downgrade of Group firms; drawdown on committed facilities provided to corporates, based on counterparty type, creditworthiness and facility type; and drawdown on retail commitments. |
· | Franchise viability - Group liquidity stress testing includes additional liquidity in order to meet outflows that are non-contractual in nature, but are necessary in order to support valuable franchise businesses. |
· | Management action - Unencumbered marketable assets that are held outside of the Core liquidity buffer and are of verifiable liquidity value to the firm, are assumed to be monetised (subject to haircut/valuation adjustment). |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Deposits by banks | |||
derivative cash collateral | 28,585 | 31,807 | 28,074 |
other deposits | 28,489 | 37,307 | 38,243 |
57,074 | 69,114 | 66,317 | |
Debt securities in issue | |||
conduit asset-backed commercial paper (ABCP) | — | 11,164 | 17,320 |
other commercial paper (CP) | 2,873 | 5,310 | 8,915 |
certificates of deposit (CDs) | 2,996 | 16,367 | 37,855 |
medium-term notes (MTNs) | 66,603 | 105,709 | 131,026 |
covered bonds | 10,139 | 9,107 | 4,100 |
securitisations | 11,981 | 14,964 | 19,156 |
94,592 | 162,621 | 218,372 | |
Subordinated liabilities | 27,302 | 26,319 | 27,053 |
Notes issued | 121,894 | 188,940 | 245,425 |
Wholesale funding | 178,968 | 258,054 | 311,742 |
Customer deposits | |||
cash collateral | 7,949 | 9,242 | 10,433 |
other deposits | 426,043 | 427,511 | 420,433 |
Total customer deposits | 433,992 | 436,753 | 430,866 |
Total funding | 612,960 | 694,807 | 742,608 |
Short-term wholesale funding (1) | Total wholesale funding | Net inter-bank funding (2) | |||||||
Excluding derivative collateral | Including derivative collateral | Excluding derivative collateral | Including derivative collateral | Deposits | Loans (3) | Net inter-bank funding | |||
£bn | £bn | £bn | £bn | £bn | £bn | £bn | |||
2012 | 41.6 | 70.2 | 150.4 | 179.0 | 28.5 | (18.6) | 9.9 | ||
2011 | 102.4 | 134.2 | 226.2 | 258.1 | 37.3 | (24.3) | 13.0 | ||
2010 | 129.7 | 157.8 | 283.7 | 311.7 | 38.2 | (31.3) | 6.9 |
(1) | Short-term wholesale balances denote those with a residual maturity of less than one year and include longer-term issuances. |
(2) | Excludes derivative collateral. |
(3) | Primarily short-term balances. |
2012 | Debt securities in issue | ||||||||
Conduit ABCP | Other CP and CDs | MTNs | Covered bonds | Securitisations | Total | Subordinated liabilities | Total notes issued | Total notes issued | |
£m | £m | £m | £m | £m | £m | £m | £m | % | |
Less than 1 year | — | 5,478 | 13,019 | 1,038 | 761 | 20,296 | 2,351 | 22,647 | 18 |
1-3 years | — | 385 | 20,267 | 2,948 | 540 | 24,140 | 7,252 | 31,392 | 26 |
3-5 years | — | 1 | 13,374 | 2,380 | — | 15,755 | 756 | 16,511 | 14 |
More than 5 years | — | 5 | 19,943 | 3,773 | 10,680 | 34,401 | 16,943 | 51,344 | 42 |
— | 5,869 | 66,603 | 10,139 | 11,981 | 94,592 | 27,302 | 121,894 | 100 | |
2011 | |||||||||
Less than 1 year | 11,164 | 21,396 | 36,302 | — | 27 | 68,889 | 624 | 69,513 | 37 |
1-3 years | — | 278 | 26,595 | 2,760 | 479 | 30,112 | 3,338 | 33,450 | 18 |
3-5 years | — | 2 | 16,627 | 3,673 | — | 20,302 | 7,232 | 27,534 | 14 |
More than 5 years | — | 1 | 26,185 | 2,674 | 14,458 | 43,318 | 15,125 | 58,443 | 31 |
11,164 | 21,677 | 105,709 | 9,107 | 14,964 | 162,621 | 26,319 | 188,940 | 100 |
2010 | Debt securities in issue | ||||||||
Conduit ABCP | Other CP and CDs | MTNs | Covered bonds | Securitisations | Total | Subordinated liabilities | Total notes issued | Total notes issued | |
£m | £m | £m | £m | £m | £m | £m | £m | % | |
Less than 1 year | 17,320 | 46,051 | 30,589 | — | 88 | 94,048 | 964 | 95,012 | 39 |
1-3 years | — | 702 | 47,357 | 1,078 | 12 | 49,149 | 754 | 49,903 | 20 |
1-5 years | — | 12 | 21,466 | 1,294 | 34 | 22,806 | 8,476 | 31,282 | 13 |
More than 5 years | — | 5 | 31,614 | 1,728 | 19,022 | 52,369 | 16,859 | 69,228 | 28 |
17,320 | 46,770 | 131,026 | 4,100 | 19,156 | 218,372 | 27,053 | 245,425 | 100 |
2012 | 2011 | 2010 | ||||||
Deposits | Repos | Deposits | Repos | Deposits | Repos | |||
£m | £m | £m | £m | £m | £m | |||
Financial institutions | ||||||||
- central and other banks | 57,074 | 44,332 | 69,114 | 39,691 | 66,317 | 32,739 | ||
- other financial institutions | 64,237 | 86,968 | 66,009 | 86,032 | 65,532 | 75,782 | ||
Personal and corporate deposits | 369,755 | 1,072 | 370,744 | 2,780 | 365,334 | 6,312 | ||
491,066 | 132,372 | 505,867 | 128,503 | 497,183 | 114,833 |
2012 | Loans (1) | Deposits (2) | Loan:deposit ratio (3) | Funding surplus /(gap) (3) |
£m | £m | % | £m | |
UK Retail | 110,970 | 107,633 | 103 | (3,337) |
UK Corporate | 104,593 | 127,070 | 82 | 22,477 |
Wealth | 16,965 | 38,910 | 44 | 21,945 |
International Banking (4) | 39,500 | 46,172 | 86 | 6,672 |
Ulster Bank | 28,742 | 22,059 | 130 | (6,683) |
US Retail & Commercial | 50,726 | 59,164 | 86 | 8,438 |
Conduits (4) | 2,458 | — | — | (2,458) |
Retail & Commercial | 353,954 | 401,008 | 88 | 47,054 |
Markets | 29,589 | 26,346 | 112 | (3,243) |
Other | 3,264 | 3,340 | 98 | 76 |
Core | 386,807 | 430,694 | 90 | 43,887 |
Non-Core | 45,144 | 3,298 | nm | (41,846) |
Group | 431,951 | 433,992 | 100 | 2,041 |
2011 | ||||
UK Retail | 107,983 | 101,878 | 106 | (6,105) |
UK Corporate | 108,668 | 126,309 | 86 | 17,641 |
Wealth | 16,834 | 38,164 | 44 | 21,330 |
International Banking (4) | 46,417 | 45,051 | 103 | (1,366) |
Ulster Bank | 31,303 | 21,814 | 143 | (9,489) |
US Retail & Commercial | 50,842 | 59,984 | 85 | 9,142 |
Conduits (4) | 10,504 | — | — | (10,504) |
Retail & Commercial | 372,551 | 393,200 | 95 | 20,649 |
Markets | 31,254 | 36,776 | 85 | 5,522 |
Other | 1,196 | 2,496 | 48 | 1,300 |
Core | 405,001 | 432,472 | 94 | 27,471 |
Non-Core | 68,516 | 4,281 | nm | (64,235) |
Group | 473,517 | 436,753 | 108 | (36,764) |
Loans (1) | Deposits (2) | Loan:deposit ratio (3) | Funding surplus /(gap) (3) | |
2010 | £m | £m | % | £m |
UK Retail | 105,663 | 96,113 | 110 | (9,550) |
UK Corporate | 112,037 | 124,529 | 90 | 12,492 |
Wealth | 16,065 | 36,449 | 44 | 20,384 |
International Banking (4) | 49,186 | 44,271 | 111 | (4,915) |
Ulster Bank | 35,225 | 23,117 | 152 | (12,108) |
US Retail & Commercial | 47,824 | 59,307 | 81 | 11,483 |
Conduits (4) | 13,178 | — | — | (13,178) |
Retail & Commercial | 379,178 | 383,786 | 99 | 4,608 |
Markets | 25,061 | 38,170 | 66 | 13,109 |
Other | 872 | 658 | 133 | (214) |
Core | 405,111 | 422,614 | 96 | 17,503 |
Non-Core | 102,650 | 8,252 | nm | (94,398) |
Group | 507,761 | 430,866 | 118 | (76,895) |
2011 | 2010 | 2009 | ||||||
£m | % | £m | % | £m | % | |||
Deposits by banks | ||||||||
- central banks | 3,680 | 0.5 | 6,655 | 0.9 | 8,535 | 1.0 | ||
- derivative cash collateral | 31,807 | 4.6 | 28,074 | 3.8 | 32,552 | 4.0 | ||
- other | 33,627 | 4.8 | 31,588 | 4.3 | 75,173 | 9.2 | ||
69,114 | 9.9 | 66,317 | 9.0 | 116,260 | 14.2 | |||
Debt securities in issue | ||||||||
- conduit asset backed commercial paper (ABCP) | 11,164 | 1.6 | 17,320 | 2.3 | 25,583 | 3.1 | ||
- other commercial paper (CP) | 5,310 | 0.8 | 8,915 | 1.2 | 18,724 | 2.3 | ||
- certificates of deposit (CDs) | 16,367 | 2.4 | 37,855 | 5.1 | 58,195 | 7.1 | ||
- medium-term notes (MTNs) | 105,709 | 15.2 | 131,026 | 17.6 | 125,800 | 15.4 | ||
- covered bonds | 9,107 | 1.3 | 4,100 | 0.6 | — | — | ||
- securitisations | 14,964 | 2.1 | 19,156 | 2.6 | 18,027 | 2.2 | ||
162,621 | 23.4 | 218,372 | 29.4 | 246,329 | 30.1 | |||
Subordinated liabilities | 26,319 | 3.8 | 27,053 | 3.6 | 31,538 | 3.9 | ||
Notes issued | 188,940 | 27.2 | 245,425 | 33.0 | 277,867 | 34.0 | ||
Wholesale funding | 258,054 | 37.1 | 311,742 | 42.0 | 394,127 | 48.2 | ||
Customer deposits | ||||||||
- cash collateral | 9,242 | 1.4 | 10,433 | 1.4 | 9,934 | 1.2 | ||
- other | 427,511 | 61.5 | 420,433 | 56.6 | 413,224 | 50.6 | ||
Total customer deposits | 436,753 | 62.9 | 430,866 | 58.0 | 423,158 | 51.8 | ||
Total funding | 694,807 | 100.0 | 742,608 | 100.0 | 817,285 | 100.0 | ||
Disposal group deposits included above | ||||||||
- banks | 1 | 266 | 618 | |||||
- customers | 22,610 | 2,267 | 8,907 | |||||
22,611 | 2,533 | 9,525 |
Short-term wholesale funding | 2011 £bn | 2010 £bn | 2009 £bn |
Deposits | 32.9 | 34.7 | 77.3 |
Notes issued | 69.5 | 95.0 | 139.0 |
STWF excluding derivative collateral | 102.4 | 129.7 | 216.3 |
Derivative collateral | 31.8 | 28.1 | 32.6 |
STWF including derivative collateral | 134.2 | 157.8 | 248.9 |
Interbank funding excluding derivative collateral | |||
- bank deposits | 37.3 | 38.2 | 83.7 |
- bank loans | (24.3) | (31.3) | (31.3) |
Net interbank funding | 13.0 | 6.9 | 52.4 |
Debt securities in issue | |||||||||
2011 | Conduit ABCP | Other CP and CDs | MTNs | Covered bonds | Securitisations | Total | Subordinated liabilities | Total notes issued | Total notes issued |
£m | £m | £m | £m | £m | £m | £m | £m | % | |
Less than 1 year | 11,164 | 21,396 | 36,302 | — | 27 | 68,889 | 624 | 69,513 | 36.8 |
1-3 years | — | 278 | 26,595 | 2,760 | 479 | 30,112 | 3,338 | 33,450 | 17.7 |
3-5 years | — | 2 | 16,627 | 3,673 | — | 20,302 | 7,232 | 27,534 | 14.6 |
More than 5 years | — | 1 | 26,185 | 2,674 | 14,458 | 43,318 | 15,125 | 58,443 | 30.9 |
11,164 | 21,677 | 105,709 | 9,107 | 14,964 | 162,621 | 26,319 | 188,940 | 100.0 | |
2010 | |||||||||
Less than 1 year | 17,320 | 46,051 | 30,589 | — | 88 | 94,048 | 964 | 95,012 | 38.7 |
1-3 years | — | 702 | 47,357 | 1,078 | 12 | 49,149 | 754 | 49,903 | 20.3 |
3-5 years | — | 12 | 21,466 | 1,294 | 34 | 22,806 | 8,476 | 31,282 | 12.8 |
More than 5 years | — | 5 | 31,614 | 1,728 | 19,022 | 52,369 | 16,859 | 69,228 | 28.2 |
17,320 | 46,770 | 131,026 | 4,100 | 19,156 | 218,372 | 27,053 | 245,425 | 100.0 | |
2009 | |||||||||
Less than 1 year | 25,583 | 76,008 | 33,696 | — | 1,614 | 136,901 | 2,144 | 139,045 | 50.0 |
1-5 years | — | 895 | 69,400 | — | 142 | 70,437 | 4,235 | 74,672 | 26.9 |
More than 5 years | — | 16 | 22,704 | — | 16,271 | 38,991 | 25,159 | 64,150 | 23.1 |
25,583 | 76,919 | 125,800 | — | 18,027 | 246,329 | 31,538 | 277,867 | 100.0 |
Repurchase agreements | Financial institutions (1,2) | CP | CDs | 2011 Total | Repurchase agreements | Financial institutions (1,2) | CP | CDs | 2010 Total | 2009 Total | |
At year end | |||||||||||
- balance (£bn) | 129 | 93 | 16 | 16 | 254 | 115 | 92 | 26 | 38 | 271 | 242 |
- weighted average interest rate | 0.6% | 0.9% | 0.9% | 1.4% | 0.8% | 0.5% | 0.6% | 0.7% | 0.6% | 0.6% | 0.8% |
During the year | |||||||||||
- maximum balance (£bn) | 175 | 111 | 32 | 39 | 357 | 157 | 127 | 37 | 57 | 378 | 357 |
- average balance (£bn) | 142 | 93 | 22 | 31 | 288 | 137 | 109 | 34 | 50 | 330 | 292 |
- weighted average interest rate | 0.9% | 1.1% | 0.7% | 1.2% | 1.0% | 0.6% | 0.8% | 0.9% | 1.0% | 0.7% | 1.9% |
(1) | Excludes |
(2) | Excludes |
(3) | Based on loans and advances to customers net of |
(4) | All conduits relate to International Banking and have been extracted and shown separately as they were funded by commercial paper issuance until the end of |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |
£m | £m | £m | £m | |||
Public | ||||||
- unsecured | 5,085 | 12,887 | 8,386 | 1,237 | 5,085 | 12,887 |
- unsecured: guaranteed | — | — | 19,663 | |||
- secured | 9,807 | 8,041 | — | 2,127 | 9,807 | 8,041 |
Private | ||||||
- unsecured | 12,414 | 17,450 | 14,895 | 4,997 | 12,414 | 17,450 |
- unsecured: guaranteed | — | — | 15,459 | |||
- secured | 500 | — | — | 500 | — | |
Gross issuance | 27,806 | 38,378 | 58,403 | 8,361 | 27,806 | 38,378 |
Buybacks | (6,892) | (6,298) | (7,264) | |||
Buy-backs (1) | (7,355) | (6,892) | (6,298) | |||
Net issuance | 20,914 | 32,080 | 51,139 | 1,006 | 20,914 | 32,080 |
1-3 years | 3-5 years | 5-10 years | >10 years | Total | |
2011 | £m | £m | £m | £m | £m |
MTNs | 904 | 1,407 | 1,839 | 935 | 5,085 |
Covered bonds | — | 1,721 | 3,280 | — | 5,001 |
Securitisations | — | — | — | 4,806 | 4,806 |
904 | 3,128 | 5,119 | 5,741 | 14,892 | |
% of total | 6 | 21 | 34 | 39 | 100 |
2010 | |||||
MTNs | 1,445 | 2,150 | 6,559 | 2,733 | 12,887 |
Covered bonds | — | 1,030 | 1,244 | 1,725 | 3,999 |
Securitisations | — | — | — | 4,042 | 4,042 |
1,445 | 3,180 | 7,803 | 8,500 | 20,928 | |
% of total | 7 | 15 | 37 | 41 | 100 |
2009 | |||||
MTNs | 13,450 | 7,457 | 3,477 | 3,665 | 28,049 |
% of total | 48 | 27 | 12 | 13 | 100 |
GBP | EUR | USD | AUD | Other | Total | |
2011 | £m | £m | £m | £m | £m | £m |
Public | ||||||
- MTNs | — | 1,808 | 2,181 | 1,096 | — | 5,085 |
- covered bonds | — | 5,001 | — | — | — | 5,001 |
- securitisations | 478 | 1,478 | 2,850 | — | — | 4,806 |
Private | 2,872 | 3,856 | 3,183 | 302 | 2,701 | 12,914 |
3,350 | 12,143 | 8,214 | 1,398 | 2,701 | 27,806 | |
% of total | 12 | 44 | 29 | 5 | 10 | 100 |
2010 | ||||||
Public | ||||||
- MTNs | 1,260 | 3,969 | 5,131 | 1,236 | 1,291 | 12,887 |
- covered bonds | — | 3,999 | — | — | — | 3,999 |
- securitisations | 663 | 1,629 | 1,750 | — | — | 4,042 |
Private | 2,184 | 10,041 | 2,879 | 174 | 2,172 | 17,450 |
4,107 | 19,638 | 9,760 | 1,410 | 3,463 | 38,378 | |
% of total | 11 | 51 | 25 | 4 | 9 | 100 |
2009 | ||||||
Public | ||||||
- MTNs | 7,267 | 4,795 | 10,940 | 3,173 | 1,874 | 28,049 |
Private | 4,932 | 9,773 | 9,668 | 2,738 | 3,243 | 30,354 |
12,199 | 14,568 | 20,608 | 5,911 | 5,117 | 58,403 | |
% of total | 21 | 25 | 35 | 10 | 9 | 100 |
2012 | Liquidity value | |||||
Period end | ||||||
UK DLG (1) | CFG | Other | Total | Average* | ||
£m | £m | £m | £m | £m | ||
Cash and balances at central banks | 64,822 | 891 | 4,396 | 70,109 | 81,768 | |
Central and local government bonds | ||||||
AAA rated governments and US agencies | 3,984 | 5,354 | 547 | 9,885 | 18,832 | |
AA- to AA+ rated governments (2) | 9,189 | — | 432 | 9,621 | 9,300 | |
governments rated below AA | — | — | 206 | 206 | 596 | |
local government | — | — | 979 | 979 | 2,244 | |
13,173 | 5,354 | 2,164 | 20,691 | 30,972 | ||
Treasury bills | 750 | — | — | 750 | 202 | |
Primary liquidity | 78,745 | 6,245 | 6,560 | 91,550 | 112,942 | |
Other assets (3) | ||||||
AAA rated | 3,396 | 7,373 | 203 | 10,972 | 17,304 | |
below AAA rated and other high quality assets | 44,090 | — | 557 | 44,647 | 24,674 | |
Secondary liquidity | 47,486 | 7,373 | 760 | 55,619 | 41,978 | |
Total liquidity portfolio | 126,231 | 13,618 | 7,320 | 147,169 | 154,920 | |
Carrying value | 157,574 | 20,524 | 9,844 | 187,942 |
2011 | ||||||
Cash and balances at central banks | 55,100 | 1,406 | 13,426 | 69,932 | 74,711 | |
Central and local government bonds | ||||||
AAA rated governments and US agencies | 22,563 | 7,044 | 25 | 29,632 | 37,947 | |
AA- to AA+ rated governments (2) | 14,102 | — | — | 14,102 | 3,074 | |
governments rated below AA | — | — | 955 | 955 | 925 | |
local government | — | — | 4,302 | 4,302 | 4,779 | |
36,665 | 7,044 | 5,282 | 48,991 | 46,725 | ||
Treasury bills | — | — | — | — | 5,937 | |
Primary liquidity | 91,765 | 8,450 | 18,708 | 118,923 | 127,373 | |
Other assets (3) | ||||||
AAA rated | 17,216 | 4,718 | 3,268 | 25,202 | 21,973 | |
below AAA rated and other high quality assets | 6,105 | — | 5,100 | 11,205 | 12,102 | |
Secondary liquidity | 23,321 | 4,718 | 8,368 | 36,407 | 34,075 | |
Total liquidity portfolio | 115,086 | 13,168 | 27,076 | 155,330 | 161,448 | |
Carrying value | 135,754 | 25,624 | 32,117 | 193,495 |
2011 | 2010 | 2009 | ||
Average £m | Period end £m | Period end £m | Period end £m | |
Cash and balances at central banks | 74,711 | 69,932 | 53,661 | 51,500 |
Treasury bills | 5,937 | — | 14,529 | 30,010 |
Central and local government bonds (1) | ||||
- AAA rated governments and US agencies | 37,947 | 29,632 | 41,435 | 30,140 |
- AA- to AA+ rated governments (2) | 3,074 | 14,102 | 3,744 | 2,011 |
- governments rated below AA | 925 | 955 | 1,029 | 1,630 |
- local government | 4,779 | 4,302 | 5,672 | 5,706 |
46,725 | 48,991 | 51,880 | 39,487 | |
Other assets (3) | ||||
- AAA rated | 21,973 | 25,202 | 17,836 | 20,246 |
- below AAA rated and other high quality assets | 12,102 | 11,205 | 16,693 | 29,418 |
34,075 | 36,407 | 34,529 | 49,664 | |
Total liquidity portfolio | 161,448 | 155,330 | 154,599 | 170,661 |
Liquidity value | ||||
Period end | ||||
UK DLG (1) | CFG | Other | Total | |
2010 | £m | £m | £m | £m |
Cash and balances at central banks | 43,804 | 2,314 | 7,543 | 53,661 |
Central and local government bonds | ||||
AAA rated governments and US agencies | 32,337 | 4,830 | 4,268 | 41,435 |
AA- to AA+ rated governments (2) | 2,404 | — | 1,340 | 3,744 |
governments rated below AA | — | — | 1,029 | 1,029 |
local government | — | — | 5,672 | 5,672 |
34,741 | 4,830 | 12,309 | 51,880 | |
Treasury bills | 14,529 | — | — | 14,529 |
Primary liquidity | 93,074 | 7,144 | 19,852 | 120,070 |
Other assets (3) | ||||
AAA rated | 7,787 | — | 10,049 | 17,836 |
below AAA rated and other high quality assets | 8,313 | 4,601 | 3,779 | 16,693 |
Secondary liquidity | 16,100 | 4,601 | 13,828 | 34,529 |
Total liquidity portfolio | 109,174 | 11,745 | 33,680 | 154,599 |
Carrying value | 120,178 | 18,055 | 40,857 | 179,090 |
(1) | The FSA |
(2) | Includes |
(3) | Includes assets eligible for discounting at the Bank of England and other central |
Loan:deposit ratio | Customer funding gap Group £bn | |||
Group % | Core % | |||
2011 | 108 | 94 | 37 | |
2010 | 118 | 96 | 77 | |
2009 | 132 | 103 | 137 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||
ASF(1) | ASF(1) | ASF(1) | Weighting | ASF(1) | ASF(1) | ASF(1) | Weighting | |||||||||||||
£bn | £bn | £bn | % | £bn | £bn | £bn | % | |||||||||||||
Equity | 76 | 77 | 80 | 100 | 70 | 76 | 77 | 100 | ||||||||||||
Wholesale funding > 1 year | 124 | 154 | 144 | 100 | 109 | 124 | 154 | 100 | ||||||||||||
Wholesale funding < 1 year | 134 | — | 157 | — | 250 | — | — | 70 | — | 134 | — | 157 | — | — | ||||||
Derivatives | 524 | — | 424 | — | 422 | — | — | 434 | — | 524 | — | 424 | — | — | ||||||
Repurchase agreements | 129 | — | 115 | — | 106 | — | — | 132 | — | 129 | — | 115 | — | — | ||||||
Deposits | ||||||||||||||||||||
- Retail and SME - more stable | 227 | 204 | 172 | 155 | 166 | 149 | 90 | |||||||||||||
- Retail and SME - less stable | 31 | 25 | 51 | 41 | 50 | 40 | 80 | |||||||||||||
- Other | 179 | 89 | 206 | 103 | 199 | 99 | 50 | |||||||||||||
- retail and SME - more stable | 203 | 183 | 227 | 204 | 172 | 155 | 90 | |||||||||||||
- retail and SME - less stable | 66 | 53 | 31 | 25 | 51 | 41 | 80 | |||||||||||||
- other | 164 | 82 | 179 | 89 | 206 | 103 | 50 | |||||||||||||
Other (2) | 83 | — | 98 | — | 105 | — | — | 64 | — | 83 | — | 98 | — | — | ||||||
Total liabilities and equity | 1,507 | 518 | 1,454 | 530 | 1,522 | 512 | 1,312 | 497 | 1,507 | 518 | 1,454 | 530 | ||||||||
Cash | 79 | — | 57 | — | 52 | — | — | 79 | — | 79 | — | 57 | — | — | ||||||
Inter-bank lending | 44 | — | 58 | — | 49 | — | — | 29 | — | 44 | — | 58 | — | — | ||||||
Debt securities > 1 year | ||||||||||||||||||||
- central and local governments AAA to AA- | 77 | 4 | 89 | 4 | 84 | 4 | 5 | |||||||||||||
- governments AAA to AA- | 64 | 3 | 77 | 4 | 89 | 4 | 5 | |||||||||||||
- other eligible bonds | 73 | 15 | 75 | 15 | 87 | 17 | 20 | 48 | 10 | 73 | 15 | 75 | 15 | 20 | ||||||
- other bonds | 14 | 10 | 9 | 100 | 19 | 14 | 10 | 100 | ||||||||||||
Debt securities < 1 year | 45 | — | 43 | — | 69 | — | — | 26 | — | 45 | — | 43 | — | — | ||||||
Derivatives | 530 | — | 427 | — | 438 | — | — | 442 | — | 530 | — | 427 | — | — | ||||||
Reverse repurchase agreements | 101 | — | 95 | — | 76 | — | — | 105 | — | 101 | — | 95 | — | — | ||||||
Customer loans and advances > 1 year | ||||||||||||||||||||
- residential mortgages | 145 | 94 | 145 | 94 | 137 | 89 | 65 | 145 | 94 | 145 | 94 | 145 | 94 | 65 | ||||||
- other | 173 | 211 | 211 | 241 | 100 | 136 | 173 | 211 | 100 | |||||||||||
Customer loans and advances < 1 year | ||||||||||||||||||||
- retail loans | 19 | 16 | 22 | 19 | 24 | 20 | 85 | 18 | 15 | 19 | 16 | 22 | 19 | 85 | ||||||
- other | 137 | 69 | 125 | 63 | 153 | 77 | 50 | 131 | 66 | 137 | 69 | 125 | 63 | 50 | ||||||
Other (3) | 70 | 97 | 103 | 100 | 70 | 70 | 97 | 100 | ||||||||||||
Total assets | 1,507 | 455 | 1,454 | 513 | 1,522 | 560 | 1,312 | 413 | 1,507 | 455 | 1,454 | 513 | ||||||||
Undrawn commitments | 240 | 12 | 267 | 13 | 289 | 14 | 5 | 216 | 11 | 240 | 12 | 267 | 13 | 5 | ||||||
Total assets and undrawn commitments | 1,747 | 467 | 1,721 | 526 | 1,811 | 574 | 1,528 | 424 | 1,747 | 467 | 1,721 | 526 | ||||||||
Net stable funding ratio | 111% | 101% | 89% | 117% | 111% | 101% |
(1) | Available stable funding. |
(2) | Deferred tax, insurance liabilities and other liabilities. |
(3) | Prepayments, accrued income, deferred tax, settlement balances and other assets. |
· |
2011 | 2010 | 2009 | |||||||||
Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | |||
Total assets held by the conduits | 11,208 | 1,893 | 13,101 | 16,390 | 3,624 | 20,014 | 23,409 | 3,957 | 27,366 | ||
Commercial paper issued (1) | 10,590 | 859 | 11,449 | 15,522 | 2,540 | 18,062 | 22,644 | 2,939 | 25,583 | ||
Liquidity and credit enhancements | |||||||||||
Deal specific liquidity | |||||||||||
- drawn | 321 | 1,051 | 1,372 | 868 | 1,109 | 1,977 | 738 | 1,059 | 1,797 | ||
- undrawn | 15,324 | 1,144 | 16,468 | 21,935 | 2,980 | 24,915 | 28,628 | 3,852 | 32,480 | ||
PWCE (2) | 795 | 193 | 988 | 1,025 | 257 | 1,282 | 1,167 | 341 | 1,508 | ||
16,440 | 2,388 | 18,828 | 23,828 | 4,346 | 28,174 | 30,533 | 5,252 | 35,785 | |||
Maximum exposure to loss (3) | 15,646 | 2,194 | 17,840 | 22,803 | 4,089 | 26,892 | 29,365 | 4,911 | 34,276 |
Funded assets | Undrawn commitments to fund assets | Liquidity from third parties | Total exposure | |||
Loans | Securities | Total | ||||
2011 | £m | £m | £m | £m | £m | £m |
Auto loans | 3,663 | 390 | 4,053 | 2,241 | — | 6,294 |
Corporate loans | 146 | 72 | 218 | 16 | — | 234 |
Credit card receivables | 865 | — | 865 | 699 | — | 1,564 |
Trade receivables | 1,136 | 126 | 1,262 | 649 | — | 1,911 |
Student loans | 488 | — | 488 | 352 | — | 840 |
Consumer loans | 1,362 | — | 1,362 | 101 | — | 1,463 |
Mortgages | ||||||
- prime | 2,239 | — | 2,239 | 308 | — | 2,547 |
- non-conforming | 727 | — | 727 | 34 | — | 761 |
- commercial | 21 | 489 | 510 | 8 | — | 518 |
Other | 760 | 617 | 1,377 | 331 | — | 1,708 |
11,407 | 1,694 | 13,101 | 4,739 | — | 17,840 | |
2010 | ||||||
Auto loans | 4,943 | 346 | 5,289 | 2,964 | — | 8,253 |
Corporate loans | 115 | 2,340 | 2,455 | 106 | — | 2,561 |
Credit card receivables | 2,088 | — | 2,088 | 1,209 | — | 3,297 |
Trade receivables | 761 | — | 761 | 1,090 | — | 1,851 |
Student loans | 757 | — | 757 | 532 | (132) | 1,157 |
Consumer loans | 1,889 | — | 1,889 | 111 | — | 2,000 |
Mortgages | ||||||
- prime | 2,569 | 3 | 2,572 | 752 | — | 3,324 |
- non-conforming | 1,371 | — | 1,371 | 20 | — | 1,391 |
- sub-prime | 103 | — | 103 | 19 | — | 122 |
- commercial | 210 | 450 | 660 | 76 | (21) | 715 |
Other | 1,072 | 997 | 2,069 | (1) | (10) | 2,058 |
15,878 | 4,136 | 20,014 | 6,878 | (163) | 26,729 |
2009 | ||||||
Auto loans | 4,293 | 356 | 4,649 | 2,526 | — | 7,175 |
Corporate loans | 106 | 7,695 | 7,801 | 161 | — | 7,962 |
Credit card receivables | 4,083 | — | 4,083 | 1,058 | — | 5,141 |
Trade receivables | 806 | — | 806 | 1,351 | — | 2,157 |
Student loans | 915 | — | 915 | 263 | (132) | 1,046 |
Consumer loans | 1,686 | — | 1,686 | 222 | — | 1,908 |
Mortgages | ||||||
- prime | 2,739 | 3 | 2,742 | 750 | — | 3,492 |
- non-conforming | 1,548 | — | 1,548 | 193 | — | 1,741 |
- commercial | 413 | 458 | 871 | 155 | (22) | 1,004 |
Other | 872 | 1,393 | 2,265 | 232 | (12) | 2,485 |
17,461 | 9,905 | 27,366 | 6,911 | (166) | 34,111 |
CP funded assets | |||||||||||
Credit ratings (S&P equivalent) | |||||||||||
UK | Europe | US | RoW | Total | AAA | AA | A | BBB | Below BBB | ||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Auto loans | 518 | 1,145 | 2,141 | 249 | 4,053 | 3,323 | 683 | 40 | 7 | — | |
Corporate loans | — | 160 | 58 | — | 218 | 9 | 94 | 27 | 88 | — | |
Credit card receivables | — | — | 865 | — | 865 | 774 | — | 91 | — | — | |
Trade receivables | — | 567 | 695 | — | 1,262 | 449 | 343 | 426 | 44 | — | |
Student loans | — | — | 488 | — | 488 | 488 | — | — | — | — | |
Consumer loans | 716 | — | 646 | — | 1,362 | — | — | 1,362 | — | — | |
Mortgages | |||||||||||
- prime | 182 | — | — | 2,057 | 2,239 | 1,446 | 737 | 39 | 17 | — | |
- non-conforming | 667 | 60 | — | — | 727 | 157 | 265 | 287 | 18 | — | |
- commercial | 489 | — | — | 21 | 510 | 2 | 5 | 498 | 5 | — | |
Other | 124 | 201 | 531 | 521 | 1,377 | 363 | 42 | 402 | 180 | 390 | |
2,696 | 2,133 | 5,424 | 2,848 | 13,101 | 7,011 | 2,169 | 3,172 | 359 | 390 | ||
2010 | |||||||||||
Auto loans | 429 | 962 | 3,434 | 464 | 5,289 | 4,827 | 354 | 101 | 7 | — | |
Corporate loans | 22 | 1,513 | 709 | 211 | 2,455 | 2,166 | 161 | 128 | — | — | |
Credit card receivables | 144 | — | 1,944 | — | 2,088 | 1,912 | 125 | — | 51 | — | |
Trade receivables | — | 261 | 500 | — | 761 | 265 | 353 | 95 | 48 | — | |
Student loans | 116 | — | 641 | — | 757 | 641 | 116 | — | — | — | |
Consumer loans | 766 | 462 | 661 | — | 1,889 | 16 | — | 1,873 | — | — | |
Mortgages | — | ||||||||||
- prime | 161 | — | — | 2,411 | 2,572 | 1,043 | 1,476 | 32 | 21 | — | |
- non-conforming | 712 | 659 | — | — | 1,371 | 782 | 273 | 316 | — | — | |
- sub-prime | 103 | — | — | — | 103 | — | 68 | — | 35 | — | |
- commercial | 627 | — | — | 33 | 660 | 16 | 5 | 635 | 4 | — | |
Other | 447 | 455 | 353 | 814 | 2,069 | 95 | 52 | 1,242 | 680 | — | |
3,527 | 4,312 | 8,242 | 3,933 | 20,014 | 11,763 | 2,983 | 4,422 | 846 | — | ||
2009 | |||||||||||
Auto loans | 476 | 982 | 2,621 | 570 | 4,649 | 2,965 | 1,547 | 137 | — | — | |
Corporate loans | 312 | 5,213 | 1,411 | 865 | 7,801 | 7,584 | 111 | 106 | — | — | |
Credit card receivables | 177 | — | 3,823 | 83 | 4,083 | 2,781 | 759 | 420 | 123 | — | |
Trade receivables | — | 334 | 438 | 34 | 806 | 446 | 266 | 60 | 34 | — | |
Student loans | 117 | — | 798 | — | 915 | 798 | 117 | — | — | — | |
Consumer loans | 733 | 800 | 153 | — | 1,686 | 68 | 50 | 1,553 | 15 | — | |
Mortgages | |||||||||||
- prime | 138 | — | — | 2,604 | 2,742 | 949 | 1,746 | 28 | 3 | 16 | |
- non-conforming | 599 | 949 | — | — | 1,548 | 1,070 | 379 | 99 | — | — | |
- commercial | 641 | 194 | — | 36 | 871 | 25 | 3 | 840 | — | 3 | |
Other | 121 | 670 | 298 | 1,176 | 2,265 | 170 | 249 | 950 | 896 | — | |
3,314 | 9,142 | 9,542 | 5,368 | 27,366 | 16,856 | 5,227 | 4,193 | 1,071 | 19 |
Less than 1 year | 1-5 years | More than 5 years | Total | |
£bn | £bn | £bn | £bn | |
Contractual maturity | 381 | 20 | 1 | 402 |
Behavioural maturity | 146 | 219 | 37 | 402 |
0-3 months | 3-12 months | 1-3 years | 3-5 years | 5-10 years | 10-20 years | |
2011 | £m | £m | £m | £m | £m | £m |
Assets by contractual maturity | ||||||
Cash and balances at central banks | 79,269 | — | — | — | — | — |
Loans and advances to banks | 26,326 | 1,294 | 544 | 121 | 114 | — |
Debt securities | 7,237 | 9,569 | 23,137 | 21,003 | 39,148 | 15,869 |
Settlement balances | 7,759 | 8 | — | 1 | — | — |
Other financial assets | 397 | 158 | — | 16 | 738 | — |
Total maturing assets | 120,988 | 11,029 | 23,681 | 21,141 | 40,000 | 15,869 |
Loans and advances to customers | 97,318 | 90,894 | 108,331 | 55,785 | 62,085 | 56,259 |
Derivatives held for hedging | 519 | 1,556 | 3,438 | 1,695 | 596 | 138 |
218,825 | 103,479 | 135,450 | 78,621 | 102,681 | 72,266 | |
Liabilities by contractual maturity | ||||||
Deposits by banks | 39,139 | 5,104 | 5,513 | 461 | 1,121 | 364 |
Debt securities in issue | 66,253 | 15,756 | 25,099 | 17,627 | 18,833 | 4,190 |
Subordinated liabilities | 133 | 1,116 | 4,392 | 7,872 | 8,654 | 3,488 |
Settlement balances and other liabilities | 9,015 | 37 | 36 | 62 | 16 | 15 |
Total maturing liabilities | 114,540 | 22,013 | 35,040 | 26,022 | 28,624 | 8,057 |
Customer accounts | 379,692 | 23,068 | 12,643 | 5,389 | 1,483 | 779 |
Derivatives held for hedging | 525 | 788 | 1,981 | 1,186 | 1,101 | 821 |
494,757 | 45,869 | 49,664 | 32,597 | 31,208 | 9,657 | |
Maturity gap | 6,448 | (10,984) | (11,359) | (4,881) | 11,376 | 7,812 |
Cumulative maturity gap | 6,448 | (4,536) | (15,895) | (20,776) | (9,400) | (1,588) |
Guarantees and commitments notional amount | ||||||
Guarantees (1) | 24,886 | — | — | — | — | — |
Commitments (2) | 239,963 | — | — | — | — | — |
2012 | Other than held-for-trading (HFT) | HFT | Total | |||||||
Less than 1 month | 1-3 months | 3-6 months | 6 months -1 year | 1-3 years | 3-5 years | More than 5 years | Total excluding HFT | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Cash and balances at central banks | 79,308 | — | — | — | — | — | — | 79,308 | — | 79,308 |
Bank reverse repos | 1,302 | 87 | — | — | — | — | — | 1,389 | 33,394 | 34,783 |
Customer reverse repos | 22 | — | — | — | — | — | — | 22 | 70,025 | 70,047 |
Loans to banks (1) | 14,519 | 1,879 | 1,005 | 206 | 269 | 35 | 102 | 18,015 | 13,265 | 31,280 |
Loans to customers (1) | 40,883 | 18,324 | 19,269 | 27,377 | 58,503 | 52,930 | 189,824 | 407,110 | 24,841 | 431,951 |
Debt securities | 2,206 | 1,869 | 1,279 | 1,676 | 11,847 | 17,929 | 49,478 | 86,284 | 78,340 | 164,624 |
Equity shares | — | — | — | — | — | — | 1,908 | 1,908 | 13,329 | 15,237 |
Settlement balances | 5,741 | — | — | — | — | — | — | 5,741 | — | 5,741 |
Derivatives | — | 571 | 626 | 1,252 | 3,803 | 1,879 | 508 | 8,639 | 433,279 | 441,918 |
Other assets | 72 | 28 | 32 | 106 | 31 | 38 | 617 | 924 | — | 924 |
Total financial assets | 144,053 | 22,758 | 22,211 | 30,617 | 74,453 | 72,811 | 242,437 | 609,340 | 666,473 | 1,275,813 |
Bank repos | 3,551 | 3,261 | — | — | 1,150 | — | — | 7,962 | 36,370 | 44,332 |
Customer repos | 2,733 | 3,083 | — | — | — | — | — | 5,816 | 82,224 | 88,040 |
Deposits by banks | 15,046 | 1,409 | 564 | 489 | 7,127 | 336 | 1,532 | 26,503 | 30,571 | 57,074 |
Customer accounts | 359,157 | 14,773 | 8,933 | 15,662 | 18,932 | 3,660 | 798 | 421,915 | 12,077 | 433,992 |
Debt securities in issue | 2,248 | 2,639 | 7,996 | 6,263 | 21,220 | 12,038 | 31,309 | 83,713 | 10,879 | 94,592 |
Settlement balances | 5,875 | — | — | — | 3 | — | — | 5,878 | — | 5,878 |
Short positions | — | — | — | — | — | — | — | — | 27,591 | 27,591 |
Derivatives | — | 310 | 251 | 501 | 1,790 | 1,262 | 1,682 | 5,796 | 428,544 | 434,340 |
Subordinated liabilities | 231 | 184 | 1,352 | 620 | 7,070 | 862 | 16,983 | 27,302 | — | 27,302 |
Other liabilities | 1,684 | — | — | — | 8 | 1 | 3 | 1,696 | — | 1,696 |
Total financial liabilities | 390,525 | 25,659 | 19,096 | 23,535 | 57,300 | 18,159 | 52,307 | 586,581 | 628,256 | 1,214,837 |
(1) | Excludes reverse repos. |
0-3 months | 3-12 months | 1-3 years | 3-5 years | 5-10 years | 10-20 years | |
2010 | £m | £m | £m | £m | £m | £m |
Assets by contractual maturity | ||||||
Cash and balances at central banks | 56,988 | — | — | 1 | — | 25 |
Loans and advances to banks | 33,809 | 1,377 | 711 | 120 | 193 | 79 |
Debt securities | 11,247 | 9,816 | 25,059 | 22,400 | 40,600 | 22,128 |
Settlement balances | 11,334 | 231 | — | — | 41 | — |
Other financial assets | 458 | 221 | 207 | 15 | 405 | — |
Total maturing assets | 113,836 | 11,645 | 25,977 | 22,536 | 41,239 | 22,232 |
Loans and advances to customers | 112,465 | 86,592 | 120,139 | 69,304 | 78,131 | 63,015 |
Derivatives held for hedging | 530 | 1,588 | 2,612 | 638 | 210 | 101 |
226,831 | 99,825 | 148,728 | 92,478 | 119,580 | 85,348 | |
Liabilities by contractual maturity | ||||||
Deposits by banks | 43,396 | 4,417 | 1,243 | 304 | 651 | 374 |
Debt securities in issue | 89,583 | 43,032 | 31,862 | 22,569 | 24,209 | 6,697 |
Subordinated liabilities | 2,485 | 2,611 | 6,570 | 8,691 | 8,672 | 4,607 |
Settlement balances and other liabilities | 12,423 | 59 | 136 | 177 | 385 | 25 |
Total maturing liabilities | 147,887 | 50,119 | 39,811 | 31,741 | 33,917 | 11,703 |
Customer accounts | 402,457 | 18,580 | 8,360 | 4,651 | 4,393 | 2,384 |
Derivatives held for hedging | 608 | 936 | 2,103 | 969 | 681 | 253 |
550,952 | 69,635 | 50,274 | 37,361 | 38,991 | 14,340 | |
Maturity gap | (34,051) | (38,474) | (13,834) | (9,205) | 7,322 | 10,529 |
Cumulative maturity gap | (34,051) | (72,525) | (86,359) | (95,564) | (88,242) | (77,713) |
Guarantees and commitments notional amount | ||||||
Guarantees (1) | 31,026 | — | — | — | — | — |
Commitments (2) | 266,822 | — | — | — | — | — |
· | already encumbered and used to support funding currently in place via own asset securitisations, covered bonds and securities repurchase agreements. |
· | not currently encumbered but can for instance be used to access funding from market counterparties or central bank facilities as part of the Group’s contingency funding. |
· | not currently encumbered. In this category, the Group has in place an enablement programme which seeks to identify assets which are capable of being encumbered and to identify the actions to facilitate such encumbrance whilst not impacting customer relationships or servicing. |
Encumbrance ratios | 2012 | 2011 |
% | % | |
Total | 18 | 19 |
Excluding balances relating to derivative transactions | 22 | 26 |
Excluding balances relating to derivative and securities financing transactions | 13 | 19 |
0-3 months | 3-12 months | 1-3 years | 3-5 years | 5-10 years | 10-20 years | |
2009 | £m | £m | £m | £m | £m | £m |
Assets by contractual maturity | ||||||
Cash and balances at central banks | 52,239 | — | — | 1 | 25 | — |
Loans and advances to banks | 42,615 | 1,757 | 966 | 282 | 868 | 71 |
Debt securities | 17,581 | 14,484 | 29,675 | 26,788 | 52,104 | 30,335 |
Settlement balances | 12,020 | 6 | 1 | — | 8 | 1 |
Other financial assets | 265 | 215 | 402 | 127 | 421 | — |
Total maturing assets | 124,720 | 16,462 | 31,044 | 27,198 | 53,426 | 30,407 |
Loans and advances to customers | 126,238 | 65,946 | 130,323 | 101,984 | 180,595 | 202,809 |
Derivatives held for hedging | 488 | 1,547 | 3,049 | 1,076 | 751 | 10 |
251,446 | 83,955 | 164,416 | 130,258 | 234,772 | 233,226 | |
Liabilities by contractual maturity | ||||||
Deposits by banks | 65,966 | 15,541 | 3,934 | 2,301 | 632 | 12 |
Debt securities in issue | 100,220 | 49,300 | 56,869 | 25,915 | 27,326 | 3,819 |
Subordinated liabilities | 1,929 | 1,892 | 3,654 | 4,963 | 20,157 | 6,105 |
Settlement balances and other liabilities | 12,048 | 100 | 139 | 104 | 239 | 83 |
Total maturing liabilities | 180,163 | 66,833 | 64,596 | 33,283 | 48,354 | 10,019 |
Customer accounts | 521,400 | 15,619 | 5,944 | 4,221 | 8,490 | 4,392 |
Derivatives held for hedging | 660 | 1,566 | 3,232 | 1,264 | 1,674 | 1,508 |
702,223 | 84,018 | 73,772 | 38,768 | 58,518 | 15,919 | |
Maturity gap | (55,443) | (50,371) | (33,552) | (6,085) | 5,072 | 20,388 |
Cumulative maturity gap | (55,443) | (105,814) | (139,366) | (145,451) | (140,379) | (119,991) |
Guarantees and commitments notional amount | ||||||
Guarantees (1) | 39,952 | — | — | — | — | — |
Commitments (2) | 291,634 | — | — | — | — | — |
Encumbered assets relating to: | Encumbered assets as a % of related total assets | Liquidity portfolio | Other | Total | ||||||||||
Debt securities in issue | Other secured liabilities | Total encumbered assets | ||||||||||||
Securitisations and conduits | Covered bonds | Derivatives | Repos | Secured borrowings | ||||||||||
£bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||||
Cash and balances at central banks | 5.3 | 0.5 | — | — | — | 5.8 | 7 | 70.2 | 3.3 | 79.3 | ||||
Loans and advances to banks (1) | — | — | 12.8 | — | — | 12.8 | 41 | — | 18.5 | 31.3 | ||||
Loans and advances to customers (1) | ||||||||||||||
- UK residential mortgages | 16.4 | 16.0 | — | — | — | 32.4 | 30 | 58.7 | 18.0 | 109.1 | ||||
- Irish residential mortgages | 10.6 | — | — | — | 1.8 | 12.4 | 81 | — | 2.9 | 15.3 | ||||
- US residential mortgages | — | — | — | — | — | — | — | 7.6 | 14.1 | 21.7 | ||||
- UK credit cards | 3.0 | — | — | — | — | 3.0 | 44 | — | 3.8 | 6.8 | ||||
- UK personal loans | 4.7 | — | — | — | — | 4.7 | 41 | — | 6.8 | 11.5 | ||||
- other | 20.7 | — | 22.5 | — | 0.8 | 44.0 | 16 | 6.5 | 217.1 | 267.6 | ||||
Debt securities | 1.0 | — | 8.3 | 91.2 | 15.2 | 115.7 | 70 | 22.3 | 26.6 | 164.6 | ||||
Equity shares | — | — | 0.7 | 6.8 | — | 7.5 | 49 | — | 7.7 | 15.2 | ||||
61.7 | 16.5 | 44.3 | 98.0 | 17.8 | 238.3 | 165.3 | 318.8 | 722.4 | ||||||
Own asset securitisations | 22.6 | |||||||||||||
Total liquidity portfolio | 187.9 | |||||||||||||
Liabilities secured | ||||||||||||||
Intra-Group - used for secondary liquidity | (22.6) | — | — | — | — | (22.6) | ||||||||
Intra-Group - other | (23.9) | — | — | — | — | (23.9) | ||||||||
Third-party (2) | (12.0) | (10.1) | (60.4) | (132.4) | (15.3) | (230.2) | ||||||||
(58.5) | (10.1) | (60.4) | (132.4) | (15.3) | (276.7) | |||||||||
Total assets | 1,312 | |||||||||||||
Total assets excluding derivatives | 870 | |||||||||||||
Total assets excluding derivatives and reverse repos | 766 |
(1) |
(2) |
· | The Group’s encumbrance ratio dropped marginally from 19% to 18%. |
· | 30% of the Group’s residential mortgage portfolio was encumbered at 31 December 2012. |
Average | Period end | Maximum | Minimum | |
£m | £m | £m | £m | |
2012 | 46 | 21 | 65 | 20 |
2011 | 63 | 51 | 80 | 44 |
2010 | 58 | 96 | 96 | 30 |
Average | Period end | Maximum | Minimum | |
£m | £m | £m | £m | |
2011 | 63 | 51 | 80 | 44 |
2010 | 58 | 96 | 96 | 30 |
2009 | 86 | 101 | 123 | 53 |
Currency | 2011 £m | 2010 £m | 2009 £m | |||
2012 £m | 2011 £m | 2010 £m | ||||
Euro | 26 | 33 | 32 | 19 | 26 | 33 |
Sterling | 57 | 79 | 111 | 17 | 57 | 79 |
US dollar | 61 | 121 | 42 | 15 | 61 | 121 |
Other | 5 | 10 | 9 | 4 | 5 | 10 |
· | Interest rate exposure at 31 December |
· | The reduction in VaR seen across all currencies reflects closer matching of the Group’s structural interest rate hedges to the behavioural maturity profile of the hedged liabilities as well as changes to the VaR methodology (refer to page 203 for more details on VaR methodology improvement). |
· |
Potential favourable/(adverse) impact on NII | 2011 £m | 2010 £m | 2009 £m | |||||
Euro | Sterling | US dollar | Other | Total | ||||
2012 | £m | |||||||
+ 100 basis points shift in yield curves | 244 | 232 | 510 | (29) | 472 | 119 | 27 | 589 |
– 100 basis points shift in yield curves | (183) | (352) | (687) | |||||
− 100 basis points shift in yield curves | (20) | (257) | (29) | (11) | (317) | |||
Bear steepener | 443 | 216 | ||||||
Bull flattener | (146) | (77) | ||||||
2011 | ||||||||
+ 100 basis points shift in yield curves | (19) | 190 | 59 | 14 | 244 | |||
− 100 basis points shift in yield curves | 25 | (188) | (4) | (16) | (183) | |||
Bear steepener | 443 | |||||||
Bull flattener | (146) | |||||||
2010 | ||||||||
+ 100 basis points shift in yield curves | 25 | 186 | 11 | 10 | 232 | |||
− 100 basis points shift in yield curves | (33) | (212) | (99) | (8) | (352) | |||
Bear steepener | (30) | |||||||
Bull flattener | (22) |
· | The Group’s interest rate exposure remains |
· | The primary contributors to the increased sensitivity to a 100 basis points parallel shift in the yield curve are changes to underlying business pricing assumptions |
· | The impact of the steepening and flattening scenarios is largely driven by the |
· | The reported |
Net assets of overseas operations | RFS MI | Net investments in foreign operations | Net investment hedges | Structural foreign currency exposures pre-economic hedges | Economic hedges (1) | Residual structural foreign currency exposures | ||||||||
2012 | £m | £m | £m | £m | £m | |||||||||
US dollar | 17,313 | 1 | 17,312 | (2,476) | 14,836 | (3,897) | 10,939 | |||||||
Euro | 8,903 | 2 | 8,901 | (636) | 8,265 | (2,179) | 6,086 | |||||||
Other non-sterling | 4,754 | 260 | 4,494 | (3,597) | 897 | — | 897 | |||||||
30,970 | 263 | 30,707 | (6,709) | 23,998 | (6,076) | 17,922 | ||||||||
Net assets of overseas operations | RFS MI | Net investments in foreign operations | Net investment hedges | Structural foreign currency exposures pre-economic hedges | Economic hedges (1) | Residual structural foreign currency exposures | ||||||||
2011 | £m | £m | ||||||||||||
US dollar | 17,570 | 1 | 17,569 | (2,049) | 15,520 | (4,071) | 11,449 | 17,570 | 1 | 17,569 | (2,049) | 15,520 | (4,071) | 11,449 |
Euro | 8,428 | (3) | 8,431 | (621) | 7,810 | (2,236) | 5,574 | 8,428 | (3) | 8,431 | (621) | 7,810 | (2,236) | 5,574 |
Other non-sterling | 5,224 | 272 | 4,952 | (4,100) | 852 | — | 852 | 5,224 | 272 | 4,952 | (4,100) | 852 | — | 852 |
31,222 | 270 | 30,952 | (6,770) | 24,182 | (6,307) | 17,875 | 31,222 | 270 | 30,952 | (6,770) | 24,182 | (6,307) | 17,875 | |
2010 | ||||||||||||||
US dollar | 17,137 | 2 | 17,135 | (1,820) | 15,315 | (4,058) | 11,257 | 17,137 | 2 | 17,135 | (1,820) | 15,315 | (4,058) | 11,257 |
Euro | 8,443 | 33 | 8,410 | (578) | 7,832 | (2,305) | 5,527 | 8,443 | 33 | 8,410 | (578) | 7,832 | (2,305) | 5,527 |
Other non-sterling | 5,320 | 244 | 5,076 | (4,135) | 941 | — | 941 | 5,320 | 244 | 5,076 | (4,135) | 941 | — | 941 |
30,900 | 279 | 30,621 | (6,533) | 24,088 | (6,363) | 17,725 | 30,900 | 279 | 30,621 | (6,533) | 24,088 | (6,363) | 17,725 | |
2009 | ||||||||||||||
US dollar | 15,589 | (2) | 15,591 | (3,846) | 11,745 | (5,696) | 6,049 | |||||||
Euro | 21,900 | 13,938 | 7,962 | (2,351) | 5,611 | (3,522) | 2,089 | |||||||
Other non-sterling | 5,706 | 511 | 5,195 | (4,001) | 1,194 | — | 1,194 | |||||||
43,195 | 14,447 | 28,748 | (10,198) | 18,550 | (9,218) | 9,332 |
(1) | The economic hedges represent US dollar and euro preference shares in issue that are treated as equity under IFRS and do not qualify as hedges for accounting purposes. |
· | The Group’s structural foreign currency exposure at 31 December |
· | Changes in foreign currency exchange rates |
· | In 2012, the Group recorded a loss through other comprehensive income of £0.9 billion due to the strengthening of sterling against the US dollar and euro. |
Listed | Unlisted | Total | |
2011 | £m | £m | £m |
Group | 576 | 1,768 | 2,344 |
2010 | |||
Group | 535 | 2,080 | 2,615 |
2009 | |||
Group before RFS Holdings minority interest | 401 | 2,388 | 2,789 |
RFS Holdings minority interest | 60 | 211 | 271 |
Group | 461 | 2,599 | 3,060 |
Balance sheet value 2012 £m | Fair value 2012 £m | Balance sheet value 2011 £m | Fair value 2011 £m | |
Exchange-traded equity | 472�� | 472 | 576 | 576 |
Private equity | 632 | 632 | 674 | 674 |
Other | 799 | 799 | 1,094 | 1,094 |
1,903 | 1,903 | 2,344 | 2,344 |
2012 | 2011 | |
£m | £m | |
Net realised gains arising from disposals | 89 | 150 |
Unrealised gains included in Tier 1, 2 or 3 capital | 168 | 235 |
(1) |
Credit risk | |
117 | Introduction |
117 | Top and emerging credit risks |
118 | Objectives, organisation and governance |
119 | Credit risk management framework |
119 | Risk appetite and concentration risk management |
119 | Product/asset class |
120 | Sector concentration |
120 | Single-name concentration |
120 | Country |
120 | Controls and assurance |
121 | Credit risk measurement |
121 | - Probability of default/customer credit grade |
121 | - Exposure at default models |
121 | - Loss given default models |
121 | - Changes to wholesale credit risk models |
122 | Credit risk assets |
122 | - Divisional analysis |
123 | - Sector and geographical regional analyses |
125 | - Asset quality |
127 | Credit risk mitigation |
127 | - Approaches and methodologies |
127 | - Secured portfolios |
127 | Corporate exposures |
128 | Commercial real estate |
128 | Other corporate |
129 | - Wholesale market exposures |
129 | - Retail |
129 | Residential mortgages |
131 | Early problem identification and problem debt management |
131 | - Wholesale customers |
131 | Early problem recognition |
131 | Watchlist |
131 | Global Restructuring Group |
132 | - Wholesale renegotiations |
133 | Wholesale renegotiations during the year by sector |
133 | Renegotiation arrangements |
134 | Provisioning for wholesale renegotiated customers |
134 | Recoveries and active insolvency management |
135 | - Retail customers |
135 | Collections and recoveries |
135 | Retail forbearance |
135 | Identification of forbearance |
135 | Types of retail forbearance |
136 | Arrears status and provisions |
136 | Forbearance arrangements |
138 | Unsecured portfolios |
138 | Provisioning for retail customers |
138 | - Impairment loss provision methodology |
140 | Key credit portfolios |
140 | - Commercial real estate |
145 | - Residential mortgages |
148 | - Personal lending |
149 | - Ulster Bank Group (Core and Non-Core) |
· | Concentration risk - the risk of an outsized loss due to the concentration of credit risk to a specific asset class or product, industry sector, customer or counterparty, or country. |
· | Settlement risk - the intra-day risk that arises when the Group releases funds prior to confirmed receipt of value from a third party. |
· | Issuer risk - the risk of loss on a tradable instrument (e.g. a bond) due to default by the issuer. |
· | Wrong way risk - the risk of loss that arises when the risk factors driving the exposure to a counterparty are positively correlated with the probability of default for that counterparty. |
· | Credit mitigation risk - the risk that credit risk mitigation (for example, taking a legal charge over property to secure a customer loan) is not enforceable or that the value of such mitigation decreases, thus leading to unanticipated losses. |
· | Retail - |
· | Wholesale - |
Watchlist Red credit risk assets under GRG management | Core £m | Non-Core £m | Total £m |
2011 | |||
Property | 6,561 | 6,011 | 12,572 |
Transport | 1,159 | 2,252 | 3,411 |
Retail and leisure | 1,528 | 669 | 2,197 |
Services | 808 | 141 | 949 |
Other | 1,952 | 916 | 2,868 |
Total | 12,008 | 9,989 | 21,997 |
· | Lending - Comprises gross loans and advances to: central and local governments; central banks, including cash balances; other banks and financial institutions, incorporating overdraft and other short-term credit lines; corporates, in large part loans and leases; and individuals, comprising mortgages, personal loans and credit card balances. |
· |
· |
2012 £m | 2011 £m | 2010 £m | |
UK Retail | 114,120 | 111,070 | 108,302 |
UK Corporate | 101,148 | 105,078 | 108,663 |
Wealth | 19,913 | 20,079 | 18,875 |
International Banking | 64,518 | 72,737 | 80,166 |
Ulster Bank | 34,232 | 37,781 | 40,750 |
US Retail & Commercial | 55,036 | 56,546 | 51,779 |
Retail & Commercial | 388,967 | 403,291 | 408,535 |
Markets | 106,336 | 114,327 | 124,330 |
Other | 65,186 | 64,517 | 36,659 |
Core | 560,489 | 582,135 | 569,524 |
Non-Core | 65,220 | 92,709 | 125,383 |
625,709 | 674,844 | 694,907 |
· |
· | Credit risk assets in Retail & Commercial continued to increase as a proportion of the total portfolio. At the year end the Retail & Commercial divisions increased to 62% of the total credit risk assets (2011 - 60%). UK Retail mortgage exposure increased by £4 billion during the year, partially offset by reduced unsecured exposures. The fall in exposure in International Banking was spread across all sectors and geographies. |
· | The fall in the Markets division predominantly reflected reduction in exposure to banks, other financial institutions and sovereigns in Western Europe. |
· | Non-Core declined £27 billon (30% of the 2011 portfolio) during 2012 driven by material disposals, repayments and run off. Reduction has taken place across all material segments as the Group continues to de-risk the portfolio. Significant actions were taken to reduce exposure within the property, transport and other financial institution sectors. These sectors accounted for 69% of the reduction in Non-Core. |
· | Other predominantly relates to Group Treasury’s exposure to central banks in the UK, USA and Germany and is a function of the Group’s liquidity requirements and cash positions. |
2012 (4) | UK £m | Western Europe (excl. UK) £m | North America £m | Asia Pacific £m | Latin America £m | Other (1) £m | Total £m | Core £m | Non-Core £m |
Personal | 129,431 | 19,256 | 30,664 | 1,351 | 39 | 926 | 181,667 | 177,880 | 3,787 |
Banks | 5,023 | 36,573 | 6,421 | 8,837 | 1,435 | 2,711 | 61,000 | 60,609 | 391 |
Other financial institutions | 20,997 | 13,398 | 10,189 | 2,924 | 4,660 | 789 | 52,957 | 47,425 | 5,532 |
Sovereign (2) | 38,870 | 26,002 | 14,265 | 2,887 | 64 | 1,195 | 83,283 | 81,636 | 1,647 |
Property | 54,831 | 23,220 | 7,051 | 1,149 | 2,979 | 1,280 | 90,510 | 56,566 | 33,944 |
Natural resources | 6,103 | 5,911 | 6,758 | 4,129 | 690 | 1,500 | 25,091 | 21,877 | 3,214 |
Manufacturing | 9,656 | 5,587 | 6,246 | 2,369 | 572 | 1,213 | 25,643 | 24,315 | 1,328 |
Transport (3) | 12,298 | 5,394 | 4,722 | 5,065 | 2,278 | 4,798 | 34,555 | 26,973 | 7,582 |
Retail and leisure | 17,229 | 5,200 | 4,998 | 1,103 | 270 | 658 | 29,458 | 26,203 | 3,255 |
Telecoms, media and technology | 4,787 | 3,572 | 3,188 | 1,739 | 127 | 346 | 13,759 | 10,815 | 2,944 |
Business services | 17,089 | 3,183 | 5,999 | 581 | 780 | 154 | 27,786 | 26,190 | 1,596 |
316,314 | 147,296 | 100,501 | 32,134 | 13,894 | 15,570 | 625,709 | 560,489 | 65,220 |
2011 | |||||||||
Personal | 126,945 | 20,254 | 33,087 | 1,604 | 158 | 1,114 | 183,162 | 176,201 | 6,961 |
Banks | 4,720 | 39,213 | 3,952 | 11,132 | 1,738 | 3,276 | 64,031 | 63,470 | 561 |
Other financial institutions | 16,549 | 15,960 | 13,319 | 3,103 | 5,837 | 1,159 | 55,927 | 45,548 | 10,379 |
Sovereign (2) | 21,053 | 31,374 | 31,391 | 3,399 | 78 | 1,581 | 88,876 | 87,617 | 1,259 |
Property | 60,099 | 27,281 | 8,052 | 1,370 | 3,471 | 1,480 | 101,753 | 58,323 | 43,430 |
Natural resources | 6,552 | 7,215 | 8,116 | 3,805 | 1,078 | 2,508 | 29,274 | 25,146 | 4,128 |
Manufacturing | 9,583 | 7,391 | 7,098 | 2,126 | 1,011 | 1,381 | 28,590 | 26,525 | 2,065 |
Transport (3) | 13,789 | 7,703 | 4,951 | 5,433 | 2,500 | 5,363 | 39,739 | 27,529 | 12,210 |
Retail and leisure | 22,775 | 6,101 | 5,762 | 1,488 | 1,041 | 675 | 37,842 | 32,766 | 5,076 |
Telecoms, media and technology | 5,295 | 4,941 | 3,202 | 1,944 | 139 | 609 | 16,130 | 12,180 | 3,950 |
Business services | 17,851 | 3,719 | 6,205 | 910 | 629 | 206 | 29,520 | 26,830 | 2,690 |
305,211 | 171,152 | 125,135 | 36,314 | 17,680 | 19,352 | 674,844 | 582,135 | 92,709 |
2010 | |||||||||
Personal | 124,594 | 21,973 | 34,970 | 1,864 | 126 | 1,531 | 185,058 | 174,287 | 10,771 |
Banks | 6,819 | 35,619 | 5,097 | 11,072 | 1,394 | 6,713 | 66,714 | 65,494 | 1,220 |
Other financial institutions | 17,550 | 14,782 | 14,773 | 4,200 | 8,732 | 1,762 | 61,799 | 47,227 | 14,572 |
Sovereign (2) | 20,209 | 24,826 | 18,088 | 3,243 | 125 | 1,789 | 68,280 | 66,556 | 1,724 |
Property | 65,622 | 30,925 | 9,573 | 1,980 | 3,090 | 1,750 | 112,940 | 60,590 | 52,350 |
Natural resources | 6,696 | 7,863 | 9,771 | 3,655 | 1,396 | 4,143 | 33,524 | 24,427 | 9,097 |
Manufacturing | 10,599 | 8,532 | 6,744 | 2,673 | 917 | 2,059 | 31,524 | 28,088 | 3,436 |
Transport (3) | 13,842 | 8,726 | 5,389 | 6,161 | 2,658 | 6,347 | 43,123 | 27,899 | 15,224 |
Retail and leisure | 24,716 | 6,690 | 5,316 | 1,438 | 1,174 | 918 | 40,252 | 34,100 | 6,152 |
Telecoms, media and technology | 5,495 | 5,764 | 3,283 | 2,187 | 328 | 786 | 17,843 | 12,076 | 5,767 |
Business services | 19,757 | 5,116 | 6,521 | 985 | 1,086 | 385 | 33,850 | 28,780 | 5,070 |
315,899 | 170,816 | 119,525 | 39,458 | 21,026 | 28,183 | 694,907 | 569,524 | 125,383 |
(1) | Includes Central and Eastern Europe, the Middle East, Central Asia and Africa, and supranationals such as the World Bank. |
(2) | Includes central bank exposures. |
(3) | Excludes net investment in operating leases in shipping and aviation portfolios as they are accounted for as property, plant and equipment. However, operating leases are included in the monitoring and management of these portfolios. |
(4) | Enhancements to Wealth credit systems in the second quarter of 2012 resulted in refinements to sector classifications. The most significant impact has been a reallocation of £2.6 billion from the retail and leisure sector across a number of other sectors. Prior year data has not been revised. |
· | Total credit risk assets fell 7%, with reductions in all wholesale sectors. Exposure to the |
· | Credit risk assets fell in |
· | UK exposure, as a proportion of the total portfolio, increased during the year and now comprises 51% of credit risk assets, driven by continued growth in UK personal sector assets and increased UK sovereign risk exposure. |
· | Exposure to the property sector fell by 11% during the year driven by tighter portfolio controls in all regions and a £9.5 billion reduction in Non-Core resulting from focussed action on early and contractual repayments. |
· | Exposure to banks and financial institutions declined by 5% as a result of subdued borrowing activity and a reduction in lending and derivatives to finance companies, financial services companies, funds, monoline insurers and Credit Derivative Product Companies (CDPCs). |
· | Reported exposures are affected by currency movements. During 2012, sterling appreciated 4.4% against the US dollar and 2.6% against the euro resulting in a decrease in sterling terms of exposures denominated in these currencies (and in other currencies linked to the US dollar or |
· | The Group’s sovereign portfolio comprises exposures to |
· | Exposure to |
· | Exposure to other financial institutions comprising traded and non |
· | The Group’s exposure to the property sector was £91 billion (a fall of 11% during the year), the majority of which was commercial real estate in Ireland and the UK (see section on commercial real estate on pages 140 and 141 for further details). The remainder comprised lending to construction companies and building materials groups, which fell by £1.9 billion (15%), and housing associations, which remained stable. Most of the Group’s Core property exposure is within UK Corporate (73%). |
· | The 22% decline in exposure to the retail and leisure sectors, was driven by the de-leveraging by customers and refinements in sector classifications within the Wealth division. Excluding the impact of sector reclassifications, the reduction in the retail and leisure portfolios was 15% in 2012. While the market outlook for this sector remains challenging and despite some high-profile failures among UK high street retailers, losses on the Group’s retail portfolio remained low during 2012. The sector continues to show wide variation in performance, however, credit metrics overall remained broadly stable. The leisure sector displayed weaker credit metrics than the wider corporate portfolio, in line with the industry trend. The Group’s risk appetite is driven by the importance of the leisure sector to the UK franchise, especially for the UK Corporate division, but is mitigated through tighter origination policies and a reduction in exposure to high risk sub-sectors. Leisure sector exposure fell by 8% in 2012 driven predominantly by Non-Core. The gambling sub-sector is subject to specific controls due to its high credit and reputational risk profile. |
Wholesale restructurings by sector | AQ1-AQ9 (1) £m | AQ10 (2) £m | AQ10 (2) provision coverage % | |
2011 | ||||
Property | 1,980 | 2,600 | 18 | |
Transport | 686 | 694 | 11 | |
Non-bank financial institutions | 228 | 420 | 65 | |
Retail and leisure | 503 | 148 | 24 | |
Other | 1,078 | 251 | 28 | |
Total | 4,475 | 4,113 | 22 |
· | Exposure to healthcare of £10.0 billion at year end is included in the business services sector. It is heavily biased towards the UK health sector which represents 68% of the exposure. There was no significant change in the asset quality or size of this portfolio in 2012. Challenging market conditions persist in the nursing home sub-sector and as a result the Group has tightened its risk appetite and further strengthened its transactional controls and policies during the year. |
Core personal lending continued to rise, driven by | ||
2012 | 2011 | 2010 | |||||||||||||
Asset quality band | Probability of default range | Core £m | Non-Core £m | Total £m | Total % | Core £m | Non-Core £m | Total £m | Total % | Core £m | Non-Core £m | Total £m | Total % | ||
AQ1 | 0% - 0.034% | 131,772 | 7,428 | 139,200 | 22.2 | 195,826 | 13,732 | 209,558 | 31.1 | 175,793 | 17,728 | 193,521 | 27.8 | ||
AQ2 | 0.034% - 0.048% | 25,334 | 2,241 | 27,575 | 4.4 | 18,366 | 2,915 | 21,281 | 3.2 | 18,274 | 2,526 | 20,800 | 3.0 | ||
AQ3 | 0.048% - 0.095% | 43,925 | 2,039 | 45,964 | 7.3 | 27,082 | 2,883 | 29,965 | 4.4 | 26,244 | 4,259 | 30,503 | 4.4 | ||
AQ4 | 0.095% - 0.381% | 112,589 | 6,438 | 119,027 | 19.0 | 65,491 | 9,636 | 75,127 | 11.1 | 64,277 | 15,052 | 79,329 | 11.4 | ||
AQ5 | 0.381% - 1.076% | 92,130 | 7,588 | 99,718 | 15.9 | 92,503 | 10,873 | 103,376 | 15.3 | 90,639 | 18,767 | 109,406 | 15.7 | ||
AQ6 | 1.076% - 2.153% | 45,808 | 5,525 | 51,333 | 8.2 | 67,260 | 6,636 | 73,896 | 11.0 | 73,367 | 12,913 | 86,280 | 12.4 | ||
AQ7 | 2.153% - 6.089% | 32,720 | 5,544 | 38,264 | 6.1 | 36,567 | 8,133 | 44,700 | 6.6 | 41,399 | 10,451 | 51,850 | 7.5 | ||
AQ8 | 6.089% - 17.222% | 13,091 | 1,156 | 14,247 | 2.4 | 11,921 | 3,320 | 15,241 | 2.3 | 15,300 | 4,308 | 19,608 | 2.8 | ||
AQ9 | 17.222% - 100% | 8,849 | 2,073 | 10,922 | 1.8 | 12,710 | 5,024 | 17,734 | 2.6 | 11,398 | 8,621 | 20,019 | 2.9 | ||
AQ10 | 100% | 21,562 | 22,845 | 44,407 | 7.1 | 20,017 | 25,020 | 45,037 | 6.7 | 17,994 | 25,005 | 42,999 | 6.2 |
Other (1) | 32,709 | 2,343 | 35,052 | 5.6 | 34,392 | 4,537 | 38,929 | 5.7 | 34,839 | 5,753 | 40,592 | 5.9 | |||
560,489 | 65,220 | 625,709 | 100 | 582,135 | 92,709 | 674,844 | 100 | 569,524 | 125,383 | 694,907 | 100 |
(1) | Largely comprises certain of |
2012 | 2011 | 2010 | ||||||
AQ10 credit risk assets by division | AQ10 £m | Divisional credit risk assets % | AQ10 £m | Divisional credit risk assets % | AQ10 £m | Divisional credit risk assets % | ||
UK Retail | 4,998 | 4.4 | 5,097 | 4.6 | 5,017 | 4.6 | ||
UK Corporate | 6,310 | 6.2 | 5,484 | 5.2 | 5,198 | 4.8 | ||
International Banking | 612 | 0.9 | 1,736 | 2.4 | 2,227 | 2.8 | ||
Ulster Bank | 8,236 | 24.1 | 6,305 | 16.7 | 4,348 | 10.7 | ||
US Retail & Commercial | 633 | 1.2 | 646 | 1.1 | 599 | 1.2 | ||
Retail & Commercial | 20,789 | 5.3 | 19,268 | 4.8 | 17,389 | 4.3 | ||
Markets | 773 | 0.7 | 749 | 0.7 | 605 | 0.5 | ||
Core | 21,562 | 3.8 | 20,017 | 3.4 | 17,994 | 3.2 | ||
Non-Core | 22,845 | 35.0 | 25,020 | 27.0 | 25,005 | 19.9 | ||
44,407 | 7.1 | 45,037 | 6.7 | 42,999 | 6.2 |
· | Trends in the asset quality of the Group’s credit risk exposures during 2012 reflected changes in the composition of the Core portfolio and the run-off and disposals of Non-Core assets as well as regrading through new and updated models, particularly in relation to the bank and personal sectors. Adjusting for those factors, the overall asset quality of the Group’s corporate exposure was broadly unchanged despite difficult external conditions in the UK and ongoing uncertainty in the eurozone. |
· |
· |
· | On a sector basis, the proportion of non-performing assets in the property sector increased slightly to 58% of total AQ10 exposure (2011 - 57%). Non-performing assets relating to property represent a material proportion of AQ10 exposure in Non-Core (85%), UK Corporate (56%) and Ulster Bank (30%). In particular, continued weakness in the Irish economy meant non-performing assets in the Ulster Bank portfolio continued to grow, driven by exposures in the personal and property sectors. Refer to the Key credit portfolios: Ulster Bank Group (pages 149 to 152) for more details. A small number of significant individual non-performing property cases led to the overall increase in the AQ10 population in UK Corporate. |
· | Non-performing assets (AQ10) in Non-Core increased as a percentage of the overall Non-Core portfolio due to the run-off and disposals of better performing assets. The overall level of AQ10 assets in Non-Core fell due to repayments, assets returning to the performing book and the write off of certain real estate exposures in 2012. |
· | In UK Retail non-performing assets (AQ10) reduced slightly during the year predominantly as a result of lower flows of unsecured assets into non-performing. Recovery activity on non-performing assets is pursued over a number of years during which time the assets remain on balance sheet along with the appropriate impairment provision. |
· | Non-performing credit risk assets within International Banking decreased markedly as renegotiations led to the return of significant exposure in the transport sector to the performing book. |
No missed payments | 1-3 months in arrears | >3 months in arrears | Total | |||||||||
Arrears status and provisions | Balance £m | Provision £m | Balance £m | Provision £m | Balance £m | Provision £m | Balance £m | Provision £m | Accounts forborne £m | |||
2011 | ||||||||||||
UK Retail (1,2) | 3,677 | 16 | 351 | 13 | 407 | 59 | 4,435 | 88 | 4.7 | |||
Ulster Bank (1,2) | 893 | 78 | 516 | 45 | 421 | 124 | 1,830 | 247 | 9.1 | |||
Citizens | — | — | 91 | 10 | 89 | 10 | 180 | 20 | 0.8 | |||
Wealth | 121 | — | — | — | 2 | — | 123 | — | 1.3 | |||
Total | 4,691 | 94 | 958 | 68 | 919 | 193 | 6,568 | 355 | 4.4 |
Forbearance arrangements | UK Retail (1) £m | Ulster Bank (1) £m | Citizens £m | Wealth £m | Total (2) £m |
2011 | |||||
Interest only conversions | 1,269 | 795 | — | 3 | 2,067 |
Term extensions - capital repayment and interest only | 1,805 | 58 | — | 97 | 1,960 |
Payment concessions/holidays | 198 | 876 | 180 | — | 1,254 |
Capitalisation of arrears | 864 | 101 | — | — | 965 |
Other | 517 | — | — | 23 | 540 |
Total | 4,653 | 1,830 | 180 | 123 | 6,786 |
· | The suitability of qualifying credit risk mitigation types and any conditions or restrictions applicable to those mitigants; |
· | The means by which legal certainty is to be established, including required documentation, supportive independent legal opinions and all necessary steps required to establish legal rights; |
· | Acceptable methodologies for initial and any subsequent valuations of collateral and the frequency with which collateral is to be revalued and the use of collateral haircuts; |
· | Actions to be taken in the event that the value of mitigation falls below required levels; |
· | Management of the risk of correlation between changes in the credit risk of the customer and the value of credit risk mitigation; |
· | Management of concentration risks, for example, by setting thresholds and controls on the acceptability of credit risk mitigants and on lines of business that are characterised by a specific collateral type or structure; and |
· | Collateral management to ensure that credit risk mitigation remains legally effective and enforceable. |
· | Physical assets - |
· | Real estate - |
· | Receivables - |
2011 | 2010 | ||||
Corporate risk elements in lending and potential problem loans (excluding commercial real estate) | Loans £m | Provisions £m | Loans £m | Provisions £m | |
Secured | 7,782 | 3,369 | 6,526 | 2,564 | |
Unsecured | 2,712 | 1,836 | 2,769 | 1,762 |
Ulster Bank | Rest of the Group | Group | |||||||||
Loan-to-value | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | ||
2012 | |||||||||||
<= 50% | 183 | 24 | 207 | 7,210 | 281 | 7,491 | 7,393 | 305 | 7,698 | ||
> 50% and <= 70% | 326 | 102 | 428 | 12,161 | 996 | 13,157 | 12,487 | 1,098 | 13,585 | ||
> 70% and <= 90% | 462 | 250 | 712 | 6,438 | 1,042 | 7,480 | 6,900 | 1,292 | 8,192 | ||
> 90% and <= 100% | 466 | 141 | 607 | 1,542 | 2,145 | 3,687 | 2,008 | 2,286 | 4,294 | ||
> 100% and <= 110% | 103 | 596 | 699 | 1,019 | 1,449 | 2,468 | 1,122 | 2,045 | 3,167 | ||
> 110% and <= 130% | 326 | 630 | 956 | 901 | 1,069 | 1,970 | 1,227 | 1,699 | 2,926 | ||
> 130% and <= 150% | 274 | 878 | 1,152 | 322 | 913 | 1,235 | 596 | 1,791 | 2,387 | ||
> 150% | 963 | 7,290 | 8,253 | 595 | 1,962 | 2,557 | 1,558 | 9,252 | 10,810 | ||
Total with LTVs | 3,103 | 9,911 | 13,014 | 30,188 | 9,857 | 40,045 | 33,291 | 19,768 | 53,059 | ||
Minimal security (1) | 7 | 1,461 | 1,468 | 3 | 13 | 16 | 10 | 1,474 | 1,484 | ||
Other (2) | 97 | 715 | 812 | 6,494 | 1,191 | 7,685 | 6,591 | 1,906 | 8,497 | ||
Total | 3,207 | 12,087 | 15,294 | 36,685 | 11,061 | 47,746 | 39,892 | 23,148 | 63,040 | ||
Total portfolio average LTV (3) | 131% | 286% | 249% | 65% | 125% | 80% | 71% | 206% | 122% |
Ulster Bank | Rest of the Group | Group | |||||||||||||||||
LTVs | AQ1-AQ9 £m | AQ10 £m | AQ1-AQ9 £m | AQ10 £m | AQ1-AQ9 £m | AQ10 £m | |||||||||||||
2011 | |||||||||||||||||||
<= 50% | 81 | 28 | 7,091 | 332 | 7,172 | 360 | 272 | 32 | 304 | 7,091 | 332 | 7,423 | 7,363 | 364 | 7,727 | ||||
> 50% and <= 70% | 642 | 121 | 14,105 | 984 | 14,747 | 1,105 | 479 | 127 | 606 | 14,105 | 984 | 15,089 | 14,584 | 1,111 | 15,695 | ||||
> 70% and <= 90% | 788 | 293 | 10,042 | 1,191 | 10,830 | 1,484 | 808 | 332 | 1,140 | 10,042 | 1,191 | 11,233 | 10,850 | 1,523 | 12,373 | ||||
> 90% and <= 100% | 541 | 483 | 2,616 | 1,679 | 3,157 | 2,162 | 438 | 201 | 639 | 2,616 | 1,679 | 4,295 | 3,054 | 1,880 | 4,934 | ||||
> 100% and <= 110% | 261 | 322 | 1,524 | 1,928 | 1,785 | 2,250 | 474 | 390 | 864 | 1,524 | 1,928 | 3,452 | 1,998 | 2,318 | 4,316 | ||||
> 110% and <= 130% | 893 | 1,143 | 698 | 1,039 | 1,591 | 2,182 | 527 | 1,101 | 1,628 | 698 | 1,039 | 1,737 | 1,225 | 2,140 | 3,365 | ||||
> 130% | 1,468 | 10,004 | 672 | 2,994 | 2,140 | 12,998 | |||||||||||||
> 130% and <= 150% | 506 | 1,066 | 1,572 | 239 | 912 | 1,151 | 745 | 1,978 | 2,723 | ||||||||||
> 150% | 912 | 7,472 | 8,384 | 433 | 2,082 | 2,515 | 1,345 | 9,554 | 10,899 | ||||||||||
Total with LTVs | 4,674 | 12,394 | 36,748 | 10,147 | 41,422 | 22,541 | 4,416 | 10,721 | 15,137 | 36,748 | 10,147 | 46,895 | 41,164 | 20,868 | 62,032 | ||||
Minimal security (1) | 72 | 1,086 | 1,158 | — | 72 | 1,086 | 1,158 | ||||||||||||
Other | 7 | 38 | 8,994 | 1,844 | 9,001 | 1,882 | 193 | 625 | 818 | 8,994 | 1,844 | 10,838 | 9,187 | 2,469 | 11,656 | ||||
Total | 4,681 | 12,432 | 45,742 | 11,991 | 50,423 | 24,423 | 4,681 | 12,432 | 17,113 | 45,742 | 11,991 | 57,733 | 50,423 | 24,423 | 74,846 | ||||
Total portfolio average LTV | 140% | 259% | 69% | 129% | 77% | 201% | 120% | 264% | 222% | 69% | 129% | 82% | 75% | 203% | 116% |
(1) | In 2012, the Group reclassified loans with limited or non-physical security (defined as LTV>1,000%) as minimal security, for which a majority are commercial real estate development loans in Ulster Bank. Total portfolio average LTV is quoted net of loans with minimal security given that the anticipated recovery rate is less than 10%. Provisions are marked against these loans where required to reflect asset quality and recovery profile. 2011 presentation has been revised. |
(2) | Other performing loans of |
Weighted average by exposure. |
2012 | 2011 | 2010 | ||||||
Corporate risk elements in lending and potential problem loans (excluding commercial real estate) | Loans £m | Provisions | Loans £m | Provisions £m | Loans £m | Provisions £m |
Secured | 9,936 | 4,704 | 7,782 | 3,369 | 6,526 | 2,564 | ||
Unsecured | 1,894 | 1,170 | 2,712 | 1,836 | 2,769 | 1,762 |
2011 £bn | 2010 £bn | 2009 £bn | 2012 £bn | 2011 £bn | 2010 £bn | |
Reverse repurchase agreements | 100.9 | 95.1 | 76.1 | 104.8 | 100.9 | 95.1 |
Securities received as collateral (1) | (98.9) | (94.3) | (74.0) | (104.7) | (98.9) | (94.3) |
Derivative assets gross exposure | 529.6 | 427.1 | 441.5 | 441.9 | 530.1 | 432.2 |
Counterparty netting | (441.6) | (330.4) | (358.9) | (373.9) | (441.6) | (330.4) |
Cash collateral held | (37.2) | (31.1) | (33.7) | (34.1) | (37.2) | (31.1) |
Securities received as collateral | (5.3) | (2.9) | (3.6) | (5.6) | (5.3) | (2.9) |
(1) | In accordance with normal market practice, at 31 December |
UK Retail | Ulster Bank | RBS Citizens (1) | |||||||||||
Loan-to-value | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | ||||
2012 | |||||||||||||
<= 50% | 22,306 | 327 | 22,633 | 2,182 | 274 | 2,456 | 4,167 | 51 | 4,218 | ||||
> 50% and <= 70% | 27,408 | 457 | 27,865 | 1,635 | 197 | 1,832 | 4,806 | 76 | 4,882 | ||||
> 70% and <= 90% | 34,002 | 767 | 34,769 | 2,019 | 294 | 2,313 | 6,461 | 114 | 6,575 | ||||
> 90% and <= 100% | 7,073 | 366 | 7,439 | 1,119 | 156 | 1,275 | 2,011 | 57 | 2,068 | ||||
> 100% and <= 110% | 3,301 | 290 | 3,591 | 1,239 | 174 | 1,413 | 1,280 | 43 | 1,323 | ||||
> 110% and <= 130% | 1,919 | 239 | 2,158 | 2,412 | 397 | 2,809 | 1,263 | 42 | 1,305 | ||||
> 130% and <= 150% | 83 | 26 | 109 | 2,144 | 474 | 2,618 | 463 | 14 | 477 | ||||
> 150% | — | — | — | 3,156 | 1,290 | 4,446 | 365 | 14 | 379 | ||||
Total with LTVs | 96,092 | 2,472 | 98,564 | 15,906 | 3,256 | 19,162 | 20,816 | 411 | 21,227 |
Other (2) | 486 | 12 | 498 | — | — | — | 292 | 19 | 311 | ||||
Total | 96,578 | 2,484 | 99,062 | 15,906 | 3,256 | 19,162 | 21,108 | 430 | 21,538 | ||||
Total portfolio average LTV (3) | 66% | 80% | 67% | 108% | 132% | 112% | 75% | 86% | 75% | ||||
Average LTV on new originations during the year | 65% | 74% | 64% |
2011 | 2010 | 2009 | ||||||
Residential mortgages by average LTV | Performing £m | Non-performing £m | Performing £m | Non-performing £m | Performing £m | Non-performing £m | ||
<= 70% | 60,799 | 1,137 | 59,598 | 1,036 | 55,920 | 791 | ||
> 70% and <= 90% | 42,923 | 1,022 | 41,964 | 906 | 38,807 | 697 | ||
> 90% and <= 110% | 17,856 | 990 | 20,104 | 951 | 23,853 | 754 | ||
> 110% and <= 130% | 5,809 | 573 | 7,211 | 622 | 8,604 | 507 | ||
> 130% (1) | 6,684 | 1,188 | 3,793 | 507 | 3,059 | 269 | ||
Total | 134,071 | 4,910 | 132,670 | 4,022 | 130,243 | 3,018 | ||
Total portfolio average LTV (by value) | 73.2% | 101.4% | 72.4% | 91.7% | 73.5% | 90.1% |
UK Retail | Ulster Bank | RBS Citizens (1) | |||||||||
2011 | Performing £m | Non-performing £m | Total £m | Performing £m | Non- performing £m | Total £m | Performing £m | Non- performing £m | Total £m | ||
<= 50% | 21,537 | 285 | 21,822 | 2,568 | 222 | 2,790 | 4,745 | 49 | 4,794 | ||
> 50% and <= 70% | 25,598 | 390 | 25,988 | 1,877 | 157 | 2,034 | 4,713 | 78 | 4,791 | ||
> 70% and <= 90% | 33,738 | 671 | 34,409 | 2,280 | 223 | 2,503 | 6,893 | 125 | 7,018 | ||
> 90% and <= 100% | 7,365 | 343 | 7,708 | 1,377 | 128 | 1,505 | 2,352 | 66 | 2,418 | ||
> 100% and <= 110% | 3,817 | 276 | 4,093 | 1,462 | 130 | 1,592 | 1,517 | 53 | 1,570 | ||
> 110% and <= 130% | 1,514 | 199 | 1,713 | 2,752 | 322 | 3,074 | 1,536 | 53 | 1,589 | ||
> 130% and <= 150% | 60 | 15 | 75 | 2,607 | 369 | 2,976 | 626 | 28 | 654 | ||
> 150% | — | — | — | 2,798 | 748 | 3,546 | 588 | 27 | 615 | ||
Total with LTVs | 93,629 | 2,179 | 95,808 | 17,721 | 2,299 | 20,020 | 22,970 | 479 | 23,449 | ||
Other (2) | 567 | 13 | 580 | — | — | — | 681 | 23 | 704 | ||
Total | 94,196 | 2,192 | 96,388 | 17,721 | 2,299 | 20,020 | 23,651 | 502 | 24,153 | ||
Total portfolio average LTV (3) | 67% | 80% | 67% | 104% | 125% | 106% | 76% | 91% | 77% | ||
Average LTV on new originations during the year | 63% | 74% | 63% |
2010 | |||||||||||
<= 50% | 19,568 | 246 | 19,814 | 3,385 | 186 | 3,571 | 5,193 | 45 | 5,238 | ||
> 50% and <= 70% | 24,363 | 345 | 24,708 | 2,534 | 152 | 2,686 | 4,902 | 79 | 4,981 | ||
> 70% and <= 90% | 31,711 | 588 | 32,299 | 3,113 | 179 | 3,292 | 7,029 | 137 | 7,166 | ||
> 90% and <= 100% | 7,998 | 319 | 8,317 | 1,958 | 121 | 2,079 | 2,459 | 67 | 2,526 | ||
> 100% and <= 110% | 4,083 | 260 | 4,343 | 2,049 | 137 | 2,186 | 1,534 | 53 | 1,587 | ||
> 110% and <= 130% | 1,722 | 202 | 1,924 | 4,033 | 358 | 4,391 | 1,425 | 61 | 1,486 | ||
> 130% and <= 150% | 57 | 16 | 73 | 2,174 | 297 | 2,471 | 599 | 28 | 627 | ||
> 150% | — | — | — | 355 | 131 | 486 | 589 | 36 | 625 | ||
Total with LTVs | 89,502 | 1,976 | 91,478 | 19,601 | 1,561 | 21,162 | 23,730 | 506 | 24,236 | ||
Other (2) | 1,090 | 24 | 1,114 | — | — | — | 762 | 30 | 792 | ||
Total | 90,592 | 2,000 | 92,592 | 19,601 | 1,561 | 21,162 | 24,492 | 536 | 25,028 | ||
Total portfolio average LTV (3) | 68% | 81% | 68% | 91% | 106% | 92% | 75% | 94% | 76% | ||
Average LTV on new originations during the year | 68% | 79% | 66% |
Includes residential mortgages and |
(2) | Where no indexed LTV is held. |
(3) | Average LTV weighted by value is arrived at by calculating the LTV on each individual mortgage and applying a weighting based on the value of each mortgage. |
Divisional analysis of credit risk assets | 2011 £m | 2010 £m | 2009 £m |
UK Retail | 111,070 | 108,302 | 103,029 |
UK Corporate | 102,468 | 105,886 | 110,009 |
Wealth | 20,079 | 18,875 | 16,553 |
Global Transaction Services | 34,719 | 35,462 | 32,428 |
Ulster Bank | 37,781 | 40,750 | 42,042 |
US Retail & Commercial | 56,412 | 51,699 | 52,104 |
Retail & Commercial | 362,529 | 360,974 | 356,165 |
Global Banking & Markets | 165,616 | 171,891 | 205,588 |
Other | 64,518 | 36,659 | 3,305 |
Core | 592,663 | 569,524 | 565,058 |
Non-Core | 92,710 | 125,383 | 158,499 |
685,373 | 694,907 | 723,557 |
(4) | Excludes mortgage lending in Wealth. This portfolio totalled £8.8 billion (2011 - £8.3 billion; 2010 - £7.8 billion) and continues to perform in line with expectations with minimal provisions of £248 million. |
2012 | 2011 | ||||||
Watchlist Red credit risk assets under GRG management | Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | |
Property | 5,605 | 4,377 | 9,982 | 6,561 | 6,011 | 12,572 | |
Transport | 2,238 | 478 | 2,716 | 1,159 | 2,252 | 3,411 | |
Retail and leisure | 1,542 | 432 | 1,974 | 1,528 | 669 | 2,197 | |
Services | 870 | 84 | 954 | 808 | 141 | 949 | |
Other | 3,087 | 1,177 | 4,264 | 1,952 | 916 | 2,868 |
Total | 13,342 | 6,548 | 19,890 | 12,008 | 9,989 | 21,997 |
Asset quality | Probability of default range | 2011 | 2010 | 2009 | |||||||||||
Core £m | Non-Core £m | Total £m | Total % | Core £m | Non-Core £m | Total £m | Total % | Core £m | Non-Core £m | Total £m | Total % | ||||
AQ1 | 0% - 0.034% | 206,163 | 13,732 | 219,895 | 32.1 | 175,793 | 17,728 | 193,521 | 27.8 | 149,132 | 23,226 | 172,358 | 23.8 | ||
AQ2 | 0.034% - 0.048% | 18,403 | 2,915 | 21,318 | 3.1 | 18,274 | 2,526 | 20,800 | 3.0 | 18,029 | 3,187 | 21,216 | 2.9 | ||
AQ3 | 0.048% - 0.095% | 27,082 | 2,883 | 29,965 | 4.4 | 26,244 | 4,259 | 30,503 | 4.4 | 26,703 | 7,613 | 34,316 | 4.7 | ||
AQ4 | 0.095% - 0.381% | 65,492 | 9,636 | 75,128 | 11.0 | 64,277 | 15,052 | 79,329 | 11.4 | 78,144 | 18,154 | 96,298 | 13.3 | ||
AQ5 | 0.381% - 1.076% | 92,506 | 10,873 | 103,379 | 15.1 | 90,639 | 18,767 | 109,406 | 15.7 | 92,908 | 24,977 | 117,885 | 16.3 | ||
AQ6 | 1.076% - 2.153% | 67,260 | 6,636 | 73,896 | 10.8 | 73,367 | 12,913 | 86,280 | 12.4 | 76,206 | 18,072 | 94,278 | 13.0 | ||
AQ7 | 2.153% - 6.089% | 36,595 | 8,134 | 44,729 | 6.5 | 41,399 | 10,451 | 51,850 | 7.5 | 44,643 | 15,732 | 60,375 | 8.3 | ||
AQ8 | 6.089% - 17.222% | 11,933 | 3,320 | 15,253 | 2.2 | 15,300 | 4,308 | 19,608 | 2.8 | 18,923 | 4,834 | 23,757 | 3.4 | ||
AQ9 | 17.222% - 100% | 12,710 | 5,024 | 17,734 | 2.6 | 11,398 | 8,621 | 20,019 | 2.9 | 11,589 | 8,074 | 19,663 | 2.7 | ||
AQ10 | 100% | 20,118 | 25,020 | 45,138 | 6.6 | 18,003 | 25,005 | 43,008 | 6.2 | 16,756 | 22,666 | 39,422 | 5.5 | ||
Other (1) | 34,401 | 4,537 | 38,938 | 5.6 | 34,830 | 5,753 | 40,583 | 5.9 | 32,025 | 11,964 | 43,989 | 6.1 | |||
592,663 | 92,710 | 685,373 | 100.0 | 569,524 | 125,383 | 694,907 | 100.0 | 565,058 | 158,499 | 723,557 | 100.0 |
2011 | 2010 | 2009 | ||||||
AQ10 credit risk assets by division | AQ10 £m | % of divisional credit risk assets | AQ10 £m | % of divisional credit risk assets | AQ10 £m | % of divisional credit risk assets | ||
UK Retail | 5,097 | 4.6 | 5,017 | 4.6 | 4,846 | 4.7 | ||
UK Corporate | 5,469 | 5.3 | 5,130 | 4.8 | 5,604 | 5.1 | ||
Wealth | 12 | 0.1 | 9 | — | 11 | 0.1 | ||
Global Transaction Services | 275 | 0.8 | 349 | 1.0 | 242 | 0.7 | ||
Ulster Bank | 6,305 | 16.7 | 4,348 | 10.7 | 2,741 | 6.5 | ||
US Retail & Commercial | 646 | 1.1 | 599 | 1.2 | 506 | 1.0 | ||
Retail & Commercial | 17,804 | 4.9 | 15,452 | 4.3 | 13,950 | 3.9 | ||
Global Banking & Markets | 2,314 | 1.4 | 2,551 | 1.5 | 2,806 | 1.4 | ||
Core | 20,118 | 3.4 | 18,003 | 3.2 | 16,756 | 3.0 | ||
Non-Core | 25,020 | 27.0 | 25,005 | 19.9 | 22,666 | 14.3 | ||
45,138 | 6.6 | 43,008 | 6.2 | 39,422 | 5.5 |
AQ10 credit risk assets by sector | 2011 £m | 2010 £m | 2009 £m |
Personal | 8,398 | 7,620 | 6,955 |
Property | 25,558 | 23,672 | 20,145 |
Banks and financial institutions | 1,934 | 1,981 | 1,928 |
Transport and storage | 1,720 | 1,689 | 1,026 |
Other | 7,528 | 8,046 | 9,368 |
45,138 | 43,008 | 39,422 |
· | Variation in margin - The contractual margin may be amended to bolster the |
· | Payment concessions and loan rescheduling - payment concessions or changes to the contracted amortisation profile including extensions in contracted maturity may be granted to improve the customer’s liquidity. Such concessions often depend on the expectation that the customer’s liquidity will recover when market conditions improve or will benefit from access to alternative sources of liquidity, such as an issue of equity capital. These types of concessions are common in commercial real estate transactions, particularly where a shortage of market liquidity rules out immediate refinancing and makes short-term forced collateral sales unattractive. |
· | Forgiveness of all or part of the |
2012 | 2011 - Revised | ||||||
Wholesale renegotiations during the year by sector | Performing £m | Non-performing £m | Non-performing provision coverage % | Performing £m | Non-performing £m | Non-performing provision coverage % | |
Property | 1,954 | 3,288 | 18 | 2,166 | 3,215 | 25 | |
Transport | 832 | 99 | 23 | 771 | 670 | 10 | |
Telecommunications, media and technology | 237 | 341 | 46 | 57 | 33 | 30 | |
Retail and leisure | 487 | 111 | 34 | 331 | 433 | 10 | |
Other (1) | 792 | 245 | 28 | 893 | 792 | 42 | |
Total | 4,302 | 4,084 | 22 | 4,218 | 5,143 | 25 |
(1) | SME business within Wealth is now reported within Wholesale forbearance. |
Loans by value | ||
Arrangement type | 2012 % | Revised 2011 % |
Variation in margin | 9 | 12 |
Payment concessions and loan rescheduling | 69 | 92 |
Forgiveness of all or part of the outstanding debt | 29 | 33 |
Other (2) | 20 | 9 |
(1) | The total above exceeds 100% as an individual case can involve more than one type of arrangement. |
(2) | Main types of “other” concessions include formal “standstill” agreements, release of security and amendments to negative pledge. 2012 saw the completion of a small number of material standstill agreements, accounting for the higher proportion of the “Other” modification type. |
· | Renegotiations completed during 2012, subject to thresholds as explained above, were £8.4 billion (2011 - £9.4 billion). The volume of renegotiations continues at a high level as difficult |
· |
· | Additional provisions charged in 2012 relating to loans renegotiated during 2011 totalled £0.2 billion and provision coverage of those loans at 31 December 2012 was 25%. |
· | Of the loans renegotiated by GRG during 2011 and 2012 (£14.5 billion), 6% had been returned to performing portfolios managed by the business by 31 December 2012. |
· | Renegotiated loans disclosed in the table above may have been the subject of one or more covenant waivers or modifications. In addition loans totalling £3.5 billion granted financial covenant concessions only during the year are not included in the table above as these concessions do not affect a loan’s contractual cash flows. |
· | Year-on-year analysis of renegotiated loans may be skewed by individual material cases reaching legal completion during a given year. This is particularly relevant when comparing the value of renegotiations completed in the property and transport sectors in 2012 with previous years. |
· | In |
· | 84% of ‘completed’ and 93% of ‘in progress’ renegotiated cases were managed by GRG. |
· | Provisions for the non-performing loans disclosed above are individually assessed and renegotiations are taken into account when determining the level of provision. The provision coverage is affected by the timing of write-offs and provisions. In some cases loans are fully or partially written off on the completion of a renegotiation. Non-performing renegotiated loans also include loans against which no provision is held and where these cases are large they can have a significant impact on the provision coverage within a specific sector. |
· | Enforcement of security or otherwise taking control of assets - Where the Group holds collateral or other security interest and is entitled to enforce its rights, it may take ownership or control of the assets. The Group’s preferred strategy is to consider other possible options prior to exercising these rights. |
· | Insolvency - Where there is no suitable renegotiation option or the business is no longer regarded as sustainable, insolvency will be considered. Insolvency may be the only option that ensures that the assets of the business are properly and efficiently distributed to relevant creditors. |
No missed payments | 1-3 months in arrears | >3 months in arrears | Total | |||||||||
Balance | Provision | Balance | Provision | Balance | Provision | Balance | Provision | Forborne balances | ||||
£m | £m | £m | £m | £m | £m | £m | £m | % | ||||
2012 | ||||||||||||
UK Retail (1,2) | 4,006 | 20 | 388 | 16 | 450 | 64 | 4,844 | 100 | 4.9 | |||
Ulster Bank (1,2) | 915 | 100 | 546 | 60 | 527 | 194 | 1,988 | 354 | 10.4 | |||
RBS Citizens (3) | — | — | 179 | 25 | 160 | 10 | 339 | 35 | 1.6 | |||
Wealth (4) | 38 | — | — | — | 7 | — | 45 | — | 0.5 | |||
4,959 | 120 | 1,113 | 101 | 1,144 | 268 | 7,216 | 489 | 4.9 |
2011 | ||||||||||||
UK Retail (1,2) | 3,677 | 16 | 351 | 13 | 407 | 59 | 4,435 | 88 | 4.7 | |||
Ulster Bank (1,2) | 893 | 78 | 516 | 45 | 421 | 124 | 1,830 | 247 | 9.1 | |||
RBS Citizens (3) | — | — | 91 | 10 | 89 | 10 | 180 | 20 | 0.8 | |||
Wealth | 121 | — | — | — | 2 | — | 123 | — | 1.3 | |||
4,691 | 94 | 958 | 68 | 919 | 193 | 6,568 | 355 | 4.4 |
(1) | Includes all forbearance arrangements whether relating to the customer’s lifestyle changes or financial difficulty. |
(2) | Includes the current stock position of forbearance deals agreed since early 2008 for UK Retail and early 2009 for Ulster Bank. |
(3) | Forbearance stock reported at 31 December 2012 now includes home equity loans and lines as well as the residential mortgage portfolio. |
(4) | SME business within Wealth is now reported within Wholesale forbearance. |
UK Retail | Ulster Bank | RBS Citizens (1) | Wealth (2) | Total (3) | |
2012 | £m | £m | £m | £m | £m |
Interest only conversions - temporary and permanent | 1,220 | 924 | — | 6 | 2,150 |
Term extensions - capital repayment and interest only | 2,271 | 183 | — | 27 | 2,481 |
Payment concessions | 215 | 762 | 339 | 9 | 1,325 |
Capitalisation of arrears | 932 | 119 | — | — | 1,051 |
Other | 452 | — | — | 3 | 455 |
5,090 | 1,988 | 339 | 45 | 7,462 |
2011 | |||||
Interest only conversions - temporary and permanent | 1,269 | 795 | — | 3 | 2,067 |
Term extensions - capital repayment and interest only | 1,805 | 58 | — | 97 | 1,960 |
Payment concessions | 198 | 876 | 180 | — | 1,254 |
Capitalisation of arrears | 864 | 101 | — | — | 965 |
Other | 517 | — | — | 23 | 540 |
4,653 | 1,830 | 180 | 123 | 6,786 |
UK Retail | Ulster Bank | RBS Citizens (1) | Wealth (2) | Total (3) | |
2012 | £m | £m | £m | £m | |
Performing forbearance in the year | 1,809 | 2,111 | 88 | 18 | 4,026 |
Non-performing forbearance in the year | 184 | 1,009 | 71 | 2 | 1,266 |
Total forbearance in the year (4) | 1,993 | 3,120 | 159 | 20 | 5,292 |
(1) | Forbearance stock reported at 31 December 2012 now includes home equity loans and lines as well as the residential mortgage portfolio. |
(2) | SME business within Wealth is now reported within Wholesale forbearance. |
(3) | As an individual case can include more than one type of arrangement, the analysis in the table on forbearance arrangements exceeds the total value of cases subject to forbearance. |
(4) | Includes all deals agreed during the year (new customers and renewals) regardless of whether they remain active at the year end. |
· | The reported numbers for forbearance in UK Retail capture all instances where a change has been made to the contractual payment terms including those where the customer is up-to-date on payments and there is no obvious evidence of financial stress. The reported figures include stock dating back to 1 January 2008. |
· | At 31 December 2012, stock levels of £4.8 billion represent 4.9% of the total mortgage assets; this represents a 9.2% increase in forbearance stock since 31 December 2011. Of these, approximately 83% were up-to-date with |
· | The most frequently occurring forbearance types were term extensions (47% of assets subject to forbearance at 31 December 2012), interest only conversions (25%) and capitalisations of arrears (19%). The stock of cases subject to interest only conversions reflects legacy policy. In 2009, UK Retail ceased providing this type of forbearance treatment for customers in financial difficulty and no longer permits interest only conversions on residential mortgages where the customer is current on payments. |
· | The provision cover on performing assets subject to forbearance was about five times that on assets not subject to forbearance. |
· | The reported numbers for forbearance in Ulster Bank Group capture all instances where a change has been made to the contractual payment terms including those where the customer is up-to-date on payments and there is no obvious evidence of financial stress. The reported figures include stock dating back to early 2009. |
· | Ulster Bank Group continues to assist customers in the difficult economic environment. Mortgage forbearance treatments have been in place since 2009 and are aimed at assisting customers in financial difficulty. At 31 December 2012, 10.4% of total mortgage assets (£1.9 billion) were subject to a forbearance arrangement, an increase from 9.1% (£1.8 billion) at 31 December 2011. The majority of these forbearance arrangements were in the performing book (73%). |
· | The majority of forbearance arrangements offered by Ulster Bank currently are temporary concessions, accounting for 85% of assets subject to forbearance at 31 December 2012. These are offered for periods of one to three years and incorporate different levels of repayment based on the customer’s ability to pay. The additional treatment options developed by Ulster Retail will lead to a shift to more long term arrangements over time. |
· | Of these temporary forbearance types, the largest category at 31 December 2012 was interest only conversions, which accounted for 46% of total assets subject to forbearance. The other categories of temporary forbearance were payment concessions: reduced repayments (36%); and payment holidays (3%). |
· | The flow by forbearance type remained stable when compared with 2011 and there was a modest reduction, 3%, in customers seeking assistance for the first time year on year. |
· | The provision cover on performing assets subject to forbearance is approximately eight times higher than that on performing assets not subject to forbearance. |
· | For unsecured portfolios in UK Retail, £162 million of balances (1.1% of the total unsecured balances) were subject to forbearance at 2012 year end. |
· | For unsecured portfolios in Ulster Bank, £20 million (3.4% by value) of the population was subject to forbearance at 31 December 2012. |
· | Individually assessed provisions - Provisions required for individually significant impaired assets are assessed on a case-by-case basis. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. Future cash flows are estimated through a case-by-case analysis of individually assessed assets. |
This assessment takes into account the benefit of any guarantees or other collateral held. The value and timing of cash flow receipts are based on available estimates in conjunction with facts available at that time. Timings and amounts of cash flows are reviewed on subsequent assessment dates, as new information becomes available. The asset continues to be assessed on an individual basis until it is repaid in full, transferred to the performing portfolio or written-off. |
· | Collectively assessed provisions - Provisions on impaired credits below an agreed threshold are assessed on a portfolio basis to reflect the homogeneous nature of the assets. The Group segments impaired credits in its collectively assessed portfolios according to asset type, such as credit cards, personal loans, mortgages and smaller homogenous wholesale portfolios, such as business or commercial banking. A further distinction is made between those impaired assets in collections and those in recoveries (refer to Problem debt management on page 131 for a discussion of the |
The provision is determined based on a quantitative review of the |
· | Latent loss provisions - A separate approach is taken for provisions held against impairments in the |
· | the probability that the performing customer will default - historical loss experience, adjusted, where appropriate, to take into account current economic and credit conditions; and |
· | the emergence period, defined as the period between an impairment event occurring and a loan being identified and reported as impaired. |
2011 | UK £m | Western Europe (excl. UK) £m | North America £m | Asia Pacific £m | Latin America £m | Other (1) £m | Total £m | Core £m | Non-Core £m |
Personal | 126,945 | 20,253 | 33,087 | 1,604 | 158 | 1,114 | 183,161 | 176,201 | 6,960 |
Banks | 4,720 | 39,290 | 3,952 | 11,149 | 1,740 | 7,324 | 68,175 | 67,614 | 561 |
Other financial institutions | 17,939 | 17,503 | 13,595 | 3,108 | 5,841 | 1,159 | 59,145 | 48,765 | 10,380 |
Sovereign (2) | 21,072 | 34,258 | 31,444 | 3,463 | 78 | 1,581 | 91,896 | 90,638 | 1,258 |
Property | 60,099 | 27,282 | 8,052 | 1,370 | 3,471 | 1,480 | 101,754 | 58,324 | 43,430 |
Natural resources | 6,553 | 7,218 | 8,159 | 3,805 | 1,078 | 2,508 | 29,321 | 25,191 | 4,130 |
Manufacturing | 9,583 | 7,480 | 7,098 | 2,126 | 1,011 | 1,381 | 28,679 | 26,614 | 2,065 |
Transport (3) | 13,790 | 7,705 | 4,951 | 5,433 | 2,500 | 5,363 | 39,742 | 27,531 | 12,211 |
Retail and leisure | 22,775 | 6,110 | 5,762 | 1,488 | 1,041 | 675 | 37,851 | 32,775 | 5,076 |
Telecommunications, media and technology | 5,295 | 4,941 | 3,202 | 1,944 | 139 | 609 | 16,130 | 12,180 | 3,950 |
Business services | 17,851 | 3,718 | 6,205 | 910 | 629 | 206 | 29,519 | 26,830 | 2,689 |
306,622 | 175,758 | 125,507 | 36,400 | 17,686 | 23,400 | 685,373 | 592,663 | 92,710 | |
2010 (4) | |||||||||
Personal | 124,594 | 21,973 | 34,970 | 1,864 | 126 | 1,531 | 185,058 | 174,287 | 10,771 |
Banks | 6,819 | 35,619 | 5,097 | 11,072 | 1,394 | 6,713 | 66,714 | 65,494 | 1,220 |
Other financial institutions | 17,550 | 14,782 | 14,773 | 4,200 | 8,732 | 1,762 | 61,799 | 47,227 | 14,572 |
Sovereign (2) | 20,209 | 24,826 | 18,088 | 3,243 | 125 | 1,789 | 68,280 | 66,556 | 1,724 |
Property | 65,622 | 30,925 | 9,573 | 1,980 | 3,090 | 1,750 | 112,940 | 60,590 | 52,350 |
Natural resources | 6,696 | 7,863 | 9,771 | 3,655 | 1,396 | 4,143 | 33,524 | 24,427 | 9,097 |
Manufacturing | 10,599 | 8,532 | 6,744 | 2,673 | 917 | 2,059 | 31,524 | 28,088 | 3,436 |
Transport (3) | 13,842 | 8,726 | 5,389 | 6,161 | 2,658 | 6,347 | 43,123 | 27,899 | 15,224 |
Retail and leisure | 24,716 | 6,690 | 5,316 | 1,438 | 1,174 | 918 | 40,252 | 34,100 | 6,152 |
Telecommunications, media and technology | 5,495 | 5,764 | 3,283 | 2,187 | 328 | 786 | 17,843 | 12,076 | 5,767 |
Business services | 19,757 | 5,116 | 6,521 | 985 | 1,086 | 385 | 33,850 | 28,780 | 5,070 |
315,899 | 170,816 | 119,525 | 39,458 | 21,026 | 28,183 | 694,907 | 569,524 | 125,383 | |
2009 | UK £m | Western Europe (excl. UK) £m | North America £m | Asia Pacific £m | Latin America £m | Other (1) £m | Total £m | Core £m | Non-Core £m |
Personal | 120,193 | 23,597 | 37,680 | 1,374 | 63 | 897 | 183,804 | 165,143 | 18,661 |
Banks | 7,850 | 36,705 | 4,975 | 9,121 | 1,378 | 2,137 | 62,166 | 58,246 | 3,920 |
Other financial institutions | 14,800 | 14,125 | 17,697 | 4,820 | 8,441 | 1,473 | 61,356 | 43,762 | 17,594 |
Sovereign (2) | 18,172 | 27,421 | 4,038 | 3,950 | 414 | 2,217 | 56,212 | 53,595 | 2,617 |
Property | 72,768 | 35,558 | 11,221 | 3,507 | 3,127 | 1,440 | 127,621 | 74,892 | 52,729 |
Natural resources | 7,876 | 9,460 | 9,817 | 3,029 | 3,523 | 4,972 | 38,677 | 26,058 | 12,619 |
Manufacturing | 11,197 | 14,875 | 8,718 | 3,695 | 1,306 | 2,633 | 42,424 | 33,400 | 9,024 |
Transport (3) | 14,097 | 7,033 | 7,287 | 5,294 | 2,604 | 7,140 | 43,455 | 28,362 | 15,093 |
Retail and leisure | 25,811 | 8,236 | 6,148 | 3,602 | 1,205 | 1,691 | 46,693 | 35,580 | 11,113 |
Telecommunications, media and technology | 6,128 | 8,340 | 4,854 | 2,040 | 680 | 1,409 | 23,451 | 13,645 | 9,806 |
Business services | 20,497 | 6,772 | 6,950 | 1,137 | 1,439 | 903 | 37,698 | 32,375 | 5,323 |
319,389 | 192,122 | 119,385 | 41,569 | 24,180 | 26,912 | 723,557 | 565,058 | 158,499 |
2012 | 2011 | 2010 | |||||||||
By division (1) | Investment £m | Development £m | Total £m | Investment £m | Development £m | Total £m | Investment £m | Development £m | Total £m | ||
Core | |||||||||||
UK Corporate | 22,504 | 4,091 | 26,595 | 25,101 | 5,023 | 30,124 | 24,879 | 5,819 | 30,698 | ||
Ulster Bank | 3,575 | 729 | 4,304 | 3,882 | 881 | 4,763 | 4,284 | 1,090 | 5,374 | ||
US Retail & Commercial | 3,857 | 3 | 3,860 | 4,235 | 70 | 4,305 | 4,322 | 93 | 4,415 | ||
International Banking | 849 | 315 | 1,164 | 872 | 299 | 1,171 | 940 | 369 | 1,309 | ||
Markets | 630 | 57 | 687 | 141 | 61 | 202 | 191 | 275 | 466 | ||
31,415 | 5,195 | 36,610 | 34,231 | 6,334 | 40,565 | 34,616 | 7,646 | 42,262 | |||
Non-Core | |||||||||||
UK Corporate | 2,651 | 983 | 3,634 | 3,957 | 2,020 | 5,977 | 7,591 | 3,263 | 10,854 | ||
Ulster Bank | 3,383 | 7,607 | 10,990 | 3,860 | 8,490 | 12,350 | 3,854 | 8,760 | 12,614 | ||
US Retail & Commercial | 392 | — | 392 | 901 | 28 | 929 | 1,325 | 70 | 1,395 | ||
International Banking | 11,260 | 154 | 11,414 | 14,689 | 336 | 15,025 | 19,906 | 379 | 20,285 | ||
17,686 | 8,744 | 26,430 | 23,407 | 10,874 | 34,281 | 32,676 | 12,472 | 45,148 | |||
Total | 49,101 | 13,939 | 63,040 | 57,638 | 17,208 | 74,846 | 67,292 | 20,118 | 87,410 |
2011 | 2010 | 2009 | |||||||||
By division | Investment £m | Development £m | Total £m | Investment £m | Development £m | Total £m | Investment £m | Development £m | Total £m | ||
Core | |||||||||||
UK Corporate | 25,101 | 5,023 | 30,124 | 24,879 | 5,819 | 30,698 | 27,143 | 7,331 | 34,474 | ||
Ulster Bank | 3,882 | 881 | 4,763 | 4,284 | 1,090 | 5,374 | 6,131 | 3,838 | 9,969 | ||
US Retail & Commercial | 4,235 | 70 | 4,305 | 4,322 | 93 | 4,415 | 2,812 | 1,084 | 3,896 | ||
Global Banking & Markets | 1,013 | 360 | 1,373 | 1,131 | 644 | 1,775 | 1,997 | 818 | 2,815 | ||
34,231 | 6,334 | 40,565 | 34,616 | 7,646 | 42,262 | 38,083 | 13,071 | 51,154 | |||
Non-Core | |||||||||||
UK Corporate | 3,957 | 2,020 | 5,977 | 7,591 | 3,263 | 10,854 | 7,390 | 3,959 | 11,349 | ||
Ulster Bank | 3,860 | 8,490 | 12,350 | 3,854 | 8,760 | 12,614 | 2,061 | 6,271 | 8,332 | ||
US Retail & Commercial | 901 | 28 | 929 | 1,325 | 70 | 1,395 | 1,409 | 431 | 1,840 | ||
Global Banking & Markets | 14,689 | 336 | 15,025 | 19,906 | 379 | 20,285 | 24,638 | 873 | 25,511 | ||
23,407 | 10,874 | 34,281 | 32,676 | 12,472 | 45,148 | 35,498 | 11,534 | 47,032 | |||
Total | 57,638 | 17,208 | 74,846 | 67,292 | 20,118 | 87,410 | 73,581 | 24,605 | 98,186 |
Investment | Development | Investment | Development | ||||||||||
By geography (1) | Commercial £m | Residential £m | Commercial £m | Residential £m | Total £m | Core £m | Non-Core £m | Core £m | Non-Core £m | Total £m | |||
2012 | |||||||||||||
UK (excluding NI) (2) | 25,864 | 5,567 | 839 | 4,777 | 37,047 | 23,312 | 8,119 | 4,184 | 1,432 | 37,047 | |||
Ireland (ROI and NI) (2) | 4,651 | 989 | 2,234 | 5,712 | 13,586 | 2,877 | 2,763 | 665 | 7,281 | 13,586 | |||
Western Europe (other) | 5,995 | 370 | 22 | 33 | 6,420 | 403 | 5,962 | 24 | 31 | 6,420 | |||
US | 4,230 | 981 | — | 15 | 5,226 | 4,629 | 582 | 15 | — | 5,226 | |||
RoW | 454 | — | 65 | 242 | 761 | 194 | 260 | 307 | — | 761 | |||
41,194 | 7,907 | 3,160 | 10,779 | 63,040 | 31,415 | 17,686 | 5,195 | 8,744 | 63,040 |
Investment | Development | Investment | Development | ||||||||||
By geography | Commercial £m | Residential £m | Commercial £m | Residential £m | Total £m | Core £m | Non-Core £m | Core £m | Non-Core £m | Total £m | |||
2011 | |||||||||||||
UK (excluding NI) (1) | 28,653 | 6,359 | 1,198 | 6,511 | 42,721 | 25,904 | 9,108 | 5,118 | 2,591 | 42,721 | |||
Ireland (ROI & NI) (1) | 5,146 | 1,132 | 2,591 | 6,317 | 15,186 | 3,157 | 3,121 | 793 | 8,115 | 15,186 | |||
Western Europe | 7,649 | 1,048 | 9 | 52 | 8,758 | 422 | 8,275 | 20 | 41 | 8,758 | |||
US | 5,552 | 1,279 | 59 | 46 | 6,936 | 4,521 | 2,310 | 71 | 34 | 6,936 | |||
RoW | 785 | 35 | 141 | 284 | 1,245 | 227 | 593 | 332 | 93 | 1,245 | |||
47,785 | 9,853 | 3,998 | 13,210 | 74,846 | 34,231 | 23,407 | 6,334 | 10,874 | 74,846 |
2010 (1) | ||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||
UK (excluding NI) | 32,334 | 7,255 | 1,520 | 8,288 | 49,397 | 26,168 | 13,421 | 5,997 | 3,811 | 49,397 | 28,653 | 6,359 | 1,198 | 6,511 | 42,721 | 25,904 | 9,108 | 5,118 | 2,591 | 42,721 | ||||||
Ireland (ROI & NI) (1) | 5,056 | 1,148 | 2,785 | 6,578 | 15,567 | 3,159 | 3,044 | 963 | 8,401 | 15,567 | ||||||||||||||||
Western Europe | 10,568 | 643 | 25 | 42 | 11,278 | 409 | 10,802 | 25 | 42 | 11,278 | ||||||||||||||||
Ireland (ROI and NI) (2) | 5,146 | 1,132 | 2,591 | 6,317 | 15,186 | 3,157 | 3,121 | 793 | 8,115 | 15,186 | ||||||||||||||||
Western Europe (other) | 7,649 | 1,048 | 9 | 52 | 8,758 | 422 | 8,275 | 20 | 41 | 8,758 | ||||||||||||||||
US | 7,345 | 1,296 | 69 | 175 | 8,885 | 4,636 | 4,005 | 173 | 71 | 8,885 | 5,552 | 1,279 | 59 | 46 | 6,936 | 4,521 | 2,310 | 71 | 34 | 6,936 | ||||||
RoW | 1,622 | 25 | 138 | 498 | 2,283 | 244 | 1,404 | 488 | 147 | 2,283 | 785 | 35 | 141 | 284 | 1,245 | 227 | 593 | 332 | 93 | 1,245 | ||||||
56,925 | 10,367 | 4,537 | 15,581 | 87,410 | 34,616 | 32,676 | 7,646 | 12,472 | 87,410 | 47,785 | 9,853 | 3,998 | 13,210 | 74,846 | 34,231 | 23,407 | 6,334 | 10,874 | 74,846 |
2009 (1) | |||||||||||||
UK (excluding NI) (1) | 36,801 | 7,042 | 1,875 | 10,499 | 56,217 | 29,230 | 14,613 | 7,654 | 4,720 | 56,217 | |||
Ireland (ROI & NI) (1) | 5,314 | 1,047 | 3,484 | 5,961 | 15,806 | 4,664 | 1,697 | 3,530 | 5,915 | 15,806 | |||
Western Europe | 12,565 | 840 | 184 | 225 | 13,814 | 905 | 12,500 | 215 | 194 | 13,814 | |||
US | 6,522 | 1,355 | 881 | 778 | 9,536 | 3,193 | 4,684 | 1,289 | 370 | 9,536 | |||
RoW | 2,068 | 27 | 239 | 479 | 2,813 | 91 | 2,004 | 383 | 335 | 2,813 | |||
63,270 | 10,311 | 6,663 | 17,942 | 98,186 | 38,083 | 35,498 | 13,071 | 11,534 | 98,186 |
2010 | |||||||||||||
UK (excluding NI) (2) | 32,334 | 7,255 | 1,520 | 8,288 | 49,397 | 26,168 | 13,421 | 5,997 | 3,811 | 49,397 | |||
Ireland (ROI and NI) (2) | 5,056 | 1,148 | 2,785 | 6,578 | 15,567 | 3,160 | 3,044 | 962 | 8,401 | 15,567 | |||
Western Europe (other) | 10,568 | 643 | 25 | 42 | 11,278 | 409 | 10,802 | 25 | 42 | 11,278 | |||
US | 7,345 | 1,296 | 69 | 175 | 8,885 | 4,636 | 4,005 | 173 | 71 | 8,885 | |||
RoW | 1,622 | 25 | 138 | 498 | 2,283 | 243 | 1,404 | 489 | 147 | 2,283 |
10,367 | 4,537 | 15,581 | 87,410 | 34,616 | 32,676 | 7,646 | 12,472 | 87,410 |
By sub-sector | UK (excl NI) £m | Ireland (ROI & NI) £m | Western Europe £m | US £m | RoW £m | Total £m | UK (excl NI) (2) £m | Ireland (ROI and NI) (2) £m | Western Europe (other) £m | US £m | RoW (2) £m | Total £m |
2011 | ||||||||||||
2012 | ||||||||||||
Residential | 12,871 | 7,449 | 1,096 | 1,325 | 319 | 23,060 | 10,344 | 6,701 | 403 | 996 | 242 | 18,686 |
Office | 7,155 | 1,354 | 2,248 | 404 | 352 | 11,513 | 6,112 | 1,132 | 1,851 | 99 | 176 | 9,370 |
Retail | 8,709 | 1,641 | 1,893 | 285 | 275 | 12,803 | 7,529 | 1,492 | 1,450 | 117 | 129 | 10,717 |
Industrial | 4,317 | 507 | 520 | 24 | 105 | 5,473 | 3,550 | 476 | 143 | 4 | 39 | 4,212 |
Mixed/other | 9,669 | 4,235 | 3,001 | 4,898 | 194 | 21,997 | 9,512 | 3,785 | 2,573 | 4,010 | 175 | 20,055 |
42,721 | 15,186 | 8,758 | 6,936 | 1,245 | 74,846 | 37,047 | 13,586 | 6,420 | 5,226 | 761 | 63,040 |
2011 | ||||||
Residential | 12,870 | 7,449 | 1,100 | 1,325 | 319 | 23,063 |
Office | 7,155 | 1,354 | 2,246 | 404 | 352 | 11,511 |
Retail | 8,709 | 1,641 | 1,891 | 285 | 275 | 12,801 |
Industrial | 4,317 | 507 | 520 | 24 | 105 | 5,473 |
Mixed/other | 9,670 | 4,235 | 3,001 | 4,898 | 194 | 21,998 |
42,721 | 15,186 | 8,758 | 6,936 | 1,245 | 74,846 |
2010 | ||||||
Residential | 15,543 | 7,726 | 685 | 1,471 | 523 | 25,948 |
Office | 8,539 | 1,178 | 2,878 | 663 | 891 | 14,149 |
Retail | 10,607 | 1,668 | 1,888 | 1,025 | 479 | 15,667 |
Industrial | 4,912 | 515 | 711 | 80 | 106 | 6,324 |
Mixed/other | 9,796 | 4,480 | 5,116 | 5,646 | 284 | 25,322 |
49,397 | 15,567 | 11,278 | 8,885 | 2,283 | 87,410 |
2009 | ||||||
Residential | 17,197 | 7,352 | 1,065 | 2,134 | 505 | 28,253 |
Office | 9,381 | 1,536 | 5,034 | 1,614 | 975 | 18,540 |
Retail | 5,760 | 686 | 998 | 492 | 700 | 8,636 |
Industrial | 11,378 | 2,599 | 3,592 | 2,053 | 402 | 20,024 |
Mixed/other | 12,501 | 3,633 | 3,125 | 3,243 | 231 | 22,733 |
56,217 | 15,806 | 13,814 | 9,536 | 2,813 | 98,186 |
(1) | Excludes commercial real estate lending in Wealth as these loans are generally supported by personal guarantees in addition to collateral. This portfolio, which totalled |
(2) | ROI: Republic of Ireland; NI: Northern Ireland; RoW: rest of world. |
· | In line with the Group’s strategy, the overall exposure to commercial real estate |
· | Most of the decrease . |
· | The growth in Markets was caused by an increase in the inventory of US commercial real estate loans earmarked for securitisation as commercial mortgage-backed securities (CMBS). CMBS warehouse activity is tightly controlled with limits on maximum portfolio size and holding period, and marked-to-market on a daily basis. |
· | With the exception of exposure in Spain and |
· | The UK portfolio is focused on London and the South East |
· |
· | The commercial real estate |
UK Corporate | Ulster Bank | US Retail & Commercial | International Banking | Markets | Total | |||||||||||||||||||
Maturity profile of portfolio | £m | £m | £m | £m | £m | £m | ||||||||||||||||||
2012 | ||||||||||||||||||||||||
Core | ||||||||||||||||||||||||
< 1 year (1) | 8,639 | 3,000 | 797 | 216 | 59 | 12,711 | ||||||||||||||||||
1-2 years | 3,999 | 284 | 801 | 283 | 130 | 5,497 | ||||||||||||||||||
2-3 years | 3,817 | 215 | 667 | 505 | — | 5,204 | ||||||||||||||||||
> 3 years | 9,597 | 805 | 1,595 | 160 | 498 | 12,655 | ||||||||||||||||||
Not classified (2) | 543 | — | — | — | — | 543 | ||||||||||||||||||
Total | 26,595 | 4,304 | 3,860 | 1,164 | 687 | 36,610 | ||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
< 1 year (1) | 2,071 | 9,498 | 138 | 4,628 | — | 16,335 | ||||||||||||||||||
1-2 years | 192 | 1,240 | 79 | 3,714 | — | 5,225 | ||||||||||||||||||
2-3 years | 99 | 38 | 43 | 1,137 | — | 1,317 | ||||||||||||||||||
> 3 years | 1,058 | 214 | 132 | 1,935 | — | 3,339 | ||||||||||||||||||
Not classified (2) | 214 | — | — | — | — | 214 | ||||||||||||||||||
Total | 3,634 | 10,990 | 392 | 11,414 | — | 26,430 | ||||||||||||||||||
2011 | ||||||||||||||||||||||||
Core | ||||||||||||||||||||||||
< 1 year (1) | 8,268 | 3,030 | 1,056 | 142 | — | 12,496 | ||||||||||||||||||
1-2 years | 5,187 | 391 | 638 | 218 | 60 | 6,494 | ||||||||||||||||||
2-3 years | 3,587 | 117 | 765 | 230 | 133 | 4,832 | ||||||||||||||||||
> 3 years | 10,871 | 1,225 | 1,846 | 581 | 9 | 14,532 | ||||||||||||||||||
Not classified (2) | 2,211 | — | — | — | — | 2,211 | ||||||||||||||||||
Total | 30,124 | 4,763 | 4,305 | 1,171 | 202 | 40,565 | ||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
< 1 year (1) | 3,224 | 11,089 | 293 | 7,093 | — | 21,699 | ||||||||||||||||||
1-2 years | 508 | 692 | 163 | 3,064 | — | 4,427 | ||||||||||||||||||
2-3 years | 312 | 177 | 152 | 1,738 | — | 2,379 | ||||||||||||||||||
> 3 years | 1,636 | 392 | 321 | 3,126 | — | 5,475 | ||||||||||||||||||
Not classified (2) | 297 | — | — | 4 | — | 301 | ||||||||||||||||||
Total | 5,977 | 12,350 | 929 | 15,025 | — | 34,281 | ||||||||||||||||||
2010 | ||||||||||||||||||||||||
Core | ||||||||||||||||||||||||
< 1 year (1) | 7,563 | 2,719 | 1,303 | 448 | 442 | 12,475 | ||||||||||||||||||
1-2 years | 5,154 | 829 | 766 | 223 | 24 | 6,996 | ||||||||||||||||||
2-3 years | 4,698 | 541 | 751 | 221 | — | 6,211 | ||||||||||||||||||
> 3 years | 10,361 | 1,285 | 1,595 | 417 | — | 13,658 | ||||||||||||||||||
Not classified (2) | 2,922 | — | — | — | — | 2,922 | ||||||||||||||||||
Total | 30,698 | 5,374 | 4,415 | 1,309 | 466 | 42,262 | ||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
< 1 year (1) | 4,829 | 10,809 | 501 | 3,887 | — | 20,026 | ||||||||||||||||||
1-2 years | 1,727 | 983 | 109 | 6,178 | — | 8,997 |
2-3 years | 831 | 128 | 218 | 3,967 | — | 5,144 | ||||||||||||||||||
> 3 years | 2,904 | 694 | 567 | 6,253 | — | 10,418 | ||||||||||||||||||
Not classified (2) | 563 | — | — | — | — | 563 | ||||||||||||||||||
Total | 10,854 | 12,614 | 1,395 | 20,285 | — | 45,148 |
Maturity profile of portfolio | UK Corporate | Ulster Bank | US Retail & Commercial | Global Banking & Markets | Total |
£m | £m | £m | £m | £m | |
2011 | |||||
Core | |||||
< 1 year (1) | 8,268 | 3,030 | 1,056 | 142 | 12,496 |
1-2 years | 5,187 | 391 | 638 | 278 | 6,494 |
2-3 years | 3,587 | 117 | 765 | 363 | 4,832 |
> 3 years | 10,871 | 1,225 | 1,846 | 590 | 14,532 |
Not classified (2) | 2,211 | — | — | — | 2,211 |
Total | 30,124 | 4,763 | 4,305 | 1,373 | 40,565 |
Non-Core | |||||
< 1 year (1) | 3,224 | 11,089 | 293 | 7,093 | 21,699 |
1-2 years | 508 | 692 | 163 | 3,064 | 4,427 |
2-3 years | 312 | 177 | 152 | 1,738 | 2,379 |
> 3 years | 1,636 | 392 | 321 | 3,126 | 5,475 |
Not classified (2) | 297 | — | — | 4 | 301 |
Total | 5,977 | 12,350 | 929 | 15,025 | 34,281 |
2010 | |||||
Core | |||||
< 1 year (1) | 7,563 | 2,719 | 1,303 | 890 | 12,475 |
1-2 years | 5,154 | 829 | 766 | 247 | 6,996 |
2-3 years | 4,698 | 541 | 751 | 221 | 6,211 |
> 3 years | 10,361 | 1,285 | 1,595 | 417 | 13,658 |
Not classified (2) | 2,922 | — | — | — | 2,922 |
Total | 30,698 | 5,374 | 4,415 | 1,775 | 42,262 |
Non-Core | |||||
< 1 year (1) | 4,829 | 10,809 | 501 | 3,887 | 20,026 |
1-2 years | 1,727 | 983 | 109 | 6,178 | 8,997 |
2-3 years | 831 | 128 | 218 | 3,967 | 5,144 |
> 3 years | 2,904 | 694 | 567 | 6,253 | 10,418 |
Not classified (2) | 563 | — | — | — | 563 |
Total | 10,854 | 12,614 | 1,395 | 20,285 | 45,148 |
(1) | Includes on demand and past due assets. |
(2) | Predominantly comprises overdrafts and multi-option facilities for which there is no single maturity date. |
· | The overall maturity profile has remained relatively unchanged over the last 12 months. |
· | Non-Core exposure maturing in under 1 year has reduced from £21.7 billion in 2011 to £16.3 billion in 2012. |
· | The majority of Ulster |
AQ1-AQ2 | AQ3-AQ4 | AQ5-AQ6 | AQ7-AQ8 | AQ9 | AQ10 | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m |
Core | 1,094 | 6,714 | 19,054 | 6,254 | 3,111 | 4,338 | 40,565 |
Non-Core | 680 | 1,287 | 5,951 | 3,893 | 2,385 | 20,085 | 34,281 |
Total | 1,774 | 8,001 | 25,005 | 10,147 | 5,496 | 24,423 | 74,846 |
2010 | |||||||
Core | 1,055 | 7,087 | 20,588 | 7,829 | 2,171 | 3,532 | 42,262 |
Non-Core | 1,003 | 2,694 | 11,249 | 7,608 | 4,105 | 18,489 | 45,148 |
Total | 2,058 | 9,781 | 31,837 | 15,437 | 6,276 | 22,021 | 87,410 |
· | Refinancing risk remains a focus of management attention and is assessed throughout the credit risk management lifecycle. |
AQ1-AQ2 | AQ3-AQ4 | AQ5-AQ6 | AQ7-AQ8 | AQ9 | AQ10 | Total | ||||||||||||||||||||||
Portfolio by asset quality (AQ) band | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Core | 767 | 6,011 | 16,592 | 6,575 | 1,283 | 5,382 | 36,610 | |||||||||||||||||||||
Non-Core | 177 | 578 | 3,680 | 3,200 | 1,029 | 17,766 | 26,430 | |||||||||||||||||||||
944 | 6,589 | 20,272 | 9,775 | 2,312 | 23,148 | 63,040 | ||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||
Core | 1,094 | 6,714 | 19,054 | 6,254 | 3,111 | 4,338 | 40,565 | |||||||||||||||||||||
Non-Core | 680 | 1,287 | 5,951 | 3,893 | 2,385 | 20,085 | 34,281 | |||||||||||||||||||||
1,774 | 8,001 | 25,005 | 10,147 | 5,496 | 24,423 | 74,846 | ||||||||||||||||||||||
2010 | ||||||||||||||||||||||||||||
Core | 1,055 | 7,087 | 20,588 | 7,829 | 2,171 | 3,532 | 42,262 | |||||||||||||||||||||
Non-Core | 1,003 | 2,694 | 11,249 | 7,608 | 4,105 | 18,489 | 45,148 | |||||||||||||||||||||
2,058 | 9,781 | 31,837 | 15,437 | 6,276 | 22,021 | 87,410 |
· | There has been an overall decrease in AQ10 during the year with reductions in Non-Core partially offset by increases in Ulster Bank and UK Corporate. The increase in defaulted exposure in UK Corporate is a result of a small number of significant individual cases. The high proportion of the portfolio in the AQ10 band was driven by exposures in Non-Core (Ulster Bank and International Banking) and Core (Ulster Bank). |
· | Of the total portfolio of |
Ulster Bank | Rest of the Group | Group | Ulster Bank | Rest of the Group | Group | |||||||||||||||||||||||||||||||||||||||
LTVs | AQ1-AQ9 £m | AQ10 £m | AQ1-AQ9 £m | AQ10 £m | AQ1-AQ9 £m | AQ10 £m | ||||||||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||||||||||||
Loan-to-value | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | |||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||
<= 50% | 81 | 28 | 7,091 | 332 | 7,172 | 360 | 183 | 24 | 207 | 7,210 | 281 | 7,491 | 7,393 | 305 | 7,698 | |||||||||||||||||||||||||||||
> 50% and <= 70% | 642 | 121 | 14,105 | 984 | 14,747 | 1,105 | 326 | 102 | 428 | 12,161 | 996 | 13,157 | 12,487 | 1,098 | 13,585 | |||||||||||||||||||||||||||||
> 70% and <= 90% | 788 | 293 | 10,042 | 1,191 | 10,830 | 1,484 | 462 | 250 | 712 | 6,438 | 1,042 | 7,480 | 6,900 | 1,292 | 8,192 | |||||||||||||||||||||||||||||
> 90% and <= 100% | 541 | 483 | 2,616 | 1,679 | 3,157 | 2,162 | 466 | 141 | 607 | 1,542 | 2,145 | 3,687 | 2,008 | 2,286 | 4,294 | |||||||||||||||||||||||||||||
> 100% and <= 110% | 261 | 322 | 1,524 | 1,928 | 1,785 | 2,250 | 103 | 596 | 699 | 1,019 | 1,449 | 2,468 | 1,122 | 2,045 | 3,167 | |||||||||||||||||||||||||||||
> 110% and <= 130% | 893 | 1,143 | 698 | 1,039 | 1,591 | 2,182 | 326 | 630 | 956 | 901 | 1,069 | 1,970 | 1,227 | 1,699 | 2,926 | |||||||||||||||||||||||||||||
> 130% | 1,468 | 10,004 | 672 | 2,994 | 2,140 | 12,998 | ||||||||||||||||||||||||||||||||||||||
> 130% and <= 150% | 274 | 878 | 1,152 | 322 | 913 | 1,235 | 596 | 1,791 | 2,387 | |||||||||||||||||||||||||||||||||||
> 150% | 963 | 7,290 | 8,253 | 595 | 1,962 | 2,557 | 1,558 | 9,252 | 10,810 | |||||||||||||||||||||||||||||||||||
Total with LTVs | 4,674 | 12,394 | 36,748 | 10,147 | 41,422 | 22,541 | 3,103 | 9,911 | 13,014 | 30,188 | 9,857 | 40,045 | 33,291 | 19,768 | 53,059 | |||||||||||||||||||||||||||||
Other (1) | 7 | 38 | 8,994 | 1,844 | 9,001 | 1,882 | ||||||||||||||||||||||||||||||||||||||
Minimal security (1) | 7 | 1,461 | 1,468 | 3 | 13 | 16 | 10 | 1,474 | 1,484 | |||||||||||||||||||||||||||||||||||
Other (2) | 97 | 715 | 812 | 6,494 | 1,191 | 7,685 | 6,591 | 1,906 | 8,497 | |||||||||||||||||||||||||||||||||||
Total | 4,681 | 12,432 | 45,742 | 11,991 | 50,423 | 24,423 | 3,207 | 12,087 | 15,294 | 36,685 | 11,061 | 47,746 | 39,892 | 23,148 | 63,040 | |||||||||||||||||||||||||||||
Total portfolio average LTV (2) | 140% | 259% | 69% | 129% | 77% | 201% | ||||||||||||||||||||||||||||||||||||||
Total portfolio average LTV (3) | 131% | 286% | 249% | 65% | 125% | 80% | 71% | 206% | 122% |
2011 | ||||||||||||||||||||||||||||||||||||
<= 50% | 272 | 32 | 304 | 7,091 | 332 | 7,423 | 7,363 | 364 | 7,727 | |||||||||||||||||||||||||||
> 50% and <= 70% | 479 | 127 | 606 | 14,105 | 984 | 15,089 | 14,584 | 1,111 | 15,695 | |||||||||||||||||||||||||||
> 70% and <= 90% | 808 | 332 | 1,140 | 10,042 | 1,191 | 11,233 | 10,850 | 1,523 | 12,373 | |||||||||||||||||||||||||||
> 90% and <= 100% | 438 | 201 | 639 | 2,616 | 1,679 | 4,295 | 3,054 | 1,880 | 4,934 | |||||||||||||||||||||||||||
> 100% and <= 110% | 474 | 390 | 864 | 1,524 | 1,928 | 3,452 | 1,998 | 2,318 | 4,316 | |||||||||||||||||||||||||||
> 110% and <= 130% | 527 | 1,101 | 1,628 | 698 | 1,039 | 1,737 | 1,225 | 2,140 | 3,365 | |||||||||||||||||||||||||||
> 130% and <= 150% | 506 | 1,066 | 1,572 | 239 | 912 | 1,151 | 745 | 1,978 | 2,723 | |||||||||||||||||||||||||||
> 150% | 912 | 7,472 | 8,384 | 433 | 2,082 | 2,515 | 1,345 | 9,554 | 10,899 | |||||||||||||||||||||||||||
Total with LTVs | 4,416 | 10,721 | 15,137 | 36,748 | 10,147 | 46,895 | 41,164 | 20,868 | 62,032 | |||||||||||||||||||||||||||
Minimal security (1) | 72 | 1,086 | 1,158 | — | — | — | 72 | 1,086 | 1,158 | |||||||||||||||||||||||||||
Other (2) | 193 | 625 | 818 | 8,994 | 1,844 | 10,838 | 9,187 | 2,469 | 11,656 | |||||||||||||||||||||||||||
Total | 4,681 | 12,432 | 17,113 | 45,742 | 11,991 | 57,733 | 50,423 | 24,423 | 74,846 | |||||||||||||||||||||||||||
Total portfolio average LTV (3) | 120% | 264% | 222% | 69% | 129% | 82% | 75% | 203% | 116% |
(1) | In 2012, the Group reclassified loans with limited or non-physical security (defined as LTV>1,000%) as minimal security, for which a majority are commercial real estate development loans in Ulster Bank. Total portfolio average LTV is quoted net of loans with minimal security given that the anticipated recovery rate is less than 10%. Provisions are marked against these loans where required to reflect asset quality and recovery profile. 2011 presentation has been revised. |
(2) | Other performing loans of |
Weighted average by exposure. |
· |
· | The average interest coverage ratios organisations. |
Personal credit loans and receivables | 2011 £m | 2010 £m | 2009 £m |
UK Retail | |||
- mortgages | 96,388 | 92,592 | 85,529 |
- cards, loans and overdrafts | 16,004 | 18,072 | 20,316 |
Ulster Bank | |||
- mortgages | 20,020 | 21,162 | 22,304 |
- other personal | 1,533 | 1,017 | 1,172 |
Citizens | |||
- mortgages | 23,829 | 24,575 | 26,534 |
- auto and cards | 5,731 | 6,062 | 6,917 |
- other (1) | 2,111 | 3,455 | 4,205 |
Other (2) | 17,545 | 18,123 | 16,827 |
183,161 | 185,058 | 183,804 |
2012 | 2011 | 2010 | ||||||||||
£m | £m | £m | ||||||||||
UK Retail | 99,062 | 96,388 | 92,592 | |||||||||
Ulster Bank | 19,162 | 20,020 | 21,162 | |||||||||
RBS Citizens (1) | 21,538 | 24,153 | 25,028 | |||||||||
139,762 | 140,561 | 138,782 |
(1) | 2011 and 2010 have been revised to include the legacy serviced by others portfolio. |
UK Retail | Ulster Bank | RBS Citizens (1) | ||||||||||||||||||||||||||||||||||
Loan-to-value | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | |||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
<= 50% | 22,306 | 327 | 22,633 | 2,182 | 274 | 2,456 | 4,167 | 51 | 4,218 | |||||||||||||||||||||||||||
> 50% and <= 70% | 27,408 | 457 | 27,865 | 1,635 | 197 | 1,832 | 4,806 | 76 | 4,882 | |||||||||||||||||||||||||||
> 70% and <= 90% | 34,002 | 767 | 34,769 | 2,019 | 294 | 2,313 | 6,461 | 114 | 6,575 | |||||||||||||||||||||||||||
> 90% and <= 100% | 7,073 | 366 | 7,439 | 1,119 | 156 | 1,275 | 2,011 | 57 | 2,068 | |||||||||||||||||||||||||||
> 100% and <= 110% | 3,301 | 290 | 3,591 | 1,239 | 174 | 1,413 | 1,280 | 43 | 1,323 | |||||||||||||||||||||||||||
> 110% and <= 130% | 1,919 | 239 | 2,158 | 2,412 | 397 | 2,809 | 1,263 | 42 | 1,305 | |||||||||||||||||||||||||||
> 130% and <= 150% | 83 | 26 | 109 | 2,144 | 474 | 2,618 | 463 | 14 | 477 | |||||||||||||||||||||||||||
> 150% | — | — | — | 3,156 | 1,290 | 4,446 | 365 | 14 | 379 | |||||||||||||||||||||||||||
Total with LTVs | 96,092 | 2,472 | 98,564 | 15,906 | 3,256 | 19,162 | 20,816 | 411 | 21,227 | |||||||||||||||||||||||||||
Other (2) | 486 | 12 | 498 | — | — | — | 292 | 19 | 311 | |||||||||||||||||||||||||||
Total | 96,578 | 2,484 | 99,062 | 15,906 | 3,256 | 19,162 | 21,108 | 430 | 21,538 | |||||||||||||||||||||||||||
Total portfolio average LTV (3) | 66% | 80% | 67% | 108% | 132% | 112% | 75% | 86% | 75% | |||||||||||||||||||||||||||
Average LTV on new originations during the year | 65% | 74% | 64% | |||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||||
<= 50% | 21,537 | 285 | 21,822 | 2,568 | 222 | 2,790 | 4,745 | 49 | 4,794 | |||||||||||||||||||||||||||
> 50% and <= 70% | 25,598 | 390 | 25,988 | 1,877 | 157 | 2,034 | 4,713 | 78 | 4,791 | |||||||||||||||||||||||||||
> 70% and <= 90% | 33,738 | 671 | 34,409 | 2,280 | 223 | 2,503 | 6,893 | 125 | 7,018 | |||||||||||||||||||||||||||
> 90% and <= 100% | 7,365 | 343 | 7,708 | 1,377 | 128 | 1,505 | 2,352 | 66 | 2,418 | |||||||||||||||||||||||||||
> 100% and <= 110% | 3,817 | 276 | 4,093 | 1,462 | 130 | 1,592 | 1,517 | 53 | 1,570 | |||||||||||||||||||||||||||
> 110% and <= 130% | 1,514 | 199 | 1,713 | 2,752 | 322 | 3,074 | 1,536 | 53 | 1,589 | |||||||||||||||||||||||||||
> 130% and <= 150% | 60 | 15 | 75 | 2,607 | 369 | 2,976 | 626 | 28 | 654 | |||||||||||||||||||||||||||
> 150% | — | — | — | 2,798 | 748 | 3,546 | 588 | 27 | 615 | |||||||||||||||||||||||||||
Total with LTVs | 93,629 | 2,179 | 95,808 | 17,721 | 2,299 | 20,020 | 22,970 | 479 | 23,449 | |||||||||||||||||||||||||||
Other (2) | 567 | 13 | 580 | — | — | — | 681 | 23 | 704 | |||||||||||||||||||||||||||
Total | 94,196 | 2,192 | 96,388 | 17,721 | 2,299 | 20,020 | 23,651 | 502 | 24,153 | |||||||||||||||||||||||||||
Total portfolio average LTV (3) | 67% | 80% | 67% | 104% | 125% | 106% | 76% | 91% | 77% | |||||||||||||||||||||||||||
Average LTV on new originations during the year | 63% | 74% | 63% |
UK Retail | Ulster Bank | RBS Citizens (1) | |||||||||
2010 | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | Performing £m | Non-performing £m | Total £m | ||
<= 50% | 19,568 | 246 | 19,814 | 3,385 | 186 | 3,571 | 5,193 | 45 | 5,238 | ||
> 50% and <= 70% | 24,363 | 345 | 24,708 | 2,534 | 152 | 2,686 | 4,902 | 79 | 4,981 | ||
> 70% and <= 90% | 31,711 | 588 | 32,299 | 3,113 | 179 | 3,292 | 7,029 | 137 | 7,166 | ||
> 90% and <= 100% | 7,998 | 319 | 8,317 | 1,958 | 121 | 2,079 | 2,459 | 67 | 2,526 | ||
> 100% and <= 110% | 4,083 | 260 | 4,343 | 2,049 | 137 | 2,186 | 1,534 | 53 | 1,587 | ||
> 110% and <= 130% | 1,722 | 202 | 1,924 | 4,033 | 358 | 4,391 | 1,425 | 61 | 1,486 | ||
> 130% and <= 150% | 57 | 16 | 73 | 2,174 | 297 | 2,471 | 599 | 28 | 627 | ||
> 150% | — | — | — | 355 | 131 | 486 | 589 | 36 | 625 | ||
Total with LTVs | 89,502 | 1,976 | 91,478 | 19,601 | 1,561 | 21,162 | 23,730 | 506 | 24,236 | ||
Other (2) | 1,090 | 24 | 1,114 | — | — | — | 762 | 30 | 792 | ||
Total | 90,592 | 2,000 | 92,592 | 19,601 | 1,561 | 21,162 | 24,492 | 536 | 25,028 | ||
Total portfolio average LTV (3) | 68% | 81% | 68% | 91% | 106% | 92% | 75% | 94% | 76% | ||
Average LTV on new originations during the year | 68% | 79% | 66% |
(1) |
(2) | Where no indexed LTV is held. |
(3) | Average LTV weighted by value is arrived at by calculating the LTV on each individual mortgage and applying a weighting based on the value of each mortgage. |
(4) | Excludes mortgage lending in |
UK Retail | Citizens | ||||||
LTV distribution calculated on a volume basis | 2011 % | 2010 % | 2009 % | 2011 % | 2010 % | 2009 % | |
<= 70% | 62.1 | 61.6 | 60.2 | 43.5 | 43.4 | 43.6 | |
> 70% and <= 90% | 27.1 | 26.2 | 24.5 | 26.9 | 27.6 | 26.8 | |
> 90% and <= 110% | 9.4 | 10.4 | 12.5 | 16.7 | 17.2 | 18.0 | |
> 110% and <= 130% | 1.4 | 1.7 | 2.7 | 6.9 | 6.0 | 5.4 | |
> 130% | — | 0.1 | 0.1 | 6.0 | 5.8 | 6.2 | |
Total portfolio average LTV at 31 December | 57.8 | 58.2 | 59.1 | 73.8 | 75.3 | 74.5 | |
Average LTV on new originations during the year | 58.4 | 64.2 | 67.2 | 63.8 | 64.8 | 62.6 |
LTV distribution calculated on a value basis | 2011 £m | 2010 £m | 2009 £m | 2011 £m | 2010 £m | 2009 £m | |
<= 70% | 47,811 | 44,522 | 37,666 | 9,669 | 10,375 | 11,675 | |
> 70% and <= 90% | 34,410 | 32,299 | 28,280 | 7,011 | 7,196 | 7,440 | |
> 90% and <= 110% | 11,800 | 12,660 | 15,112 | 3,947 | 4,080 | 4,569 | |
> 110% and <= 130% | 1,713 | 1,924 | 3,104 | 1,580 | 1,488 | 1,486 | |
> 130% | 74 | 73 | 86 | 1,263 | 1,252 | 1,540 | |
Total portfolio average LTV at 31 December | 67.2% | 68.1% | 70.4% | 75.9% | 75.4% | 74.7% | |
Average LTV on new originations during the year | 63.0% | 68.0% | 70.3% | 65.8% | 65.3% | 64.4% |
Residential mortgages which are three months or more in arrears (by volume) | 2011 % | 2010 % | 2009 % |
UK Retail (1) | 1.6 | 1.7 | 1.6 |
Citizens | 2.0 | 1.4 | 1.5 |
· | The UK Retail mortgage portfolio totalled |
· |
The assets are prime mortgages and include |
· | UK Retail’s mortgage business is subject to prudent underwriting standards. These include an affordability test using a stressed interest rate, credit scoring with different pass marks depending on LTV as well as a range of specific criteria, for example, LTV thresholds. Changes over the last few years include: a reduction in maximum LTV for prime residential mortgage lending from 100% to 95% in the first quarter of 2008 and from 95% to 90% in the third quarter of 2008 and a tightening of credit scoring pass marks: credit score thresholds were increased in the third quarter of 2009 and again in the third quarter of 2010. In the first quarter of 2011, new scorecards were introduced alongside a further tightening of thresholds, these were tightened still further in the second quarter of 2012. |
· | Gross new mortgage lending |
· | The maximum LTV available to new customers |
· | Based on the Halifax Price Index at September 2012, the portfolio average indexed LTV by weighted value of debt outstanding was 66.8% (2011 - 67.2%) and 58.1% by volume (2011 - 57.8%). The ratio of total outstanding balances to total indexed property valuations is 48.5% (2011 - 48.4%). |
· | The arrears rate (more than three payments in arrears, excluding repossessions and shortfalls post property sale) |
at 31 December 2011. The number of properties repossessed in |
· | The mortgage impairment charge was £92 million for 2012 compared with £182 million in 2011 primarily due to lower loss rate adjustments on the non-performing back book, and a stable underlying rate of defaults. |
· | 25.6% of the residential owner occupied UK Retail mortgage book is on interest only terms down from 27.3% in 2011. A further 9.1% are on mixed repayments split between a combination of interest only and capital repayments (2011 - 9.6%). UK Retail withdrew interest only repayment products from sale to residential owner occupied customers with effect from 1 December 2012. Interest only repayment remains an option on buy-to-let mortgages. At 1.6%, the percentage of accounts more than 3 payments in arrears was similar to the 1.4% observed on capital repayment mortgages. |
· | Ulster Bank’s residential mortgage portfolio totalled £19.2 billion at 31 December 2012, with 88% in the Republic of Ireland and 12% in Northern Ireland. At constant exchange rates, the portfolio decreased 2% from 31 December 2011 as a result of natural amortisation and limited growth due to low market demand. |
· | The assets include £2.3 billion of exposure (12%) of residential buy-to-let loans. The interest rate product mix is approximately 91% on a variable rate product (including tracker products) and 9% on a fixed rate. |
· | 16% of the total portfolio is on interest only which reflects legacy policy and is no longer available to residential mortgage customers on a permanent basis. Interest only is permitted on a temporary basis under the suite of forbearance treatments available within Ulster Bank (refer to page 137 for further information). Interest only repayment remains an option for private customers within Northern Ireland on an exception basis. |
· | Average LTVs increased from 31 December 2011 to 31 December 2012, on a value basis, as a result of decreases in the Central Statistics Office house price index (4%) impacting the Ulster Bank portfolio. The average of individual LTV on new originations was stable in 2012 at 74% (weighted by value of lending) and 69.4% by volume (2011 - 67.3%). The volume of business remains very low. The maximum LTV available to Ulster Bank customers is 90% with the exception of a specific Northern Ireland scheme which permits LTVs of up to 95%, in which Ulster Bank’s exposure is capped at 85% LTV. |
· | Refer to the Ulster Bank Group (Core and Non-Core) section on page 151 for commentary on mortgage REIL and repossessions. |
· | RBS Citizens’ mortgage portfolio totalled £21.5 billion at 31 December 2012, a reduction of 11% from 2011 (£24.2 billion). The Core business comprises 89% of the portfolio. |
· | The |
· |
· |
The Non-Core portfolio comprises |
· | The current weighted average LTV of the mortgage portfolio decreased from 77% at 31 December 2011 to 75% at 31 December 2012, driven by increases in the Case-Shiller home price index from the third quarter of 2011 to the third quarter of 2012. The current weighted average LTV of the mortgage portfolio, excluding SBO, is 71%. |
2011 | 2010 | 2009 | ||||||
Personal lending | Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | ||
UK Retail cards (1) | 5,675 | 3.0 | 6,025 | 5.0 | 6,101 | 8.7 | ||
UK Retail loans (1) | 7,755 | 2.8 | 9,863 | 4.8 | 12,062 | 5.9 | ||
Citizens cards (2) | 936 | 5.1 | 1,005 | 9.9 | 1,145 | 9.7 | ||
Citizens auto loans (2) | 4,856 | 0.2 | 5,256 | 0.6 | 6,306 | 1.2 |
2012 | 2011 | 2010 | ||||||
Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | Average loans and receivables £m | Impairment charge as a % of average loans and receivables % | |||
UK Retail cards (1) | 5,624 | 2.3 | 5,675 | 3.0 | 6,025 | 5.0 | ||
UK Retail loans (1) | 6,513 | 2.5 | 7,755 | 2.8 | 9,863 | 4.8 | ||
RBS Citizens cards (2) | 916 | 3.8 | 936 | 5.1 | 1,005 | 9.9 | ||
RBS Citizens auto loans (2) | 5,289 | 0.1 | 4,856 | 0.2 | 5,256 | 0.6 |
(1) | The ratio for UK Retail assets refers to the impairment |
(2) | The ratio for RBS Citizens refers to the impairment |
· | The UK personal lending portfolio, |
· | The decrease in portfolio size of |
· | The |
Impairments remain sensitive to the external environment, including unemployment levels and interest rates. |
· | Industry benchmarks for cards arrears remain stable, with the Group continuing to perform favourably. |
· |
· | RBS Citizens' auto loan portfolio totalled |
Credit metrics | ||||||||||||||||||||||||||||||||
Sector analysis | Gross loans | REIL | Provisions | REIL as a % of gross loans | Provisions as a % of REIL | Provisions as a % of gross loans | Impairment charge | Amounts written-off | ||||||||||||||||||||||||
£m | £m | £m | % | % | % | £m | £m | |||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Core | ||||||||||||||||||||||||||||||||
Mortgages | 19,162 | 3,147 | 1,525 | 16.4 | 48 | 8.0 | 646 | 22 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 3,575 | 1,551 | 593 | 43.4 | 38 | 16.6 | 221 | — | ||||||||||||||||||||||||
- development | 729 | 369 | 197 | 50.6 | 53 | 27.0 | 55 | 2 | ||||||||||||||||||||||||
Other corporate | 7,772 | 2,259 | 1,394 | 29.1 | 62 | 17.9 | 389 | 15 | ||||||||||||||||||||||||
Other lending | 1,414 | 207 | 201 | 14.6 | 97 | 14.2 | 53 | 33 | ||||||||||||||||||||||||
32,652 | 7,533 | 3,910 | 23.1 | 52 | 12.0 | 1,364 | 72 | |||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 3,383 | 2,800 | 1,433 | 82.8 | 51 | 42.4 | 288 | 15 | ||||||||||||||||||||||||
- development | 7,607 | 7,286 | 4,720 | 95.8 | 65 | 62.0 | 611 | 103 | ||||||||||||||||||||||||
Other corporate | 1,570 | 1,230 | 711 | 78.3 | 58 | 45.3 | 77 | 23 | ||||||||||||||||||||||||
12,560 | 11,316 | 6,864 | 90.1 | 61 | 54.6 | 976 | 141 | |||||||||||||||||||||||||
Ulster Bank Group | ||||||||||||||||||||||||||||||||
Mortgages | 19,162 | 3,147 | 1,525 | 16.4 | 48 | 8.0 | 646 | 22 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 6,958 | 4,351 | 2,026 | 62.5 | 47 | 29.1 | 509 | 15 | ||||||||||||||||||||||||
- development | 8,336 | 7,655 | 4,917 | 91.8 | 64 | 59.0 | 666 | 105 | ||||||||||||||||||||||||
Other corporate | 9,342 | 3,489 | 2,105 | 37.3 | 60 | 22.5 | 466 | 38 |
Other lending | 1,414 | 207 | 201 | 14.6 | 97 | 14.2 | 53 | 33 | ||||||||||||||||||||||||
45,212 | 18,849 | 10,774 | 41.7 | 57 | 23.8 | 2,340 | 213 |
Gross loans | REIL | Provisions | REIL as a % of gross loans | Provisions as a % of REIL | Provisions as a % of gross loans | Impairment charge | Amounts written-off | |
2011 | £m | £m | £m | % | % | % | £m | £m |
Core | ||||||||
Mortgages | 20,020 | 2,184 | 945 | 10.9 | 43 | 4.7 | 570 | 11 |
Personal unsecured | 1,533 | 201 | 184 | 13.1 | 92 | 12.0 | 56 | 25 |
Commercial real estate | ||||||||
- investment | 3,882 | 1,014 | 413 | 26.1 | 41 | 10.6 | 225 | — |
- development | 881 | 290 | 145 | 32.9 | 50 | 16.5 | 99 | 16 |
Other corporate | 7,736 | 1,834 | 1,062 | 23.7 | 58 | 13.7 | 434 | 72 |
34,052 | 5,523 | 2,749 | 16.2 | 50 | 8.1 | 1,384 | 124 | |
Non-Core | ||||||||
Commercial real estate | ||||||||
- investment | 3,860 | 2,916 | 1,364 | 75.5 | 47 | 35.3 | 609 | 1 |
- development | 8,490 | 7,536 | 4,295 | 88.8 | 57 | 50.6 | 1,551 | 32 |
Other corporate | 1,630 | 1,159 | 642 | 71.1 | 55 | 39.4 | 173 | 16 |
13,980 | 11,611 | 6,301 | 83.1 | 54 | 45.1 | 2,333 | 49 | |
Ulster Bank Group | ||||||||
Mortgages | 20,020 | 2,184 | 945 | 10.9 | 43 | 4.7 | 570 | 11 |
Personal unsecured | 1,533 | 201 | 184 | 13.1 | 92 | 12.0 | 56 | 25 |
Commercial real estate | ||||||||
- investment | 7,742 | 3,930 | 1,777 | 50.8 | 45 | 23.0 | 834 | 1 |
- development | 9,371 | 7,826 | 4,440 | 83.5 | 57 | 47.4 | 1,650 | 48 |
Other corporate | 9,366 | 2,993 | 1,704 | 32.0 | 57 | 18.2 | 607 | 88 |
48,032 | 17,134 | 9,050 | 35.7 | 53 | 18.8 | 3,717 | 173 |
Gross loans | REIL | Provisions | REIL as a % of gross loans | Provisions as a % of REIL | Provisions as a % of gross loans | Impairment charge | Amounts written-off | |
2010 | £m | £m | £m | % | % | % | £m | £m |
Core | ||||||||
Mortgages | 21,162 | 1,566 | 439 | 7.4 | 28 | 2.1 | 294 | 7 |
Personal unsecured | 1,282 | 185 | 158 | 14.4 | 85 | 12.3 | 48 | 30 |
Commercial real estate | ||||||||
- investment | 4,284 | 598 | 332 | 14.0 | 56 | 7.7 | 259 | — |
- development | 1,090 | 65 | 37 | 6.0 | 57 | 3.4 | 116 | — |
Other corporate | 9,039 | 1,205 | 667 | 13.3 | 55 | 7.4 | 444 | 11 |
36,857 | 3,619 | 1,633 | 9.8 | 45 | 4.4 | 1,161 | 48 | |
Non-Core | ||||||||
Mortgages | — | — | — | — | — | — | 42 | — |
Commercial real estate | ||||||||
- investment | 3,854 | 2,391 | 1,000 | 62.0 | 42 | 25.9 | 630 | — |
- development | 8,760 | 6,341 | 2,783 | 72.4 | 44 | 31.8 | 1,759 | — |
Other corporate | 1,970 | 1,310 | 561 | 66.5 | 43 | 28.5 | 251 | — |
14,584 | 10,042 | 4,344 | 68.9 | 43 | 29.8 | 2,682 | — | |
Ulster Bank Group | ||||||||
Mortgages | 21,162 | 1,566 | 439 | 7.4 | 28 | 2.1 | 336 | 7 |
Personal unsecured | 1,282 | 185 | 158 | 14.4 | 85 | 12.3 | 48 | 30 |
Commercial real estate | ||||||||
- investment | 8,138 | 2,989 | 1,332 | 36.7 | 45 | 16.4 | 889 | — |
- development | 9,850 | 6,406 | 2,820 | 65.0 | 44 | 28.6 | 1,875 | — |
Other corporate | 11,009 | 2,515 | 1,228 | 22.8 | 49 | 11.2 | 695 | 11 |
51,441 | 13,661 | 5,977 | 26.6 | 44 | 11.6 | 3,843 | 48 |
2009 | ||||||||
Core | ||||||||
Mortgages | 16,199 | 558 | 102 | 3.4 | 18 | 0.6 | 74 | 3 |
Personal unsecured | 2,433 | 174 | 145 | 7.2 | 83 | 6.0 | 66 | 27 |
Commercial real estate | ||||||||
- investment | 6,131 | 250 | 105 | 4.1 | 42 | 1.7 | 84 | — |
- development | 3,838 | 428 | 284 | 11.2 | 66 | 7.4 | 221 | 4 |
Other corporate | 11,106 | 850 | 326 | 7.7 | 38 | 2.9 | 204 | — |
39,707 | 2,260 | 962 | 5.7 | 43 | 2.4 | 649 | 34 | |
Non-Core | ||||||||
Mortgages | 6,002 | 324 | 51 | 5.4 | 16 | 0.8 | 42 | — |
Commercial real estate | ||||||||
- investment | 2,061 | 1,498 | 308 | 72.7 | 21 | 14.9 | 286 | — |
- development | 6,271 | 3,840 | 822 | 61.2 | 21 | 13.1 | 732 | — |
Other corporate | 1,373 | 1,126 | 322 | 82.0 | 29 | 23.5 | 217 | — |
15,707 | 6,788 | 1,503 | 43.2 | 22 | 9.6 | 1,277 | — | |
Ulster Bank Group | ||||||||
Mortgages | 22,201 | 882 | 153 | 4.0 | 17 | 0.7 | 116 | 3 |
Personal unsecured | 2,433 | 174 | 145 | 7.2 | 83 | 6.0 | 66 | 27 |
Commercial real estate | ||||||||
- investment | 8,192 | 1,748 | 413 | 21.3 | 24 | 5.0 | 370 | — |
- development | 10,109 | 4,268 | 1,106 | 42.2 | 26 | 10.9 | 953 | 4 |
Other corporate | 12,479 | 1,976 | 648 | 15.8 | 33 | 5.2 | 421 | — |
55,414 | 9,048 | 2,465 | 16.3 | 27 | 4.4 | 1,926 | 34 |
Credit metrics | ||||||||||||||||||||||||||||||||
Sector analysis | Gross loans | REIL | Provisions | REIL as a % of gross loans | Provisions as a % of REIL | Provisions as a % of gross loans | Impairment charge | Amounts written-off | ||||||||||||||||||||||||
£m | £m | £m | % | % | % | £m | £m | |||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||
Core | ||||||||||||||||||||||||||||||||
Mortgages | 20,020 | 2,184 | 945 | 10.9 | 43 | 4.7 | 570 | 11 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 3,882 | 1,014 | 413 | 26.1 | 41 | 10.6 | 225 | — | ||||||||||||||||||||||||
- development | 881 | 290 | 145 | 32.9 | 50 | 16.5 | 99 | 16 | ||||||||||||||||||||||||
Other corporate | 7,736 | 1,834 | 1,062 | 23.7 | 58 | 13.7 | 434 | 72 | ||||||||||||||||||||||||
Other lending | 1,533 | 201 | 184 | 13.1 | 92 | 12.0 | 56 | 25 | ||||||||||||||||||||||||
34,052 | 5,523 | 2,749 | 16.2 | 50 | 8.1 | 1,384 | 124 | |||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 3,860 | 2,916 | 1,364 | 75.5 | 47 | 35.3 | 609 | 1 | ||||||||||||||||||||||||
- development | 8,490 | 7,536 | 4,295 | 88.8 | 57 | 50.6 | 1,551 | 32 | ||||||||||||||||||||||||
Other corporate | 1,630 | 1,159 | 642 | 71.1 | 55 | 39.4 | 173 | 16 | ||||||||||||||||||||||||
13,980 | 11,611 | 6,301 | 83.1 | 54 | 45.1 | 2,333 | 49 | |||||||||||||||||||||||||
Ulster Bank Group | ||||||||||||||||||||||||||||||||
Mortgages | 20,020 | 2,184 | 945 | 10.9 | 43 | 4.7 | 570 | 11 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 7,742 | 3,930 | 1,777 | 50.8 | 45 | 23.0 | 834 | 1 | ||||||||||||||||||||||||
- development | 9,371 | 7,826 | 4,440 | 83.5 | 57 | 47.4 | 1,650 | 48 | ||||||||||||||||||||||||
Other corporate | 9,366 | 2,993 | 1,704 | 32.0 | 57 | 18.2 | 607 | 88 | ||||||||||||||||||||||||
Other lending | 1,533 | 201 | 184 | 13.1 | 92 | 12.0 | 56 | 25 | ||||||||||||||||||||||||
48,032 | 17,134 | 9,050 | 35.7 | 53 | 18.8 | 3,717 | 173 |
2010 | ||||||||||||||||||||||||||||||||
Core | ||||||||||||||||||||||||||||||||
Mortgages | 21,162 | 1,566 | 439 | 7.4 | 28 | 2.1 | 294 | 7 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 4,284 | 598 | 332 | 14.0 | 56 | 7.7 | 259 | — | ||||||||||||||||||||||||
- development | 1,090 | 65 | 37 | 6.0 | 57 | 3.4 | 116 | — | ||||||||||||||||||||||||
Other corporate | 9,039 | 1,205 | 667 | 13.3 | 55 | 7.4 | 444 | 11 | ||||||||||||||||||||||||
Other lending | 1,282 | 185 | 158 | 14.4 | 85 | 12.3 | 48 | 30 | ||||||||||||||||||||||||
36,857 | 3,619 | 1,633 | 9.8 | 45 | 4.4 | 1,161 | 48 | |||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||||||||||
Mortgages | — | — | — | — | — | — | 42 | — | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 3,854 | 2,391 | 1,000 | 62.0 | 42 | 25.9 | 630 | — | ||||||||||||||||||||||||
- development | 8,760 | 6,341 | 2,783 | 72.4 | 44 | 31.8 | 1,759 | — | ||||||||||||||||||||||||
Other corporate | 1,970 | 1,310 | 561 | 66.5 | 43 | 28.5 | 251 | — | ||||||||||||||||||||||||
14,584 | 10,042 | 4,344 | 68.9 | 43 | 29.8 | 2,682 | — |
Ulster Bank Group | ||||||||||||||||||||||||||||||||
Mortgages | 21,162 | 1,566 | 439 | 7.4 | 28 | 2.1 | 336 | 7 | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
- investment | 8,138 | 2,989 | 1,332 | 36.7 | 45 | 16.4 | 889 | — | ||||||||||||||||||||||||
- development | 9,850 | 6,406 | 2,820 | 65.0 | 44 | 28.6 | 1,875 | — | ||||||||||||||||||||||||
Other corporate | 11,009 | 2,515 | 1,228 | 22.8 | 49 | 11.2 | 695 | 11 | ||||||||||||||||||||||||
Other lending | 1,282 | 185 | 158 | 14.4 | 85 | 12.3 | 48 | 30 | ||||||||||||||||||||||||
51,441 | 13,661 | 5,977 | 26.6 | 44 | 11.6 | 3,843 | 48 |
· | Core REIL increased by |
· | Core mortgage REIL accounted for £1.0 billion of the overall increase, the trend reflecting continued deterioration of macroeconomic factors. However, the number of properties repossessed in 2012 was 127 (81 on a voluntary basis) compared with 161 (123 on a voluntary basis) in 2011. |
· | Core corporate REIL accounted for £1.0 billion of the overall increase, the movement driven by a small number of renegotiated arrangements for higher value real estate customers. |
· | Core coverage increased from 50% to 52% as a result of additional impairment charges on the non-performing book due to further deterioration in collateral values. Core coverage is diluted due to the increased REIL relating to corporate renegotiations with lower provision requirements. Adjusting for these cases Core coverage would be 56%. |
· | Non-Core REIL decreased by £0.3 billion reflecting lower defaults as well as recoveries and write-offs of £0.2 billion. |
· | At 31 December |
LTV distribution calculated on a volume basis* | 2011 % | 2010 % | 2009 % |
<= 70% | 45.0 | 50.3 | 59.2 |
> 70% and <= 90% | 11.4 | 13.0 | 12.0 |
> 90% and <= 110% | 12.0 | 14.5 | 13.4 |
> 110% and <= 130% | 10.9 | 13.5 | 11.3 |
> 130% | 20.7 | 8.7 | 4.1 |
Total portfolio average LTV at 31 December | 81.0 | 71.2 | 62.5 |
Average LTV on new originations during the year | 67.0 | 75.9 | 72.8 |
LTV distribution calculated on a value basis | 2011 £m | 2010 £m | 2009 £m |
<= 70% | 4,526 | 5,928 | 7,393 |
> 70% and <= 90% | 2,501 | 3,291 | 3,830 |
> 90% and <= 110% | 3,086 | 4,256 | 4,907 |
> 110% and <= 130% | 3,072 | 4,391 | 4,491 |
> 130% | 6,517 | 2,958 | 1,681 |
Total portfolio average LTV at 31 December | 106.1% | 91.7% | 86.2% |
Average LTV on new originations during the year | 73.9% | 78.9% | 78.5% |
Investment | Development | |||||||||||||||||||
Exposure by geography | Commercial £m | Residential £m | Commercial £m | Residential £m | Total £m | |||||||||||||||
2012 | ||||||||||||||||||||
ROI | 3,546 | 779 | 1,603 | 3,653 | 9,581 | |||||||||||||||
NI | 1,083 | 210 | 631 | 2,059 | 3,983 | |||||||||||||||
UK (excluding NI) | 1,239 | 86 | 82 | 290 | 1,697 | |||||||||||||||
RoW | 14 | 1 | 8 | 10 | 33 | |||||||||||||||
5,882 | 1,076 | 2,324 | 6,012 | 15,294 | ||||||||||||||||
2011 | ||||||||||||||||||||
ROI | 3,775 | 853 | 1,911 | 4,095 | 10,634 | |||||||||||||||
NI | 1,322 | 279 | 680 | 2,222 | 4,503 | |||||||||||||||
UK (excluding NI) | 1,371 | 111 | 95 | 336 | 1,913 | |||||||||||||||
RoW | 27 | 4 | — | 32 | 63 | |||||||||||||||
6,495 | 1,247 | 2,686 | 6,685 | 17,113 | ||||||||||||||||
2010 | ||||||||||||||||||||
Ireland (ROI and NI) | 5,032 | 1,098 | 2,785 | 6,578 | 15,493 | |||||||||||||||
UK (excluding NI) | 1,869 | 115 | 110 | 359 | 2,453 | |||||||||||||||
RoW | 23 | 1 | — | 18 | 42 | |||||||||||||||
6,924 | 1,214 | 2,895 | 6,955 | 17,988 |
Development | Investment | |||||
Commercial £m | Residential £m | Commercial £m | Residential £m | Total £m | ||
Exposure by geography | ||||||
2011 | ||||||
Ireland (ROI & NI) | 2,591 | 6,317 | 5,097 | 1,132 | 15,137 | |
UK (excluding NI) | 95 | 336 | 1,371 | 111 | 1,913 | |
RoW | — | 32 | 27 | 4 | 63 | |
2,686 | 6,685 | 6,495 | 1,247 | 17,113 | ||
2010 | ||||||
Ireland (ROI & NI) | 2,785 | 6,578 | 5,032 | 1,098 | 15,493 | |
UK (excluding NI) | 110 | 359 | 1,869 | 115 | 2,453 | |
RoW | — | 18 | 23 | 1 | 42 | |
2,895 | 6,955 | 6,924 | 1,214 | 17,988 |
2009 | ||||||
Ireland (ROI & NI) | 3,075 | 5,961 | 5,314 | 1,031 | 15,381 | |
UK (excluding NI) | 217 | 849 | 1,692 | 132 | 2,890 | |
RoW | — | 7 | 20 | 3 | 30 | |
3,292 | 6,817 | 7,026 | 1,166 | 18,301 |
· | Commercial real estate |
· | The outlook for the property sector remains |
· |
2012 | 2011 | |||||||
£m | £m | |||||||
ROI | 16,873 | 17,767 | ||||||
NI | 2,289 | 2,253 | ||||||
19,162 | 20,020 |
Balance sheet analysis | |
154 | Financial assets |
154 | - Exposure summary |
155 | - Sector and geographic concentration |
164 | Asset quality |
168 | Debt securities |
168 | IFRS measurement classification and issuer |
169 | Ratings |
172 | - Asset-backed securities |
172 | Introduction |
173 | Product, geography and IFRS measurement classification |
176 | Ratings |
177 | Equity shares |
179 | Derivatives |
179 | Summary |
180 | Credit derivatives |
181 | Monoline insurers |
182 | Credit derivative product companies (CDPCs) |
183 | REIL, provisions and AFS reserves |
183 | Divisional analysis |
185 | Sector and geographical regional analyses |
194 | Provisions and AFS reserves methodology |
194 | REIL flow statement |
195 | REIL and PPLs summary |
195 | Past due analysis |
195 | Impairment provisions flow statement |
198 | Impairment charge analysis |
199 | AFS reserves |
200 | AFS gross unrealised losses |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Central and local government | 2,247 | 8,359 | 1,383 | 9,742 | 126,604 | 328 | 126,932 | 5,541 | 641 | 145,103 | 1,098 | 144,005 | |||
Finance - banks | 39,345 | 43,374 | 619 | 43,993 | 16,940 | — | 16,940 | — | 79,269 | 179,547 | 18,693 | 160,854 | |||
- other (3) | 58,478 | 46,452 | 3,229 | 49,681 | 60,453 | 5,618 | 66,071 | 497,993 | 7,437 | 679,660 | 508,481 | 171,179 | |||
Residential mortgages | — | 138,509 | 5,102 | 143,611 | — | — | — | 48 | — | 143,659 | — | 143,659 | |||
Personal lending | — | 31,067 | 1,556 | 32,623 | — | — | — | 52 | 52 | 32,727 | 7 | 32,720 | |||
Property | — | 38,704 | 38,064 | 76,768 | 573 | 175 | 748 | 4,599 | 1 | 82,116 | 1,274 | 80,842 | |||
Construction | — | 6,781 | 2,672 | 9,453 | 50 | 53 | 103 | 946 | — | 10,502 | 1,139 | 9,363 | |||
Manufacturing | 254 | 23,201 | 4,931 | 28,132 | 664 | 1,938 | 2,602 | 3,786 | 306 | 35,080 | 2,214 | 32,866 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 21,314 | 2,339 | 23,653 | 645 | 2,652 | 3,297 | 1,134 | 18 | 28,102 | 1,671 | 26,431 | |||
- transport and storage | 436 | 16,454 | 5,477 | 21,931 | 539 | 74 | 613 | 3,759 | — | 26,739 | 241 | 26,498 | |||
- health, education and recreation | — | 13,273 | 1,419 | 14,692 | 310 | 21 | 331 | 885 | — | 15,908 | 973 | 14,935 | |||
- hotels and restaurants | — | 7,143 | 1,161 | 8,304 | 116 | 5 | 121 | 671 | — | 9,096 | 184 | 8,912 | |||
- utilities | — | 6,543 | 1,849 | 8,392 | 1,530 | 554 | 2,084 | 3,708 | 30 | 14,214 | 450 | 13,764 | |||
- other | 23 | 24,228 | 3,772 | 28,000 | 1,655 | 3,893 | 5,548 | 6,300 | 595 | 40,466 | 855 | 39,611 | |||
Agriculture, forestry and fishing | — | 3,471 | 129 | 3,600 | 25 | 11 | 36 | 121 | — | 3,757 | 148 | 3,609 | |||
Finance lease and instalment credit | — | 8,440 | 6,059 | 14,499 | 145 | 2 | 147 | 75 | — | 14,721 | 16 | 14,705 | |||
Interest accruals | 151 | 675 | 116 | 791 | 1,219 | — | 1,219 | — | — | 2,161 | — | 2,161 | |||
Total gross of provisions | 100,934 | 437,988 | 79,877 | 517,865 | 211,468 | 15,324 | 226,792 | 529,618 | 88,349 | 1,463,558 | 537,444 | 926,114 | |||
Provisions | — | (8,414) | (11,469) | (19,883) | (2,388) | (141) | (2,529) | — | — | (22,412) | n/a | (22,412) | |||
Group | 100,934 | 429,574 | 68,408 | 497,982 | 209,080 | 15,183 | 224,263 | 529,618 | 88,349 | 1,441,146 | 537,444 | 903,702 | |||
Comprising: | |||||||||||||||
Repurchase agreements | 15,246 | ||||||||||||||
Derivative balances | 478,848 | ||||||||||||||
Derivative collateral | 31,368 | ||||||||||||||
Other | 11,982 | ||||||||||||||
537,444 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Central and local government | 645 | 6,781 | 1,671 | 8,452 | 130,123 | 767 | 130,890 | 7,560 | 291 | 147,838 | 3,916 | 143,922 | |||
Finance - banks | 42,571 | 57,033 | 1,003 | 58,036 | 22,474 | — | 22,474 | — | 57,014 | 180,095 | 24,673 | 155,422 | |||
- other (3) | 51,297 | 46,910 | 7,651 | 54,561 | 54,726 | 19,562 | 74,288 | 399,318 | 12,185 | 591,649 | 378,714 | 212,935 | |||
Residential mortgages | — | 140,359 | 6,142 | 146,501 | — | — | — | 6 | — | 146,507 | 19 | 146,488 | |||
Personal lending | — | 33,581 | 3,891 | 37,472 | 63 | — | 63 | 15 | 48 | 37,598 | 11 | 37,587 | |||
Property | — | 42,455 | 47,651 | 90,106 | 2,700 | 237 | 2,937 | 3,830 | 28 | 96,901 | 1,046 | 95,855 | |||
Construction | — | 8,680 | 3,352 | 12,032 | 56 | 31 | 87 | 780 | — | 12,899 | 1,406 | 11,493 | |||
Manufacturing | 389 | 25,797 | 6,520 | 32,317 | 784 | 113 | 897 | 3,229 | — | 36,832 | 2,156 | 34,676 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 21,974 | 3,191 | 25,165 | 520 | 41 | 561 | 1,124 | — | 26,850 | 2,468 | 24,382 | |||
- transport and storage | — | 15,946 | 8,195 | 24,141 | 879 | 54 | 933 | 2,703 | — | 27,777 | 224 | 27,553 | |||
- health, education and recreation | — | 17,456 | 1,865 | 19,321 | 1,495 | 42 | 1,537 | 1,198 | — | 22,056 | 1,047 | 21,009 | |||
- hotels and restaurants | — | 8,189 | 1,492 | 9,681 | 276 | 123 | 399 | 525 | — | 10,605 | 253 | 10,352 | |||
- utilities | — | 7,098 | 2,110 | 9,208 | 1,714 | 229 | 1,943 | 2,491 | 2 | 13,644 | 985 | 12,659 | |||
- other | 126 | 24,464 | 5,530 | 29,994 | 1,532 | 1,172 | 2,704 | 4,244 | 386 | 37,454 | 1,378 | 36,076 | |||
Agriculture, forestry and fishing | — | 3,758 | 135 | 3,893 | 28 | 1 | 29 | 40 | — | 3,962 | 115 | 3,847 | |||
Finance lease and instalment credit | — | 8,321 | 8,529 | 16,850 | 13 | 2 | 15 | 14 | — | 16,879 | 134 | 16,745 | |||
Interest accruals | 91 | 831 | 278 | 1,109 | 1,398 | — | 1,398 | — | — | 2,598 | — | 2,598 | |||
Total gross of provisions | 95,119 | 469,633 | 109,206 | 578,839 | 218,781 | 28,374 | 241,155 | 427,077 | 69,954 | 1,412,144 | 418,545 | 993,599 | |||
Provisions | — | (7,866) | (10,316) | (18,182) | (1,301) | (176) | (1,477) | — | (29) | (19,688) | n/a | (19,688) | |||
Group before RFS MI | 95,119 | 461,767 | 98,890 | 560,657 | 217,480 | 22,198 | 239,678 | 427,077 | 69,925 | 1,392,456 | 418,545 | 973,911 | |||
RFS MI gross of provisions | — | — | — | 2 | — | — | — | — | — | 2 | — | 2 | |||
Group | 95,119 | 461,767 | 98,890 | 560,659 | 217,480 | 22,198 | 239,678 | 427,077 | 69,925 | 1,392,458 | 418,545 | 973,913 | |||
Comprising: | |||||||||||||||
Repurchase agreements | 10,712 | ||||||||||||||
Derivative balances | 361,493 | ||||||||||||||
Derivative collateral | 31,015 | ||||||||||||||
Other | 15,325 | ||||||||||||||
418,545 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Central and local government | 260 | 6,128 | 1,532 | 7,660 | 142,032 | 780 | 142,812 | 6,998 | 205 | 157,935 | 1,725 | 156,210 | |||
Finance - banks | 34,698 | 47,574 | 1,360 | 48,934 | 24,550 | — | 24,550 | — | 52,261 | 160,443 | 2,546 | 157,897 | |||
- other (3) | 40,188 | 50,673 | 9,713 | 60,386 | 68,824 | 6,627 | 75,451 | 409,452 | 12,110 | 597,587 | 369,797 | 227,790 | |||
Residential mortgages | — | 127,975 | 12,932 | 140,907 | — | — | — | 11 | — | 140,918 | 7 | 140,911 | |||
Personal lending | — | 35,313 | 6,358 | 41,671 | 1 | — | 1 | 38 | 40 | 41,750 | 21 | 41,729 | |||
Property | — | 49,054 | 50,372 | 99,426 | 4,028 | 469 | 4,497 | 4,184 | 108 | 108,215 | 1,114 | 107,101 | |||
Construction | — | 9,502 | 5,258 | 14,760 | 295 | 320 | 615 | 923 | 63 | 16,361 | 1,450 | 14,911 | |||
Manufacturing | 182 | 30,272 | 14,402 | 44,674 | 878 | 1,076 | 1,954 | 5,353 | 116 | 52,279 | 3,184 | 49,095 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 23,385 | 5,082 | 28,467 | 602 | 283 | 885 | 996 | 29 | 30,377 | 2,550 | 27,827 | |||
- transport and storage | — | 16,693 | 8,812 | 25,505 | 607 | 198 | 805 | 1,820 | 17 | 28,147 | 201 | 27,946 | |||
- health, education and recreation | 22 | 18,797 | 3,743 | 22,540 | 2,055 | 188 | 2,243 | 1,300 | — | 26,105 | 1,057 | 25,048 | |||
- hotels and restaurants | — | 9,699 | 1,710 | 11,409 | 418 | 595 | 1,013 | 832 | 90 | 13,344 | 284 | 13,060 | |||
- utilities | — | 6,772 | 3,106 | 9,878 | 1,298 | 2,379 | 3,677 | 2,613 | 296 | 16,464 | 445 | 16,019 | |||
- other | 293 | 25,092 | 11,185 | 36,277 | 2,814 | 3,082 | 5,896 | 3,619 | 362 | 46,447 | 1,274 | 45,173 | |||
Agriculture, forestry and fishing | — | 3,726 | 553 | 4,279 | 44 | 210 | 254 | 44 | 9 | 4,586 | 76 | 4,510 | |||
Finance lease and instalment credit | — | 8,147 | 11,956 | 20,103 | 291 | 15 | 306 | 16 | — | 20,425 | 39 | 20,386 | |||
Interest accruals | 494 | 1,179 | 549 | 1,728 | 1,571 | — | 1,571 | — | — | 3,793 | — | 3,793 | |||
Total gross of provisions | 76,137 | 469,981 | 148,623 | 618,604 | 250,308 | 16,222 | 266,530 | 438,199 | 65,706 | 1,465,176 | 385,770 | 1,079,406 | |||
Provisions | — | (6,921) | (8,252) | (15,173) | (1,198) | (277) | (1,475) | — | — | (16,648) | n/a | (16,648) | |||
Group before RFS MI | 76,137 | 463,060 | 140,371 | 603,431 | 249,110 | 15,945 | 265,055 | 438,199 | 65,706 | 1,448,528 | 385,770 | 1,062,758 | |||
RFS MI gross of provisions | — | — | — | 142,688 | 18,144 | 3,586 | 21,730 | 3,255 | 9 | 167,682 | 55 | 167,627 | |||
RFS MI provision | — | — | — | (2,110) | — | (3) | (3) | — | — | (2,113) | n/a | (2,113) | |||
Group | 76,137 | 463,060 | 140,371 | 744,009 | 267,254 | 19,528 | 286,782 | 441,454 | 65,715 | 1,614,097 | 385,825 | 1,228,272 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Loans and advances to banks (1) | |||
- UK | 55,061 | 70,400 | 59,348 |
- US | 7,976 | 9,810 | 8,537 |
- Europe | 8,865 | 10,655 | 5,535 |
- RoW | 11,531 | 9,778 | 10,611 |
Group before RFS MI | 83,433 | 100,643 | 84,031 |
RFS MI | — | 2 | 7,879 |
83,433 | 100,645 | 91,910 | |
Loans and advances to customers | |||
- UK | 351,147 | 374,822 | 386,798 |
- US | 90,329 | 90,752 | 93,209 |
- Europe | 74,045 | 83,586 | 102,571 |
- RoW | 19,845 | 24,155 | 28,132 |
Group before RFS MI | 535,366 | 573,315 | 610,710 |
RFS MI | — | — | 134,809 |
535,366 | 573,315 | 745,519 | |
Group before RFS MI | 618,799 | 673,958 | 694,741 |
RFS MI | — | 2 | 142,688 |
Group | 618,799 | 673,960 | 837,429 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
UK | |||||||||||||||
Central and local government | 2,130 | 8,012 | 25 | 8,037 | 78,892 | 8 | 78,900 | 5,282 | 548 | 94,897 | 1,098 | 93,799 | |||
Finance - banks | 25,204 | 29,575 | 207 | 29,782 | 1,950 | — | 1,950 | — | 40,365 | 97,301 | 18,653 | 78,648 | |||
- other (3) | 39,154 | 30,874 | 2,361 | 33,235 | 25,779 | 4,462 | 30,241 | 301,125 | 3,259 | 407,014 | 312,007 | 95,007 | |||
Residential mortgages | — | 99,303 | 1,423 | 100,726 | — | — | — | 48 | — | 100,774 | — | 100,774 | |||
Personal lending | — | 20,080 | 127 | 20,207 | — | — | — | 51 | 24 | 20,282 | 7 | 20,275 | |||
Property | — | 31,141 | 24,610 | 55,751 | 278 | 137 | 415 | 4,332 | — | 60,498 | 1,265 | 59,233 | |||
Construction | — | 5,291 | 1,882 | 7,173 | 20 | 26 | 46 | 895 | — | 8,114 | 1,115 | 6,999 | |||
Manufacturing | 254 | 9,641 | 835 | 10,476 | 499 | 1,908 | 2,407 | 2,259 | — | 15,396 | 2,205 | 13,191 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 11,071 | 1,441 | 12,512 | 574 | 2,616 | 3,190 | 952 | 18 | 16,672 | 1,647 | 15,025 | |||
- transport and storage | 436 | 8,589 | 3,439 | 12,028 | 145 | 67 | 212 | 2,217 | — | 14,893 | 200 | 14,693 | |||
- health, education and recreation | — | 8,734 | 757 | 9,491 | 72 | 8 | 80 | 756 | — | 10,327 | 965 | 9,362 | |||
- hotels and restaurants | — | 5,599 | 569 | 6,168 | 23 | — | 23 | 664 | — | 6,855 | 178 | 6,677 | |||
- utilities | — | 2,462 | 922 | 3,384 | 1,150 | 513 | 1,663 | 3,207 | 30 | 8,284 | 450 | 7,834 | |||
- other | — | 13,963 | 1,644 | 15,607 | 1,017 | 3,459 | 4,476 | 3,988 | 593 | 24,664 | 830 | 23,834 | |||
Agriculture, forestry and fishing | — | 2,660 | 76 | 2,736 | 18 | 10 | 28 | 111 | — | 2,875 | 117 | 2,758 | |||
Finance lease and instalment credit | — | 5,618 | 5,598 | 11,216 | 1 | 2 | 3 | 73 | — | 11,292 | 16 | 11,276 | |||
Interest accruals | 126 | 375 | — | 375 | 474 | — | 474 | — | — | 975 | — | 975 | |||
Group | 67,304 | 292,988 | 45,916 | 338,904 | 110,892 | 13,216 | 124,108 | 325,960 | 44,837 | 901,113 | 340,753 | 560,360 | |||
US | |||||||||||||||
Central and local government | — | 177 | 14 | 191 | 22,936 | 317 | 23,253 | 9 | 1 | 23,454 | — | 23,454 | |||
Finance - banks | 7,289 | 671 | 15 | 686 | 1,245 | — | 1,245 | — | 29,426 | 38,646 | 15 | 38,631 | |||
- other (3) | 17,368 | 8,993 | 341 | 9,334 | 29,885 | 681 | 30,566 | 165,879 | 3,496 | 226,643 | 168,601 | 58,042 | |||
Residential mortgages | — | 20,311 | 2,926 | 23,237 | — | — | — | — | — | 23,237 | — | 23,237 | |||
Personal lending | — | 7,505 | 936 | 8,441 | — | — | — | — | — | 8,441 | — | 8,441 | |||
Property | — | 2,413 | 1,370 | 3,783 | 26 | 23 | 49 | 38 | — | 3,870 | — | 3,870 | |||
Construction | — | 412 | 45 | 457 | 21 | 3 | 24 | 11 | — | 492 | — | 492 | |||
Manufacturing | — | 6,782 | 42 | 6,824 | 101 | 12 | 113 | 452 | — | 7,389 | — | 7,389 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 4,975 | 98 | 5,073 | 52 | — | 52 | 63 | — | 5,188 | — | 5,188 | |||
- transport and storage | — | 1,832 | 937 | 2,769 | 26 | 1 | 27 | 1,084 | — | 3,880 | — | 3,880 | |||
- health, education and recreation | — | 2,946 | 88 | 3,034 | 74 | 4 | 78 | 93 | — | 3,205 | — | 3,205 | |||
- hotels and restaurants | — | 627 | 57 | 684 | 93 | 3 | 96 | 1 | — | 781 | — | 781 | |||
- utilities | — | 1,033 | 28 | 1,061 | 243 | 16 | 259 | 322 | — | 1,642 | — | 1,642 | |||
- other | 23 | 4,927 | 394 | 5,321 | 429 | 105 | 534 | 1,421 | — | 7,299 | — | 7,299 | |||
Agriculture, forestry and fishing | — | 27 | — | 27 | 7 | — | 7 | 6 | — | 40 | — | 40 | |||
Finance lease and instalment credit | — | 2,471 | — | 2,471 | 17 | — | 17 | — | — | 2,488 | — | 2,488 | |||
Interest accruals | 6 | 181 | 45 | 226 | 259 | — | 259 | — | — | 491 | — | 491 | |||
Group | 24,686 | 66,283 | 7,336 | 73,619 | 55,414 | 1,165 | 56,579 | 169,379 | 32,923 | 357,186 | 168,616 | 188,570 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Europe | |||||||||||||||
Central and local government | — | 116 | 715 | 831 | 13,362 | 3 | 13,365 | 60 | — | 14,256 | — | 14,256 | |||
Finance - banks | 247 | 8,361 | 250 | 8,611 | 10,859 | — | 10,859 | — | 6,701 | 26,418 | — | 26,418 | |||
- other (3) | — | 2,534 | 474 | 3,008 | 4,521 | 240 | 4,761 | 289 | 90 | 8,148 | 1 | 8,147 | |||
Residential mortgages | — | 18,393 | 553 | 18,946 | — | — | — | — | — | 18,946 | — | 18,946 | |||
Personal lending | — | 1,972 | 492 | 2,464 | — | — | — | — | 28 | 2,492 | — | 2,492 | |||
Property | — | 4,846 | 11,538 | 16,384 | — | — | — | 168 | — | 16,552 | 9 | 16,543 | |||
Construction | — | 1,019 | 735 | 1,754 | — | 22 | 22 | 18 | — | 1,794 | 24 | 1,770 | |||
Manufacturing | — | 4,383 | 3,732 | 8,115 | 57 | 5 | 62 | 23 | — | 8,200 | 9 | 8,191 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 3,992 | 772 | 4,764 | 16 | 2 | 18 | 23 | — | 4,805 | 24 | 4,781 | |||
- transport and storage | — | 5,667 | 862 | 6,529 | 143 | — | 143 | 15 | — | 6,687 | 6 | 6,681 | |||
- health, education and recreation | — | 1,235 | 349 | 1,584 | 164 | 5 | 169 | 2 | — | 1,755 | 8 | 1,747 | |||
- hotels and restaurants | — | 892 | 535 | 1,427 | — | — | — | 6 | — | 1,433 | 6 | 1,427 | |||
- utilities | — | 1,569 | 530 | 2,099 | 124 | 3 | 127 | 85 | — | 2,311 | — | 2,311 | |||
- other | — | 2,966 | 1,555 | 4,521 | 131 | 70 | 201 | 34 | — | 4,756 | 25 | 4,731 | |||
Agriculture, forestry and fishing | — | 699 | 53 | 752 | — | 1 | 1 | 1 | — | 754 | 31 | 723 | |||
Finance lease and instalment credit | — | 260 | 435 | 695 | — | — | — | — | — | 695 | — | 695 | |||
Interest accruals | 7 | 101 | 71 | 172 | 437 | — | 437 | — | — | 616 | — | 616 | |||
Group | 254 | 59,005 | 23,651 | 82,656 | 29,814 | 351 | 30,165 | 724 | 6,819 | 120,618 | 143 | 120,475 | |||
RoW | |||||||||||||||
Central and local government | 117 | 54 | 629 | 683 | 11,414 | — | 11,414 | 190 | 92 | 12,496 | — | 12,496 | |||
Finance - banks | 6,605 | 4,767 | 147 | 4,914 | 2,886 | — | 2,886 | — | 2,777 | 17,182 | 25 | 17,157 | |||
- other (3) | 1,956 | 4,051 | 53 | 4,104 | 268 | 235 | 503 | 30,700 | 592 | 37,855 | 27,872 | 9,983 | |||
Residential mortgages | — | 502 | 200 | 702 | — | — | — | — | — | 702 | — | 702 | |||
Personal lending | — | 1,510 | 1 | 1,511 | — | — | — | 1 | — | 1,512 | — | 1,512 | |||
Property | — | 304 | 546 | 850 | 269 | 15 | 284 | 61 | 1 | 1,196 | — | 1,196 | |||
Construction | — | 59 | 10 | 69 | 9 | 2 | 11 | 22 | — | 102 | — | 102 | |||
Manufacturing | — | 2,395 | 322 | 2,717 | 7 | 13 | 20 | 1,052 | 306 | 4,095 | — | 4,095 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 1,276 | 28 | 1,304 | 3 | 34 | 37 | 96 | — | 1,437 | — | 1,437 | |||
- transport and storage | — | 366 | 239 | 605 | 225 | 6 | 231 | 443 | — | 1,279 | 35 | 1,244 | |||
- health, education and recreation | — | 358 | 225 | 583 | — | 4 | 4 | 34 | — | 621 | — | 621 | |||
- hotels and restaurants | — | 25 | — | 25 | — | 2 | 2 | — | — | 27 | — | 27 | |||
- utilities | — | 1,479 | 369 | 1,848 | 13 | 22 | 35 | 94 | — | 1,977 | — | 1,977 | |||
- other | — | 2,372 | 179 | 2,551 | 78 | 259 | 337 | 857 | 2 | 3,747 | — | 3,747 | |||
Agriculture, forestry and fishing | — | 85 | — | 85 | — | — | — | 3 | — | 88 | — | 88 | |||
Finance lease and instalment credit | — | 91 | 26 | 117 | 127 | — | 127 | 2 | — | 246 | — | 246 | |||
Interest accruals | 12 | 18 | — | 18 | 49 | — | 49 | — | — | 79 | — | 79 | |||
Group | 8,690 | 19,712 | 2,974 | 22,686 | 15,348 | 592 | 15,940 | 33,555 | 3,770 | 84,641 | 27,932 | 56,709 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
UK | |||||||||||||||
Central and local government | 611 | 5,728 | 173 | 5,901 | 72,427 | 1 | 72,428 | 7,300 | 173 | 86,413 | 3,916 | 82,497 | |||
Finance - banks | 28,370 | 41,541 | 481 | 42,022 | 5,381 | — | 5,381 | — | 28,097 | 103,870 | 24,489 | 79,381 | |||
- other (3) | 33,186 | 27,995 | 6,023 | 34,018 | 27,737 | 18,645 | 46,382 | 249,324 | 5,390 | 368,300 | 232,460 | 135,840 | |||
Residential mortgages | — | 99,928 | 1,665 | 101,593 | — | — | — | 6 | — | 101,599 | 14 | 101,585 | |||
Personal lending | — | 23,035 | 585 | 23,620 | 1 | — | 1 | 9 | 23 | 23,653 | 11 | 23,642 | |||
Property | — | 34,970 | 30,492 | 65,462 | 2,302 | 175 | 2,477 | 3,739 | 28 | 71,706 | 1,041 | 70,665 | |||
Construction | — | 7,041 | 2,310 | 9,351 | 39 | — | 39 | 741 | — | 10,131 | 1,392 | 8,739 | |||
Manufacturing | 389 | 12,300 | 1,510 | 13,810 | 354 | — | 354 | 2,159 | — | 16,712 | 2,150 | 14,562 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 12,554 | 1,853 | 14,407 | 343 | 11 | 354 | 874 | — | 15,635 | 2,452 | 13,183 | |||
- transport and storage | — | 8,105 | 5,015 | 13,120 | 241 | 3 | 244 | 1,573 | — | 14,937 | 219 | 14,718 | |||
- health, education and recreation | — | 13,502 | 1,039 | 14,541 | 160 | 22 | 182 | 877 | — | 15,600 | 1,047 | 14,553 | |||
- hotels and restaurants | — | 6,558 | 808 | 7,366 | 172 | — | 172 | 518 | — | 8,056 | 249 | 7,807 | |||
- utilities | — | 3,101 | 1,035 | 4,136 | 1,040 | 5 | 1,045 | 2,112 | 2 | 7,295 | 985 | 6,310 | |||
- other | 1 | 14,445 | 1,991 | 16,436 | 549 | 447 | 996 | 1,986 | 335 | 19,754 | 1,354 | 18,400 | |||
Agriculture, forestry and fishing | — | 2,872 | 67 | 2,939 | — | — | — | 35 | — | 2,974 | 94 | 2,880 | |||
Finance lease and instalment credit | — | 5,589 | 7,785 | 13,374 | 13 | 2 | 15 | 14 | — | 13,403 | 134 | 13,269 | |||
Interest accruals | 56 | 415 | 98 | 513 | 501 | — | 501 | — | — | 1,070 | — | 1,070 | |||
Group | 62,613 | 319,679 | 62,930 | 382,609 | 111,260 | 19,311 | 130,571 | 271,267 | 34,048 | 881,108 | 272,007 | 609,101 | |||
US | |||||||||||||||
Central and local government | — | 263 | 53 | 316 | 24,975 | 766 | 25,741 | 5 | 112 | 26,174 | — | 26,174 | |||
Finance - banks | 8,978 | 820 | 12 | 832 | 1,951 | — | 1,951 | — | 19,455 | 31,216 | 184 | 31,032 | |||
- other (3) | 16,023 | 9,522 | 587 | 10,109 | 21,958 | 126 | 22,084 | 121,717 | 4,950 | 174,883 | 123,678 | 51,205 | |||
Residential mortgages | — | 20,548 | 3,653 | 24,201 | — | — | — | — | — | 24,201 | — | 24,201 | |||
Personal lending | — | 6,816 | 2,704 | 9,520 | — | — | — | — | — | 9,520 | — | 9,520 | |||
Property | — | 1,611 | 3,318 | 4,929 | 95 | 4 | 99 | 23 | — | 5,051 | — | 5,051 | |||
Construction | — | 442 | 78 | 520 | 5 | — | 5 | 16 | — | 541 | — | 541 | |||
Manufacturing | — | 5,459 | 143 | 5,602 | 412 | 22 | 434 | 583 | — | 6,619 | — | 6,619 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 4,264 | 237 | 4,501 | 132 | — | 132 | 68 | — | 4,701 | — | 4,701 | |||
- transport and storage | — | 1,786 | 1,408 | 3,194 | 99 | 2 | 101 | 929 | — | 4,224 | — | 4,224 | |||
- health, education and recreation | — | 2,380 | 313 | 2,693 | 1,308 | 3 | 1,311 | 292 | — | 4,296 | — | 4,296 | |||
- hotels and restaurants | — | 486 | 136 | 622 | 104 | — | 104 | 3 | — | 729 | — | 729 | |||
- utilities | — | 1,117 | 53 | 1,170 | 567 | 2 | 569 | 272 | — | 2,011 | — | 2,011 | |||
- other | 124 | 4,042 | 577 | 4,619 | 789 | 279 | 1,068 | 1,200 | 42 | 7,053 | — | 7,053 | |||
Agriculture, forestry and fishing | — | 31 | — | 31 | 28 | — | 28 | 3 | — | 62 | — | 62 | |||
Finance lease and instalment credit | — | 2,315 | — | 2,315 | — | — | — | — | — | 2,315 | — | 2,315 | |||
Interest accruals | 7 | 183 | 73 | 256 | 240 | — | 240 | — | — | 503 | — | 503 | |||
Group | 25,132 | 62,085 | 13,345 | 75,430 | 52,663 | 1,204 | 53,867 | 125,111 | 24,559 | 304,099 | 123,862 | 180,237 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Europe | |||||||||||||||
Central and local government | — | 365 | 1,017 | 1,382 | 18,648 | — | 18,648 | 66 | — | 20,096 | — | 20,096 | |||
Finance - banks | 94 | 10,219 | 313 | 10,532 | 11,843 | — | 11,843 | — | 7,936 | 30,405 | — | 30,405 | |||
- other (3) | — | 2,642 | 1,019 | 3,661 | 4,886 | 347 | 5,233 | 746 | 53 | 9,693 | 1 | 9,692 | |||
Residential mortgages | — | 19,473 | 621 | 20,094 | — | — | — | — | — | 20,094 | 5 | 20,089 | |||
Personal lending | — | 2,270 | 600 | 2,870 | 62 | — | 62 | — | 25 | 2,957 | — | 2,957 | |||
Property | — | 5,139 | 12,636 | 17,775 | — | 43 | 43 | — | — | 17,818 | 5 | 17,813 | |||
Construction | — | 1,014 | 873 | 1,887 | — | 27 | 27 | 1 | — | 1,915 | 14 | 1,901 | |||
Manufacturing | — | 5,853 | 4,181 | 10,034 | 18 | 87 | 105 | 39 | — | 10,178 | 6 | 10,172 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 4,126 | 999 | 5,125 | 32 | 2 | 34 | 33 | — | 5,192 | 15 | 5,177 | |||
- transport and storage | — | 5,625 | 1,369 | 6,994 | 141 | 22 | 163 | 2 | — | 7,159 | 5 | 7,154 | |||
- health, education and recreation | — | 1,442 | 496 | 1,938 | 27 | 9 | 36 | — | — | 1,974 | — | 1,974 | |||
- hotels and restaurants | — | 1,055 | 535 | 1,590 | — | 120 | 120 | — | — | 1,710 | 4 | 1,706 | |||
- utilities | — | 1,412 | 623 | 2,035 | 74 | 188 | 262 | 10 | — | 2,307 | — | 2,307 | |||
- other | — | 3,877 | 2,050 | 5,927 | 109 | 176 | 285 | 54 | 1 | 6,267 | 23 | 6,244 | |||
Agriculture, forestry and fishing | — | 849 | 68 | 917 | — | 1 | 1 | — | — | 918 | 21 | 897 | |||
Finance lease and instalment credit | — | 370 | 744 | 1,114 | — | — | — | — | — | 1,114 | — | 1,114 | |||
Interest accruals | 28 | 143 | 101 | 244 | 575 | — | 575 | — | — | 847 | — | 847 | |||
Group before RFS MI | 122 | 65,874 | 28,245 | 94,119 | 36,415 | 1,022 | 37,437 | 951 | 8,015 | 140,644 | 99 | 140,545 | |||
RFS MI | — | — | — | 2 | — | — | — | — | — | 2 | — | 2 | |||
Group | 122 | 65,874 | 28,245 | 94,121 | 36,415 | 1,022 | 37,437 | 951 | 8,015 | 140,646 | 99 | 140,547 | |||
RoW | |||||||||||||||
Central and local government | 34 | 425 | 428 | 853 | 14,073 | — | 14,073 | 189 | 6 | 15,155 | — | 15,155 | |||
Finance - banks | 5,129 | 4,453 | 197 | 4,650 | 3,299 | — | 3,299 | — | 1,526 | 14,604 | — | 14,604 | |||
- other (3) | 2,088 | 6,751 | 22 | 6,773 | 145 | 444 | 589 | 27,531 | 1,792 | 38,773 | 22,575 | 16,198 | |||
Residential mortgages | — | 410 | 203 | 613 | — | — | — | — | — | 613 | — | 613 | |||
Personal lending | — | 1,460 | 2 | 1,462 | — | — | — | 6 | — | 1,468 | — | 1,468 | |||
Property | — | 735 | 1,205 | 1,940 | 303 | 15 | 318 | 68 | — | 2,326 | — | 2,326 | |||
Construction | — | 183 | 91 | 274 | 12 | 4 | 16 | 22 | — | 312 | — | 312 | |||
Manufacturing | — | 2,185 | 686 | 2,871 | — | 4 | 4 | 448 | — | 3,323 | — | 3,323 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 1,030 | 102 | 1,132 | 13 | 28 | 41 | 149 | — | 1,322 | 1 | 1,321 | |||
- transport and storage | — | 430 | 403 | 833 | 398 | 27 | 425 | 199 | — | 1,457 | — | 1,457 | |||
- health, education and recreation | — | 132 | 17 | 149 | — | 8 | 8 | 29 | — | 186 | — | 186 | |||
- hotels and restaurants | — | 90 | 13 | 103 | — | 3 | 3 | 4 | — | 110 | — | 110 | |||
- utilities | — | 1,468 | 399 | 1,867 | 33 | 34 | 67 | 97 | — | 2,031 | — | 2,031 | |||
- other | 1 | 2,100 | 912 | 3,012 | 85 | 270 | 355 | 1,004 | 8 | 4,380 | 1 | 4,379 | |||
Agriculture, forestry and fishing | — | 6 | — | 6 | — | — | — | 2 | — | 8 | — | 8 | |||
Finance lease and instalment credit | — | 47 | — | 47 | — | — | — | — | — | 47 | — | 47 | |||
Interest accruals | — | 90 | 6 | 96 | 82 | — | 82 | — | — | 178 | — | 178 | |||
Group | 7,252 | 21,995 | 4,686 | 26,681 | 18,443 | 837 | 19,280 | 29,748 | 3,332 | 86,293 | 22,577 | 63,716 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
UK | |||||||||||||||
Central and local government | 129 | 4,353 | 276 | 4,629 | 79,662 | 1 | 79,663 | 6,752 | 4 | 91,177 | 1,725 | 89,452 | |||
Finance - banks | 21,955 | 36,741 | 424 | 37,165 | 2,355 | — | 2,355 | — | 20,693 | 82,168 | 2,483 | 79,685 | |||
- other (3) | 29,240 | 29,278 | 6,004 | 35,282 | 38,135 | 5,676 | 43,811 | 257,109 | 5,492 | 370,934 | 236,443 | 134,491 | |||
Residential mortgages | — | 90,688 | 1,896 | 92,584 | — | — | — | 11 | — | 92,595 | 7 | 92,588 | |||
Personal lending | — | 24,613 | 1,137 | 25,750 | 1 | — | 1 | 9 | 22 | 25,782 | 21 | 25,761 | |||
Property | — | 36,407 | 35,387 | 71,794 | 3,303 | 458 | 3,761 | 4,086 | 104 | 79,745 | 1,114 | 78,631 | |||
Construction | — | 6,964 | 3,640 | 10,604 | 48 | 306 | 354 | 849 | 62 | 11,869 | 1,450 | 10,419 | |||
Manufacturing | 182 | 14,462 | 3,255 | 17,717 | 640 | 1,003 | 1,643 | 4,222 | 102 | 23,866 | 3,184 | 20,682 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 13,412 | 2,672 | 16,084 | 445 | 263 | 708 | 819 | 29 | 17,640 | 2,549 | 15,091 | |||
- transport and storage | — | 10,066 | 5,319 | 15,385 | 369 | 163 | 532 | 988 | 15 | 16,920 | 201 | 16,719 | |||
- health, education and recreation | 22 | 15,551 | 1,225 | 16,776 | 303 | 164 | 467 | 1,005 | — | 18,270 | 1,057 | 17,213 | |||
- hotels and restaurants | — | 7,575 | 1,033 | 8,608 | 320 | 573 | 893 | 824 | 86 | 10,411 | 284 | 10,127 | |||
- utilities | — | 2,626 | 1,652 | 4,278 | 1,142 | 2,308 | 3,450 | 2,321 | 259 | 10,308 | 445 | 9,863 | |||
- other | — | 13,516 | 3,964 | 17,480 | 1,608 | 2,621 | 4,229 | 1,892 | 353 | 23,954 | 1,274 | 22,680 | |||
Agriculture, forestry and fishing | — | 2,946 | 138 | 3,084 | 43 | 209 | 252 | 39 | 9 | 3,384 | 76 | 3,308 | |||
Finance lease and instalment credit | — | 5,343 | 10,843 | 16,186 | 291 | 3 | 294 | 16 | — | 16,496 | 39 | 16,457 | |||
Interest accruals | 321 | 713 | 178 | 891 | 457 | — | 457 | — | — | 1,669 | — | 1,669 | |||
Group before RFS MI | 51,849 | 315,254 | 79,043 | 394,297 | 129,122 | 13,748 | 142,870 | 280,942 | 27,230 | 897,188 | 252,352 | 644,836 | |||
RFS MI | — | — | — | 444 | 49 | 1 | 50 | 494 | — | 988 | — | 988 | |||
Group | 51,849 | 315,254 | 79,043 | 394,741 | 129,171 | 13,749 | 142,920 | 281,436 | 27,230 | 898,176 | 252,352 | 645,824 | |||
US | |||||||||||||||
Central and local government | — | 196 | 64 | 260 | 23,841 | 779 | 24,620 | 9 | 141 | 25,030 | — | 25,030 | |||
Finance - banks | 7,466 | 982 | 76 | 1,058 | 1,473 | — | 1,473 | — | 7,533 | 17,530 | 63 | 17,467 | |||
- other (3) | 9,912 | 9,524 | 1,771 | 11,295 | 25,592 | 85 | 25,677 | 125,599 | 5,779 | 178,262 | 113,607 | 64,655 | |||
Residential mortgages | — | 21,842 | 4,317 | 26,159 | — | — | — | — | — | 26,159 | — | 26,159 | |||
Personal lending | — | 7,373 | 3,599 | 10,972 | — | — | — | — | — | 10,972 | — | 10,972 | |||
Property | — | 1,498 | 3,788 | 5,286 | 56 | — | 56 | 30 | — | 5,372 | — | 5,372 | |||
Construction | — | 490 | 132 | 622 | 71 | 1 | 72 | 50 | — | 744 | — | 744 | |||
Manufacturing | — | 5,895 | 1,200 | 7,095 | 218 | 25 | 243 | 580 | — | 7,918 | — | 7,918 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 3,897 | 422 | 4,319 | 142 | — | 142 | 108 | — | 4,569 | — | 4,569 | |||
- transport and storage | — | 1,679 | 1,525 | 3,204 | 108 | 1 | 109 | 738 | — | 4,051 | — | 4,051 | |||
- health, education and recreation | — | 1,595 | 1,356 | 2,951 | 1,698 | — | 1,698 | 272 | — | 4,921 | — | 4,921 | |||
- hotels and restaurants | — | 772 | 88 | 860 | 98 | — | 98 | 7 | — | 965 | — | 965 | |||
- utilities | — | 1,178 | 46 | 1,224 | 113 | — | 113 | 204 | — | 1,541 | — | 1,541 | |||
- other | 280 | 4,957 | 1,068 | 6,025 | 944 | 216 | 1,160 | 1,157 | — | 8,622 | — | 8,622 | |||
Agriculture, forestry and fishing | — | 27 | — | 27 | 1 | — | 1 | 2 | — | 30 | — | 30 | |||
Finance lease and instalment credit | — | 2,417 | — | 2,417 | — | — | — | — | — | 2,417 | — | 2,417 | |||
Interest accruals | 16 | 204 | 94 | 298 | 334 | — | 334 | — | — | 648 | — | 648 | |||
Group before RFS MI | 17,674 | 64,526 | 19,546 | 84,072 | 54,689 | 1,107 | 55,796 | 128,756 | 13,453 | 299,751 | 113,670 | 186,081 | |||
RFS MI | — | — | — | 360 | — | — | — | — | — | 360 | — | 360 | |||
Group | 17,674 | 64,526 | 19,546 | 84,432 | 54,689 | 1,107 | 55,796 | 128,756 | 13,453 | 300,111 | 113,670 | 186,441 |
Reverse repos | Loans and advances | Securities | Netting and offset (2) | ||||||||||||
Core | Non-Core | Total | Debt | Equity | Total | Derivatives | Other (1) | Total | Net | ||||||
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Europe | |||||||||||||||
Central and local government | — | 334 | 1,164 | 1,498 | 25,328 | — | 25,328 | 68 | 24 | 26,918 | — | 26,918 | |||
Finance - banks | — | 4,905 | 529 | 5,434 | 17,390 | — | 17,390 | — | 22,792 | 45,616 | — | 45,616 | |||
- other (3) | 189 | 4,095 | 905 | 5,000 | 5,097 | 426 | 5,523 | 1,699 | 43 | 12,454 | — | 12,454 | |||
Residential mortgages | — | 15,055 | 6,718 | 21,773 | — | — | — | — | — | 21,773 | — | 21,773 | |||
Personal lending | — | 1,877 | 1,009 | 2,886 | — | — | — | —�� | 17 | 2,903 | — | 2,903 | |||
Property | — | 10,812 | 9,417 | 20,229 | — | 1 | 1 | 17 | 4 | 20,251 | — | 20,251 | |||
Construction | — | 1,946 | 1,167 | 3,113 | — | 1 | 1 | 1 | 1 | 3,116 | — | 3,116 | |||
Manufacturing | — | 7,311 | 8,609 | 15,920 | 19 | 23 | 42 | 123 | — | 16,085 | — | 16,085 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 5,464 | 1,661 | 7,125 | 15 | 1 | 16 | 7 | — | 7,148 | — | 7,148 | |||
- transport and storage | — | 4,385 | 1,463 | 5,848 | 15 | 4 | 19 | — | 2 | 5,869 | — | 5,869 | |||
- health, education and recreation | — | 1,419 | 1,121 | 2,540 | 54 | 9 | 63 | — | — | 2,603 | — | 2,603 | |||
- hotels and restaurants | — | 1,221 | 568 | 1,789 | — | 19 | 19 | — | 4 | 1,812 | — | 1,812 | |||
- utilities | — | 1,816 | 786 | 2,602 | 4 | 30 | 34 | 6 | 37 | 2,679 | — | 2,679 | |||
- other | 12 | 4,783 | 4,284 | 9,067 | 156 | 24 | 180 | 75 | 8 | 9,342 | — | 9,342 | |||
Agriculture, forestry and fishing | — | 737 | 356 | 1,093 | — | 1 | 1 | — | — | 1,094 | — | 1,094 | |||
Finance lease and instalment credit | — | 379 | 1,094 | 1,473 | — | 12 | 12 | — | — | 1,485 | — | 1,485 | |||
Interest accruals | 102 | 168 | 245 | 413 | 706 | — | 706 | — | — | 1,221 | — | 1,221 | |||
Group before RFS MI | 303 | 66,707 | 41,096 | 107,803 | 48,784 | 551 | 49,335 | 1,996 | 22,932 | 182,369 | — | 182,369 | |||
RFS MI | — | — | — | 140,098 | 21,681 | 3,232 | 24,913 | 165,020 | — | 330,031 | — | 330,031 | |||
Group | 303 | 66,707 | 41,096 | 247,901 | 70,465 | 3,783 | 74,248 | 167,016 | 22,932 | 512,400 | — | 512,400 | |||
RoW | |||||||||||||||
Central and local government | 131 | 1,245 | 28 | 1,273 | 13,201 | — | 13,201 | 169 | 36 | 14,810 | — | 14,810 | |||
Finance - banks | 5,277 | 4,946 | 331 | 5,277 | 3,332 | — | 3,332 | — | 1,243 | 15,129 | — | 15,129 | |||
- other (3) | 847 | 7,776 | 1,033 | 8,809 | — | 440 | 440 | 25,045 | 796 | 35,937 | 19,747 | 16,190 | |||
Residential mortgages | — | 390 | 1 | 391 | — | — | — | — | — | 391 | — | 391 | |||
Personal lending | — | 1,450 | 613 | 2,063 | — | — | — | 29 | 1 | 2,093 | — | 2,093 | |||
Property | — | 337 | 1,780 | 2,117 | 669 | 10 | 679 | 51 | — | 2,847 | — | 2,847 | |||
Construction | — | 102 | 319 | 421 | 176 | 12 | 188 | 23 | — | 632 | — | 632 | |||
Manufacturing | — | 2,604 | 1,338 | 3,942 | 1 | 25 | 26 | 428 | 14 | 4,410 | — | 4,410 | |||
Service industries and business activities | |||||||||||||||
- retail, wholesale and repairs | — | 612 | 327 | 939 | — | 19 | 19 | 62 | — | 1,020 | 1 | 1,019 | |||
- transport and storage | — | 563 | 505 | 1,068 | 115 | 30 | 145 | 94 | — | 1,307 | — | 1,307 | |||
- health, education and recreation | — | 232 | 41 | 273 | — | 15 | 15 | 23 | — | 311 | — | 311 | |||
- hotels and restaurants | — | 131 | 21 | 152 | — | 3 | 3 | 1 | — | 156 | — | 156 | |||
- utilities | — | 1,152 | 622 | 1,774 | 39 | 41 | 80 | 82 | — | 1,936 | — | 1,936 | |||
- other | 1 | 1,836 | 1,869 | 3,705 | 106 | 221 | 327 | 495 | 1 | 4,529 | — | 4,529 | |||
Agriculture, forestry and fishing | — | 16 | 59 | 75 | — | — | — | 3 | — | 78 | — | 78 | |||
Finance lease and instalment credit | — | 8 | 19 | 27 | — | — | — | — | — | 27 | — | 27 | |||
Interest accruals | 55 | 94 | 32 | 126 | 74 | — | 74 | — | — | 255 | — | 255 | |||
Group before RFS MI | 6,311 | 23,494 | 8,938 | 32,432 | 17,713 | 816 | 18,529 | 26,505 | 2,091 | 85,868 | 19,748 | 66,120 | |||
RFS MI | — | — | — | 1,786 | — | 22 | 22 | 1,808 | — | 3,616 | — | 3,616 | |||
Group | 6,311 | 23,494 | 8,938 | 34,218 | 17,713 | 838 | 18,551 | 28,313 | 2,091 | 89,484 | 19,748 | 69,736 |
2012 | Gross exposure | IFRS offset (1) | Carrying value | Non-IFRS offset (2) | Exposure post offset |
£m | £m | £m | £m | £m | |
Cash and balances at central banks | 79,308 | — | 79,308 | — | 79,308 |
Reverse repos | 143,207 | (38,377) | 104,830 | (17,439) | 87,391 |
Lending (3) | 464,691 | (1,460) | 463,231 | (34,941) | 428,290 |
Debt securities | 164,624 | — | 164,624 | — | 164,624 |
Equity shares | 15,237 | — | 15,237 | — | 15,237 |
Derivatives (4) | 815,394 | (373,476) | 441,918 | (408,004) | 33,914 |
Settlement balances | 8,197 | (2,456) | 5,741 | (1,760) | 3,981 |
Other financial assets | 924 | — | 924 | — | 924 |
Total | 1,691,582 | (415,769) | 1,275,813 | (462,144) | 813,669 |
Short positions | (27,591) | — | (27,591) | — | (27,591) |
Net of short positions | 1,663,991 | (415,769) | 1,248,222 | (462,144) | 786,078 |
2011 | |||||
Cash and balances at central banks | 79,396 | — | 79,396 | — | 79,396 |
Reverse repos | 138,539 | (37,605) | 100,934 | (15,246) | 85,688 |
Lending (3) | 517,474 | — | 517,474 | (41,129) | 476,345 |
Debt securities | 209,080 | — | 209,080 | — | 209,080 |
Equity shares | 15,188 | — | 15,188 | — | 15,188 |
Derivatives (4) | 1,074,548 | (544,491) | 530,057 | (478,848) | 51,209 |
Settlement balances | 9,144 | (1,359) | 7,785 | (2,221) | 5,564 |
Other financial assets | 1,309 | — | 1,309 | — | 1,309 |
Total | 2,044,678 | (583,455) | 1,461,223 | (537,444) | 923,779 |
Short positions | (41,039) | — | (41,039) | — | (41,039) |
Net of short positions | 2,003,639 | (583,455) | 1,420,184 | (537,444) | 882,740 |
2010 | |||||
Cash and balances at central banks | 57,198 | — | 57,198 | — | 57,198 |
Reverse repos | 135,105 | (39,986) | 95,119 | (10,712) | 84,407 |
Lending (3) | 566,323 | — | 566,323 | (44,801) | 521,522 |
Debt securities | 217,480 | — | 217,480 | — | 217,480 |
Equity shares | 22,218 | — | 22,218 | — | 22,218 |
Derivatives (4) | 882,803 | (450,578) | 432,225 | (361,493) | 70,732 |
Settlement balances | 14,182 | (2,022) | 12,160 | (1,539) | 10,621 |
Other financial assets | 1,306 | — | 1,306 | — | 1,306 |
Total | 1,896,615 | (492,586) | 1,404,029 | (418,545) | 985,484 |
Short positions | (43,118) | — | (43,118) | — | (43,118) |
Net of short positions | 1,853,497 | (492,586) | 1,360,911 | (418,545) | 942,366 |
(1) |
(2) | This |
(3) | Lending non-IFRS offset includes cash collateral posted against derivative liabilities of £24.6 billion, (2011 - £31.4 billion; 2010 - £31.0 billion) and cash management pooling of £10.3 billion, (2011 - £9.7 billion; 2010 - £13.8 billion). |
(4) | Derivative non-IFRS offset includes cash collateral received against derivative assets of £34.1 billion (2011 - £37.2 billion; 2010 - £31.1 billion). Refer to page 179. |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | |||||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||
Government (2) | 441 | 8,485 | 1,368 | 9,853 | 97,339 | — | 5,791 | 591 | 114,015 | (5,151) | 108,864 | |||||
Financial institutions | - banks (3) | 34,783 | 30,917 | 477 | 31,394 | 11,555 | 1,643 | 335,521 | 79,308 | 494,204 | (341,103) | 153,101 | ||||
- other (4) | 69,256 | 39,658 | 2,540 | 42,198 | 50,104 | 2,672 | 80,817 | 5,591 | 250,638 | (97,589) | 153,049 | |||||
Personal | - mortgages | — | 146,770 | 2,855 | 149,625 | — | — | — | — | 149,625 | — | 149,625 | ||||
- unsecured | — | 31,247 | 965 | 32,212 | — | — | — | 4 | 32,216 | — | 32,216 | |||||
Property | — | 43,602 | 28,617 | 72,219 | 774 | 318 | 4,118 | — | 77,429 | (1,333) | 76,096 | |||||
Construction | — | 6,020 | 2,029 | 8,049 | 17 | 264 | 820 | — | 9,150 | (1,687) | 7,463 | |||||
Manufacturing | 326 | 22,234 | 1,553 | 23,787 | 836 | 1,639 | 1,759 | 144 | 28,491 | (3,775) | 24,716 | |||||
Finance leases (5) | — | 9,201 | 4,408 | 13,609 | 82 | 1 | 13 | — | 13,705 | — | 13,705 | |||||
Retail, wholesale and repairs | — | 20,842 | 1,094 | 21,936 | 461 | 1,807 | 914 | 41 | 25,159 | (1,785) | 23,374 | |||||
Transport and storage | — | 14,590 | 3,751 | 18,341 | 659 | 382 | 3,397 | 2 | 22,781 | (3,240) | 19,541 | |||||
Health, education and leisure | — | 15,770 | 935 | 16,705 | 314 | 554 | 904 | 59 | 18,536 | (964) | 17,572 | |||||
Hotels and restaurants | — | 6,891 | 986 | 7,877 | 144 | 51 | 493 | 11 | 8,576 | (348) | 8,228 | |||||
Utilities | — | 5,131 | 1,500 | 6,631 | 1,311 | 638 | 3,170 | 50 | 11,800 | (2,766) | 9,034 | |||||
Other | 24 | 26,315 | 3,742 | 30,057 | 1,886 | 5,380 | 4,201 | 172 | 41,720 | (2,403) | 39,317 | |||||
Total gross of provisions | 104,830 | 427,673 | 56,820 | 484,493 | 165,482 | 15,349 | 441,918 | 85,973 | 1,298,045 | (462,144) | 835,901 | |||||
Provisions | — | (10,062) | (11,200) | (21,262) | (858) | (112) | — | — | (22,232) | n/a | (22,232) | |||||
Total | 104,830 | 417,611 | 45,620 | 463,231 | 164,624 | 15,237 | 441,918 | 85,973 | 1,275,813 | (462,144) | 813,669 | |||||
2011 | ||||||||||||||||
Government (2) | 2,247 | 8,359 | 1,383 | 9,742 | 125,543 | — | 5,541 | 641 | 143,714 | (1,098) | 142,616 | |||||
Financial institutions | - banks (3) | 39,345 | 43,374 | 706 | 44,080 | 16,940 | 2,218 | 400,261 | 79,396 | 582,240 | (407,457) | 174,783 | ||||
- other (4) | 58,478 | 48,598 | 3,272 | 51,870 | 60,628 | 2,501 | 98,255 | 7,451 | 279,183 | (119,717) | 159,466 | |||||
Personal | - mortgages | — | 144,171 | 5,102 | 149,273 | — | — | — | — | 149,273 | — | 149,273 | ||||
- unsecured | — | 32,868 | 1,556 | 34,424 | — | — | — | 52 | 34,476 | (7) | 34,469 | |||||
Property | — | 42,994 | 38,064 | 81,058 | 573 | 175 | 4,599 | 1 | 86,406 | (1,274) | 85,132 | |||||
Construction | — | 7,197 | 2,672 | 9,869 | 50 | 53 | 946 | — | 10,918 | (1,139) | 9,779 | |||||
Manufacturing | 254 | 23,708 | 4,931 | 28,639 | 664 | 1,938 | 3,786 | 306 | 35,587 | (2,214) | 33,373 | |||||
Finance leases (5) | — | 8,440 | 6,059 | 14,499 | 145 | 2 | 75 | — | 14,721 | (16) | 14,705 | |||||
Retail, wholesale and repairs | — | 22,039 | 2,339 | 24,378 | 645 | 2,652 | 1,134 | 18 | 28,827 | (1,671) | 27,156 | |||||
Transport and storage | 436 | 16,581 | 5,477 | 22,058 | 539 | 74 | 3,759 | — | 26,866 | (241) | 26,625 | |||||
Health, education and leisure | — | 16,073 | 1,419 | 17,492 | 310 | 21 | 885 | — | 18,708 | (973) | 17,735 | |||||
Hotels and restaurants | — | 7,709 | 1,161 | 8,870 | 116 | 5 | 671 | — | 9,662 | (184) | 9,478 | |||||
Utilities | — | 6,557 | 1,849 | 8,406 | 1,530 | 554 | 3,708 | 30 | 14,228 | (450) | 13,778 | |||||
Other | 174 | 28,769 | 4,721 | 33,490 | 3,785 | 5,136 | 6,437 | 595 | 49,617 | (1,003) | 48,614 | |||||
Total gross of provisions | 100,934 | 457,437 | 80,711 | 538,148 | 211,468 | 15,329 | 530,057 | 88,490 | 1,484,426 | (537,444) | 946,982 | |||||
Provisions | — | (9,187) | (11,487) | (20,674) | (2,388) | (141) | — | — | (23,203) | n/a | (23,203) | |||||
Total | 100,934 | 448,250 | 69,224 | 517,474 | 209,080 | 15,188 | 530,057 | 88,490 | 1,461,223 | (537,444) | 923,779 |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | ||||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | |||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Government (2) | 645 | 6,781 | 1,671 | 8,452 | 130,123 | — | 7,560 | 291 | 147,071 | (3,916) | 143,155 | ||||
Financial institutions | - banks (3) | 42,571 | 57,033 | 1,654 | 58,687 | 22,474 | 3,259 | 315,297 | 57,198 | 499,486 | (312,327) | 187,159 | |||
- other (4) | 51,297 | 47,161 | 7,791 | 54,952 | 54,726 | 4,366 | 84,042 | 12,740 | 262,123 | (91,059) | 171,064 | ||||
Personal | - mortgages | — | 140,359 | 6,142 | 146,501 | — | — | — | — | 146,501 | (19) | 146,482 | |||
- unsecured | — | 33,581 | 3,891 | 37,472 | — | — | — | 48 | 37,520 | (11) | 37,509 | ||||
Property | — | 42,455 | 47,948 | 90,403 | 2,700 | 237 | 3,830 | 28 | 97,198 | (1,046) | 96,152 | ||||
Construction | — | 8,680 | 3,425 | 12,105 | 56 | 31 | 780 | — | 12,972 | (1,406) | 11,566 | ||||
Manufacturing | 389 | 25,797 | 7,688 | 33,485 | 784 | 113 | 3,229 | — | 38,000 | (2,156) | 35,844 | ||||
Finance leases (5) | — | 8,321 | 8,529 | 16,850 | 13 | 2 | 14 | — | 16,879 | (134) | 16,745 | ||||
Retail, wholesale and repairs | — | 21,974 | 3,191 | 25,165 | 520 | 41 | 1,124 | — | 26,850 | (2,468) | 24,382 | ||||
Transport and storage | — | 15,946 | 8,195 | 24,141 | 879 | 54 | 2,703 | — | 27,777 | (224) | 27,553 | ||||
Health, education and leisure | — | 17,456 | 1,975 | 19,431 | 1,495 | 42 | 1,198 | — | 22,166 | (1,047) | 21,119 | ||||
Hotels and restaurants | — | 8,189 | 1,492 | 9,681 | 276 | 123 | 525 | — | 10,605 | (253) | 10,352 | ||||
Utilities | — | 7,098 | 2,948 | 10,046 | 1,714 | 229 | 2,491 | 2 | 14,482 | (985) | 13,497 | ||||
Other | 217 | 29,053 | 8,115 | 37,168 | 3,021 | 13,897 | 9,432 | 386 | 64,121 | (1,494) | 62,627 | ||||
Total gross of provisions | 95,119 | 469,884 | 114,655 | 584,539 | 218,781 | 22,394 | 432,225 | 70,693 | 1,423,751 | (418,545) | 1,005,206 | ||||
Provisions | — | (7,866) | (10,352) | (18,218) | (1,301) | (176) | — | (29) | (19,724) | n/a | (19,724) | ||||
Total including disposal groups before RFS MI | 95,119 | 462,018 | 104,303 | 566,321 | 217,480 | 22,218 | 432,225 | 70,664 | 1,404,027 | (418,545) | 985,482 | ||||
RFS minority interests | — | — | 2 | 2 | — | — | — | — | 2 | — | 2 | ||||
Total | 95,119 | 462,018 | 104,305 | 566,323 | 217,480 | 22,218 | 432,225 | 70,664 | 1,404,029 | (418,545) | 985,484 |
· | Financial asset exposures after offset including disposal groups decreased by £110 billion or 12% to £814 billion, reflecting the Group’s focus on reducing its funded balance sheet, primarily in Non-Core, Markets and International Banking. |
· | Reductions were across all major balance sheet categories: lending (£54 billion), debt securities (£44 billion) and derivatives (£88 billion). Conditions in the financial markets and the Group’s focus on risk appetite and sector concentration had a direct impact on the composition of its portfolio during the year. |
· | Exposures to central and local governments decreased by £34 billion principally in debt securities. This was driven by Markets de-risking its balance sheet, management of the Group Treasury liquidity portfolio as well as overall risk reduction in respect of eurozone exposures. The Group’s portfolio comprises exposures to central governments and sub-sovereigns such as local authorities, primarily in the Group’s key markets in the UK, Western Europe and the US. |
· | Exposure to financial institutions was £28 billion lower, across securities, loans and derivatives, driven by economy-wide subdued activity. |
· | The banking sector is one of the largest in the Group’s portfolio. The sector is well diversified geographically and by exposure with derivative exposures being largely collateralised. The sector is tightly controlled through the combination of the single name concentration framework, a suite of credit policies specifically tailored to the sector and country limits. Exposures to the banking sector decreased by £22 billion during the period, primarily due to reduced interbank lending and derivative activity, and a reduction in limits to banks in countries under stress, such as the peripheral eurozone countries. |
· | Exposure to other financial institutions comprising traded and non traded products is spread across a wide range of financial companies including insurance, securitisation vehicles, financial intermediaries including broker dealers and central counterparties (CCPs), financial guarantors - monolines and credit derivative product companies (CDPCs) - and funds comprising unleveraged, hedge and leveraged funds. The size of the Core portfolio has decreased marginally since 2011. Entities in this sector remain vulnerable to market shocks or contagion from the banking sector. Credit risk in these sectors is managed through the single name concentration, sector concentration and asset and product class frameworks, with specific sector and product caps in place where there is a perception of heightened credit risk, such as committed lending to banks, leveraged funds and insurance holding companies. The Group continues to develop its risk appetite framework for CCPs to reflect increased activity with these entities driven by regulatory requirements. The Group is also managing down its exposures to monolines and CDPCs with the aim of exiting these portfolios. |
· | The Group’s exposure to property and construction sector decreased by £11 billion, principally in commercial real estate lending. The majority of the Group’s Core property exposure is within UK Corporate (73%). In relation to property exposure, the UK Corporate and Ulster Bank divisions saw further deterioration in asset quality during the year. |
· | Retail, wholesale and repairs sector decreased by £4 billion, reflecting de-leveraging of customers in the retail sector. |
· | Manufacturing exposure reduced by £9 billion primarily reflecting Non-Core reductions. |
· | Transport and storage includes the Group’s shipping exposures of £11 billion which comprises asset-backed exposures to ocean-going vessels. Conditions remained poor across the major shipping market segments in 2012, with low charter rates and vessel values. A key protection for the Group is the minimum security covenant. This covenant is tested each quarter on an individual vessel basis to ensure prompt remedial action is taken if values fall significantly below agreed loan coverage ratios. There was an increase in the number of clients suffering liquidity issues or failing to meet their minimum security covenant and a commensurate rise in referrals to the Watchlist and the GRG. At 31 December 2012, 20% of the Group’s exposure to this sector was in Watchlist Red. The Group’s exposure to the shipping sector (including shipping related infrastructure) declined by 3.5% in 2012 as a result of amortisation and foreign exchange movements. At 31 December 2012, £0.7 billion of loans were included in risk elements in lending with an associated provision of £0.2 billion and impairment charge of £0.1 billion for 2012. |
2012 | Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | ||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
UK | ||||||||||||||
Government (2) | 441 | 8,079 | 8 | 8,087 | 62,722 | — | 5,582 | 47 | 76,879 | (5,028) | 71,851 | |||
Financial institutions | - banks (3) | 24,856 | 22,551 | 100 | 22,651 | 6,110 | 1,175 | 193,892 | 40,851 | 289,535 | (202,189) | 87,346 | ||
- other (4) | 42,203 | 32,024 | 1,931 | 33,955 | 16,834 | 2,069 | 62,810 | 2,946 | 160,817 | (78,976) | 81,841 | |||
Personal | - mortgages | — | 109,511 | 19 | 109,530 | — | — | — | — | 109,530 | — | 109,530 | ||
- unsecured | — | 20,443 | 55 | 20,498 | — | — | — | 4 | 20,502 | — | 20,502 | |||
Property | — | 35,532 | 18,198 | 53,730 | 547 | 282 | 3,954 | — | 58,513 | (1,328) | 57,185 | |||
Construction | — | 5,101 | 1,406 | 6,507 | 14 | 248 | 789 | — | 7,558 | (1,666) | 5,892 | |||
Manufacturing | 326 | 9,416 | 642 | 10,058 | 579 | 1,553 | 1,286 | 111 | 13,913 | (3,542) | 10,371 | |||
Finance leases (5) | — | 6,349 | 4,183 | 10,532 | 81 | 1 | — | — | 10,614 | — | 10,614 | |||
Retail, wholesale and repairs | — | 11,103 | 428 | 11,531 | 397 | 1,634 | 701 | 41 | 14,304 | (1,590) | 12,714 | |||
Transport and storage | — | 7,958 | 2,619 | 10,577 | 527 | 361 | 2,049 | 2 | 13,516 | (2,279) | 11,237 | |||
Health, education and leisure | — | 11,530 | 371 | 11,901 | 144 | 548 | 818 | 59 | 13,470 | (888) | 12,582 | |||
Hotels and restaurants | — | 5,505 | 484 | 5,989 | 121 | 51 | 493 | 11 | 6,665 | (344) | 6,321 | |||
Utilities | — | 2,780 | 776 | 3,556 | 1,178 | 492 | 2,654 | 30 | 7,910 | (2,515) | 5,395 | |||
Other | 19 | 13,969 | 1,874 | 15,843 | 1,085 | 4,757 | 2,647 | 140 | 24,491 | (1,885) | 22,606 | |||
Total gross of provisions | 67,845 | 301,851 | 33,094 | 334,945 | 90,339 | 13,171 | 277,675 | 44,242 | 828,217 | (302,230) | 525,987 | |||
Provisions | — | (5,637) | (4,124) | (9,761) | (420) | (112) | — | — | (10,293) | n/a | (10,293) | |||
Total | 67,845 | 296,214 | 28,970 | 325,184 | 89,919 | 13,059 | 277,675 | 44,242 | 817,924 | (302,230) | 515,694 | |||
US | ||||||||||||||
Government (2) | — | 151 | — | 151 | 22,084 | — | 23 | 500 | 22,758 | (17) | 22,741 | |||
Financial institutions | - banks (3) | 5,024 | 1,295 | 47 | 1,342 | 468 | 349 | 116,935 | 14,066 | 138,184 | (115,459) | 22,725 | ||
- other (4) | 22,807 | 4,023 | 234 | 4,257 | 25,483 | 210 | 13,397 | 2,086 | 68,240 | (14,720) | 53,520 | |||
Personal | - mortgages | — | 19,483 | 2,446 | 21,929 | — | — | — | — | 21,929 | — | 21,929 | ||
- unsecured | — | 8,209 | 539 | 8,748 | — | — | — | — | 8,748 | — | 8,748 | |||
Property | — | 2,847 | 496 | 3,343 | 8 | 26 | 34 | — | 3,411 | — | 3,411 | |||
Construction | — | 384 | 4 | 388 | 3 | 2 | 9 | — | 402 | — | 402 | |||
Manufacturing | — | 6,004 | 17 | 6,021 | 156 | 15 | 265 | — | 6,457 | (215) | 6,242 | |||
Finance leases (5) | — | 2,471 | — | 2,471 | — | — | — | — | 2,471 | — | 2,471 | |||
Retail, wholesale and repairs | — | 4,852 | 53 | 4,905 | 58 | 1 | 66 | — | 5,030 | (52) | 4,978 | |||
Transport and storage | — | 1,522 | 406 | 1,928 | 37 | — | 855 | — | 2,820 | (800) | 2,020 | |||
Health, education and leisure | — | 2,822 | 26 | 2,848 | 170 | — | 73 | — | 3,091 | (70) | 3,021 | |||
Hotels and restaurants | — | 474 | 16 | 490 | 23 | — | — | — | 513 | — | 513 | |||
Utilities | — | 929 | 37 | 966 | 100 | 15 | 273 | — | 1,354 | (251) | 1,103 | |||
Other | 4 | 5,019 | 298 | 5,317 | 674 | 324 | 1,094 | — | 7,413 | (277) | 7,136 | |||
Total gross of provisions | 27,835 | 60,485 | 4,619 | 65,104 | 49,264 | 942 | 133,024 | 16,652 | 292,821 | (131,861) | 160,960 | |||
Provisions | — | (581) | (335) | (916) | — | — | — | — | (916) | n/a | (916) | |||
Total | 27,835 | 59,904 | 4,284 | 64,188 | 49,264 | 942 | 133,024 | 16,652 | 291,905 | (131,861) | 160,044 |
2012 | Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | ||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Europe | ||||||||||||||
Government (2) | — | 224 | 667 | 891 | 5,684 | — | 54 | 2 | 6,631 | (15) | 6,616 | |||
Financial institutions | - banks (3) | 375 | 2,961 | 190 | 3,151 | 4,016 | 8 | 55 | 23,181 | 30,786 | (2) | 30,784 | ||
- other (4) | 20 | 1,390 | 300 | 1,690 | 7,222 | 309 | 95 | 134 | 9,470 | — | 9,470 | |||
Personal | - mortgages | — | 17,446 | 390 | 17,836 | — | — | — | — | 17,836 | — | 17,836 | ||
- unsecured | — | 1,540 | 365 | 1,905 | — | — | — | — | 1,905 | — | 1,905 | |||
Property | — | 4,896 | 9,738 | 14,634 | — | 2 | 77 | — | 14,713 | (5) | 14,708 | |||
Construction | — | 513 | 619 | 1,132 | — | 6 | — | — | 1,138 | (21) | 1,117 | |||
Manufacturing | — | 4,771 | 660 | 5,431 | 94 | 26 | 25 | 1 | 5,577 | (9) | 5,568 | |||
Finance leases (5) | — | 292 | 172 | 464 | — | — | — | — | 464 | — | 464 | |||
Retail, wholesale and repairs | — | 3,142 | 607 | 3,749 | — | 109 | 10 | — | 3,868 | (22) | 3,846 | |||
Transport and storage | — | 4,851 | 599 | 5,450 | 1 | 10 | 12 | — | 5,473 | (5) | 5,468 | |||
Health, education and leisure | — | 1,170 | 399 | 1,569 | — | 2 | — | — | 1,571 | (6) | 1,565 | |||
Hotels and restaurants | — | 893 | 486 | 1,379 | — | — | — | — | 1,379 | (4) | 1,375 | |||
Utilities | — | 993 | 499 | 1,492 | 6 | 112 | 65 | 20 | 1,695 | — | 1,695 | |||
Other | — | 4,492 | 817 | 5,309 | 39 | 201 | 44 | 32 | 5,625 | (53) | 5,572 | |||
Total gross of provisions | 395 | 49,574 | 16,508 | 66,082 | 17,062 | 785 | 437 | 23,370 | 108,131 | (142) | 107,989 | |||
Provisions | — | (3,697) | (6,570) | (10,267) | (438) | — | — | — | (10,705) | n/a | (10,705) | |||
Total | 395 | 45,877 | 9,938 | 55,815 | 16,624 | 785 | 437 | 23,370 | 97,426 | (142) | 97,284 | |||
RoW | ||||||||||||||
Government (2) | — | 31 | 693 | 724 | 6,849 | — | 132 | 42 | 7,747 | (91) | 7,656 | |||
Financial institutions | - banks (3) | 4,528 | 4,110 | 140 | 4,250 | 961 | 111 | 24,639 | 1,210 | 35,699 | (23,453) | 12,246 | ||
- other (4) | 4,226 | 2,221 | 75 | 2,296 | 565 | 84 | 4,515 | 425 | 12,111 | (3,893) | 8,218 | |||
Personal | - mortgages | — | 330 | — | 330 | — | — | — | — | 330 | — | 330 | ||
- unsecured | — | 1,055 | 6 | 1,061 | — | — | — | — | 1,061 | — | 1,061 | |||
Property | — | 327 | 185 | 512 | 219 | 8 | 53 | — | 792 | — | 792 | |||
Construction | — | 22 | — | 22 | — | 8 | 22 | — | 52 | — | 52 | |||
Manufacturing | — | 2,043 | 234 | 2,277 | 7 | 45 | 183 | 32 | 2,544 | (9) | 2,535 | |||
Finance leases (5) | — | 89 | 53 | 142 | 1 | — | 13 | — | 156 | — | 156 | |||
Retail, wholesale and repairs | — | 1,745 | 6 | 1,751 | 6 | 63 | 137 | — | 1,957 | (121) | 1,836 | |||
Transport and storage | — | 259 | 127 | 386 | 94 | 11 | 481 | — | 972 | (156) | 816 | |||
Health, education and leisure | — | 248 | 139 | 387 | — | 4 | 13 | — | 404 | — | 404 | |||
Hotels and restaurants | — | 19 | — | 19 | — | — | — | — | 19 | — | 19 | |||
Utilities | — | 429 | 188 | 617 | 27 | 19 | 178 | — | 841 | — | 841 | |||
Other | 1 | 2,835 | 753 | 3,588 | 88 | 98 | 416 | — | 4,191 | (188) | 4,003 | |||
Total gross of provisions | 8,755 | 15,763 | 2,599 | 18,362 | 8,817 | 451 | 30,782 | 1,709 | 68,876 | (27,911) | 40,965 | |||
Provisions | — | (147) | (171) | (318) | — | — | — | — | (318) | n/a | (318) | |||
Total | 8,755 | 15,616 | 2,428 | 18,044 | 8,817 | 451 | 30,782 | 1,709 | 68,558 | (27,911) | 40,647 |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | |||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
UK | ||||||||||||||
Government (2) | 2,130 | 8,012 | 25 | 8,037 | 77,831 | — | 5,282 | 548 | 93,828 | (1,098) | 92,730 | |||
Financial institutions | - banks (3) | 25,204 | 29,575 | 218 | 29,793 | 1,950 | 1,562 | 258,321 | 40,396 | 357,226 | (271,500) | 85,726 | ||
- other (4) | 39,154 | 33,020 | 2,361 | 35,381 | 25,954 | 1,676 | 43,327 | 3,259 | 148,751 | (59,160) | 89,591 | |||
Personal | - mortgages | — | 104,965 | 1,423 | 106,388 | — | — | — | — | 106,388 | — | 106,388 | ||
- unsecured | — | 21,881 | 127 | 22,008 | — | — | — | 24 | 22,032 | (7) | 22,025 | |||
Property | — | 35,431 | 24,610 | 60,041 | 278 | 137 | 4,332 | — | 64,788 | (1,265) | 63,523 | |||
Construction | — | 5,707 | 1,882 | 7,589 | 20 | 26 | 895 | — | 8,530 | (1,115) | 7,415 | |||
Manufacturing | 254 | 10,148 | 835 | 10,983 | 499 | 1,908 | 2,259 | — | 15,903 | (2,205) | 13,698 | |||
Finance leases (5) | — | 5,618 | 5,598 | 11,216 | 1 | 2 | 73 | — | 11,292 | (16) | 11,276 | |||
Retail, wholesale and repairs | — | 11,796 | 1,441 | 13,237 | 574 | 2,616 | 952 | 18 | 17,397 | (1,647) | 15,750 | |||
Transport and storage | 436 | 8,716 | 3,439 | 12,155 | 145 | 67 | 2,217 | — | 15,020 | (200) | 14,820 | |||
Health, education and leisure | — | 11,534 | 757 | 12,291 | 72 | 8 | 756 | — | 13,127 | (965) | 12,162 | |||
Hotels and restaurants | — | 6,165 | 569 | 6,734 | 23 | — | 664 | — | 7,421 | (178) | 7,243 | |||
Utilities | — | 2,476 | 922 | 3,398 | 1,150 | 513 | 3,207 | 30 | 8,298 | (450) | 7,848 | |||
Other | 126 | 17,393 | 1,723 | 19,116 | 2,395 | 4,704 | 4,105 | 593 | 31,039 | (947) | 30,092 | |||
Total gross of provisions | 67,304 | 312,437 | 45,930 | 358,367 | 110,892 | 13,219 | 326,390 | 44,868 | 921,040 | (340,753) | 580,287 | |||
Provisions | — | (5,349) | (4,754) | (10,103) | (1,170) | (141) | — | — | (11,414) | n/a | (11,414) | |||
Total | 67,304 | 307,088 | 41,176 | 348,264 | 109,722 | 13,078 | 326,390 | 44,868 | 909,626 | (340,753) | 568,873 | |||
US | ||||||||||||||
Government (2) | — | 177 | 14 | 191 | 22,936 | — | 9 | 1 | 23,137 | — | 23,137 | |||
Financial institutions | - banks (3) | 7,289 | 671 | 40 | 711 | 1,245 | 443 | 111,240 | 29,426 | 150,354 | (108,060) | 42,294 | ||
- other (4) | 17,368 | 8,993 | 341 | 9,334 | 29,885 | 560 | 54,639 | 3,510 | 115,296 | (60,556) | 54,740 | |||
Personal | - mortgages | — | 20,311 | 2,926 | 23,237 | — | — | — | — | 23,237 | — | 23,237 | ||
- unsecured | — | 7,505 | 936 | 8,441 | — | — | — | — | 8,441 | — | 8,441 | |||
Property | — | 2,413 | 1,370 | 3,783 | 26 | 23 | 38 | — | 3,870 | — | 3,870 | |||
Construction | — | 412 | 45 | 457 | 21 | 3 | 11 | — | 492 | — | 492 | |||
Manufacturing | — | 6,782 | 42 | 6,824 | 101 | 12 | 452 | — | 7,389 | — | 7,389 | |||
Finance leases (5) | — | 2,471 | — | 2,471 | 17 | — | — | — | 2,488 | — | 2,488 | |||
Retail, wholesale and repairs | — | 4,975 | 98 | 5,073 | 52 | — | 63 | — | 5,188 | — | 5,188 | |||
Transport and storage | — | 1,832 | 937 | 2,769 | 26 | 1 | 1,084 | — | 3,880 | — | 3,880 | |||
Health, education and leisure | — | 2,946 | 88 | 3,034 | 74 | 4 | 93 | — | 3,205 | — | 3,205 | |||
Hotels and restaurants | — | 627 | 57 | 684 | 93 | 3 | 1 | — | 781 | — | 781 | |||
Utilities | — | 1,033 | 28 | 1,061 | 243 | 16 | 322 | — | 1,642 | — | 1,642 | |||
Other | 29 | 5,135 | 439 | 5,574 | 695 | 103 | 1,436 | — | 7,837 | — | 7,837 | |||
Total gross of provisions | 24,686 | 66,283 | 7,361 | 73,644 | 55,414 | 1,168 | 169,388 | 32,937 | 357,237 | (168,616) | 188,621 | |||
Provisions | — | (787) | (516) | (1,303) | — | — | — | — | (1,303) | n/a | (1,303) | |||
Total | 24,686 | 65,496 | 6,845 | 72,341 | 55,414 | 1,168 | 169,388 | 32,937 | 355,934 | (168,616) | 187,318 |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | |||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Europe | ||||||||||||||
Government (2) | — | 116 | 715 | 831 | 13,362 | — | 60 | — | 14,253 | — | 14,253 | |||
Financial institutions | - banks (3) | 247 | 8,361 | 250 | 8,611 | 10,859 | 78 | — | 6,725 | 26,520 | — | 26,520 | ||
- other (4) | — | 2,534 | 474 | 3,008 | 4,521 | 165 | 289 | 90 | 8,073 | (1) | 8,072 | |||
Personal | - mortgages | — | 18,393 | 553 | 18,946 | — | — | — | — | 18,946 | — | 18,946 | ||
- unsecured | — | 1,972 | 492 | 2,464 | — | — | — | 28 | 2,492 | — | 2,492 | |||
Property | — | 4,846 | 11,538 | 16,384 | — | — | 168 | — | 16,552 | (9) | 16,543 | |||
Construction | — | 1,019 | 735 | 1,754 | — | 22 | 18 | — | 1,794 | (24) | 1,770 | |||
Manufacturing | — | 4,383 | 3,732 | 8,115 | 57 | 5 | 23 | — | 8,200 | (9) | 8,191 | |||
Finance leases (5) | — | 260 | 435 | 695 | — | — | — | — | 695 | — | 695 | |||
Retail, wholesale and repairs | — | 3,992 | 772 | 4,764 | 16 | 2 | 23 | — | 4,805 | (24) | 4,781 | |||
Transport and storage | — | 5,667 | 862 | 6,529 | 143 | — | 15 | — | 6,687 | (6) | 6,681 | |||
Health, education and leisure | — | 1,235 | 349 | 1,584 | 164 | 5 | 2 | — | 1,755 | (8) | 1,747 | |||
Hotels and restaurants | — | 892 | 535 | 1,427 | — | — | 6 | — | 1,433 | (6) | 1,427 | |||
Utilities | — | 1,569 | 530 | 2,099 | 124 | 3 | 85 | — | 2,311 | — | 2,311 | |||
Other | 7 | 3,766 | 1,679 | 5,445 | 568 | 70 | 35 | — | 6,125 | (56) | 6,069 | |||
Total gross of provisions | 254 | 59,005 | 23,651 | 82,656 | 29,814 | 350 | 724 | 6,843 | 120,641 | (143) | 120,498 | |||
Provisions | — | (3,003) | (5,895) | (8,898) | (1,218) | — | — | — | (10,116) | n/a | (10,116) | |||
Total | 254 | 56,002 | 17,756 | 73,758 | 28,596 | 350 | 724 | 6,843 | 110,525 | (143) | 110,382 | |||
RoW | ||||||||||||||
Government (2) | 117 | 54 | 629 | 683 | 11,414 | — | 190 | 92 | 12,496 | — | 12,496 | |||
Financial institutions | - banks (3) | 6,605 | 4,767 | 198 | 4,965 | 2,886 | 135 | 30,700 | 2,849 | 48,140 | (27,897) | 20,243 | ||
- other (4) | 1,956 | 4,051 | 96 | 4,147 | 268 | 100 | — | 592 | 7,063 | — | 7,063 | |||
Personal | - mortgages | — | 502 | 200 | 702 | — | — | — | — | 702 | — | 702 | ||
- unsecured | — | 1,510 | 1 | 1,511 | — | — | — | — | 1,511 | — | 1,511 | |||
Property | — | 304 | 546 | 850 | 269 | 15 | 61 | 1 | 1,196 | — | 1,196 | |||
Construction | — | 59 | 10 | 69 | 9 | 2 | 22 | — | 102 | — | 102 | |||
Manufacturing | — | 2,395 | 322 | 2,717 | 7 | 13 | 1,052 | 306 | 4,095 | — | 4,095 | |||
Finance leases (5) | — | 91 | 26 | 117 | 127 | — | 2 | — | 246 | — | 246 | |||
Retail, wholesale and repairs | — | 1,276 | 28 | 1,304 | 3 | 34 | 96 | — | 1,437 | —�� | 1,437 | |||
Transport and storage | — | 366 | 239 | 605 | 225 | 6 | 443 | — | 1,279 | (35) | 1,244 | |||
Health, education and leisure | — | 358 | 225 | 583 | — | 4 | 34 | — | 621 | — | 621 | |||
Hotels and restaurants | — | 25 | — | 25 | — | 2 | — | — | 27 | — | 27 | |||
Utilities | — | 1,479 | 369 | 1,848 | 13 | 22 | 94 | — | 1,977 | — | 1,977 | |||
Other | 12 | 2,475 | 880 | 3,355 | 127 | 259 | 861 | 2 | 4,616 | — | 4,616 | |||
Total gross of provisions | 8,690 | 19,712 | 3,769 | 23,481 | 15,348 | 592 | 33,555 | 3,842 | 85,508 | (27,932) | 57,576 | |||
Provisions | — | (48) | (322) | (370) | — | — | — | — | (370) | n/a | (370) | |||
Total | 8,690 | 19,664 | 3,447 | 23,111 | 15,348 | 592 | 33,555 | 3,842 | 85,138 | (27,932) | 57,206 |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | |||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
UK | ||||||||||||||
Government (2) | 611 | 5,728 | 173 | 5,901 | 72,427 | — | 7,300 | 173 | 86,412 | (3,916) | 82,496 | |||
Financial institutions | - banks (3) | 28,370 | 41,541 | 481 | 42,022 | 5,381 | 1,828 | 203,487 | 28,128 | 309,216 | (210,136) | 99,080 | ||
- other (4) | 33,186 | 28,246 | 6,023 | 34,269 | 27,737 | 3,617 | 45,852 | 5,390 | 150,051 | (46,812) | 103,239 | |||
Personal | - mortgages | — | 99,928 | 1,665 | 101,593 | — | — | — | — | 101,593 | (14) | 101,579 | ||
- unsecured | — | 23,035 | 585 | 23,620 | — | — | — | 23 | 23,643 | (11) | 23,632 | |||
Property | — | 34,970 | 30,789 | 65,759 | 2,302 | 175 | 3,739 | 28 | 72,003 | (1,041) | 70,962 | |||
Construction | — | 7,041 | 2,383 | 9,424 | 39 | — | 741 | — | 10,204 | (1,392) | 8,812 | |||
Manufacturing | 389 | 12,300 | 2,353 | 14,653 | 354 | — | 2,159 | — | 17,555 | (2,150) | 15,405 | |||
Finance leases (5) | — | 5,589 | 7,785 | 13,374 | 13 | 2 | 14 | — | 13,403 | (134) | 13,269 | |||
Retail, wholesale and repairs | — | 12,554 | 1,853 | 14,407 | 343 | 11 | 874 | — | 15,635 | (2,452) | 13,183 | |||
Transport and storage | — | 8,105 | 5,015 | 13,120 | 241 | 3 | 1,573 | — | 14,937 | (219) | 14,718 | |||
Health, education and leisure | — | 13,502 | 1,149 | 14,651 | 160 | 22 | 877 | — | 15,710 | (1,047) | 14,663 | |||
Hotels and restaurants | — | 6,558 | 808 | 7,366 | 172 | — | 518 | — | 8,056 | (249) | 7,807 | |||
Utilities | — | 3,101 | 1,459 | 4,560 | 1,040 | 5 | 2,112 | 2 | 7,719 | (985) | 6,734 | |||
Other | 57 | 17,732 | 2,618 | 20,350 | 1,051 | 13,648 | 2,401 | 335 | 37,842 | (1,448) | 36,394 | |||
Total gross of provisions | 62,613 | 319,930 | 65,139 | 385,069 | 111,260 | 19,311 | 271,647 | 34,079 | 883,979 | (272,006) | 611,973 | |||
Provisions | — | (4,937) | (3,741) | (8,678) | (1,301) | (176) | — | (29) | (10,184) | n/a | (10,184) | |||
Total | 62,613 | 314,993 | 61,398 | 376,391 | 109,959 | 19,135 | 271,647 | 34,050 | 873,795 | (272,006) | 601,789 | |||
US | ||||||||||||||
Government (2) | — | 263 | 53 | 316 | 24,975 | — | 5 | 112 | 25,408 | — | 25,408 | |||
Financial institutions | - banks (3) | 8,978 | 820 | 641 | 1,461 | 1,951 | 561 | 87,627 | 19,455 | 120,033 | (80,128) | 39,905 | ||
- other (4) | 16,023 | 9,522 | 656 | 10,178 | 21,958 | 525 | 34,090 | 5,505 | 88,279 | (43,734) | 44,545 | |||
Personal | - mortgages | — | 20,548 | 3,653 | 24,201 | — | — | — | — | 24,201 | — | 24,201 | ||
- unsecured | — | 6,816 | 2,704 | 9,520 | — | — | — | — | 9,520 | — | 9,520 | |||
Property | — | 1,611 | 3,318 | 4,929 | 95 | 4 | 23 | — | 5,051 | — | 5,051 | |||
Construction | — | 442 | 78 | 520 | 5 | — | 16 | — | 541 | — | 541 | |||
Manufacturing | — | 5,459 | 209 | 5,668 | 412 | 22 | 583 | — | 6,685 | — | 6,685 | |||
Finance leases (5) | — | 2,315 | — | 2,315 | — | — | — | — | 2,315 | — | 2,315 | |||
Retail, wholesale and repairs | — | 4,264 | 237 | 4,501 | 132 | — | 68 | — | 4,701 | — | 4,701 | |||
Transport and storage | — | 1,786 | 1,408 | 3,194 | 99 | 2 | 929 | — | 4,224 | — | 4,224 | |||
Health, education and leisure | — | 2,380 | 313 | 2,693 | 1,308 | 3 | 292 | — | 4,296 | — | 4,296 | |||
Hotels and restaurants | — | 486 | 136 | 622 | 104 | — | 3 | — | 729 | — | 729 | |||
Utilities | — | 1,117 | 326 | 1,443 | 567 | 2 | 272 | — | 2,284 | — | 2,284 | |||
Other | 131 | 4,256 | 682 | 4,938 | 1,057 | 105 | 5,971 | 42 | 12,244 | — | 12,244 | |||
Total gross of provisions | 25,132 | 62,085 | 14,414 | 76,499 | 52,663 | 1,224 | 129,879 | 25,114 | 310,511 | (123,862) | 186,649 | |||
Provisions | — | (824) | (819) | (1,643) | — | — | — | — | (1,643) | n/a | (1,643) | |||
Total | 25,132 | 61,261 | 13,595 | 74,856 | 52,663 | 1,224 | 129,879 | 25,114 | 308,868 | (123,862) | 185,006 |
Reverse | Lending | Securities | Balance | Non-IFRS | Exposure | |||||||||
repos | Core | Non-Core | Total | Debt | Equity | Derivatives | Other | sheet value | offset (1) | post offset | ||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Europe | ||||||||||||||
Government (2) | — | 365 | 1,017 | 1,382 | 18,648 | — | 66 | — | 20,096 | — | 20,096 | |||
Financial institutions | - banks (3) | 94 | 10,219 | 313 | 10,532 | 11,843 | 322 | — | 7,974 | 30,765 | — | 30,765 | ||
- other (4) | — | 2,642 | 1,019 | 3,661 | 4,886 | 64 | 746 | 53 | 9,410 | (1) | 9,409 | |||
Personal | - mortgages | — | 19,473 | 621 | 20,094 | — | — | — | — | 20,094 | (5) | 20,089 | ||
- unsecured | — | 2,270 | 600 | 2,870 | — | — | — | 25 | 2,895 | — | 2,895 | |||
Property | — | 5,139 | 12,636 | 17,775 | — | 43 | — | — | 17,818 | (5) | 17,813 | |||
Construction | — | 1,014 | 873 | 1,887 | — | 27 | 1 | — | 1,915 | (14) | 1,901 | |||
Manufacturing | — | 5,853 | 4,440 | 10,293 | 18 | 87 | 39 | — | 10,437 | (6) | 10,431 | |||
Finance leases (5) | — | 370 | 744 | 1,114 | — | — | — | — | 1,114 | — | 1,114 | |||
Retail, wholesale and repairs | — | 4,126 | 999 | 5,125 | 32 | 2 | 33 | — | 5,192 | (15) | 5,177 | |||
Transport and storage | — | 5,625 | 1,369 | 6,994 | 141 | 22 | 2 | — | 7,159 | (5) | 7,154 | |||
Health, education and leisure | — | 1,442 | 496 | 1,938 | 27 | 9 | — | — | 1,974 | — | 1,974 | |||
Hotels and restaurants | — | 1,055 | 535 | 1,590 | — | 120 | — | — | 1,710 | (4) | 1,706 | |||
Utilities | — | 1,412 | 683 | 2,095 | 74 | 188 | 10 | — | 2,367 | — | 2,367 | |||
Other | 28 | 4,869 | 2,219 | 7,088 | 746 | 138 | 54 | — | 8,054 | (45) | 8,009 | |||
Total gross of provisions | 122 | 65,874 | 28,564 | 94,438 | 36,415 | 1,022 | 951 | 8,052 | 141,000 | (100) | 140,900 | |||
Provisions | — | (1,984) | (5,243) | (7,227) | — | — | — | — | (7,227) | n/a | (7,227) | |||
Total including disposal groups before RFS MI | 122 | 63,890 | 23,321 | 87,211 | 36,415 | 1,022 | 951 | 8,052 | 133,773 | (100) | 133,673 | |||
RFS Minority Interest | — | — | 2 | 2 | — | — | — | — | 2 | — | 2 | |||
Total | 122 | 63,890 | 23,323 | 87,213 | 36,415 | 1,022 | 951 | 8,052 | 133,775 | (100) | 133,675 | |||
RoW | ||||||||||||||
Government (2) | 34 | 425 | 428 | 853 | 14,073 | — | 189 | 6 | 15,155 | — | 15,155 | |||
Financial institutions | - banks (3) | 5,129 | 4,453 | 219 | 4,672 | 3,299 | 548 | 24,183 | 1,641 | 39,472 | (22,063) | 17,409 | ||
- other (4) | 2,088 | 6,751 | 93 | 6,844 | 145 | 160 | 3,354 | 1,792 | 14,383 | (512) | 13,871 | |||
Personal | - mortgages | — | 410 | 203 | 613 | — | — | — | — | 613 | — | 613 | ||
- unsecured | — | 1,460 | 2 | 1,462 | — | — | — | — | 1,462 | — | 1,462 | |||
Property | — | 735 | 1,205 | 1,940 | 303 | 15 | 68 | — | 2,326 | — | 2,326 | |||
Construction | — | 183 | 91 | 274 | 12 | 4 | 22 | — | 312 | — | 312 | |||
Manufacturing | — | 2,185 | 686 | 2,871 | — | 4 | 448 | — | 3,323 | — | 3,323 | |||
Finance leases (5) | — | 47 | — | 47 | — | — | — | — | 47 | — | 47 | |||
Retail, wholesale and repairs | — | 1,030 | 102 | 1,132 | 13 | 28 | 149 | — | 1,322 | (1) | 1,321 | |||
Transport and storage | — | 430 | 403 | 833 | 398 | 27 | 199 | — | 1,457 | — | 1,457 | |||
Health, education and leisure | — | 132 | 17 | 149 | — | 8 | 29 | — | 186 | — | 186 | |||
Hotels and restaurants | — | 90 | 13 | 103 | — | 3 | 4 | — | 110 | — | 110 | |||
Utilities | — | 1,468 | 480 | 1,948 | 33 | 34 | 97 | — | 2,112 | — | 2,112 | |||
Other | 1 | 2,196 | 2,596 | 4,792 | 167 | 6 | 1,006 | 9 | 5,981 | (1) | 5,980 | |||
Total gross of provisions | 7,252 | 21,995 | 6,538 | 28,533 | 18,443 | 837 | 29,748 | 3,448 | 88,261 | (22,577) | 65,684 | |||
Provisions | — | (121) | (549) | (670) | — | — | — | — | (670) | n/a | (670) | |||
Total | 7,252 | 21,874 | 5,989 | 27,863 | 18,443 | 837 | 29,748 | 3,448 | 87,591 | (22,577) | 65,014 |
(1) | This reflects the amount by which the Group’s credit risk exposure is reduced through arrangements, such as master netting agreements, which give the Group a legal right to set off the financial asset against a financial liability due to the same counterparty. In addition, the Group holds collateral in respect of individual loans and advances to banks and customers. This collateral includes mortgages over property (both personal and commercial); charges over business assets such as plant, inventories and trade debtors; and guarantees of lending from parties other than the borrower. The Group obtains collateral in the form of securities relating to reverse repurchase agreements. Cash and securities are received as collateral in respect of derivative transactions. |
(2) | Includes central and local government. |
(3) | Includes £79.3 billion (2011 - £79.4 billion; 2010 - £57.2 billion) relating to cash and balances at central banks. |
(4) | Loans made by the Group's consolidated conduits to asset owning companies are included within |
(5) | Includes instalment credit. |
2011 | Government £m | Banks £m | Other £m | Total £m | Short positions £m | Net of short positions £m |
United States | 20,932 | 7,300 | 38,721 | 66,953 | 13,329 | 53,624 |
Germany | 34,615 | 5,952 | 9,787 | 50,354 | 2,946 | 47,408 |
France | 11,633 | 14,800 | 8,189 | 34,622 | 5,903 | 28,719 |
Japan | 8,350 | 7,505 | 3,375 | 19,230 | 3,141 | 16,089 |
Netherlands | 4,466 | 2,210 | 10,711 | 17,387 | 982 | 16,405 |
Spain | 340 | 3,656 | 10,282 | 14,278 | 973 | 13,305 |
Italy | 5,190 | 548 | 1,489 | 7,227 | 4,826 | 2,401 |
Republic of Ireland | 665 | 3,287 | 2,759 | 6,711 | 68 | 6,643 |
Switzerland | 1,335 | 3,282 | 1,492 | 6,109 | 25 | 6,084 |
China | 1,589 | 2,669 | 1,849 | 6,107 | — | 6,107 |
Cayman Islands | — | 15 | 4,194 | 4,209 | 2 | 4,207 |
Belgium | 1,662 | 1,285 | 1,222 | 4,169 | 726 | 3,443 |
2010 | ||||||
United States | 21,201 | 14,382 | 36,813 | 72,396 | 14,240 | 58,156 |
Germany | 22,962 | 6,276 | 10,467 | 39,705 | 4,685 | 35,020 |
France | 17,293 | 16,007 | 6,756 | 40,056 | 4,285 | 35,771 |
Japan | 7,983 | 6,962 | 7,542 | 22,487 | 409 | 22,078 |
Netherlands | 2,900 | 3,055 | 10,824 | 16,779 | 951 | 15,828 |
Spain | 1,401 | 4,248 | 11,589 | 17,238 | 1,357 | 15,881 |
Italy | 6,409 | 1,083 | 2,188 | 9,680 | 3,183 | 6,497 |
Republic of Ireland | 199 | 3,789 | 3,101 | 7,089 | 131 | 6,958 |
Switzerland | 4 | 1,714 | 2,944 | 4,662 | 12 | 4,650 |
China | 553 | 1,775 | 1,561 | 3,889 | 5 | 3,884 |
Cayman Islands | 2 | 94 | 7,330 | 7,426 | 44 | 7,382 |
Belgium | 1,461 | 752 | 2,806 | 5,019 | 606 | 4,413 |
Asset quality band | Probability of default range | |
AQ1 | 0% - 0.034% | |
AQ2 | 0.034% - 0.048% | |
AQ3 | 0.048% - 0.095% | |
AQ4 | 0.095% - 0.381% | |
AQ5 | 0.381% - 1.076% | |
AQ6 | 1.076% - 2.153% | |
AQ7 | 2.153% - 6.089% | |
AQ8 | 6.089% - 17.222% | |
AQ9 | 17.222% - 100% | |
AQ10 | 100% |
Cash and balances at central banks | Loans and advances to banks (1) | Loans and advances to customers | Settlement balances | Derivatives | Other financial instruments | Commitments | Contingent liabilities | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Total | |||||||||
AQ1 | 78,592 | 74,192 | 113,437 | 4,582 | 481,622 | 556 | 75,356 | 14,076 | 842,413 |
AQ2 | 342 | 1,881 | 15,622 | 93 | 8,177 | — | 24,269 | 3,154 | 53,538 |
AQ3 | 196 | 1,981 | 32,830 | 546 | 10,819 | — | 23,471 | 4,427 | 74,270 |
AQ4 | 19 | 1,612 | 103,617 | 760 | 14,421 | — | 40,071 | 5,847 | 166,347 |
AQ5 | 90 | 1,261 | 112,537 | 79 | 6,516 | 45 | 34,593 | 4,301 | 159,422 |
AQ6 | 9 | 188 | 47,892 | 46 | 2,221 | — | 17,153 | 1,662 | 69,171 |
AQ7 | 8 | 432 | 31,379 | 13 | 2,393 | — | 19,163 | 1,037 | 54,425 |
AQ8 | 7 | 30 | 11,871 | 19 | 1,252 | — | 4,159 | 276 | 17,614 |
AQ9 | 5 | 83 | 16,006 | 4 | 1,150 | 320 | 2,286 | 943 | 20,797 |
AQ10 | 1 | 164 | 570 | 6 | 1,047 | — | 2,354 | 221 | 4,363 |
Past due | — | 2 | 10,995 | 1,623 | — | — | — | — | 12,620 |
Impaired | — | 137 | 38,610 | — | — | 414 | — | — | 39,161 |
Impairment provision | — | (123) | (19,760) | — | — | (26) | — | — | (19,909) |
Group | 79,269 | 81,840 | 515,606 | 7,771 | 529,618 | 1,309 | 242,875 | 35,944 | 1,494,232 |
Loans and advances | |||||||||||||||
Banks | Customers | Settlement | |||||||||||||
Cash and balances at central banks | Reverse repos | Derivative cash collateral | Other | Total | Reverse repos | Derivative cash collateral | Other | Total | balances and other financial | Derivatives | Commitments | Contingent liabilities | Total | ||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Total | |||||||||||||||
AQ1 | 78,039 | 17,806 | 3,713 | 10,913 | 32,432 | 42,963 | 15,022 | 39,734 | 97,719 | 2,671 | 100,652 | 63,785 | 8,113 | 383,411 | |
AQ2 | 12 | 3,556 | 4,566 | 526 | 8,648 | 710 | 704 | 13,101 | 14,515 | 185 | 108,733 | 20,333 | 2,810 | 155,236 | |
AQ3 | 1,156 | 5,703 | 2,241 | 2,757 | 10,701 | 2,886 | 3,917 | 25,252 | 32,055 | 539 | 152,810 | 23,727 | 7,431 | 228,419 | |
AQ4 | 100 | 6,251 | 1,761 | 2,734 | 10,746 | 14,079 | 2,144 | 104,060 | 120,283 | 1,202 | 58,705 | 40,196 | 5,736 | 236,968 | |
AQ5 | — | 1,183 | 469 | 787 | 2,439 | 8,163 | 679 | 92,147 | 100,989 | 659 | 13,244 | 28,165 | 2,598 | 148,094 | |
AQ6 | — | 282 | 39 | 357 | 678 | 86 | 50 | 40,096 | 40,232 | 73 | 2,175 | 13,854 | 1,380 | 58,392 | |
AQ7 | — | 2 | — | 236 | 238 | 1,133 | 12 | 36,223 | 37,368 | 191 | 3,205 | 19,219 | 1,275 | 61,496 | |
AQ8 | — | — | — | 68 | 68 | 4 | 2 | 12,812 | 12,818 | 8 | 262 | 5,688 | 185 | 19,029 | |
AQ9 | 1 | — | — | 93 | 93 | 23 | 7 | 17,431 | 17,461 | 137 | 1,360 | 1,363 | 95 | 20,510 | |
AQ10 | — | — | — | — | — | — | — | 807 | 807 | 1 | 772 | 1,454 | 238 | 3,272 | |
Past due | — | — | — | — | — | — | 249 | 10,285 | 10,534 | 999 | — | — | — | 11,533 | |
Impaired | — | — | — | 134 | 134 | — | — | 38,365 | 38,365 | — | — | — | — | 38,499 | |
Impairment provision | — | — | — | (114) | (114) | — | — | (21,148) | (21,148) | — | — | — | — | (21,262) | |
Group | 79,308 | 34,783 | 12,789 | 18,491 | 66,063 | 70,047 | 22,786 | 409,165 | 501,998 | 6,665 | 441,918 | 217,784 | 29,861 | 1,343,597 | |
Core | |||||||||||||||
AQ1 | 78,003 | 17,806 | 3,713 | 10,519 | 32,038 | 42,963 | 15,022 | 32,268 | 90,253 | 2,671 | 99,882 | 62,440 | 7,822 | 373,109 | |
AQ2 | 12 | 3,556 | 4,566 | 521 | 8,643 | 710 | 704 | 10,551 | 11,965 | 185 | 108,107 | 20,207 | 2,792 | 151,911 | |
AQ3 | 1,046 | 5,703 | 2,241 | 2,738 | 10,682 | 2,886 | 3,917 | 21,688 | 28,491 | 539 | 152,462 | 23,392 | 7,419 | 224,031 | |
AQ4 | 100 | 6,251 | 1,761 | 2,729 | 10,741 | 14,079 | 2,144 | 99,771 | 115,994 | 1,202 | 57,650 | 39,832 | 5,648 | 231,167 | |
AQ5 | — | 1,183 | 469 | 785 | 2,437 | 8,163 | 679 | 87,429 | 96,271 | 659 | 12,082 | 27,501 | 2,508 | 141,458 | |
AQ6 | — | 282 | 39 | 356 | 677 | 86 | 50 | 36,891 | 37,027 | 73 | 1,476 | 13,140 | 1,353 | 53,746 | |
AQ7 | — | 2 | — | 186 | 188 | 1,133 | 12 | 32,032 | 33,177 | 191 | 2,536 | 17,824 | 949 | 54,865 | |
AQ8 | — | — | — | 68 | 68 | 4 | 2 | 10,731 | 10,737 | 8 | 247 | 5,607 | 146 | 16,813 | |
AQ9 | 1 | — | — | 93 | 93 | — | 7 | 14,979 | 14,986 | 137 | 979 | 1,088 | 93 | 17,377 | |
AQ10 | — | — | — | — | — | — | — | 684 | 684 | 1 | 448 | 832 | 149 | 2,114 | |
Past due | — | — | — | — | — | — | 249 | 9,528 | 9,777 | 991 | — | — | — | 10,768 | |
Impaired | — | — | — | 133 | 133 | — | — | 17,418 | 17,418 | — | — | — | — | 17,551 | |
Impairment provision | — | — | — | (113) | (113) | — | — | (9,949) | (9,949) | — | — | — | — | (10,062) | |
Group | 79,162 | 34,783 | 12,789 | 18,015 | 65,587 | 70,024 | 22,786 | 364,021 | 456,831 | 6,657 | 435,869 | 211,863 | 28,879 | 1,284,848 |
2010 | |||||||||
AQ1 | 56,655 | 91,952 | 126,444 | 6,815 | 408,489 | 658 | 78,728 | 9,745 | 779,486 |
AQ2 | 14 | 598 | 13,282 | 1,271 | 2,659 | 3 | 26,128 | 1,980 | 45,935 |
AQ3 | 48 | 2,197 | 25,981 | 156 | 3,317 | — | 25,731 | 4,337 | 61,767 |
AQ4 | 188 | 639 | 95,777 | 571 | 3,391 | 6 | 41,027 | 6,522 | 148,121 |
AQ5 | 99 | 2,322 | 114,796 | 64 | 4,860 | 144 | 38,612 | 5,169 | 166,066 |
AQ6 | 3 | 159 | 65,497 | 34 | 1,070 | — | 25,991 | 2,230 | 94,984 |
AQ7 | 2 | 178 | 46,072 | 1 | 857 | 69 | 18,752 | 2,456 | 68,387 |
AQ8 | — | 15 | 16,573 | 14 | 403 | — | 9,289 | 9,545 | 35,839 |
AQ9 | — | 115 | 14,263 | 2 | 450 | 80 | 3,889 | 932 | 19,731 |
AQ10 | 5 | 355 | 5,644 | 2 | 1,581 | — | 2,829 | 407 | 10,823 |
Accruing past due | — | 10 | 13,430 | 2,675 | — | — | — | — | 16,115 |
Impaired | — | 145 | 35,556 | — | — | 375 | — | — | 36,076 |
Impairment provision | — | (127) | (18,055) | — | — | (29) | — | — | (18,211) |
Group before RFS MI | 57,014 | 98,558 | 555,260 | 11,605 | 427,077 | 1,306 | 270,976 | 43,323 | 1,465,119 |
RFS MI | — | 2 | — | — | — | — | — | 32 | 34 |
Group | 57,014 | 98,560 | 555,260 | 11,605 | 427,077 | 1,306 | 270,976 | 43,355 | 1,465,153 |
Cash and balances at central banks | Loans and advances to banks (1) | Loans and advances to customers | Settlement balances | Derivatives | Other financial instruments | Commitments | Contingent liabilities | Total | |
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
AQ1 | 51,521 | 72,384 | 106,062 | 6,582 | 389,019 | 754 | 62,085 | 9,446 | 697,853 |
AQ2 | — | 1,725 | 10,780 | 306 | 11,550 | 9 | 27,598 | 4,526 | 56,494 |
AQ3 | 1 | 2,175 | 29,958 | 199 | 10,791 | — | 28,364 | 6,088 | 77,576 |
AQ4 | 23 | 1,357 | 102,922 | 605 | 8,296 | — | 52,496 | 14,948 | 180,647 |
AQ5 | 2 | 2,497 | 124,724 | 149 | 8,270 | 37 | 43,239 | 7,387 | 186,305 |
AQ6 | 1 | 424 | 94,513 | 40 | 2,548 | — | 30,847 | 2,448 | 130,821 |
AQ7 | — | 110 | 46,928 | 33 | 2,181 | 98 | 26,724 | 2,352 | 78,426 |
AQ8 | — | 137 | 23,593 | — | 1,448 | — | 12,507 | 1,008 | 38,693 |
AQ9 | — | 184 | 16,025 | — | 2,030 | — | 5,141 | 1,279 | 24,659 |
AQ10 | — | 277 | 9,142 | 3 | 2,026 | — | 3,618 | 507 | 15,573 |
Accruing past due | — | 36 | 14,475 | 3,910 | 40 | — | — | — | 18,461 |
Impaired | — | 206 | 31,588 | 197 | — | — | — | — | 31,991 |
Impairment provision | — | (157) | (15,016) | — | — | — | — | — | (15,173) |
Group before RFS MI | 51,548 | 81,355 | 595,694 | 12,024 | 438,199 | 898 | 292,619 | 49,989 | 1,522,326 |
RFS MI | 713 | 7,865 | 132,699 | 9 | 3,255 | — | 5,022 | 4,031 | 153,594 |
Group | 52,261 | 89,220 | 728,393 | 12,033 | 441,454 | 898 | 297,641 | 54,020 | 1,675,920 |
2011 | |||||||||
Core | |||||||||
AQ1 | 78,534 | 73,689 | 94,704 | 4,566 | 477,746 | 468 | 69,220 | 13,247 | 812,174 |
AQ2 | 342 | 1,877 | 13,970 | 91 | 7,500 | — | 23,404 | 3,122 | 50,306 |
AQ3 | 56 | 1,967 | 30,082 | 546 | 10,360 | — | 22,319 | 4,354 | 69,684 |
AQ4 | 18 | 1,557 | 97,001 | 759 | 13,475 | — | 38,808 | 5,655 | 157,273 |
AQ5 | 90 | 1,256 | 105,392 | 79 | 5,087 | 45 | 33,226 | 4,092 | 149,267 |
AQ6 | 9 | 140 | 41,476 | 46 | 1,987 | — | 16,118 | 1,634 | 61,410 |
AQ7 | 8 | 432 | 27,114 | 13 | 796 | — | 17,514 | 949 | 46,826 |
AQ8 | 7 | 20 | 9,857 | 19 | 666 | — | 4,068 | 236 | 14,873 |
AQ9 | 5 | 83 | 11,515 | 4 | 592 | 272 | 1,769 | 898 | 15,138 |
AQ10 | 1 | 164 | 264 | 6 | 339 | — | 1,274 | 180 | 2,228 |
Past due | — | 2 | 9,451 | 1,623 | — | — | — | — | 11,076 |
Impaired | — | 136 | 15,170 | — | — | 413 | — | — | 15,719 |
Impairment provision | — | (122) | (8,292) | — | — | (25) | — | — | (8,439) |
Group | 79,070 | 81,201 | 447,704 | 7,752 | 518,548 | 1,173 | 227,720 | 34,367 | 1,397,535 |
2010 | |||||||||
AQ1 | 56,637 | 91,298 | 103,645 | 6,814 | 396,419 | 366 | 71,091 | 9,651 | 735,921 |
AQ2 | 14 | 550 | 10,534 | 1,271 | 2,243 | 3 | 24,923 | 1,728 | 41,266 |
AQ3 | 48 | 2,165 | 22,851 | 155 | 3,132 | — | 23,546 | 4,268 | 56,165 |
AQ4 | 10 | 539 | 85,779 | 571 | 3,017 | 6 | 36,909 | 5,070 | 131,901 |
AQ5 | 99 | 2,247 | 100,051 | 64 | 3,988 | 15 | 35,302 | 4,924 | 146,690 |
AQ6 | 3 | 138 | 53,498 | 34 | 805 | — | 24,050 | 2,140 | 80,668 |
AQ7 | 2 | 154 | 38,438 | 1 | 595 | 69 | 17,605 | 2,309 | 59,173 |
AQ8 | — | 15 | 13,290 | 14 | 257 | — | 8,617 | 9,434 | 31,627 |
AQ9 | — | 107 | 9,898 | 2 | 237 | 50 | 3,442 | 886 | 14,622 |
AQ10 | 5 | 300 | 2,777 | 2 | 368 | — | 1,500 | 250 | 5,202 |
Past due | — | 3 | 10,744 | 2,629 | — | — | — | — | 13,376 |
Impaired | — | 144 | 13,367 | — | — | 375 | — | — | 13,886 |
Impairment provision | — | (126) | (7,740) | — | — | (29) | — | — | (7,895) |
Group | 56,818 | 97,534 | 457,132 | 11,557 | 411,061 | 855 | 246,985 | 40,660 | 1,322,602 |
Cash and balances at central banks | Loans and advances to banks (1) | Loans and advances to customers | Settlement balances | Derivatives | Other financial instruments | Commitments | Contingent liabilities | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Non-Core | |||||||||
AQ1 | 58 | 503 | 18,733 | 16 | 3,876 | 88 | 6,136 | 829 | 30,239 |
AQ2 | — | 4 | 1,652 | 2 | 677 | — | 865 | 32 | 3,232 |
AQ3 | 140 | 14 | 2,748 | — | 459 | — | 1,152 | 73 | 4,586 |
AQ4 | 1 | 55 | 6,616 | 1 | 946 | — | 1,263 | 192 | 9,074 |
AQ5 | — | 5 | 7,145 | — | 1,429 | — | 1,367 | 209 | 10,155 |
AQ6 | — | 48 | 6,416 | — | 234 | — | 1,035 | 28 | 7,761 |
AQ7 | — | — | 4,265 | — | 1,597 | — | 1,649 | 88 | 7,599 |
AQ8 | — | 10 | 2,014 | — | 586 | — | 91 | 40 | 2,741 |
AQ9 | — | — | 4,491 | — | 558 | 48 | 517 | 45 | 5,659 |
AQ10 | — | — | 306 | — | 708 | — | 1,080 | 41 | 2,135 |
Accruing past due | — | — | 1,544 | — | — | — | — | — | 1,544 |
Impaired | — | 1 | 23,440 | — | — | 1 | — | — | 23,442 |
Impairment provision | — | (1) | (11,468) | — | — | (1) | — | — | (11,470) |
Group | 199 | 639 | 67,902 | 19 | 11,070 | 136 | 15,155 | 1,577 | 96,697 |
2010 | |||||||||
AQ1 | 18 | 654 | 22,799 | 1 | 12,070 | 292 | 7,637 | 94 | 43,565 |
AQ2 | — | 48 | 2,748 | — | 416 | — | 1,205 | 252 | 4,669 |
AQ3 | — | 32 | 3,130 | 1 | 185 | — | 2,185 | 69 | 5,602 |
AQ4 | 178 | 100 | 9,998 | — | 374 | — | 4,118 | 1,452 | 16,220 |
AQ5 | — | 75 | 14,745 | — | 872 | 129 | 3,310 | 245 | 19,376 |
AQ6 | — | 21 | 11,999 | — | 265 | — | 1,941 | 90 | 14,316 |
AQ7 | — | 24 | 7,634 | — | 262 | — | 1,147 | 147 | 9,214 |
AQ8 | — | — | 3,283 | — | 146 | — | 672 | 111 | 4,212 |
AQ9 | — | 8 | 4,365 | — | 213 | 30 | 447 | 46 | 5,109 |
AQ10 | — | 55 | 2,867 | — | 1,213 | — | 1,329 | 157 | 5,621 |
Accruing past due | — | 7 | 2,686 | 46 | — | — | — | — | 2,739 |
Impaired | — | 1 | 22,189 | — | — | — | — | — | 22,190 |
Impairment provision | — | (1) | (10,315) | — | — | — | — | — | (10,316) |
Group before RFS MI | 196 | 1,024 | 98,128 | 48 | 16,016 | 451 | 23,991 | 2,663 | 142,517 |
Loans and advances | |||||||||||||||
Banks | Customers | ||||||||||||||
Cash and balances at central banks | Reverse repos | Derivative cash collateral | Other | Total | Reverse repos | Derivative cash collateral | Other | Total | Settlement balances and other financial assets | Derivatives | Commitments | Contingent liabilities | Total | ||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Non-Core | |||||||||||||||
AQ1 | 36 | — | — | 394 | 394 | — | — | 7,466 | 7,466 | — | 770 | 1,345 | 291 | 10,302 | |
AQ2 | — | — | — | 5 | 5 | — | — | 2,550 | 2,550 | — | 626 | 126 | 18 | 3,325 | |
AQ3 | 110 | — | — | 19 | 19 | — | — | 3,564 | 3,564 | — | 348 | 335 | 12 | 4,388 | |
AQ4 | — | — | — | 5 | 5 | — | — | 4,289 | 4,289 | — | 1,055 | 364 | 88 | 5,801 | |
AQ5 | — | — | — | 2 | 2 | — | — | 4,718 | 4,718 | — | 1,162 | 664 | 90 | 6,636 | |
AQ6 | — | — | — | 1 | 1 | — | — | 3,205 | 3,205 | — | 699 | 714 | 27 | 4,646 | |
AQ7 | — | — | — | 50 | 50 | — | — | 4,191 | 4,191 | — | 669 | 1,395 | 326 | 6,631 | |
AQ8 | — | — | — | — | — | — | — | 2,081 | 2,081 | — | 15 | 81 | 39 | 2,216 | |
AQ9 | — | — | — | — | — | 23 | — | 2,452 | 2,475 | — | 381 | 275 | 2 | 3,133 | |
AQ10 | — | — | — | — | — | — | — | 123 | 123 | — | 324 | 622 | 89 | 1,158 | |
Past due | — | — | — | — | — | — | — | 757 | 757 | 8 | — | — | — | 765 | |
Impaired | — | — | — | 1 | 1 | — | — | 20,947 | 20,947 | — | — | — | — | 20,948 | |
Impairment provision | — | — | — | (1) | (1) | — | — | (11,199) | (11,199) | — | — | — | — | (11,200) | |
Group | 146 | — | — | 476 | 476 | 23 | — | 45,144 | 45,167 | 8 | 6,049 | 5,921 | 982 | 58,749 |
Cash and balances at | Loans and advances | Settlement balances and other | Contingent | |||||
central banks | Banks (1) | Customers | financial assets | Derivatives | Commitments | liabilities | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m |
Total | ||||||||
AQ1 | 78,692 | 74,279 | 114,424 | 5,152 | 482,053 | 75,356 | 14,076 | 844,032 |
AQ2 | 342 | 1,881 | 15,810 | 93 | 8,177 | 24,269 | 3,154 | 53,726 |
AQ3 | 223 | 1,981 | 34,017 | 546 | 10,827 | 23,471 | 4,427 | 75,492 |
AQ4 | 19 | 1,612 | 108,262 | 760 | 14,421 | 40,071 | 5,847 | 170,992 |
AQ5 | 90 | 1,261 | 118,056 | 124 | 6,516 | 34,593 | 4,301 | 164,941 |
AQ6 | 9 | 188 | 50,428 | 46 | 2,221 | 17,153 | 1,662 | 71,707 |
AQ7 | 8 | 432 | 33,218 | 13 | 2,393 | 19,163 | 1,037 | 56,264 |
AQ8 | 7 | 30 | 12,622 | 19 | 1,252 | 4,159 | 276 | 18,365 |
AQ9 | 5 | 83 | 16,429 | 324 | 1,150 | 2,286 | 943 | 21,220 |
AQ10 | 1 | 164 | 784 | 6 | 1,047 | 2,354 | 221 | 4,577 |
Past due | — | 2 | 11,591 | 1,623 | — | — | — | 13,216 |
Impaired | — | 137 | 39,921 | 414 | — | — | — | 40,472 |
Impairment provision | — | (123) | (20,551) | (26) | — | — | — | (20,700) |
Group | 79,396 | 81,927 | 535,011 | 9,094 | 530,057 | 242,875 | 35,944 | 1,514,304 |
Core | ||||||||
AQ1 | 78,634 | 73,689 | 95,691 | 5,034 | 478,177 | 69,220 | 13,249 | 813,694 |
AQ2 | 342 | 1,877 | 14,158 | 91 | 7,500 | 23,404 | 3,122 | 50,494 |
AQ3 | 56 | 1,967 | 30,546 | 546 | 10,360 | 22,319 | 4,354 | 70,148 |
AQ4 | 18 | 1,557 | 101,646 | 759 | 13,475 | 38,808 | 5,655 | 161,918 |
AQ5 | 90 | 1,256 | 110,911 | 124 | 5,087 | 33,226 | 4,092 | 154,786 |
AQ6 | 9 | 140 | 44,012 | 46 | 1,987 | 16,118 | 1,634 | 63,946 |
AQ7 | 8 | 432 | 28,953 | 13 | 796 | 17,514 | 949 | 48,665 |
AQ8 | 7 | 20 | 10,608 | 19 | 666 | 4,068 | 236 | 15,624 |
AQ9 | 5 | 83 | 11,938 | 276 | 592 | 1,769 | 898 | 15,561 |
AQ10 | 1 | 164 | 478 | 6 | 339 | 1,274 | 180 | 2,442 |
Past due | — | 2 | 10,047 | 1,623 | — | — | — | 11,672 |
Impaired | — | 136 | 16,457 | 413 | — | — | — | 17,006 |
Impairment provision | — | (122) | (9,065) | (25) | — | — | — | (9,212) |
Group | 79,170 | 81,201 | 466,380 | 8,925 | 518,979 | 227,720 | 34,369 | 1,416,744 |
Cash and balances at | Loans and advances | Settlement balances and other | Contingent | |||||
central banks | Banks (1) | Customers | financial assets | Derivatives | Commitments | liabilities | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m |
Non-Core | ||||||||
AQ1 | 58 | 590 | 18,733 | 118 | 3,876 | 6,136 | 827 | 30,338 |
AQ2 | — | 4 | 1,652 | 2 | 677 | 865 | 32 | 3,232 |
AQ3 | 167 | 14 | 3,471 | — | 467 | 1,152 | 73 | 5,344 |
AQ4 | 1 | 55 | 6,616 | 1 | 946 | 1,263 | 192 | 9,074 |
AQ5 | — | 5 | 7,145 | — | 1,429 | 1,367 | 209 | 10,155 |
AQ6 | — | 48 | 6,416 | — | 234 | 1,035 | 28 | 7,761 |
AQ7 | — | — | 4,265 | — | 1,597 | 1,649 | 88 | 7,599 |
AQ8 | — | 10 | 2,014 | — | 586 | 91 | 40 | 2,741 |
AQ9 | — | — | 4,491 | 48 | 558 | 517 | 45 | 5,659 |
AQ10 | — | — | 306 | — | 708 | 1,080 | 41 | 2,135 |
Past due | — | — | 1,544 | — | — | — | — | 1,544 |
Impaired | — | 1 | 23,464 | 1 | — | — | — | 23,466 |
Impairment provision | — | (1) | (11,486) | (1) | — | — | — | (11,488) |
Group | 226 | 726 | 68,631 | 169 | 11,078 | 15,155 | 1,575 | 97,560 |
2010 | ||||||||
Total | ||||||||
AQ1 | 56,655 | 92,494 | 128,817 | 7,757 | 411,375 | 78,728 | 9,745 | 785,571 |
AQ2 | 14 | 598 | 13,282 | 1,411 | 3,704 | 26,128 | 1,980 | 47,117 |
AQ3 | 48 | 2,197 | 26,232 | 156 | 3,317 | 25,731 | 4,337 | 62,018 |
AQ4 | 372 | 748 | 95,777 | 577 | 3,391 | 41,027 | 6,522 | 148,414 |
AQ5 | 99 | 2,322 | 115,982 | 259 | 5,399 | 38,612 | 5,169 | 167,842 |
AQ6 | 3 | 159 | 66,683 | 34 | 1,070 | 25,991 | 2,230 | 96,170 |
AQ7 | 2 | 178 | 46,072 | 150 | 1,464 | 18,752 | 2,456 | 69,074 |
AQ8 | — | 15 | 16,573 | 14 | 403 | 9,289 | 9,545 | 35,839 |
AQ9 | — | 115 | 14,263 | 85 | 521 | 3,889 | 932 | 19,805 |
AQ10 | 5 | 355 | 5,644 | 2 | 1,581 | 2,829 | 407 | 10,823 |
Past due | — | 10 | 13,430 | 2,675 | — | — | — | 16,115 |
Impaired | — | 145 | 35,609 | 375 | — | — | — | 36,129 |
Impairment provision | — | (127) | (18,091) | (29) | — | — | — | (18,247) |
Group before RFS MI | 57,198 | 99,209 | 560,273 | 13,466 | 432,225 | 270,976 | 43,323 | 1,476,670 |
RFS MI | — | 2 | — | — | — | — | 32 | 34 |
Group | 57,198 | 99,211 | 560,273 | 13,466 | 432,225 | 270,976 | 43,355 | 1,476,704 |
Core | ||||||||
AQ1 | 56,637 | 91,298 | 103,645 | 7,180 | 396,419 | 71,091 | 9,651 | 735,921 |
AQ2 | 14 | 550 | 10,534 | 1,274 | 2,243 | 24,923 | 1,728 | 41,266 |
AQ3 | 48 | 2,165 | 23,102 | 155 | 3,132 | 23,546 | 4,268 | 56,416 |
AQ4 | 10 | 539 | 85,779 | 577 | 3,017 | 36,909 | 5,070 | 131,901 |
AQ5 | 99 | 2,247 | 100,051 | 79 | 3,988 | 35,302 | 4,924 | 146,690 |
AQ6 | 3 | 138 | 53,498 | 34 | 805 | 24,050 | 2,140 | 80,668 |
AQ7 | 2 | 154 | 38,438 | 70 | 595 | 17,605 | 2,309 | 59,173 |
AQ8 | — | 15 | 13,290 | 14 | 257 | 8,617 | 9,434 | 31,627 |
AQ9 | — | 107 | 9,898 | 52 | 237 | 3,442 | 886 | 14,622 |
AQ10 | 5 | 300 | 2,777 | 2 | 368 | 1,500 | 250 | 5,202 |
Past due | — | 3 | 10,744 | 2,629 | — | — | — | 13,376 |
Impaired | — | 144 | 13,367 | 375 | — | — | — | 13,886 |
Impairment provision | — | (126) | (7,740) | (29) | — | — | — | (7,895) |
Group | 56,818 | 97,534 | 457,383 | 12,412 | 411,061 | 246,985 | 40,660 | 1,322,853 |
Cash and balances at | Loans and advances | Settlement balances and other | Contingent | |||||
central banks | Banks (1) | Customers | financial assets | Derivatives | Commitments | liabilities | Total | |
2010 | £m | £m | £m | £m | £m | £m | £m | £m |
Non-Core | ||||||||
AQ1 | 18 | 1,196 | 25,172 | 577 | 14,956 | 7,637 | 94 | 49,650 |
AQ2 | — | 48 | 2,748 | 137 | 1,461 | 1,205 | 252 | 5,851 |
AQ3 | — | 32 | 3,130 | 1 | 185 | 2,185 | 69 | 5,602 |
AQ4 | 362 | 209 | 9,998 | — | 374 | 4,118 | 1,452 | 16,513 |
AQ5 | — | 75 | 15,931 | 180 | 1,411 | 3,310 | 245 | 21,152 |
AQ6 | — | 21 | 13,185 | — | 265 | 1,941 | 90 | 15,502 |
AQ7 | — | 24 | 7,634 | 80 | 869 | 1,147 | 147 | 9,901 |
AQ8 | — | — | 3,283 | — | 146 | 672 | 111 | 4,212 |
AQ9 | — | 8 | 4,365 | 33 | 284 | 447 | 46 | 5,183 |
AQ10 | — | 55 | 2,867 | — | 1,213 | 1,329 | 157 | 5,621 |
Past due | — | 7 | 2,686 | 46 | — | — | — | 2,739 |
Impaired | — | 1 | 22,242 | — | — | — | — | 22,243 |
Impairment provision | — | (1) | (10,351) | — | — | — | — | (10,352) |
Group before RFS MI | 380 | 1,675 | 102,890 | 1,054 | 21,164 | 23,991 | 2,663 | 153,817 |
RFS MI | — | 2 | — | — | — | — | 32 | 34 |
Group | 380 | 1,677 | 102,890 | 1,054 | 21,164 | 23,991 | 2,695 | 153,851 |
(1) | Excludes items in the course of collection from other banks (2011 - £1,470 million; 2010 - £1,958 million). |
· | In 2012, the Group implemented updates to certain models, including those used for sovereign and financial institution counterparties, to incorporate more recent data and reflect new regulatory requirements applicable to wholesale internal ratings based modelling. This has resulted in ratings migration from AQ1, primarily to AQ2-AQ5. However, it is not practicable to quantify the impact of model updates on individual asset quality bands. The Group had modified various risk frameworks, including risk appetite framework and latent loss assessment in anticipation of these changes. Further updates, primarily of models used for the corporate counterparties, are planned for 2013. The AQ composition of the corporate portfolio has not changed materially during the year. |
· | Loans and advances to banks: AQ1 balances decreased by £41.8 billion reflecting the balance sheet reduction, mainly in Markets and also the impact of model changes which resulted in certain counterparties moving to lower AQ bands, primarily to AQ2-AQ4, which increased by £6.8 billion, £8.7 billion and £9.1 billion respectively. |
· | Loans and advances to customers: Lower internal ratings due to model changes resulted in balances shifting from AQ1 to lower bands. The decrease in AQ5 and AQ6 balances is in line with the overall balance sheet reduction. |
· | Derivatives: Balance sheet reductions in Markets and model updates resulted in decrease in AQ1 balances. Increase in AQ2-AQ4 balances reflects the re-grading of counterparties previously included in AQ1. |
· | Impaired and past due assets, net of impairment provisions, comprise 37% of Non-Core balances. Continued weakness in commercial real estate market overall and difficult conditions in Ireland are significant contributors to this. |
Central and local government | Other financial | Of which | |||||||
UK | US | Other | Banks | institutions | Corporate | Total | ABS (1) | ||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | |
Held-for-trading (HFT) | 7,692 | 17,349 | 27,195 | 2,243 | 21,876 | 2,015 | 78,370 | 18,619 | |
Designated as at fair value | — | — | 123 | 86 | 610 | 54 | 873 | 516 | |
Available-for-sale | 9,774 | 19,046 | 16,155 | 8,861 | 23,890 | 3,167 | 80,893 | 30,743 | |
Loans and receivables | 5 | — | — | 365 | 3,728 | 390 | 4,488 | 3,707 | |
Long positions | 17,471 | 36,395 | 43,473 | 11,555 | 50,104 | 5,626 | 164,624 | 53,585 | |
Of which US agencies | — | 5,380 | — | — | 21,566 | — | 26,946 | 24,828 | |
Short positions (HFT) | (1,538) | (10,658) | (11,355) | (1,036) | (1,595) | (798) | (26,980) | (17) | |
Available-for-sale | |||||||||
Gross unrealised gains | 1,007 | 1,092 | 1,187 | 110 | 660 | 120 | 4,176 | 764 | |
Gross unrealised losses | — | (1) | (14) | (509) | (1,319) | (4) | (1,847) | (1,817) | |
2011 | |||||||||
Held-for-trading | 9,004 | 19,636 | 36,928 | 3,400 | 23,160 | 2,948 | 95,076 | 20,816 | |
Designated as at fair value | 1 | — | 127 | 53 | 457 | 9 | 647 | 558 | |
Available-for-sale | 13,436 | 20,848 | 25,552 | 13,175 | 31,752 | 2,535 | 107,298 | 40,735 | |
Loans and receivables | 10 | — | 1 | 312 | 5,259 | 477 | 6,059 | 5,200 | |
Long positions | 22,451 | 40,484 | 62,608 | 16,940 | 60,628 | 5,969 | 209,080 | 67,309 | |
Of which US agencies | — | 4,896 | — | — | 25,924 | — | 30,820 | 28,558 | |
Short positions (HFT) | (3,098) | (10,661) | (19,136) | (2,556) | (2,854) | (754) | (39,059) | (352) | |
Available-for-sale | |||||||||
Gross unrealised gains | 1,428 | 1,311 | 1,180 | 52 | 913 | 94 | 4,978 | 1,001 | |
Gross unrealised losses | — | — | (171) | (838) | (2,386) | (13) | (3,408) | (3,158) | |
2010 | |||||||||
Held-for-trading | 5,097 | 15,648 | 42,828 | 5,486 | 23,711 | 6,099 | 98,869 | 21,988 | |
Designated as at fair value | 1 | 117 | 262 | 4 | 8 | 10 | 402 | 119 | |
Available-for-sale | 8,377 | 22,244 | 32,865 | 16,982 | 29,148 | 1,514 | 111,130 | 42,515 | |
Loans and receivables | 11 | — | — | 1 | 6,686 | 381 | 7,079 | 6,203 | |
Long positions | 13,486 | 38,009 | 75,955 | 22,473 | 59,553 | 8,004 | 217,480 | 70,825 | |
Of which US agencies | — | 6,811 | — | — | 21,686 | — | 28,497 | 25,375 | |
Short positions (HFT) | (4,200) | (10,943) | (18,913) | (1,844) | (3,356) | (1,761) | (41,017) | (1,335) | |
Available-for-sale | |||||||||
Gross unrealised gains | 349 | 525 | 700 | 143 | 827 | 51 | 2,595 | 1,057 | |
Gross unrealised losses | (10) | (2) | (618) | (786) | (2,626) | (55) | (4,097) | (3,396) |
(1) | Asset-backed securities. |
· | The £16.7 billion decrease comprised £13.3 billion of central and local government, £1.3 billion financial institutions, £1.2 billion of banks and £0.9 billion of corporate: |
· | Decrease in UK and US government bonds of £1.3 billion and £2.3 billion respectively reflected maturities and disposals in line with Markets balance sheet management strategy and unwinding of positions. |
· | Reduction in other government bonds principally French, Italian, Swiss and Japanese, was partially offset by moves to German and Belgian bonds. |
· | Decreased by £26.4 billion, comprising £14.9 billion of central and local government, other financial institutions £7.9 billion, banks £4.3 billion offset by an increase in Corporate of £0.6 billion: |
· | UK and US government bonds fell by £3.7 billion and £1.8 billion respectively, primarily due to disposals. |
· | Group Treasury reduced its liquidity portfolio, reflecting smaller balance sheet resulting in lower government bonds primarily German and French (£6.0 billion) |
· | Japanese government bonds fell by £2.2 billion as lower collateral was required following a change in clearing status from direct (self- clearing) to agency. |
· | Reduction in ABS: US agency decrease reflected maturities and disposals in light of favourable market conditions in the US, Markets, and US Retail & Commercial; and Non-Core strategic reductions also contributed to the decrease in bonds issued by financial institutions. |
· | Bank bonds decreased by £4.3 billion of which £1.7 billion related to Spanish covered bonds reflecting disposals by Group Treasury, and lower positions in Australian and German securities reflected the close out of positions and maturities, respectively. |
Central and local government | Banks £m | Other financial institutions £m | Corporate £m | Total £m | Total % | Of which ABS (1) £m | Central and local government | Other financial | Of which | |||||||||
2011 | UK £m | US £m | Other £m | |||||||||||||||
2012 | UK £m | US £m | Other £m | Banks £m | institutions £m | Corporate £m | Total £m | Total % | ABS (1) £m | |||||||||
Total | ||||||||||||||||||
AAA | 22,451 | 45 | 32,522 | 5,155 | 15,908 | 452 | 76,533 | 37 | 17,156 | 17,471 | 31 | 17,167 | 2,304 | 11,502 | 174 | 48,649 | 30 | 10,758 |
AA to AA+ | — | 40,435 | 2,000 | 2,497 | 30,403 | 639 | 75,974 | 36 | 33,615 | — | 36,357 | 7,424 | 1,144 | 26,403 | 750 | 72,078 | 44 | 28,775 |
A to AA- | — | 1 | 24,966 | 6,387 | 4,979 | 1,746 | 38,079 | 18 | 6,331 | — | 6 | 11,707 | 2,930 | 3,338 | 1,976 | 19,957 | 12 | 2,897 |
BBB- to A- | — | 2,194 | 2,287 | 2,916 | 1,446 | 8,843 | 4 | 4,480 | — | 6,245 | 4,430 | 4,217 | 1,643 | 16,535 | 10 | 7,394 | ||
Non-investment grade | — | 924 | 575 | 5,042 | 1,275 | 7,816 | 4 | 4,492 | — | 928 | 439 | 3,103 | 614 | 5,084 | 3 | 2,674 | ||
Unrated | — | 3 | 2 | 39 | 1,380 | 411 | 1,835 | 1 | 1,235 | — | 1 | 2 | 308 | 1,541 | 469 | 2,321 | 1 | 1,087 |
22,451 | 40,484 | 62,608 | 16,940 | 60,628 | 5,969 | 209,080 | 100 | 67,309 | 17,471 | 36,395 | 43,473 | 11,555 | 50,104 | 5,626 | 164,624 | 100 | 53,585 | |
Core | ||||||||||||||||||
AAA | 22,112 | 45 | 32,489 | 4,601 | 13,245 | 448 | 72,940 | 37 | 14,534 | 17,471 | 31 | 17,161 | 2,296 | 10,023 | 172 | 47,154 | 30 | 9,319 |
AA to AA+ | — | 40,435 | 1,995 | 2,434 | 28,125 | 565 | 73,554 | 38 | 31,323 | — | 36,283 | 7,419 | 1,137 | 24,879 | 748 | 70,466 | 45 | 27,255 |
A to AA- | — | 1 | 24,964 | 6,302 | 3,348 | 1,614 | 36,229 | 18 | 4,731 | — | 6 | 11,707 | 2,920 | 2,019 | 1,968 | 18,620 | 12 | 1,603 |
BBB- to A- | — | 2,194 | 2,272 | 1,727 | 1,232 | 7,425 | 4 | 3,188 | — | 6,245 | 4,430 | 3,701 | 1,602 | 15,978 | 10 | 6,812 | ||
Non-investment grade | — | 723 | 559 | 2,542 | 1,048 | 4,872 | 2 | 2,552 | — | 682 | 439 | 2,361 | 496 | 3,978 | 2 | 2,176 | ||
Unrated | — | 3 | 1 | 25 | 821 | 260 | 1,110 | 1 | 785 | — | 1 | 2 | 294 | 1,297 | 338 | 1,932 | 1 | 859 |
22,112 | 40,484 | 62,366 | 16,193 | 49,808 | 5,167 | 196,130 | 100 | 57,113 | 17,471 | 36,321 | 43,216 | 11,516 | 44,280 | 5,324 | 158,128 | 100 | 48,024 | |
Non-Core | ||||||||||||||||||
AAA | 339 | — | 33 | 554 | 2,663 | 4 | 3,593 | 28 | 2,622 | — | 6 | 8 | 1,479 | 2 | 1,495 | 23 | 1,439 | |
AA to AA+ | — | 5 | 63 | 2,278 | 74 | 2,420 | 19 | 2,292 | — | 74 | 5 | 7 | 1,524 | 2 | 1,612 | 25 | 1,520 | |
A to AA- | — | 2 | 85 | 1,631 | 132 | 1,850 | 14 | 1,600 | — | 10 | 1,319 | 8 | 1,337 | 21 | 1,294 | |||
BBB- to A- | — | 15 | 1,189 | 214 | 1,418 | 11 | 1,292 | — | 516 | 41 | 557 | 8 | 582 | |||||
Non-investment grade | — | 201 | 16 | 2,500 | 227 | 2,944 | 23 | 1,940 | — | 246 | — | 742 | 118 | 1,106 | 17 | 498 | ||
Unrated | — | 1 | 14 | 559 | 151 | 725 | 5 | 450 | — | 14 | 244 | 131 | 389 | 6 | 228 | |||
339 | — | 242 | 747 | 10,820 | 802 | 12,950 | 100 | 10,196 | — | 74 | 257 | 39 | 5,824 | 302 | 6,496 | 100 | 5,561 |
Central and local government | Other financial | Of which | |||||||
2011 | UK £m | US £m | Other £m | Banks £m | institutions £m | Corporate £m | Total £m | Total % | ABS (1) £m |
Total | |||||||||
AAA | 22,451 | 45 | 32,522 | 5,155 | 15,908 | 452 | 76,533 | 37 | 17,156 |
AA to AA+ | — | 40,435 | 2,000 | 2,497 | 30,403 | 639 | 75,974 | 36 | 33,615 |
A to AA- | — | 1 | 24,966 | 6,387 | 4,979 | 1,746 | 38,079 | 18 | 6,331 |
BBB- to A- | — | — | 2,194 | 2,287 | 2,916 | 1,446 | 8,843 | 4 | 4,480 |
Non-investment grade | — | — | 924 | 575 | 5,042 | 1,275 | 7,816 | 4 | 4,492 |
Unrated | — | 3 | 2 | 39 | 1,380 | 411 | 1,835 | 1 | 1,235 |
22,451 | 40,484 | 62,608 | 16,940 | 60,628 | 5,969 | 209,080 | 100 | 67,309 | |
Core | |||||||||
AAA | 22,112 | 45 | 32,489 | 4,601 | 13,245 | 448 | 72,940 | 37 | 14,534 |
AA to AA+ | — | 40,435 | 1,995 | 2,434 | 28,125 | 565 | 73,554 | 38 | 31,323 |
A to AA- | — | 1 | 24,964 | 6,302 | 3,348 | 1,614 | 36,229 | 18 | 4,731 |
BBB- to A- | — | — | 2,194 | 2,272 | 1,727 | 1,232 | 7,425 | 4 | 3,188 |
Non-investment grade | — | — | 723 | 559 | 2,542 | 1,048 | 4,872 | 2 | 2,552 |
Unrated | — | 3 | 1 | 25 | 821 | 260 | 1,110 | 1 | 785 |
22,112 | 40,484 | 62,366 | 16,193 | 49,808 | 5,167 | 196,130 | 100 | 57,113 | |
Non-Core | |||||||||
AAA | 339 | — | 33 | 554 | 2,663 | 4 | 3,593 | 28 | 2,622 |
AA to AA+ | — | — | 5 | 63 | 2,278 | 74 | 2,420 | 19 | 2,292 |
A to AA- | — | — | 2 | 85 | 1,631 | 132 | 1,850 | 14 | 1,600 |
BBB- to A- | — | — | — | 15 | 1,189 | 214 | 1,418 | 11 | 1,292 |
Non-investment grade | — | — | 201 | 16 | 2,500 | 227 | 2,944 | 23 | 1,940 |
Unrated | — | — | 1 | 14 | 559 | 151 | 725 | 5 | 450 |
339 | — | 242 | 747 | 10,820 | 802 | 12,950 | 100 | 10,196 |
Central and local government | Banks £m | Other financial institutions £m | Corporate £m | Total £m | Total (2) % | Of which ABS (1) £m | |||
2010 | UK £m | US £m | Other £m | ||||||
Total | |||||||||
AAA | 13,486 | 38,009 | 44,123 | 10,704 | 39,388 | 878 | 146,588 | 67 | 51,235 |
AA to AA+ | — | — | 18,025 | 3,511 | 6,023 | 616 | 28,175 | 13 | 6,335 |
A to AA- | — | — | 9,138 | 4,926 | 2,656 | 1,155 | 17,875 | 8 | 3,244 |
BBB- to A- | — | — | 2,845 | 1,324 | 3,412 | 2,005 | 9,586 | 5 | 3,385 |
Non-investment grade | — | — | 1,770 | 1,528 | 5,522 | 2,425 | 11,245 | 5 | 4,923 |
Unrated | — | — | 54 | 480 | 2,552 | 925 | 4,011 | 2 | 1,703 |
13,486 | 38,009 | 75,955 | 22,473 | 59,553 | 8,004 | 217,480 | 100 | 70,825 | |
Core | |||||||||
AAA | 13,110 | 37,698 | 44,101 | 10,532 | 35,595 | 839 | 141,875 | 70 | 47,441 |
AA to AA+ | — | — | 18,025 | 3,485 | 3,242 | 612 | 25,364 | 13 | 3,656 |
A to AA- | — | — | 9,138 | 4,420 | 1,605 | 1,089 | 16,252 | 8 | 1,879 |
BBB- to A- | — | — | 2,845 | 1,050 | 1,412 | 1,903 | 7,210 | 4 | 1,108 |
Non-investment grade | — | — | 1,464 | 1,444 | 3,658 | 2,014 | 8,580 | 4 | 3,052 |
Unrated | — | — | 53 | 420 | 1,375 | 768 | 2,616 | 1 | 978 |
13,110 | 37,698 | 75,626 | 21,351 | 46,887 | 7,225 | 201,897 | 100 | 58,114 | |
Non-Core | |||||||||
AAA | 376 | 311 | 22 | 172 | 3,793 | 39 | 4,713 | 30 | 3,794 |
AA to AA+ | — | — | — | 26 | 2,781 | 4 | 2,811 | 18 | 2,679 |
A to AA- | — | — | — | 506 | 1,051 | 66 | 1,623 | 11 | 1,365 |
BBB- to A- | — | — | — | 274 | 2,000 | 102 | 2,376 | 15 | 2,277 |
Non-investment grade | — | — | 306 | 84 | 1,864 | 411 | 2,665 | 17 | 1,871 |
Unrated | — | — | 1 | 60 | 1,177 | 157 | 1,395 | 9 | 725 |
376 | 311 | 329 | 1,122 | 12,666 | 779 | 15,583 | 100 | 12,711 |
2009 | ||||||||||||||||||
Central and local government | Other financial | Of which | ||||||||||||||||
2010 | UK £m | US £m | Other £m | Banks £m | institutions £m | Corporate £m | Total £m | Total (2) % | ABS (1) £m | |||||||||
Total | ||||||||||||||||||
AAA | 26,601 | 28,210 | 44,155 | 13,208 | 49,363 | 4,021 | 165,558 | 66 | 65,067 | 13,486 | 38,009 | 44,123 | 10,704 | 39,388 | 878 | 146,588 | 67 | 51,235 |
AA to AA+ | — | 22,003 | 4,225 | 9,602 | 1,474 | 37,304 | 15 | 8,942 | — | 18,025 | 3,511 | 6,023 | 616 | 28,175 | 13 | 6,335 | ||
A to AA- | — | 13,161 | 3,425 | 4,563 | 1,526 | 22,675 | 9 | 3,886 | — | 9,138 | 4,926 | 2,656 | 1,155 | 17,875 | 8 | 3,244 | ||
BBB- to A- | — | 3,847 | 788 | 4,727 | 1,738 | 11,100 | 5 | 4,243 | — | 2,845 | 1,324 | 3,412 | 2,005 | 9,586 | 5 | 3,385 | ||
Non-investment grade | — | 353 | 159 | 3,937 | 1,630 | 6,079 | 2 | 3,515 | — | 1,770 | 1,528 | 5,522 | 2,425 | 11,245 | 5 | 4,923 | ||
Unrated | — | 509 | 232 | 3,586 | 2,052 | 6,379 | 3 | 1,949 | — | 54 | 480 | 2,552 | 925 | 4,011 | 2 | 1,703 | ||
Group before RFS MI | 26,601 | 28,210 | 84,028 | 22,037 | 75,778 | 12,441 | 249,095 | 100 | 87,602 | |||||||||
RFS MI | 721 | 183 | 11,871 | 3,803 | 675 | 906 | 18,159 | 580 | ||||||||||
Group | 27,322 | 28,393 | 95,899 | 25,840 | 76,453 | 13,347 | 267,254 | 88,182 | ||||||||||
13,486 | 38,009 | 75,955 | 22,473 | 59,553 | 8,004 | 217,480 | 100 | 70,825 | ||||||||||
Core | ||||||||||||||||||
AAA | 13,110 | 37,698 | 44,101 | 10,532 | 35,595 | 839 | 141,875 | 70 | 47,441 | |||||||||
AA to AA+ | — | 18,025 | 3,485 | 3,242 | 612 | 25,364 | 13 | 3,656 | ||||||||||
A to AA- | — | 9,138 | 4,420 | 1,605 | 1,089 | 16,252 | 8 | 1,879 | ||||||||||
BBB- to A- | — | 2,845 | 1,050 | 1,412 | 1,903 | 7,210 | 4 | 1,108 | ||||||||||
Non-investment grade | — | 1,464 | 1,444 | 3,658 | 2,014 | 8,580 | 4 | 3,052 | ||||||||||
Unrated | — | 53 | 420 | 1,375 | 768 | 2,616 | 1 | 978 | ||||||||||
13,110 | 37,698 | 75,626 | 21,351 | 46,887 | 7,225 | 201,897 | 100 | 58,114 | ||||||||||
Non-Core | ||||||||||||||||||
AAA | 376 | 311 | 22 | 172 | 3,793 | 39 | 4,713 | 30 | 3,794 | |||||||||
AA to AA+ | — | 26 | 2,781 | 4 | 2,811 | 18 | 2,679 | |||||||||||
A to AA- | — | 506 | 1,051 | 66 | 1,623 | 11 | 1,365 | |||||||||||
BBB- to A- | — | 274 | 2,000 | 102 | 2,376 | 15 | 2,277 | |||||||||||
Non-investment grade | — | 306 | 84 | 1,864 | 411 | 2,665 | 17 | 1,871 | ||||||||||
Unrated | — | 1 | 60 | 1,177 | 157 | 1,395 | 9 | 725 | ||||||||||
376 | 311 | 329 | 1,122 | 12,666 | 779 | 15,583 | 100 | 12,711 |
(1) | Asset-backed securities. |
(2) | Percentage calculated on Group before RFS MI. |
· | AAA rated debt securities decreased as France and Austria were downgraded to AA+ in the first half of 2012 and also reflected the Group’s reduced holdings of UK government bonds. Additionally, certain Spanish covered bonds were downgraded in the first half of 2012. |
· | The decrease in |
· |
Non-investment grade and unrated debt securities decreased by £2.2 billion and accounted for |
Central and local government | Banks | Other financial institutions | Corporate | Total | Of which ABS | |||
UK | US | Other | ||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m |
Held-for-trading (HFT) | 9,004 | 19,636 | 36,928 | 3,400 | 23,160 | 2,948 | 95,076 | 20,816 |
Designated as at fair value through profit or loss | 1 | — | 127 | 53 | 457 | 9 | 647 | 558 |
Available-for-sale | 13,436 | 20,848 | 25,552 | 13,175 | 31,752 | 2,535 | 107,298 | 40,735 |
Loans and receivables | 10 | — | 1 | 312 | 5,259 | 477 | 6,059 | 5,200 |
22,451 | 40,484 | 62,608 | 16,940 | 60,628 | 5,969 | 209,080 | 67,309 | |
Total of which US agencies | — | 4,896 | — | — | 25,924 | — | 30,820 | 28,558 |
Short positions (HFT) | (3,098) | (10,661) | (19,136) | (2,556) | (2,854) | (754) | (39,059) | (352) |
Available-for-sale | ||||||||
Gross unrealised gains | 1,428 | 1,311 | 1,180 | 52 | 913 | 94 | 4,978 | 1,001 |
Gross unrealised losses | — | — | (171) | (838) | (2,386) | (13) | (3,408) | (3,158) |
2010 | ||||||||
Held-for-trading | 5,097 | 15,648 | 42,828 | 5,486 | 23,711 | 6,099 | 98,869 | 21,988 |
Designated as at fair value through profit or loss | 1 | 117 | 262 | 4 | 8 | 10 | 402 | 119 |
Available-for-sale | 8,377 | 22,244 | 32,865 | 16,982 | 29,148 | 1,514 | 111,130 | 42,515 |
Loans and receivables | 11 | — | — | 1 | 6,686 | 381 | 7,079 | 6,203 |
13,486 | 38,009 | 75,955 | 22,473 | 59,553 | 8,004 | 217,480 | 70,825 | |
Total of which US agencies | — | 6,811 | — | — | 21,686 | — | 28,497 | 25,375 |
Short positions (HFT) | (4,200) | (10,943) | (18,913) | (1,844) | (3,356) | (1,761) | (41,017) | (1,335) |
Available-for-sale | ||||||||
Gross unrealised gains | 349 | 525 | 700 | 143 | 827 | 51 | 2,595 | 1,057 |
Gross unrealised losses | (10) | (2) | (618) | (786) | (2,626) | (55) | (4,097) | (3,396) |
2009 | ||||
2011 Group | 2010 Group | Group before RFS MI | Group | |
£bn | £bn | £bn | £bn | |
Securities issued by central and local governments | 125.5 | 127.5 | 138.8 | 151.6 |
Securities issued by corporates | 6.0 | 8.0 | 12.5 | 13.3 |
Securities issued by banks and other financial institutions | 77.6 | 82.0 | 97.8 | 102.4 |
209.1 | 217.5 | 249.1 | 267.3 | |
Asset-backed securities | 67.3 | 70.8 | 87.6 | 88.2 |
FVTPL (1) | |||||||||
US | UK | Europe | RoW | Total | HFT (2) | DFV (3) | AFS (4) | LAR (5) | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 27,549 | — | 5,884 | 2 | 33,435 | 15,031 | — | 18,404 | — |
RMBS: prime | 1,201 | 3,487 | 1,541 | 484 | 6,713 | 1,090 | 567 | 4,977 | 79 |
RMBS: non-conforming | 1,220 | 2,197 | 74 | — | 3,491 | 717 | — | 1,402 | 1,372 |
RMBS: sub-prime | 1,847 | 427 | 94 | 2 | 2,370 | 2,183 | — | 22 | 165 |
MBS: covered bond | 133 | 203 | 8,256 | — | 8,592 | — | — | 8,592 | — |
CMBS | 1,623 | 1,562 | 883 | 1 | 4,069 | 2,001 | — | 862 | 1,206 |
CDOs | 7,889 | 72 | 469 | — | 8,430 | 4,455 | — | 3,885 | 90 |
CLOs | 5,019 | 156 | 1,055 | — | 6,230 | 1,294 | — | 4,734 | 202 |
ABS covered bond | 21 | 71 | 948 | 4 | 1,044 | — | — | 1,044 | — |
Other ABS | 2,085 | 1,844 | 1,746 | 992 | 6,667 | 1,965 | 17 | 2,389 | 2,296 |
48,587 | 10,019 | 20,950 | 1,485 | 81,041 | 28,736 | 584 | 46,311 | 5,410 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 28,022 | — | 5,549 | 2 | 33,573 | 15,132 | — | 18,441 | — |
RMBS: prime | 1,035 | 3,038 | 1,206 | 466 | 5,745 | 872 | 558 | 4,243 | 72 |
RMBS: non-conforming | 708 | 1,897 | 74 | — | 2,679 | 327 | — | 980 | 1,372 |
RMBS: sub-prime | 686 | 144 | 72 | 2 | 904 | 737 | — | 9 | 158 |
MBS: covered bond | 136 | 209 | 7,175 | — | 7,520 | — | — | 7,520 | — |
CMBS | 1,502 | 1,253 | 635 | 1 | 3,391 | 1,513 | — | 716 | 1,162 |
CDOs | 1,632 | 31 | 294 | — | 1,957 | 315 | — | 1,555 | 87 |
CLOs | 4,524 | 98 | 719 | — | 5,341 | 882 | — | 4,280 | 179 |
ABS covered bond | 19 | 70 | 953 | 4 | 1,046 | — | — | 1,046 | — |
Other ABS | 1,715 | 947 | 1,525 | 966 | 5,153 | 1,038 | — | 1,945 | 2,170 |
39,979 | 7,687 | 18,202 | 1,441 | 67,309 | 20,816 | 558 | 40,735 | 5,200 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 28,022 | — | 5,549 | 2 | 33,573 | 15,132 | — | 18,441 | — |
RMBS: prime | 825 | 3,456 | 1,005 | 458 | 5,744 | 447 | 557 | 4,668 | 72 |
RMBS: non-conforming | 677 | 2,225 | 74 | — | 2,976 | 284 | — | 1,320 | 1,372 |
RMBS: sub-prime | 385 | 138 | 67 | 2 | 592 | 434 | — | — | 158 |
MBS: covered bond | 136 | 209 | 7,175 | — | 7,520 | — | — | 7,520 | — |
CMBS | 860 | 1,253 | 543 | 1 | 2,657 | 777 | — | 718 | 1,162 |
CDOs | 1,030 | 31 | 294 | — | 1,355 | 304 | — | 964 | 87 |
CLOs | 1,367 | 98 | 712 | — | 2,177 | 827 | — | 1,171 | 179 |
ABS covered bond | 19 | 70 | 952 | 4 | 1,045 | — | — | 1,045 | — |
Other ABS | 1,456 | 843 | 1,527 | 804 | 4,630 | 617 | — | 1,941 | 2,071 |
34,777 | 8,323 | 17,898 | 1,271 | 62,269 | 18,822 | 557 | 37,788 | 5,101 |
FVTPL (1) | |||||||||
US | UK | Europe | RoW | Total | HFT (2) | DFV (3) | AFS (4) | LAR (5) | |
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 24,207 | 16 | 6,422 | — | 30,645 | 13,840 | — | 16,805 | — |
RMBS: prime | 1,784 | 3,385 | 1,118 | 192 | 6,479 | 1,605 | 1 | 4,749 | 124 |
RMBS: non-conforming | 1,249 | 2,107 | 92 | — | 3,448 | 708 | — | 1,313 | 1,427 |
RMBS: sub-prime | 792 | 365 | 139 | 221 | 1,517 | 819 | — | 496 | 202 |
MBS: covered bond | 138 | 208 | 8,525 | — | 8,871 | — | — | 8,871 | — |
CMBS | 3,086 | 1,451 | 912 | 45 | 5,494 | 2,646 | 120 | 1,409 | 1,319 |
CDOs | 12,156 | 128 | 453 | — | 12,737 | 7,951 | — | 4,687 | 99 |
CLOs | 6,038 | 134 | 879 | 9 | 7,060 | 1,062 | — | 5,572 | 426 |
ABS covered bond | — | — | 1,908 | — | 1,908 | — | — | 1,908 | — |
Other ABS | 3,104 | 1,144 | 963 | 1,705 | 6,916 | 1,533 | — | 2,615 | 2,768 |
52,554 | 8,938 | 21,411 | 2,172 | 85,075 | 30,164 | 121 | 48,425 | 6,365 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 24,390 | 16 | 5,958 | — | 30,364 | 13,765 | — | 16,599 | — |
RMBS: prime | 1,624 | 3,000 | 931 | 192 | 5,747 | 1,384 | 1 | 4,249 | 113 |
RMBS: non-conforming | 1,084 | 1,959 | 92 | — | 3,135 | 605 | — | 1,102 | 1,428 |
RMBS: sub-prime | 638 | 255 | 120 | 205 | 1,218 | 681 | — | 344 | 193 |
MBS: covered bond | 142 | 208 | 7,522 | — | 7,872 | — | — | 7,872 | — |
CMBS | 2,936 | 1,338 | 638 | 38 | 4,950 | 2,262 | 118 | 1,281 | 1,289 |
CDOs | 3,135 | 69 | 254 | — | 3,458 | 1,341 | — | 2,021 | 96 |
CLOs | 5,334 | 102 | 635 | 3 | 6,074 | 691 | — | 4,958 | 425 |
ABS covered bond | — | — | 1,861 | — | 1,861 | — | — | 1,861 | — |
Other ABS | 2,780 | 945 | 754 | 1,667 | 6,146 | 1,259 | — | 2,228 | 2,659 |
42,063 | 7,892 | 18,765 | 2,105 | 70,825 | 21,988 | 119 | 42,515 | 6,203 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 24,390 | 16 | 5,958 | — | 30,364 | 13,765 | — | 16,599 | — |
RMBS: prime | 1,523 | 2,948 | 596 | 192 | 5,259 | 897 | 1 | 4,248 | 113 |
RMBS: non-conforming | 1,081 | 1,959 | 92 | — | 3,132 | 602 | — | 1,102 | 1,428 |
RMBS: sub-prime | 289 | 253 | 112 | 176 | 830 | 305 | — | 332 | 193 |
MBS: covered bond | 142 | 208 | 7,522 | — | 7,872 | — | — | 7,872 | — |
CMBS | 1,823 | 1,336 | 458 | 38 | 3,655 | 1,188 | 10 | 1,230 | 1,227 |
CDOs | 1,085 | 39 | 245 | — | 1,369 | 743 | — | 530 | 96 |
CLOs | 1,387 | 102 | 629 | 1 | 2,119 | 673 | — | 1,021 | 425 |
ABS covered bond | — | — | 1,861 | — | 1,861 | — | — | 1,861 | — |
Other ABS | 2,293 | 748 | 748 | 1,659 | 5,448 | 690 | — | 2,220 | 2,538 |
34,013 | 7,609 | 18,221 | 2,066 | 61,909 | 18,863 | 11 | 37,015 | 6,020 |
FVTPL (1) | |||||||||
US | UK | Europe | RoW | Total | HFT (2) | DFV (3) | AFS (4) | LAR (5) | |
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 26,644 | 17 | 7,016 | 94 | 33,771 | 13,536 | — | 20,235 | — |
RMBS: prime | 2,965 | 5,276 | 4,567 | 222 | 13,030 | 6,274 | 147 | 5,761 | 848 |
RMBS: non-conforming | 1,341 | 2,138 | 128 | — | 3,607 | 635 | — | 1,498 | 1,474 |
RMBS: sub-prime | 1,668 | 724 | 195 | 561 | 3,148 | 1,632 | 17 | 1,020 | 479 |
MBS: covered bond | 49 | 297 | 9,019 | — | 9,365 | — | — | 9,365 | — |
CMBS | 3,422 | 1,781 | 1,420 | 75 | 6,698 | 2,936 | 209 | 1,842 | 1,711 |
CDOs | 12,382 | 329 | 571 | 27 | 13,309 | 9,080 | 1 | 3,923 | 305 |
CLOs | 9,092 | 166 | 2,169 | 1,173 | 12,600 | 5,346 | — | 6,581 | 673 |
ABS covered bond | — | — | 2,206 | — | 2,206 | — | — | 2,206 | — |
Other ABS | 3,587 | 1,980 | 2,825 | 1,569 | 9,961 | 2,912 | 18 | 3,046 | 3,985 |
61,150 | 12,708 | 30,116 | 3,721 | 107,695 | 42,351 | 392 | 55,477 | 9,475 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 26,984 | 17 | 6,870 | 33 | 33,904 | 13,397 | — | 20,507 | — |
RMBS: prime | 2,696 | 4,583 | 4,009 | 212 | 11,500 | 5,133 | 141 | 5,643 | 583 |
RMBS: non-conforming | 958 | 1,957 | 128 | — | 3,043 | 389 | — | 1,180 | 1,474 |
RMBS: sub-prime | 977 | 314 | 146 | 387 | 1,824 | 779 | 17 | 704 | 324 |
MBS: covered bond | 50 | 288 | 8,734 | — | 9,072 | — | — | 9,072 | — |
CMBS | 3,237 | 1,305 | 924 | 43 | 5,509 | 2,279 | 216 | 1,637 | 1,377 |
CDOs | 3,275 | 166 | 400 | 27 | 3,868 | 2,064 | 1 | 1,600 | 203 |
CLOs | 6,736 | 112 | 1,469 | 999 | 9,316 | 3,296 | — | 5,500 | 520 |
ABS covered bond | — | — | 2,200 | — | 2,200 | — | — | 2,200 | — |
Other ABS | 2,886 | 1,124 | 2,169 | 1,187 | 7,366 | 1,483 | 19 | 2,421 | 3,443 |
47,799 | 9,866 | 27,049 | 2,888 | 87,602 | 28,820 | 394 | 50,464 | 7,924 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 26,984 | 17 | 6,870 | 33 | 33,904 | 13,397 | — | 20,507 | — |
RMBS: prime | 2,436 | 3,747 | 3,018 | 172 | 9,373 | 3,167 | 142 | 5,480 | 584 |
RMBS: non-conforming | 948 | 1,957 | 128 | — | 3,033 | 379 | — | 1,180 | 1,474 |
RMBS: sub-prime | 565 | 305 | 137 | 290 | 1,297 | 529 | 17 | 427 | 324 |
MBS: covered bond | 50 | 288 | 8,734 | — | 9,072 | — | — | 9,072 | — |
CMBS | 2,245 | 1,228 | 595 | 399 | 4,467 | 1,331 | 203 | 1,556 | 1,377 |
CDOs | 743 | 124 | 382 | 26 | 1,275 | 521 | 1 | 550 | 203 |
CLOs | 1,636 | 86 | 1,104 | 39 | 2,865 | 673 | — | 1,672 | 520 |
ABS covered bond | — | — | 2,200 | — | 2,200 | — | — | 2,200 | — |
Other ABS | 2,117 | 839 | 2,131 | 1,145 | 6,232 | 483 | 19 | 2,421 | 3,309 |
37,724 | 8,591 | 25,299 | 2,104 | 73,718 | 20,480 | 382 | 45,065 | 7,791 |
RMBS (1) | |||||||||||
Government sponsored or similar (2) | Prime | Non- conforming | Sub-prime | MBS covered bond | CMBS (3) | CDOs (4) | CLOs (5) | ABS covered bond | Other ABS | Total | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
AAA | 4,169 | 3,599 | 1,488 | 105 | 2,595 | 647 | 135 | 2,171 | 625 | 1,622 | 17,156 |
AA to AA+ | 29,252 | 669 | 106 | 60 | 379 | 710 | 35 | 1,533 | 321 | 550 | 33,615 |
A to AA- | 131 | 506 | 110 | 104 | 2,567 | 1,230 | 161 | 697 | 100 | 725 | 6,331 |
BBB- to A- | — | 39 | 288 | 93 | 1,979 | 333 | 86 | 341 | — | 1,321 | 4,480 |
Non-investment grade | 21 | 784 | 658 | 396 | — | 415 | 1,370 | 176 | — | 672 | 4,492 |
Unrated | — | 148 | 29 | 146 | — | 56 | 170 | 423 | — | 263 | 1,235 |
33,573 | 5,745 | 2,679 | 904 | 7,520 | 3,391 | 1,957 | 5,341 | 1,046 | 5,153 | 67,309 | |
2010 | |||||||||||
AAA | 28,835 | 4,355 | 1,754 | 317 | 7,107 | 2,789 | 444 | 2,490 | 988 | 2,156 | 51,235 |
AA to AA+ | 1,529 | 147 | 144 | 116 | 357 | 392 | 567 | 1,786 | 681 | 616 | 6,335 |
A to AA- | — | 67 | 60 | 212 | 408 | 973 | 296 | 343 | 192 | 693 | 3,244 |
BBB- to A- | — | 82 | 316 | 39 | — | 500 | 203 | 527 | — | 1,718 | 3,385 |
Non-investment grade | — | 900 | 809 | 458 | — | 296 | 1,863 | 332 | — | 265 | 4,923 |
Unrated | — | 196 | 52 | 76 | — | — | 85 | 596 | — | 698 | 1,703 |
30,364 | 5,747 | 3,135 | 1,218 | 7,872 | 4,950 | 3,458 | 6,074 | 1,861 | 6,146 | 70,825 | |
2009 | |||||||||||
AAA | 33,779 | 9,211 | 1,981 | 578 | 8,645 | 3,441 | 615 | 2,718 | 1,933 | 2,166 | 65,067 |
AA to AA+ | 125 | 676 | 197 | 121 | 360 | 599 | 944 | 4,365 | 267 | 1,288 | 8,942 |
A to AA- | — | 507 | 109 | 306 | 67 | 1,022 | 254 | 607 | — | 1,014 | 3,886 |
BBB- to A- | — | 547 | 160 | 87 | — | 298 | 944 | 260 | — | 1,947 | 4,243 |
Non-investment grade | — | 558 | 594 | 579 | — | 147 | 849 | 636 | — | 152 | 3,515 |
Unrated | — | 1 | 2 | 153 | — | 2 | 262 | 730 | — | 799 | 1,949 |
33,904 | 11,500 | 3,043 | 1,824 | 9,072 | 5,509 | 3,868 | 9,316 | 2,200 | 7,366 | 87,602 |
Non-investment grade | Unrated | ||||||||
HFT | AFS | LAR | Total | HFT | AFS | LAR | Total | ||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | |
RMBS: G10 governments | �� | 21 | — | 21 | — | — | — | — | |
RMBS: prime | 312 | 417 | 54 | 783 | 148 | — | — | 148 | |
RMBS: non-conforming | 279 | 372 | 7 | 658 | 28 | — | — | 28 | |
RMBS: sub-prime | 387 | 9 | — | 396 | 146 | — | — | 146 | |
CMBS | 307 | 10 | 98 | 415 | 56 | — | — | 56 | |
CDOs | 116 | 1,215 | 40 | 1,371 | 130 | 40 | — | 170 | |
CLOs | 131 | — | 44 | 175 | 284 | 139 | — | 423 | |
Other ABS | 150 | 12 | 511 | 673 | 12 | 70 | 182 | 264 | |
1,682 | 2,056 | 754 | 4,492 | 804 | 249 | 182 | 1,235 | ||
2010 | |||||||||
RMBS: prime | 354 | 535 | 11 | 900 | 196 | — | — | 196 | |
RMBS: non-conforming | 389 | 414 | 6 | 809 | 52 | — | — | 52 | |
RMBS: sub-prime | 437 | 21 | — | 458 | 76 | — | — | 76 | |
CMBS | 198 | 17 | 81 | 296 | — | — | — | — | |
CDOs | 691 | 1,151 | 21 | 1,863 | 85 | — | — | 85 | |
CLOs | 239 | 5 | 88 | 332 | 267 | 329 | — | 596 | |
Other ABS | 148 | 17 | 100 | 265 | 191 | 162 | 345 | 698 | |
2,456 | 2,160 | 307 | 4,923 | 867 | 491 | 345 | 1,703 | ||
2009 | |||||||||
RMBS: prime | 120 | 430 | 8 | 558 | — | 1 | — | 1 | |
RMBS: non-conforming | 253 | 341 | — | 594 | — | 2 | — | 2 | |
RMBS: sub-prime | 339 | 240 | — | 579 | 153 | — | — | 153 | |
CMBS | 89 | 3 | 55 | 147 | 1 | — | 1 | 2 | |
CDOs | 487 | 300 | 62 | 849 | 143 | 119 | — | 262 | |
CLOs | 269 | 359 | 8 | 636 | 207 | 523 | — | 730 | |
Other ABS | 78 | 63 | 11 | 152 | 270 | 134 | 395 | 799 | |
1,635 | 1,736 | 144 | 3,515 | 774 | 779 | 396 | 1,949 |
By geography | By classification | |||||||||
US | UK | Other Europe | RoW | Total | Government sponsored | Covered bond | Prime | Non- conforming | Sub-prime | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
2004 and earlier | 2,435 | 56 | 1,054 | 42 | 3,587 | 2,344 | 622 | 428 | 80 | 113 |
2005 | 1,661 | 161 | 3,262 | 26 | 5,110 | 1,652 | 2,333 | 539 | 382 | 204 |
2006 | 575 | 1,407 | 4,944 | 97 | 7,023 | 1,681 | 3,272 | 1,224 | 628 | 218 |
2007 | 1,540 | 2,689 | 3,874 | 36 | 8,139 | 3,588 | 1,293 | 1,560 | 1,482 | 216 |
2008 | 1,154 | 24 | 373 | 127 | 1,678 | 1,428 | — | 173 | 75 | 2 |
2009 | 1,364 | 58 | 7 | 1 | 1,430 | 1,209 | — | 163 | 7 | 51 |
2010 and later | 21,858 | 893 | 562 | 141 | 23,454 | 21,671 | — | 1,658 | 25 | 100 |
30,587 | 5,288 | 14,076 | 470 | 50,421 | 33,573 | 7,520 | 5,745 | 2,679 | 904 | |
2010 | ||||||||||
2004 and earlier | 4,405 | 175 | 1,057 | 50 | 5,687 | 4,148 | 641 | 678 | 90 | 130 |
2005 | 2,579 | 176 | 3,435 | 28 | 6,218 | 2,379 | 2,410 | 634 | 567 | 228 |
2006 | 1,082 | 2,249 | 5,460 | 121 | 8,912 | 2,106 | 3,451 | 2,129 | 736 | 490 |
2007 | 2,576 | 2,370 | 4,135 | 33 | 9,114 | 4,774 | 1,352 | 1,280 | 1,477 | 231 |
2008 | 2,314 | 58 | 420 | 155 | 2,947 | 2,598 | 18 | 223 | 104 | 4 |
2009 and later | 14,922 | 410 | 116 | 10 | 15,458 | 14,359 | — | 803 | 161 | 135 |
27,878 | 5,438 | 14,623 | 397 | 48,336 | 30,364 | 7,872 | 5,747 | 3,135 | 1,218 | |
2009 | ||||||||||
2004 and earlier | 8,504 | 293 | 1,760 | 33 | 10,590 | 7,951 | 752 | 1,460 | 99 | 328 |
2005 | 4,221 | 783 | 4,252 | 74 | 9,330 | 3,801 | 2,582 | 2,173 | 510 | 264 |
2006 | 1,847 | 3,116 | 7,449 | 216 | 12,628 | 2,691 | 4,135 | 4,514 | 690 | 598 |
2007 | 1,844 | 2,957 | 5,916 | 60 | 10,777 | 4,394 | 1,585 | 2,842 | 1,529 | 427 |
2008 and later | 15,249 | 10 | 510 | 249 | 16,018 | 15,067 | 18 | 511 | 215 | 207 |
31,665 | 7,159 | 19,887 | 632 | 59,343 | 33,904 | 9,072 | 11,500 | 3,043 | 1,824 |
US | UK | Europe | RoW | Total | HFT | DFV | AFS | LAR | |
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 22,162 | — | 5,366 | 18 | 27,546 | 13,961 | — | 13,585 | — |
RMBS: prime | 819 | 2,821 | 1,181 | 403 | 5,224 | 753 | 509 | 3,876 | 86 |
RMBS: non-conforming | 595 | 2,077 | 58 | — | 2,730 | 202 | — | 1,235 | 1,293 |
RMBS: sub-prime | 968 | 99 | 66 | 5 | 1,138 | 1,027 | — | 5 | 106 |
MBS: covered bond | 46 | 172 | 6,129 | — | 6,347 | — | — | 6,347 | — |
CMBS | 3,352 | 1,121 | 671 | 3 | 5,147 | 1,992 | — | 2,327 | 828 |
CDOs | 4,002 | 42 | 404 | — | 4,448 | 3,111 | — | 1,307 | 30 |
CLOs | 2,705 | 44 | 787 | — | 3,536 | 1,049 | — | 2,422 | 65 |
ABS covered bond | — | 132 | 374 | 16 | 522 | — | — | 522 | — |
Other ABS | 1,632 | 1,873 | 1,111 | 306 | 4,922 | 1,667 | 7 | 1,774 | 1,474 |
36,281 | 8,381 | 16,147 | 751 | 61,560 | 23,762 | 516 | 33,400 | 3,882 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 22,460 | — | 4,879 | 18 | 27,357 | 13,959 | — | 13,398 | — |
RMBS: prime | 717 | 2,552 | 912 | 390 | 4,571 | 569 | 509 | 3,420 | 73 |
RMBS: non-conforming | 477 | 1,918 | 58 | — | 2,453 | 150 | — | 1,009 | 1,294 |
RMBS: sub-prime | 660 | 73 | 46 | 5 | 784 | 682 | — | — | 102 |
MBS: covered bond | 48 | 204 | 5,478 | — | 5,730 | — | — | 5,730 | — |
CMBS | 3,274 | 821 | 425 | 3 | 4,523 | 1,489 | — | 2,284 | 750 |
CDOs | 480 | 22 | 218 | — | 720 | 104 | — | 589 | 27 |
CLOs | 2,550 | 12 | 464 | — | 3,026 | 697 | — | 2,266 | 63 |
ABS covered bond | — | 137 | 380 | 16 | 533 | — | — | 533 | — |
Other ABS | 1,401 | 1,263 | 929 | 295 | 3,888 | 969 | 7 | 1,514 | 1,398 |
32,067 | 7,002 | 13,789 | 727 | 53,585 | 18,619 | 516 | 30,743 | 3,707 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 22,460 | — | 4,879 | 18 | 27,357 | 13,959 | — | 13,398 | — |
RMBS: prime | 513 | 2,549 | 911 | 383 | 4,356 | 554 | 509 | 3,221 | 72 |
RMBS: non-conforming | 277 | 1,908 | 58 | — | 2,243 | 110 | — | 839 | 1,294 |
RMBS: sub-prime | 417 | 73 | 46 | 4 | 540 | 439 | — | — | 101 |
MBS: covered bond | 48 | 204 | 5,478 | — | 5,730 | — | — | 5,730 | — |
CMBS | 2,535 | 821 | 425 | 3 | 3,784 | 750 | — | 2,284 | 750 |
CDOs | 162 | 22 | 212 | 1 | 397 | 79 | — | 290 | 28 |
CLOs | 879 | 12 | 459 | — | 1,350 | 639 | — | 648 | 63 |
ABS covered bond | — | 137 | 380 | 16 | 533 | — | — | 533 | — |
Other ABS | 1,257 | 1,170 | 929 | 163 | 3,519 | 601 | 7 | 1,513 | 1,398 |
28,548 | 6,896 | 13,777 | 588 | 49,809 | 17,131 | 516 | 28,456 | 3,706 |
US | UK | Europe | RoW | Total | HFT | DFV | AFS | LAR | |
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 27,549 | — | 5,884 | 2 | 33,435 | 15,031 | — | 18,404 | — |
RMBS: prime | 1,201 | 3,487 | 1,541 | 484 | 6,713 | 1,090 | 567 | 4,977 | 79 |
RMBS: non-conforming | 1,220 | 2,197 | 74 | — | 3,491 | 717 | — | 1,402 | 1,372 |
RMBS: sub-prime | 1,847 | 427 | 94 | 2 | 2,370 | 2,183 | — | 22 | 165 |
MBS: covered bond | 133 | 203 | 8,256 | — | 8,592 | — | — | 8,592 | — |
CMBS | 1,623 | 1,562 | 883 | 1 | 4,069 | 2,001 | — | 862 | 1,206 |
CDOs | 7,889 | 72 | 469 | — | 8,430 | 4,455 | — | 3,885 | 90 |
CLOs | 5,019 | 156 | 1,055 | — | 6,230 | 1,294 | — | 4,734 | 202 |
ABS covered bond | 21 | 71 | 948 | 4 | 1,044 | — | — | 1,044 | — |
Other ABS | 2,085 | 1,844 | 1,746 | 992 | 6,667 | 1,965 | 17 | 2,389 | 2,296 |
48,587 | 10,019 | 20,950 | 1,485 | 81,041 | 28,736 | 584 | 46,311 | 5,410 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 28,022 | — | 5,549 | 2 | 33,573 | 15,132 | — | 18,441 | — |
RMBS: prime | 1,035 | 3,038 | 1,206 | 466 | 5,745 | 872 | 558 | 4,243 | 72 |
RMBS: non-conforming | 708 | 1,897 | 74 | — | 2,679 | 327 | — | 980 | 1,372 |
RMBS: sub-prime | 686 | 144 | 72 | 2 | 904 | 737 | — | 9 | 158 |
MBS: covered bond | 136 | 209 | 7,175 | — | 7,520 | — | — | 7,520 | — |
CMBS | 1,502 | 1,253 | 635 | 1 | 3,391 | 1,513 | — | 716 | 1,162 |
CDOs | 1,632 | 31 | 294 | — | 1,957 | 315 | — | 1,555 | 87 |
CLOs | 4,524 | 98 | 719 | — | 5,341 | 882 | — | 4,280 | 179 |
ABS covered bond | 19 | 70 | 953 | 4 | 1,046 | — | — | 1,046 | — |
Other ABS | 1,715 | 947 | 1,525 | 966 | 5,153 | 1,038 | — | 1,945 | 2,170 |
39,979 | 7,687 | 18,202 | 1,441 | 67,309 | 20,816 | 558 | 40,735 | 5,200 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 28,022 | — | 5,549 | 2 | 33,573 | 15,132 | — | 18,441 | — |
RMBS: prime | 825 | 3,456 | 1,005 | 458 | 5,744 | 447 | 557 | 4,668 | 72 |
RMBS: non-conforming | 677 | 2,225 | 74 | — | 2,976 | 284 | — | 1,320 | 1,372 |
RMBS: sub-prime | 385 | 138 | 67 | 2 | 592 | 434 | — | — | 158 |
MBS: covered bond | 136 | 209 | 7,175 | — | 7,520 | — | — | 7,520 | — |
CMBS | 860 | 1,253 | 543 | 1 | 2,657 | 777 | — | 718 | 1,162 |
CDOs | 1,030 | 31 | 294 | — | 1,355 | 304 | — | 964 | 87 |
CLOs | 1,367 | 98 | 712 | — | 2,177 | 827 | — | 1,171 | 179 |
ABS covered bond | 19 | 70 | 952 | 4 | 1,045 | — | — | 1,045 | — |
Other ABS | 1,456 | 843 | 1,527 | 804 | 4,630 | 617 | — | 1,941 | 2,071 |
34,777 | 8,323 | 17,898 | 1,271 | 62,269 | 18,822 | 557 | 37,788 | 5,101 |
US | UK | Europe | RoW | Total | HFT | DFV | AFS | LAR | |
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m |
Gross exposure | |||||||||
RMBS: government sponsored or similar | 24,207 | 16 | 6,422 | — | 30,645 | 13,840 | — | 16,805 | — |
RMBS: prime | 1,784 | 3,385 | 1,118 | 192 | 6,479 | 1,605 | 1 | 4,749 | 124 |
RMBS: non-conforming | 1,249 | 2,107 | 92 | — | 3,448 | 708 | — | 1,313 | 1,427 |
RMBS: sub-prime | 792 | 365 | 139 | 221 | 1,517 | 819 | — | 496 | 202 |
MBS: covered bond | 138 | 208 | 8,525 | — | 8,871 | — | — | 8,871 | — |
CMBS | 3,086 | 1,451 | 912 | 45 | 5,494 | 2,646 | 120 | 1,409 | 1,319 |
CDOs | 12,156 | 128 | 453 | — | 12,737 | 7,951 | — | 4,687 | 99 |
CLOs | 6,038 | 134 | 879 | 9 | 7,060 | 1,062 | — | 5,572 | 426 |
ABS covered bond | — | — | 1,908 | — | 1,908 | — | — | 1,908 | — |
Other ABS | 3,104 | 1,144 | 963 | 1,705 | 6,916 | 1,533 | — | 2,615 | 2,768 |
52,554 | 8,938 | 21,411 | 2,172 | 85,075 | 30,164 | 121 | 48,425 | 6,365 | |
Carrying value | |||||||||
RMBS: government sponsored or similar | 24,390 | 16 | 5,958 | — | 30,364 | 13,765 | — | 16,599 | — |
RMBS: prime | 1,624 | 3,000 | 931 | 192 | 5,747 | 1,384 | 1 | 4,249 | 113 |
RMBS: non-conforming | 1,084 | 1,959 | 92 | — | 3,135 | 605 | — | 1,102 | 1,428 |
RMBS: sub-prime | 638 | 255 | 120 | 205 | 1,218 | 681 | — | 344 | 193 |
MBS: covered bond | 142 | 208 | 7,522 | — | 7,872 | — | — | 7,872 | — |
CMBS | 2,936 | 1,338 | 638 | 38 | 4,950 | 2,262 | 118 | 1,281 | 1,289 |
CDOs | 3,135 | 69 | 254 | — | 3,458 | 1,341 | — | 2,021 | 96 |
CLOs | 5,334 | 102 | 635 | 3 | 6,074 | 691 | — | 4,958 | 425 |
ABS covered bond | — | — | 1,861 | — | 1,861 | — | — | 1,861 | — |
Other ABS | 2,780 | 945 | 754 | 1,667 | 6,146 | 1,259 | — | 2,228 | 2,659 |
42,063 | 7,892 | 18,765 | 2,105 | 70,825 | 21,988 | 119 | 42,515 | 6,203 | |
Net exposure | |||||||||
RMBS: government sponsored or similar | 24,390 | 16 | 5,958 | — | 30,364 | 13,765 | — | 16,599 | — |
RMBS: prime | 1,523 | 2,948 | 596 | 192 | 5,259 | 897 | 1 | 4,248 | 113 |
RMBS: non-conforming | 1,081 | 1,959 | 92 | — | 3,132 | 602 | — | 1,102 | 1,428 |
RMBS: sub-prime | 289 | 253 | 112 | 176 | 830 | 305 | — | 332 | 193 |
MBS: covered bond | 142 | 208 | 7,522 | — | 7,872 | — | — | 7,872 | — |
CMBS | 1,823 | 1,336 | 458 | 38 | 3,655 | 1,188 | 10 | 1,230 | 1,227 |
CDOs | 1,085 | 39 | 245 | — | 1,369 | 743 | — | 530 | 96 |
CLOs | 1,387 | 102 | 629 | 1 | 2,119 | 673 | — | 1,021 | 425 |
ABS covered bond | — | — | 1,861 | — | 1,861 | — | — | 1,861 | — |
Other ABS | 2,293 | 748 | 748 | 1,659 | 5,448 | 690 | — | 2,220 | 2,538 |
34,013 | 7,609 | 18,221 | 2,066 | 61,909 | 18,863 | 11 | 37,015 | 6,020 |
RMBS | |||||||||||
Government sponsored or similar (1) | Prime | Non- conforming | Sub-prime | MBS covered bond | CMBS | CDOs | CLOs | ABS covered bond | Other ABS | Total | |
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
AAA | 2,454 | 2,854 | 1,487 | 11 | 639 | 396 | 92 | 1,181 | 165 | 1,479 | 10,758 |
AA to AA+ | 23,692 | 613 | 88 | 26 | 102 | 2,551 | 7 | 887 | 340 | 469 | 28,775 |
A to AA- | 201 | 302 | 275 | 33 | 155 | 808 | 74 | 146 | 20 | 883 | 2,897 |
BBB- to A- | 990 | 53 | 141 | 86 | 4,698 | 441 | 32 | 291 | 8 | 654 | 7,394 |
Non-investment grade (2) | 20 | 641 | 454 | 330 | 136 | 304 | 421 | 133 | — | 235 | 2,674 |
Unrated (3) | — | 108 | 8 | 298 | — | 23 | 94 | 388 | — | 168 | 1,087 |
27,357 | 4,571 | 2,453 | 784 | 5,730 | 4,523 | 720 | 3,026 | 533 | 3,888 | 53,585 | |
Of which in Non-Core | — | 651 | 404 | 154 | — | 780 | 494 | 2,228 | — | 850 | 5,561 |
2011 | |||||||||||
AAA | 4,169 | 3,599 | 1,488 | 105 | 2,595 | 647 | 135 | 2,171 | 625 | 1,622 | 17,156 |
AA to AA+ | 29,252 | 669 | 106 | 60 | 379 | 710 | 35 | 1,533 | 321 | 550 | 33,615 |
A to AA- | 131 | 506 | 110 | 104 | 2,567 | 1,230 | 161 | 697 | 100 | 725 | 6,331 |
BBB- to A- | — | 39 | 288 | 93 | 1,979 | 333 | 86 | 341 | — | 1,321 | 4,480 |
Non-investment grade (2) | 21 | 784 | 658 | 396 | — | 415 | 1,370 | 176 | — | 672 | 4,492 |
Unrated (3) | — | 148 | 29 | 146 | — | 56 | 170 | 423 | — | 263 | 1,235 |
33,573 | 5,745 | 2,679 | 904 | 7,520 | 3,391 | 1,957 | 5,341 | 1,046 | 5,153 | 67,309 | |
Of which in Non-Core | — | 837 | 477 | 308 | — | 830 | 1,656 | 4,227 | — | 1,861 | 10,196 |
2010 | |||||||||||
AAA | 28,835 | 4,355 | 1,754 | 317 | 7,107 | 2,789 | 444 | 2,490 | 988 | 2,156 | 51,235 |
AA to AA+ | 1,529 | 147 | 144 | 116 | 357 | 392 | 567 | 1,786 | 681 | 616 | 6,335 |
A to AA- | — | 67 | 60 | 212 | 408 | 973 | 296 | 343 | 192 | 693 | 3,244 |
BBB- to A- | — | 82 | 316 | 39 | — | 500 | 203 | 527 | — | 1,718 | 3,385 |
Non-investment grade (2) | — | 900 | 809 | 458 | — | 296 | 1,863 | 332 | — | 265 | 4,923 |
Unrated (3) | — | 196 | 52 | 76 | — | — | 85 | 596 | — | 698 | 1,703 |
30,364 | 5,747 | 3,135 | 1,218 | 7,872 | 4,950 | 3,458 | 6,074 | 1,861 | 6,146 | 70,825 | |
Of which in Non-Core | — | 81 | 336 | 379 | — | 1,278 | 3,159 | 5,094 | — | 2,386 | 12,713 |
(1) | Includes US agency and Dutch government guaranteed securities. |
(2) | Includes HFT £1,177 million (2011 - £1,682 million; 2010 - £2,456 million), DFV £7 million (2011 and 2010 - nil), AFS £1,173 million (2011 - £2,056 million; 2010 - £2,160 million) and LAR £317 million (2011 - £754 million; 2010 - £307 million). |
(3) | Includes HFT £808 million (2011 - £804 million; 2010 - £867 million), AFS £149 million (2011 - £249 million; 2010 - £491 million) and LAR £130 million (2011 - £182 million; 2010 - £345 million). |
2012 | |||||||||||||||
HFT/DFV (1) | AFS | ||||||||||||||
Countries | Banks £m | Other financial institutions (2) £m | Corporate £m | Total HFT/DFV £m | Banks £m | Other financial institutions £m | Corporate £m | Total AFS £m | Total £m | AFS reserves £m | HFT short positions £m | ||||
Ireland | — | 126 | 47 | 173 | — | 17 | — | 17 | 190 | — | (3) | ||||
Spain | 18 | — | 110 | 128 | — | — | 33 | 33 | 161 | (41) | — | ||||
Italy | 7 | 1 | 33 | 41 | — | 5 | — | 5 | 46 | — | (15) | ||||
Greece | — | — | 6 | 6 | — | — | — | — | 6 | — | — | ||||
Portugal | — | — | 5 | 5 | — | — | — | — | 5 | — | — | ||||
Eurozone periphery | 25 | 127 | 201 | 353 | — | 22 | 33 | 55 | 408 | (41) | (18) | ||||
Netherlands | 20 | 197 | 465 | 682 | — | — | 156 | 156 | 838 | (19) | (21) | ||||
France | 10 | 75 | 142 | 227 | — | 1 | 104 | 105 | 332 | 23 | (10) | ||||
Luxembourg | 14 | 196 | 77 | 287 | — | 6 | 3 | 9 | 296 | 1 | (1) | ||||
Germany | 33 | 1 | 106 | 140 | — | — | — | — | 140 | — | (54) | ||||
Belgium | — | 23 | 6 | 29 | — | 3 | — | 3 | 32 | 1 | (1) | ||||
Other | 18 | 3 | 110 | 131 | — | — | — | — | 131 | — | (14) | ||||
Total eurozone | 120 | 622 | 1,107 | 1,849 | — | 32 | 296 | 328 | 2,177 | (35) | (119) | ||||
US | 208 | 619 | 2,663 | 3,490 | 307 | 419 | — | 726 | 4,216 | 7 | (132) | ||||
UK | 372 | 163 | 2,648 | 3,183 | 35 | 51 | 155 | 241 | 3,424 | 73 | (35) | ||||
Japan | 24 | 67 | 973 | 1,064 | — | 2 | — | 2 | 1,066 | — | (1) | ||||
South Korea | 32 | 72 | 880 | 984 | — | — | — | — | 984 | — | — | ||||
China | 331 | 147 | 357 | 835 | — | 14 | 3 | 17 | 852 | 7 | (3) | ||||
India | 29 | 68 | 220 | 317 | — | — | — | — | 317 | — | — | ||||
Taiwan | 2 | 31 | 259 | 292 | — | — | — | — | 292 | — | (11) | ||||
Australia | 77 | 45 | 159 | 281 | — | — | — | — | 281 | — | (17) | ||||
Canada | 14 | 25 | 200 | 239 | — | — | 2 | 2 | 241 | 2 | (277) | ||||
Hong Kong | 2 | 81 | 97 | 180 | — | — | 4 | 4 | 184 | 2 | — | ||||
Romania | 16 | 4 | 158 | 178 | — | — | — | — | 178 | — | — | ||||
Russia | — | 123 | — | 123 | — | — | — | — | 123 | — | — | ||||
MDB and supranationals (3) | — | — | 156 | 156 | — | — | — | — | 156 | — | — | ||||
Other | 74 | 50 | 567 | 691 | — | 37 | 18 | 55 | 746 | 28 | (16) | ||||
Total | 1,301 | 2,117 | 10,444 | 13,862 | 342 | 555 | 478 | 1,375 | 15,237 | 84 | (611) |
2011 | |||||||||||||||
HFT/DFV (1) | AFS | ||||||||||||||
Countries | Banks £m | Other financial institutions (2) £m | Corporate £m | Total HFT/DFV £m | Banks £m | Other financial institutions £m | Corporate £m | Total AFS £m | Total £m | AFS reserves £m | HFT short positions £m | ||||
Ireland | — | 7 | 208 | 215 | — | 6 | — | 6 | 221 | — | (4) | ||||
Spain | 55 | 2 | 75 | 132 | — | — | 72 | 72 | 204 | (4) | (16) | ||||
Italy | 11 | 1 | 51 | 63 | — | 5 | — | 5 | 68 | — | (4) | ||||
Greece | — | 1 | 2 | 3 | — | — | — | — | 3 | — | (22) | ||||
Portugal | — | — | — | — | — | — | 5 | 5 | 5 | — | (1) | ||||
Eurozone periphery | 66 | 11 | 336 | 413 | — | 11 | 77 | 88 | 501 | (4) | (47) | ||||
Netherlands | 1 | 67 | 671 | 739 | — | 55 | — | 55 | 794 | (76) | (82) | ||||
France | 12 | 15 | 117 | 144 | 3 | 2 | 97 | 102 | 246 | 20 | (62) | ||||
Luxembourg | — | 201 | 90 | 291 | 383 | 3 | — | 386 | 677 | 17 | — | ||||
Germany | 23 | 4 | 114 | 141 | — | — | — | — | 141 | — | (186) | ||||
Belgium | 2 | 8 | 4 | 14 | — | 15 | 1 | 16 | 30 | 10 | (10) | ||||
Other | 18 | 15 | 102 | 135 | — | — | — | — | 135 | — | (58) | ||||
Total eurozone | 122 | 321 | 1,434 | 1,877 | 386 | 86 | 175 | 647 | 2,524 | (33) | (445) | ||||
US | 120 | 97 | 1,442 | 1,659 | 323 | 575 | 52 | 950 | 2,609 | 128 | (544) | ||||
UK | 420 | 217 | 2,785 | 3,422 | 33 | 215 | 64 | 312 | 3,734 | 40 | (145) | ||||
Japan | 43 | 82 | 1,289 | 1,414 | — | 1 | — | 1 | 1,415 | — | (3) | ||||
South Korea | 2 | 47 | 299 | 348 | — | — | — | — | 348 | — | (3) | ||||
China | 510 | 228 | 637 | 1,375 | — | 13 | — | 13 | 1,388 | 4 | (6) | ||||
India | 35 | 14 | 314 | 363 | — | — | — | — | 363 | — | — | ||||
Taiwan | 2 | 37 | 226 | 265 | — | — | — | — | 265 | — | (4) | ||||
Australia | 95 | 90 | 406 | 591 | — | — | 14 | 14 | 605 | 2 | (219) | ||||
Canada | — | 4 | 148 | 152 | — | — | 2 | 2 | 154 | 2 | (449) | ||||
Hong Kong | 10 | 45 | 100 | 155 | — | — | 3 | 3 | 158 | (2) | (2) | ||||
Russia | 30 | — | 215 | 245 | — | — | — | — | 245 | — | (2) | ||||
Romania | 1 | 45 | — | 46 | — | — | — | — | 46 | — | — | ||||
MDB and supranationals (3) | — | — | 233 | 233 | — | — | — | — | 233 | — | — | ||||
Other | 86 | 381 | 600 | 1,067 | — | 3 | 31 | 34 | 1,101 | 26 | (158) | ||||
Total | 1,476 | 1,608 | 10,128 | 13,212 | 742 | 893 | 341 | 1,976 | 15,188 | 167 | (1,980) |
(1) | Designated as at fair value through profit or loss (DFV) balances are £533 million (2011 - £774 million) of which nil banks (2011 - nil), £61 million other financial institutions (2011 - £81 million) and £472 million corporate (2011 - £693 million). |
(2) | Includes government sponsored entities (GSEs). |
(3) | MDB - Multilateral Development Banks. |
2011 | 2010 | |||||||||||||
0-3 months £m | 3-6 months £m | 6-12 months £m | 1-5 years £m | Over 5 years £m | Total £m | 0-3 months £m | 3-6 months £m | 6-12 months £m | 1-5 years £m | Over 5 years £m | Total £m | 2009 Total £m | ||
AQ1 | 24,580 | 10,957 | 17,180 | 126,105 | 302,800 | 481,622 | 30,840 | 10,755 | 17,554 | 135,311 | 214,029 | 408,489 | 389,019 | |
AQ2 | 326 | 236 | 431 | 2,046 | 5,138 | 8,177 | 319 | 105 | 212 | 1,561 | 462 | 2,659 | 11,550 | |
AQ3 | 975 | 390 | 459 | 2,811 | 6,184 | 10,819 | 1,284 | 391 | 626 | 610 | 406 | 3,317 | 10,791 | |
AQ4 | 1,465 | 782 | 713 | 4,093 | 7,368 | 14,421 | 989 | 155 | 240 | 1,726 | 281 | 3,391 | 8,296 | |
AQ5 | 890 | 93 | 219 | 1,787 | 3,527 | 6,516 | 1,016 | 81 | 201 | 1,447 | 2,115 | 4,860 | 8,270 | |
AQ6 | 121 | 30 | 81 | 803 | 1,186 | 2,221 | 134 | 46 | 71 | 653 | 166 | 1,070 | 2,548 | |
AQ7 | 101 | 29 | 56 | 1,674 | 533 | 2,393 | 150 | 29 | 44 | 375 | 259 | 857 | 2,181 | |
AQ8 | 16 | 21 | 11 | 143 | 1,061 | 1,252 | 2 | 1 | 10 | 118 | 272 | 403 | 1,448 | |
AQ9 | 5 | 8 | 7 | 254 | 876 | 1,150 | 104 | 8 | 39 | 110 | 189 | 450 | 2,030 | |
AQ10 | 13 | 20 | 35 | 658 | 321 | 1,047 | 170 | 11 | 52 | 353 | 995 | 1,581 | 2,026 | |
Accruing past due | — | — | — | — | — | — | — | — | — | — | — | — | 40 | |
28,492 | 12,566 | 19,192 | 140,374 | 328,994 | 529,618 | 35,008 | 11,582 | 19,049 | 142,264 | 219,174 | 427,077 | 438,199 | ||
RFS MI | — | — | 3,255 | |||||||||||
Group | 529,618 | 427,077 | 441,454 | |||||||||||
Counterparty mtm netting | (441,626) | (330,397) | (358,917) | |||||||||||
Cash collateral held against derivative exposures (1) | (37,222) | (31,096) | (33,667) | |||||||||||
Net exposure | 50,770 | 65,584 | 48,870 |
2012 | 2011 | 2010 | |||||||||||||
Notional (1) | |||||||||||||||
Contract type | GBP £bn | USD £bn | Euro £bn | Other £bn | Total £bn | Assets £m | Liabilities £m | Notional £bn | Assets £m | Liabilities £m | Notional £bn | Assets £m | Liabilities £m | ||
Interest rate (2) | 5,144 | 10,395 | 11,343 | 6,601 | 33,483 | 363,454 | 345,565 | 38,727 | 422,553 | 406,784 | 39,764 | 312,111 | 299,209 | ||
Exchange rate | 370 | 1,987 | 716 | 1,625 | 4,698 | 63,067 | 70,481 | 4,482 | 74,526 | 81,022 | 4,854 | 83,253 | 89,396 | ||
Credit | 4 | 320 | 202 | 27 | 553 | 11,005 | 10,353 | 1,054 | 26,836 | 26,743 | 1,357 | 26,872 | 25,344 | ||
Other (3) | 18 | 50 | 27 | 16 | 111 | 4,392 | 7,941 | 123 | 6,142 | 9,560 | 384 | 9,989 | 15,060 | ||
441,918 | 434,340 | 530,057 | 524,109 | 432,225 | 429,009 | ||||||||||
Counterparty mtm netting | (373,906) | (373,906) | (441,626) | (441,626) | (330,397) | (330,397) | |||||||||
Cash collateral | (34,099) | (24,633) | (37,222) | (31,368) | (31,096) | (31,015) | |||||||||
Securities collateral | (5,616) | (8,264) | (5,312) | (8,585) | (2,904) | (3,343) | |||||||||
28,297 | 27,537 | 45,897 | 42,530 | 67,828 | 64,254 |
(1) | Exchange traded contracts were £2,497 billion, principally interest rate. Trades are generally closed out daily hence mark-to-market was insignificant (assets - £41 million; liabilities - £255 million). |
2011 | 2010 | 2009 | |||||||||
Contract type | Notional £bn | Assets £m | Liabilities £m | Notional £bn | Assets £m | Liabilities £m | Notional £bn | Assets £m | Liabilities £m | ||
Interest rate | 38,722 | 422,156 | 406,709 | 39,760 | 311,731 | 299,209 | 43,230 | 323,592 | 311,415 | ||
Exchange rate | 4,479 | 74,492 | 80,980 | 4,854 | 83,253 | 89,375 | 3,842 | 69,283 | 63,919 | ||
Credit derivatives | 1,054 | 26,836 | 26,743 | 1,357 | 26,872 | 25,344 | 1,621 | 41,748 | 39,127 | ||
Equity and commodity | 123 | 6,134 | 9,551 | 179 | 5,221 | 10,039 | 188 | 6,831 | 9,680 | ||
529,618 | 523,983 | 427,077 | 423,967 | 441,454 | 424,141 |
(2) | Interest rate notional includes £15,864 billion (2011 - £16,377 billion) relating to contracts with central clearing houses. |
(3) | Comprises equity and commodity derivatives. |
· | Net exposure, after taking account of position and collateral netting arrangements, |
· | Interest rate contracts decreased due to the increased use of |
· |
· | Credit derivatives |
· | Group Treasury issues long term fixed rate debt that is hedged with floating rate interest rate swaps and also uses swaps to hedge fixed rate indefinite maturity liabilities such as equity and customer accounts. As interest rates have fallen over recent years the fair value of these swaps has increased. This net asset position mirrored by the net liability position relating to the difference between the fair value and carrying value on fixed rate loans and current accounts. |
· | Within Markets the hedging of issued notes, more exotic derivatives and long dated zero coupon inflation structures have led to a positive fair value which is not offset by other derivatives or hedges. |
0-3 months £m | 3-6 months £m | 6-12 months £m | 1-5 years £m | Over 5 years £m | Total £m | Counterparty mtm netting £m | Net exposure £m | |
2011 | ||||||||
Exchange rate | 23,838 | 8,434 | 9,766 | 19,176 | 13,278 | 74,492 | (57,511) | 16,981 |
Interest rate | 3,977 | 3,197 | 7,672 | 102,163 | 305,147 | 422,156 | (356,325) | 65,831 |
Credit derivatives | 135 | 332 | 626 | 15,675 | 10,068 | 26,836 | (23,980) | 2,856 |
Equity and commodity | 542 | 603 | 1,128 | 3,360 | 501 | 6,134 | (3,810) | 2,324 |
28,492 | 12,566 | 19,192 | 140,374 | 328,994 | 529,618 | (441,626) | 87,992 | |
Cash collateral held against derivative exposures (1) | (37,222) | |||||||
Net exposure | 50,770 | |||||||
2010 | ||||||||
Exchange rate | 28,938 | 7,820 | 9,360 | 23,174 | 13,961 | 83,253 | (69,509) | 13,744 |
Interest rate | 4,822 | 3,533 | 7,927 | 104,026 | 191,423 | 311,731 | (236,513) | 75,218 |
Credit derivatives | 497 | 99 | 313 | 12,374 | 13,589 | 26,872 | (22,728) | 4,144 |
Equity and commodity | 751 | 130 | 1,449 | 2,690 | 201 | 5,221 | (1,647) | 3,574 |
35,008 | 11,582 | 19,049 | 142,264 | 219,174 | 427,077 | (330,397) | 96,680 | |
Cash collateral held against derivative exposures (1) | (31,096) | |||||||
Net exposure | 65,584 |
2009 | ||||||||
Exchange rate | 19,127 | 5,824 | 7,603 | 23,831 | 11,967 | 68,352 | (47,885) | 20,467 |
Interest rate | 8,415 | 8,380 | 16,723 | 111,144 | 176,799 | 321,461 | (270,791) | 50,670 |
Credit derivatives | 201 | 112 | 390 | 19,859 | 21,186 | 41,748 | (36,411) | 5,337 |
Equity and commodity | 1,562 | 436 | 1,109 | 3,057 | 474 | 6,638 | (3,830) | 2,808 |
29,305 | 14,752 | 25,825 | 157,891 | 210,426 | 438,199 | (358,917) | 79,282 | |
RFS MI | 3,255 | — | 3,255 | |||||
Group | 441,454 | (358,917) | 82,537 | |||||
Cash collateral held against derivative exposures (1) | (33,667) | |||||||
Net exposure | 48,870 | |||||||
2011 | 2010 | ||||||||||
Notional | Fair value | Notional | Fair value | ||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||
£bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | ||||
Client-led trading and residual risk | 401.0 | 390.5 | 17.0 | 16.5 | 386.7 | 362.5 | 8.4 | 6.7 | |||
Credit hedging - banking book (1) | 15.6 | 4.7 | 0.1 | 0.1 | 16.3 | 21.8 | — | 0.1 | |||
Credit hedging - trading book | |||||||||||
- Rates | 21.2 | 17.1 | 0.9 | 1.7 | 21.9 | 10.4 | (0.9) | 0.2 | |||
- Credit and mortgage markets | 42.9 | 28.4 | 2.3 | 1.7 | 168.1 | 172.7 | 3.5 | 3.1 | |||
- Other | 0.9 | 0.1 | — | — | 0.7 | 0.1 | — | — | |||
Total excluding APS | 481.6 | 440.8 | 20.3 | 20.0 | 593.7 | 567.5 | 11.0 | 10.1 | |||
APS | 131.8 | — | (0.2) | — | 195.8 | — | 0.6 | — | |||
613.4 | 440.8 | 20.1 | 20.0 | 789.5 | 567.5 | 11.6 | 10.1 |
Core | |||||||||||
Client-led trading | 371.0 | 369.4 | 14.6 | 14.0 | 347.5 | 343.0 | 5.2 | 4.4 | |||
Credit hedging - banking book | 2.2 | 1.0 | — | 0.1 | 1.1 | 1.0 | (0.2) | — | |||
Credit hedging - trading book | |||||||||||
- Rates | 19.9 | 16.2 | 0.9 | 1.7 | 21.7 | 10.3 | (0.8) | 0.2 | |||
- Credit and mortgage markets | 4.6 | 4.0 | 0.3 | 0.2 | 4.4 | 4.3 | 0.2 | 0.3 | |||
- Other | 0.7 | 0.1 | — | — | 0.6 | 0.1 | — | — | |||
398.4 | 390.7 | 15.8 | 16.0 | 375.3 | 358.7 | 4.4 | 4.9 |
Non-Core | |||||||||||
Residual risk | 30.0 | 21.1 | 2.4 | 2.5 | 39.2 | 19.5 | 3.2 | 2.3 | |||
Credit hedging - banking book | 13.4 | 3.7 | 0.1 | — | 15.2 | 20.8 | 0.2 | 0.1 | |||
Credit hedging - trading book | |||||||||||
- Rates | 1.3 | 0.9 | — | — | 0.2 | 0.1 | (0.1) | — | |||
- Credit and mortgage markets | 38.3 | 24.4 | 2.0 | 1.5 | 163.7 | 168.4 | 3.3 | 2.8 | |||
- Other | 0.2 | — | — | — | 0.1 | — | — | — | |||
83.2 | 50.1 | 4.5 | 4.0 | 218.4 | 208.8 | 6.6 | 5.2 |
Counterparty | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central and local government - APS | 131.8 | — | (0.2) | — | 195.8 | — | 0.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | |||||||||||||||||||||||||||||||||||||||||||||||
£bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | £bn | |||||||||||||||||||||||||||||||||||||||||||||||
Client-led trading and residual risk | 250.7 | 240.7 | 3.4 | 3.1 | 401.0 | 390.5 | 17.0 | 16.5 | 386.7 | 362.5 | 8.4 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - banking book (1) | 5.4 | 0.4 | 0.1 | — | 15.6 | 4.7 | 0.1 | 0.1 | 16.3 | 21.8 | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - trading book | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- rates | 9.4 | 5.8 | 0.1 | 0.1 | 21.2 | 17.1 | 0.9 | 1.7 | 21.9 | 10.4 | (0.9 | ) | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
- credit and mortgage markets | 22.4 | 16.0 | 0.9 | 0.7 | 42.9 | 28.4 | 2.3 | 1.7 | 168.1 | 172.7 | 3.5 | 3.1 | ||||||||||||||||||||||||||||||||||||||||||||||
- other | 1.4 | 0.6 | — | — | 0.9 | 0.1 | — | — | 0.7 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total excluding APS | 289.3 | 263.5 | 4.5 | 3.9 | 481.6 | 440.8 | 20.3 | 20.0 | 593.7 | 567.5 | 11.0 | 10.1 | ||||||||||||||||||||||||||||||||||||||||||||||
APS | — | — | — | — | 131.8 | — | (0.2 | ) | — | 195.8 | — | 0.6 | — | |||||||||||||||||||||||||||||||||||||||||||||
289.3 | 263.5 | 4.5 | 3.9 | 613.4 | �� | 440.8 | 20.1 | 20.0 | 789.5 | 567.5 | 11.6 | 10.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Core | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Client-led trading | 231.4 | 228.4 | 3.0 | 2.7 | 371.0 | 369.4 | 14.6 | 14.0 | 347.5 | 343.0 | 5.2 | 4.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - banking book | 1.7 | — | — | — | 2.2 | 1.0 | — | 0.1 | 1.1 | 1.0 | (0.2 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - trading book | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- rates | 7.8 | 4.6 | 0.1 | 0.1 | 19.9 | 16.2 | 0.9 | 1.7 | 21.7 | 10.3 | (0.8 | ) | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
- credit and mortgage markets | 13.9 | 13.6 | 0.2 | 0.2 | 4.6 | 4.0 | 0.3 | 0.2 | 4.4 | 4.3 | 0.2 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||
- other | 1.3 | 0.5 | — | — | 0.7 | 0.1 | — | — | 0.6 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
256.1 | 247.1 | 3.3 | 3.0 | 398.4 | 390.7 | 15.8 | 16.0 | 375.3 | 358.7 | 4.4 | 4.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residual risk | 19.3 | 12.3 | 0.4 | 0.4 | 30.0 | 21.1 | 2.4 | 2.5 | 39.2 | 19.5 | 3.2 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - banking book (1) | 3.7 | 0.4 | 0.1 | — | 13.4 | 3.7 | 0.1 | — | 15.2 | 20.8 | 0.2 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Credit hedging - trading book | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- rates | 1.6 | 1.2 | — | — | 1.3 | 0.9 | — | — | 0.2 | 0.1 | (0.1 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
- credit and mortgage markets | 8.5 | 2.4 | 0.7 | 0.5 | 38.3 | 24.4 | 2.0 | 1.5 | 163.7 | 168.4 | 3.3 | 2.8 | ||||||||||||||||||||||||||||||||||||||||||||||
- other | 0.1 | 0.1 | — | — | 0.2 | — | — | — | 0.1 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
33.2 | 16.4 | 1.2 | 0.9 | 83.2 | 50.1 | 4.5 | 4.0 | 218.4 | 208.8 | 6.6 | 5.2 | |||||||||||||||||||||||||||||||||||||||||||||||
By counterparty | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central government (APS) | — | — | — | — | 131.8 | — | (0.2 | ) | — | 195.8 | — | 0.6 | — | |||||||||||||||||||||||||||||||||||||||||||||
Monoline insurers | 8.6 | — | 0.6 | — | 14.9 | — | 1.5 | — | 4.6 | — | 0.4 | — | 8.6 | — | 0.6 | — | 14.9 | — | 1.5 | — | ||||||||||||||||||||||||||||||||||||||
CDPCs | 24.5 | — | 0.9 | — | 25.0 | — | 0.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
CDPCs (2) | 21.0 | — | 0.2 | — | 24.5 | — | 0.9 | — | 25.0 | — | 0.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Banks | 204.1 | 202.1 | 8.5 | 10.2 | 370.7 | 370.6 | 5.0 | 5.7 | 127.2 | 128.6 | 2.3 | 2.8 | 204.1 | 202.1 | 8.5 | 10.2 | 370.7 | 370.6 | 5.0 | 5.7 | ||||||||||||||||||||||||||||||||||||||
Other financial institutions | 234.8 | 231.6 | 10.5 | 9.5 | 176.6 | 195.0 | 4.4 | 4.3 | 135.8 | 134.9 | 1.4 | 1.1 | 234.8 | 231.6 | 10.5 | 9.5 | 176.6 | 195.0 | 4.4 | 4.3 | ||||||||||||||||||||||||||||||||||||||
Corporates | 9.6 | 7.1 | (0.2) | 0.3 | 6.5 | 1.9 | (0.7) | 0.1 | 0.7 | — | 0.2 | — | 9.6 | 7.1 | (0.2 | ) | 0.3 | 6.5 | 1.9 | (0.7 | ) | 0.1 | ||||||||||||||||||||||||||||||||||||
613.4 | 440.8 | 20.1 | 20.0 | 789.5 | 567.5 | 11.6 | 10.1 | 289.3 | 263.5 | 4.5 | 3.9 | 613.4 | 440.8 | 20.1 | 20.0 | 789.5 | 567.5 | 11.6 | 10.1 |
(1) | Credit hedging in the banking book principally relates to portfolio management in Non-Core. |
(2) | Credit derivative product companies. |
2011 £m | 2010 £m | 2009 £m | 2012 £m | 2011 £m | 2010 £m | |
Gross exposure to monolines | 1,888 | 4,023 | 6,170 | 561 | 1,888 | 4,023 |
Hedges with financial institutions | (71) | (71) | (531) | (12) | (71) | |
Credit valuation adjustment | (1,198) | (2,443) | (3,796) | (192) | (1,198) | (2,443) |
Net exposure to monolines | 619 | 1,509 | 1,843 | 357 | 619 | 1,509 |
Credit valuation adjustment as a % of gross exposure | 63% | 61% | 62% | 34% | 63% | 61% |
Counterparty and credit risk RWAs* | £3.6bn | £17.8bn | £13.7bn | |||
Counterparty and credit risk RWAs* | £1.2bn | £3.6bn | £17.8bn |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Credit valuation adjustment at 1 January | (2,443) | (3,796) | (5,988) |
Credit valuation adjustment at 31 December | (1,198) | (2,443) | (3,796) |
Decrease in credit valuation adjustment | 1,245 | 1,353 | 2,192 |
Net debit relating to realisations, hedges, foreign exchange and other movements | (1,878) | (844) | (3,290) |
Net credit/(debit) relating to reclassified debt securities | 197 | (305) | (1,468) |
Net (debit)/credit to income statement (1) | (436) | 204 | (2,566) |
2012 | Notional: protected assets £m | Fair value: reference protected assets £m | Gross exposure £m | Credit valuation adjustment £m | Hedges £m | Net exposure £m |
A to AA- | 3,388 | 2,944 | 444 | 128 | — | 316 |
Non-investment grade | 1,194 | 1,077 | 117 | 64 | 12 | 41 |
4,582 | 4,021 | 561 | 192 | 12 | 357 | |
Of which: | ||||||
CMBS | 183 | 170 | 13 | 3 | ||
CLOs | 2,777 | 2,563 | 214 | 47 | ||
Other ABS | 1,202 | 999 | 203 | 95 | ||
Other | 420 | 289 | 131 | 47 | ||
4,582 | 4,021 | 561 | 192 |
2011 | Notional: protected assets £m | Fair value: reference protected assets £m | Gross exposure £m | Credit valuation adjustment £m | Hedges £m | Net exposure £m | ||||||
A to AA- | 4,939 | 4,243 | 696 | 252 | — | 444 | 4,939 | 4,243 | 696 | 252 | — | 444 |
Non-investment grade | 3,623 | 2,431 | 1,192 | 946 | 71 | 175 | 3,623 | 2,431 | 1,192 | 946 | 71 | 175 |
8,562 | 6,674 | 1,888 | 1,198 | 71 | 619 | 8,562 | 6,674 | 1,888 | 1,198 | 71 | 619 | |
Of which: | ||||||||||||
CMBS | 946 | 674 | 272 | 247 | 946 | 674 | 272 | 247 | ||||
CDOs | 500 | 57 | 443 | 351 | 500 | 57 | 443 | 351 | ||||
CLOs | 4,616 | 4,166 | 450 | 177 | 4,616 | 4,166 | 450 | 177 | ||||
Other ABS | 1,998 | 1,455 | 543 | 334 | 1,998 | 1,455 | 543 | 334 | ||||
Other | 502 | 322 | 180 | 89 | 502 | 322 | 180 | 89 | ||||
8,562 | 6,674 | 1,888 | 1,198 | 8,562 | 6,674 | 1,888 | 1,198 |
2010 | ||||||
A to AA- | 6,336 | 5,503 | 833 | 272 | — | 561 |
Non-investment grade | 8,555 | 5,365 | 3,190 | 2,171 | 71 | 948 |
14,891 | 10,868 | 4,023 | 2,443 | 71 | 1,509 | |
Of which: | ||||||
CMBS | 4,149 | 2,424 | 1,725 | 1,253 | ||
CDOs | 1,133 | 256 | 877 | 593 | ||
CLOs | 6,724 | 6,121 | 603 | 210 | ||
Other ABS | 2,393 | 1,779 | 614 | 294 | ||
Other | 492 | 288 | 204 | 93 | ||
14,891 | 10,868 | 4,023 | 2,443 |
· | The exposure to monolines declined during the year primarily due to restructuring of certain exposures and an increase in underlying asset prices. |
· | The credit valuation adjustment decreased on a total basis reflecting reduction in exposure and on a relative basis due to restructurings and tighter credit spreads. |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Gross exposure to CDPCs | 554 | 1,896 | 1,244 |
Valuation adjustment | (314) | (1,034) | (490) |
Net exposure to CDPCs | 240 | 862 | 754 |
Valuation adjustment as a % of gross exposure | 57% | 55% | 39% |
Counterparty and credit risk RWAs* | £2.0bn | £8.4bn | £7.2bn |
Capital deductions | — | £245m | £280m |
2012 | Notional: protected assets £m | Fair value: reference protected assets £m | Gross exposure £m | Valuation adjustment £m | Net exposure £m |
AAA | 43 | 43 | — | — | — |
A to AA- | 619 | 612 | 7 | 7 | — |
Non-investment grade | 16,254 | 15,841 | 413 | 173 | 240 |
Unrated | 4,073 | 3,939 | 134 | 134 | — |
20,989 | 20,435 | 554 | 314 | 240 | |
2011 | |||||
AAA | 213 | 212 | 1 | — | 1 |
A to AA- | 646 | 632 | 14 | 3 | 11 |
Non-investment grade | 19,671 | 18,151 | 1,520 | 788 | 732 |
Unrated | 3,974 | 3,613 | 361 | 243 | 118 |
24,504 | 22,608 | 1,896 | 1,034 | 862 | |
2010 | |||||
AAA | 213 | 212 | 1 | — | 1 |
BBB- to A- | 644 | 629 | 15 | 4 | 11 |
Non-investment grade | 20,066 | 19,050 | 1,016 | 401 | 615 |
Unrated | 4,165 | 3,953 | 212 | 85 | 127 |
25,088 | 23,844 | 1,244 | 490 | 754 |
· | The exposure to CDPCs decreased during the year primarily driven by tighter credit spreads of the underlying reference loans and bonds together with a decrease in the relative value of senior tranches compared with the underlying reference portfolio and the impact of restructuring certain exposures in the first half of the year. |
· | The valuation adjustment decreased on an absolute basis in line with the decrease in exposure while remaining stable on a relative basis. |
2010 | Notional: protected assets £m | Fair value: reference protected assets £m | Gross exposure £m | Credit valuation adjustment £m | Hedges £m | Net exposure £m |
A to AA- | 6,336 | 5,503 | 833 | 272 | — | 561 |
Non-investment grade | 8,555 | 5,365 | 3,190 | 2,171 | 71 | 948 |
14,891 | 10,868 | 4,023 | 2,443 | 71 | 1,509 | |
Of which: | ||||||
CMBS | 4,149 | 2,424 | 1,725 | 1,253 | ||
CDOs | 1,133 | 256 | 877 | 593 | ||
CLOs | 6,724 | 6,121 | 603 | 210 | ||
Other ABS | 2,393 | 1,779 | 614 | 294 | ||
Other | 492 | 288 | 204 | 93 | ||
14,891 | 10,868 | 4,023 | 2,443 |
2009 | ||||||
A to AA- | 7,143 | 5,875 | 1,268 | 378 | — | 890 |
Non-investment grade | 12,598 | 7,696 | 4,902 | 3,418 | 531 | 953 |
19,741 | 13,571 | 6,170 | 3,796 | 531 | 1,843 | |
Of which: | ||||||
CMBS | 4,253 | 2,034 | 2,219 | 1,562 | ||
CDOs | 2,284 | 797 | 1,487 | 1,059 | ||
CLOs | 10,007 | 8,584 | 1,423 | 641 | ||
Other ABS | 2,688 | 1,861 | 827 | 412 | ||
Other | 509 | 295 | 214 | 122 | ||
19,741 | 13,571 | 6,170 | 3,796 |
2011 £m | 2010 £m | 2009 £m | |
Gross exposure to CDPCs | 1,896 | 1,244 | 1,275 |
Credit valuation adjustment | (1,034) | (490) | (499) |
Net exposure to CDPCs | 862 | 754 | 776 |
Credit valuation adjustment as a % of gross exposure | 55% | 39% | 39% |
Counterparty and credit risk RWAs* | £8.4bn | £7.2bn | £7.5bn |
Capital deductions | £245m | £280m | £347m |
2011 | Notional: protected assets £m | Fair value: reference protected assets £m | Gross exposure £m | Credit valuation adjustment £m | Net exposure £m |
AAA | 213 | 212 | 1 | — | 1 |
A to AA- | 646 | 632 | 14 | 3 | 11 |
Non-investment grade | 19,671 | 18,151 | 1,520 | 788 | 732 |
Unrated | 3,974 | 3,613 | 361 | 243 | 118 |
24,504 | 22,608 | 1,896 | 1,034 | 862 |
2010 | |||||
AAA | 213 | 212 | 1 | — | 1 |
A to AA- | 644 | 629 | 15 | 4 | 11 |
Non-investment grade | 20,066 | 19,050 | 1,016 | 401 | 615 |
Unrated | 4,165 | 3,953 | 212 | 85 | 127 |
25,088 | 23,844 | 1,244 | 490 | 754 |
2009 | |||||
AAA | 1,658 | 1,637 | 21 | 5 | 16 |
BBB- to A- | 1,070 | 1,043 | 27 | 9 | 18 |
Non-investment grade | 17,696 | 16,742 | 954 | 377 | 577 |
Unrated | 3,926 | 3,653 | 273 | 108 | 165 |
24,350 | 23,075 | 1,275 | 499 | 776 |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Credit valuation adjustment at 1 January | (490) | (499) | (1,311) |
Credit valuation adjustment at 31 December | (1,034) | (490) | (499) |
(Increase)/decrease in credit valuation adjustment | (544) | 9 | 812 |
Net credit/(debit) relating to realisations, hedges, foreign exchange and other movements | 459 | (150) | (1,769) |
Loss from trading activities | (85) | (141) | (957) |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Credit valuation adjustment at 1 January | (1,714) | (1,588) | (1,738) |
Credit valuation adjustment at 31 December | (2,254) | (1,714) | (1,588) |
(Increase)/decrease in credit valuation adjustment | (540) | (126) | 150 |
Net credit/(debit) relating to realisations, hedges, foreign exchange and other movements | 244 | (19) | (841) |
Loss from trading activities | (296) | (145) | (691) |
2011 | 2010 | 2009 | ||||||||
Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | Group before RFS MI £m | Total £m | |||
Impaired loans | ||||||||||
- UK | 8,291 | 7,284 | 15,575 | 8,575 | 7,835 | 16,410 | 13,869 | 13,872 | ||
- overseas | 7,015 | 16,157 | 23,172 | 4,936 | 14,355 | 19,291 | 17,942 | 21,153 | ||
15,306 | 23,441 | 38,747 | 13,511 | 22,190 | 35,701 | 31,811 | 35,025 | |||
Accruing loans past due 90 days or more | ||||||||||
- UK | 1,192 | 508 | 1,700 | 1,434 | 939 | 2,373 | 2,235 | 2,235 | ||
- overseas | 364 | 34 | 398 | 262 | 262 | 524 | 943 | 989 | ||
1,556 | 542 | 2,098 | 1,696 | 1,201 | 2,897 | 3,178 | 3,224 | |||
Total REIL | 16,862 | 23,983 | 40,845 | 15,207 | 23,391 | 38,598 | 34,989 | 38,249 | ||
REIL as a % of gross loans and advances (1) | 4.4% | 30.1% | 8.6% | 3.7% | 20.8% | 7.3% | 6.1% | 5.4% | ||
Closing provision for impairment as a % of total REIL (1) | 50% | 48% | 49% | 52% | 44% | 47% | 44% | 46% |
2011 £m | 2010 £m | 2009 £m | |
Potential problem loans | 739 | 633 | 1,009 |
Credit metrics | ||||||||
Gross loans to | REIL as a % of gross loans | Provisions as a % | Impairment | Amounts | ||||
Banks | Customers | REIL | Provisions | to customers | of REIL | charge | written-off | |
2012 | £m | £m | £m | £m | % | % | £m | £m |
UK Retail | 695 | 113,599 | 4,569 | 2,629 | 4.0 | 58 | 529 | 599 |
UK Corporate | 746 | 107,025 | 5,452 | 2,432 | 5.1 | 45 | 836 | 514 |
Wealth | 1,545 | 17,074 | 248 | 109 | 1.5 | 44 | 46 | 15 |
International Banking | 4,827 | 42,342 | 422 | 391 | 1.0 | 93 | 111 | 445 |
Ulster Bank | 632 | 32,652 | 7,533 | 3,910 | 23.1 | 52 | 1,364 | 72 |
US Retail & Commercial | 435 | 51,271 | 1,146 | 285 | 2.2 | 25 | 83 | 391 |
Retail & Commercial | 8,880 | 363,963 | 19,370 | 9,756 | 5.3 | 50 | 2,969 | 2,036 |
Markets | 16,805 | 29,787 | 396 | 305 | 1.3 | 77 | 25 | 109 |
Direct Line Group and other | 5,232 | 3,006 | — | 1 | — | — | 1 | — |
Core | 30,917 | 396,756 | 19,766 | 10,062 | 5.0 | 51 | 2,995 | 2,145 |
Non-Core | 477 | 56,343 | 21,374 | 11,200 | 37.9 | 52 | 2,320 | 2,121 |
Group | 31,394 | 453,099 | 41,140 | 21,262 | 9.1 | 52 | 5,315 | 4,266 |
2011 | ||||||||
UK Retail | 628 | 110,659 | 4,599 | 2,679 | 4.2 | 58 | 788 | 823 |
UK Corporate | 806 | 110,729 | 5,001 | 2,061 | 4.5 | 41 | 790 | 658 |
Wealth | 2,422 | 16,913 | 211 | 81 | 1.2 | 38 | 25 | 11 |
International Banking | 3,411 | 57,729 | 1,632 | 851 | 2.8 | 52 | 168 | 125 |
Ulster Bank | 2,079 | 34,052 | 5,523 | 2,749 | 16.2 | 50 | 1,384 | 124 |
US Retail & Commercial | 208 | 51,562 | 1,007 | 455 | 2.0 | 45 | 248 | 373 |
Retail & Commercial | 9,554 | 381,644 | 17,973 | 8,876 | 4.7 | 49 | 3,403 | 2,114 |
Markets | 29,991 | 31,490 | 414 | 311 | 1.3 | 75 | — | 23 |
Direct Line Group and other | 3,829 | 929 | — | — | — | — | — | — |
Core | 43,374 | 414,063 | 18,387 | 9,187 | 4.4 | 50 | 3,403 | 2,137 |
Non-Core | 706 | 80,005 | 24,007 | 11,487 | 30.0 | 48 | 3,838 | 2,390 |
Group | 44,080 | 494,068 | 42,394 | 20,674 | 8.6 | 49 | 7,241 | 4,527 |
Gross loans to banks | Gross loans to customer | REIL | Provisions | REIL as a % of gross customer loans | Provisions as a % of REIL | Impairment charge | Amounts written-off | |
2011 | £m | £m | £m | £m | % | % | £m | £m |
UK Retail | 628 | 103,377 | 4,087 | 2,344 | 4.0 | 57 | 788 | 823 |
UK Corporate | 672 | 96,647 | 3,972 | 1,608 | 4.1 | 40 | 782 | 653 |
Wealth | 2,422 | 16,913 | 211 | 81 | 1.2 | 38 | 25 | 11 |
Global Transaction Services | 3,464 | 15,767 | 218 | 234 | 1.4 | 107 | 166 | 79 |
Ulster Bank | 2,079 | 34,052 | 5,523 | 2,749 | 16.2 | 50 | 1,384 | 124 |
US Retail & Commercial | 208 | 51,436 | 1,006 | 451 | 2.0 | 45 | 247 | 371 |
Retail & Commercial | 9,473 | 318,192 | 15,017 | 7,467 | 4.7 | 50 | 3,392 | 2,061 |
Global Banking & Markets | 30,072 | 75,493 | 1,845 | 947 | 2.4 | 51 | 11 | 76 |
RBS Insurance and other | 3,829 | 929 | — | — | — | — | — | — |
Core | 43,374 | 394,614 | 16,862 | 8,414 | 4.3 | 50 | 3,403 | 2,137 |
Non-Core | 619 | 79,258 | 23,983 | 11,469 | 30.3 | 48 | 3,838 | 2,390 |
Group before RFS MI | 43,993 | 473,872 | 40,845 | 19,883 | 8.6 | 49 | 7,241 | 4,527 |
RFS MI | — | — | — | — | — | — | (8) | — |
Group | 43,993 | 473,872 | 40,845 | 19,883 | 8.6 | 49 | 7,233 | 4,527 |
2010 | ||||||||
UK Retail | 408 | 108,405 | 4,620 | 2,741 | 4.3 | 59 | 1,160 | 1,135 |
UK Corporate | 72 | 111,672 | 3,967 | 1,732 | 3.6 | 44 | 761 | 349 |
Wealth | 2,220 | 16,130 | 223 | 66 | 1.4 | 30 | 18 | 9 |
Global Transaction Services | 3,047 | 14,437 | 146 | 147 | 1.0 | 101 | 8 | 49 |
Ulster Bank | 2,928 | 36,858 | 3,619 | 1,633 | 9.8 | 45 | 1,161 | 48 |
US Retail & Commercial | 145 | 48,516 | 913 | 505 | 1.9 | 55 | 483 | 547 |
Retail & Commercial | 8,820 | 336,018 | 13,488 | 6,824 | 4.0 | 51 | 3,591 | 2,137 |
Global Banking & Markets | 46,073 | 75,981 | 1,719 | 1,042 | 2.3 | 61 | 146 | 87 |
RBS Insurance and other | 2,140 | 601 | — | — | — | — | — | — |
Core | 57,033 | 412,600 | 15,207 | 7,866 | 3.7 | 52 | 3,737 | 2,224 |
Non-Core | 1,003 | 108,203 | 23,391 | 10,316 | 21.6 | 44 | 5,407 | 3,818 |
Group before RFS MI | 58,036 | 520,803 | 38,598 | 18,182 | 7.4 | 47 | 9,144 | 6,042 |
RFS MI | 2 | — | — | — | — | — | 42 | — |
Group | 58,038 | 520,803 | 38,598 | 18,182 | 7.4 | 47 | 9,186 | 6,042 |
2009 | ||||||||
UK Retail | 818 | 102,994 | 4,641 | 2,677 | 4.5 | 58 | 1,679 | 1,150 |
UK Corporate | 91 | 111,580 | 2,330 | 1,271 | 2.1 | 55 | 923 | 352 |
Wealth | 1,841 | 13,684 | 218 | 55 | 1.6 | 25 | 33 | 12 |
Global Transaction Services | 1,476 | 12,670 | 197 | 189 | 1.6 | 96 | 39 | 23 |
Ulster Bank | 2,637 | 39,707 | 2,260 | 962 | 5.7 | 43 | 649 | 34 |
US Retail & Commercial | 30 | 48,907 | 643 | 478 | 1.3 | 74 | 702 | 546 |
Retail & Commercial | 6,893 | 329,542 | 10,289 | 5,632 | 3.1 | 55 | 4,025 | 2,117 |
Global Banking & Markets | 38,788 | 92,110 | 1,800 | 1,289 | 2.0 | 72 | 542 | 169 |
RBS Insurance and other | 1,893 | 755 | — | — | — | — | — | — |
Core | 47,574 | 422,407 | 12,089 | 6,921 | 2.9 | 57 | 4,567 | 2,286 |
Non-Core | 1,360 | 147,263 | 22,900 | 8,252 | 15.6 | 36 | 8,523 | 4,192 |
Group before RFS MI | 48,934 | 569,670 | 34,989 | 15,173 | 4.4 | 43 | 13,090 | 6,478 |
RFS MI | 7,879 | 134,809 | 3,260 | 2,110 | 2.4 | 65 | 1,044 | 461 |
Group | 56,813 | 704,479 | 38,249 | 17,283 | 5.4 | 45 | 14,134 | 6,939 |
Impaired loans | Other loans (1) | REIL | |||||||||
Core | Non-Core | Total | Core | Non-Core | Total | Core | Non-Core | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | |||
At 1 January 2011 | 13,511 | 22,190 | 35,701 | 1,696 | 1,201 | 2,897 | 15,207 | 23,391 | 38,598 | ||
Transfers to disposal groups | (1,287) | — | (1,287) | (238) | — | (238) | (1,525) | — | (1,525) | ||
Intra-group transfers | 300 | (300) | — | 149 | (149) | — | 449 | (449) | — | ||
Currency translation and other adjustments | (158) | (496) | (654) | (14) | — | (14) | (172) | (496) | (668) | ||
Additions | 8,379 | 8,698 | 17,077 | 2,585 | 1,059 | 3,644 | 10,964 | 9,757 | 20,721 | ||
Transfers | 645 | 381 | 1,026 | (362) | (352) | (714) | 283 | 29 | 312 | ||
Disposals and restructurings | (407) | (1,470) | (1,877) | (9) | (97) | (106) | (416) | (1,567) | (1,983) | ||
Repayments | (3,540) | (3,172) | (6,712) | (2,251) | (1,120) | (3,371) | (5,791) | (4,292) | (10,083) | ||
Amounts written-off | (2,137) | (2,390) | (4,527) | — | — | — | (2,137) | (2,390) | (4,527) | ||
At 31 December 2011 | 15,306 | 23,441 | 38,747 | 1,556 | 542 | 2,098 | 16,862 | 23,983 | 40,845 |
2009 | ||||||||||
2011 | 2010 | Group before | ||||||||
Core | Non-Core | Total | Core | Non-Core | Total | RFS MI | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | |||
Past due 1-29 days | 5,518 | 724 | 6,242 | 6,401 | 822 | 7,223 | 6,587 | 7,796 | ||
Past due 30-59 days | 1,472 | 171 | 1,643 | 1,725 | 392 | 2,117 | 2,300 | 2,724 | ||
Past due 60-89 days | 907 | 107 | 1,014 | 922 | 271 | 1,193 | 2,410 | 2,587 | ||
Past due 90 days or more | 1,556 | 542 | 2,098 | 1,696 | 1,201 | 2,897 | 3,178 | 3,224 | ||
9,453 | 1,544 | 10,997 | 10,744 | 2,686 | 13,430 | 14,475 | 16,331 |
Total | ||||||||
Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
2011 | ||||||||
Central and local government | 9,742 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 43,993 | 137 | 123 | 0.3 | 90 | 0.3 | — | — |
- other | 49,681 | 1,049 | 719 | 2.1 | 69 | 1.4 | 89 | 87 |
Residential mortgages | 143,611 | 5,084 | 1,362 | 3.5 | 27 | 0.9 | 1,076 | 516 |
Personal lending | 32,623 | 2,737 | 2,172 | 8.4 | 79 | 6.7 | 782 | 1,286 |
Property | 76,768 | 21,655 | 8,862 | 28.2 | 41 | 11.5 | 3,670 | 1,171 |
Construction | 9,453 | 1,762 | 703 | 18.6 | 40 | 7.4 | 139 | 244 |
Manufacturing | 28,132 | 881 | 504 | 3.1 | 57 | 1.8 | 227 | 215 |
Service industries and business activities | ||||||||
- retail, wholesale and repairs | 23,653 | 1,007 | 516 | 4.3 | 51 | 2.2 | 180 | 172 |
- transport and storage | 21,931 | 589 | 146 | 2.7 | 25 | 0.7 | 78 | 43 |
- health, education and recreation | 14,692 | 1,077 | 458 | 7.3 | 43 | 3.1 | 304 | 98 |
- hotels and restaurants | 8,304 | 1,437 | 643 | 17.3 | 45 | 7.7 | 334 | 131 |
- utilities | 8,392 | 88 | 23 | 1.0 | 26 | 0.3 | 3 | 3 |
- other | 28,000 | 2,403 | 1,095 | 8.6 | 46 | 3.9 | 799 | 373 |
Agriculture, forestry and fishing | 3,600 | 145 | 63 | 4.0 | 43 | 1.8 | (7) | 18 |
Finance leases and instalment credit | 14,499 | 794 | 508 | 5.5 | 64 | 3.5 | 112 | 170 |
Interest accruals | 791 | — | — | — | — | — | — | — |
Latent | — | — | 1,986 | — | — | — | (545) | — |
517,865 | 40,845 | 19,883 | 7.9 | 49 | 3.8 | 7,241 | 4,527 | |
of which: | ||||||||
UK | ||||||||
- residential mortgages | 100,726 | 2,076 | 397 | 2.1 | 19 | 0.4 | 180 | 25 |
- personal lending | 20,207 | 2,384 | 1,925 | 11.8 | 81 | 9.5 | 645 | 1,007 |
- property | 55,751 | 7,880 | 2,859 | 14.1 | 36 | 5.1 | 1,413 | 490 |
- other | 162,220 | 4,935 | 3,040 | 3.0 | 62 | 1.9 | 699 | 886 |
Europe | ||||||||
- residential mortgages | 18,946 | 2,205 | 713 | 11.6 | 32 | 3.8 | 467 | 10 |
- personal lending | 2,464 | 209 | 180 | 8.5 | 86 | 7.3 | 25 | 126 |
- property | 16,384 | 13,073 | 5,751 | 79.8 | 44 | 35.1 | 2,296 | 508 |
- other | 44,862 | 5,192 | 3,206 | 11.6 | 62 | 7.1 | 1,205 | 289 |
US | ||||||||
- residential mortgages | 23,237 | 770 | 240 | 3.3 | 31 | 1.0 | 426 | 481 |
- personal lending | 8,441 | 143 | 66 | 1.7 | 46 | 0.8 | 112 | 153 |
- property | 3,783 | 329 | 92 | 8.7 | 28 | 2.4 | (2) | 138 |
- other | 38,158 | 656 | 913 | 1.7 | 139 | 2.4 | (166) | 197 |
RoW | ||||||||
- residential mortgages | 702 | 33 | 12 | 4.7 | 36 | 1.7 | 3 | — |
- personal lending | 1,511 | 1 | 1 | 0.1 | 100 | 0.1 | — | — |
- property | 850 | 373 | 160 | 43.9 | 43 | 18.8 | (37) | 35 |
- other | 19,623 | 586 | 328 | 3.0 | 56 | 1.7 | (25) | 182 |
Group before RFS MI | 517,865 | 40,845 | 19,883 | 7.9 | 49 | 3.8 | 7,241 | 4,527 |
RFS MI | — | — | — | — | — | — | (8) | — |
Group | 517,865 | 40,845 | 19,883 | 7.9 | 49 | 3.8 | 7,233 | 4,527 |
Total | ||||||||
Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
2010 | ||||||||
Central and local government | 8,452 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 58,036 | 145 | 127 | 0.2 | 88 | 0.2 | (13) | 12 |
- other | 54,561 | 1,129 | 595 | 2.1 | 53 | 1.1 | 198 | 141 |
Residential mortgages | 146,501 | 4,276 | 877 | 2.9 | 21 | 0.6 | 1,014 | 669 |
Personal lending | 37,472 | 3,544 | 2,894 | 9.5 | 82 | 7.7 | 1,370 | 1,577 |
Property | 90,106 | 19,584 | 6,736 | 21.7 | 34 | 7.5 | 4,682 | 1,009 |
Construction | 12,032 | 2,464 | 875 | 20.5 | 36 | 7.3 | 530 | 146 |
Manufacturing | 32,317 | 1,199 | 503 | 3.7 | 42 | 1.6 | (92) | 1,547 |
Service industries and business activities | ||||||||
- retail, wholesale and repairs | 25,165 | 1,157 | 572 | 4.6 | 49 | 2.3 | 334 | 161 |
- transport and storage | 24,141 | 248 | 118 | 1.0 | 48 | 0.5 | 87 | 39 |
- health, education and recreation | 19,321 | 1,055 | 319 | 5.5 | 30 | 1.7 | 159 | 199 |
- hotels and restaurants | 9,681 | 1,269 | 504 | 13.1 | 40 | 5.2 | 321 | 106 |
- utilities | 9,208 | 91 | 23 | 1.0 | 25 | 0.2 | 14 | 7 |
- other | 29,994 | 1,438 | 749 | 4.8 | 52 | 2.5 | 378 | 310 |
Agriculture, forestry and fishing | 3,893 | 152 | 86 | 3.9 | 57 | 2.2 | 31 | 6 |
Finance leases and instalment credit | 16,850 | 847 | 554 | 5.0 | 65 | 3.3 | 252 | 113 |
Interest accruals | 1,109 | — | — | — | — | — | — | — |
Latent | — | — | 2,650 | — | — | — | (121) | — |
578,839 | 38,598 | 18,182 | 6.7 | 47 | 3.1 | 9,144 | 6,042 | |
of which: | ||||||||
UK | ||||||||
- residential mortgages | 101,593 | 2,062 | 314 | 2.0 | 15 | 0.3 | 169 | 17 |
- personal lending | 23,620 | 3,083 | 2,518 | 13.1 | 82 | 10.7 | 1,046 | 1,153 |
- property | 65,462 | 7,986 | 2,219 | 12.2 | 28 | 3.4 | 1,546 | 397 |
- other | 191,934 | 5,652 | 3,580 | 2.9 | 63 | 1.9 | 1,197 | 704 |
Europe | ||||||||
- residential mortgages | 20,094 | 1,551 | 301 | 7.7 | 19 | 1.5 | 221 | 6 |
- personal lending | 2,870 | 401 | 316 | 14.0 | 79 | 11.0 | 66 | 24 |
- property | 17,775 | 10,534 | 4,199 | 59.3 | 40 | 23.6 | 2,828 | 210 |
- other | 53,380 | 3,950 | 2,454 | 7.4 | 62 | 4.6 | 763 | 1,423 |
US | ||||||||
- residential mortgages | 24,201 | 640 | 253 | 2.6 | 40 | 1.0 | 615 | 645 |
- personal lending | 9,520 | 55 | 55 | 0.6 | 100 | 0.6 | 160 | 271 |
- property | 4,929 | 765 | 202 | 15.5 | 26 | 4.1 | 321 | 220 |
- other | 36,780 | 870 | 1,133 | 2.4 | 130 | 3.1 | (76) | 524 |
RoW | ||||||||
- residential mortgages | 613 | 23 | 9 | 3.8 | 39 | 1.5 | 9 | 1 |
- personal lending | 1,462 | 5 | 5 | 0.3 | 100 | 0.3 | 98 | 129 |
- property | 1,940 | 299 | 116 | 15.4 | 39 | 6.0 | (13) | 182 |
- other | 22,666 | 722 | 508 | 3.2 | 70 | 2.2 | 194 | 136 |
Group before RFS MI | 578,839 | 38,598 | 18,182 | 6.7 | 47 | 3.1 | 9,144 | 6,042 |
RFS MI | 2 | — | — | — | — | — | 42 | — |
Group | 578,841 | 38,598 | 18,182 | 6.7 | 47 | 3.1 | 9,186 | 6,042 |
Total | ||||||||
2009 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m |
Central and local government | 7,660 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 48,934 | 206 | 157 | 0.4 | 76 | 0.3 | 34 | — |
- other | 60,386 | 1,539 | 419 | 2.5 | 27 | 0.7 | 886 | 692 |
Residential mortgages | 140,907 | 3,284 | 551 | 2.3 | 17 | 0.4 | 909 | 642 |
Personal lending | 41,671 | 3,940 | 2,926 | 9.5 | 74 | 7.0 | 2,517 | 2,002 |
Property | 99,426 | 14,318 | 3,422 | 14.4 | 24 | 3.4 | 3,296 | 650 |
Construction | 14,760 | 2,232 | 519 | 15.1 | 23 | 3.5 | 479 | 287 |
Manufacturing | 44,674 | 3,131 | 2,088 | 7.0 | 67 | 4.7 | 1,520 | 784 |
Service industries and business activities | 134,076 | 5,308 | 1,860 | 4.0 | 35 | 1.4 | 1,964 | 1,281 |
Agriculture, forestry and fishing | 4,279 | 137 | 73 | 3.2 | 53 | 1.7 | 30 | 5 |
Finance leases and instalment credit | 20,103 | 894 | 418 | 4.4 | 47 | 2.1 | 271 | 135 |
Interest accruals | 1,728 | — | — | — | — | — | — | — |
Latent | — | — | 2,740 | — | — | — | 1,184 | — |
618,604 | 34,989 | 15,173 | 5.7 | 43 | 2.5 | 13,090 | 6,478 | |
of which: | ||||||||
UK | 394,297 | 16,104 | 6,922 | 4.1 | 43 | 1.8 | 5,593 | 2,924 |
Europe | 107,803 | 13,390 | 5,449 | 12.4 | 41 | 5.1 | 3,270 | 427 |
US | 84,072 | 4,115 | 2,020 | 4.9 | 49 | 2.4 | 3,273 | 2,656 |
RoW | 32,432 | 1,380 | 782 | 4.3 | 57 | 2.4 | 954 | 471 |
Group before RFS MI | 618,604 | 34,989 | 15,173 | 5.7 | 43 | 2.5 | 13,090 | 6,478 |
RFS MI | 142,688 | 3,260 | 2,110 | 2.3 | 65 | 1.5 | 1,044 | 461 |
Group | 761,292 | 38,249 | 17,283 | 5.0 | 45 | 2.3 | 14,134 | 6,939 |
Core | ||||||||
2011 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m |
Central and local government | 8,359 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 43,374 | 136 | 122 | 0.3 | 90 | 0.3 | — | — |
- other | 46,452 | 732 | 572 | 1.6 | 78 | 1.2 | 207 | 44 |
Residential mortgages | 138,509 | 4,704 | 1,182 | 3.4 | 25 | 0.9 | 776 | 198 |
Personal lending | 31,067 | 2,627 | 2,080 | 8.5 | 79 | 6.7 | 715 | 935 |
Property | 38,704 | 3,686 | 1,001 | 9.5 | 27 | 2.6 | 470 | 167 |
Construction | 6,781 | 660 | 228 | 9.7 | 35 | 3.4 | 178 | 143 |
Manufacturing | 23,201 | 458 | 221 | 2.0 | 48 | 1.0 | 106 | 125 |
Service industries and business activities | ||||||||
- retail, wholesale and repairs | 21,314 | 619 | 312 | 2.9 | 50 | 1.5 | 208 | 119 |
- transport and storage | 16,454 | 325 | 52 | 2.0 | 16 | 0.3 | 47 | 29 |
- health, education and recreation | 13,273 | 576 | 213 | 4.3 | 37 | 1.6 | 170 | 55 |
- hotels and restaurants | 7,143 | 952 | 354 | 13.3 | 37 | 5.0 | 209 | 60 |
- utilities | 6,543 | 22 | 1 | 0.3 | 5 | — | — | — |
- other | 24,228 | 1,095 | 591 | 4.5 | 54 | 2.4 | 553 | 189 |
Agriculture, forestry and fishing | 3,471 | 98 | 36 | 2.8 | 37 | 1.0 | (15) | 5 |
Finance leases and instalment credit | 8,440 | 172 | 110 | 2.0 | 64 | 1.3 | 31 | 68 |
Interest accruals | 675 | — | — | — | — | — | — | — |
Latent | — | — | 1,339 | — | — | — | (252) | — |
437,988 | 16,862 | 8,414 | 3.8 | 50 | 1.9 | 3,403 | 2,137 | |
of which: | ||||||||
UK | ||||||||
- residential mortgages | 99,303 | 2,024 | 386 | 2.0 | 19 | 0.4 | 174 | 24 |
- personal lending | 20,080 | 2,347 | 1,895 | 11.7 | 81 | 9.4 | 657 | 828 |
- property | 31,141 | 2,475 | 568 | 7.9 | 23 | 1.8 | 379 | 113 |
- other | 142,464 | 2,637 | 1,536 | 1.9 | 58 | 1.1 | 525 | 537 |
Europe | ||||||||
- residential mortgages | 18,393 | 2,121 | 664 | 11.5 | 31 | 3.6 | 437 | 10 |
- personal lending | 1,972 | 143 | 125 | 7.3 | 87 | 6.3 | (8) | 22 |
- property | 4,846 | 1,038 | 367 | 21.4 | 35 | 7.6 | 162 | 11 |
- other | 33,794 | 2,551 | 1,891 | 7.6 | 74 | 5.6 | 928 | 182 |
US | ||||||||
- residential mortgages | 20,311 | 526 | 120 | 2.6 | 23 | 0.6 | 162 | 164 |
- personal lending | 7,505 | 136 | 59 | 1.8 | 43 | 0.8 | 66 | 85 |
- property | 2,413 | 111 | 24 | 4.6 | 22 | 1.0 | 16 | 43 |
- other | 36,054 | 443 | 584 | 1.2 | 132 | 1.6 | 26 | 101 |
RoW | ||||||||
- residential mortgages | 502 | 33 | 12 | 6.6 | 36 | 2.4 | 3 | — |
- personal lending | 1,510 | 1 | 1 | 0.1 | 100 | 0.1 | — | — |
- property | 304 | 62 | 42 | 20.4 | 68 | 13.8 | (87) | — |
- other | 17,396 | 214 | 140 | 1.2 | 65 | 0.8 | (37) | 17 |
Group before RFS MI | 437,988 | 16,862 | 8,414 | 3.8 | 50 | 1.9 | 3,403 | 2,137 |
Credit metrics | ||||||||
Gross loans to | REIL as a % of gross loans | Provisions as a % | Impairment | Amounts | ||||
Banks | Customers | REIL | Provisions | to customers | of REIL | charge | written-off | |
2010 | £m | £m | £m | £m | % | % | £m | £m |
UK Retail | 408 | 108,405 | 4,620 | 2,741 | 4.3 | 59 | 1,160 | 1,135 |
UK Corporate | 126 | 113,782 | 3,981 | 1,746 | 3.5 | 44 | 768 | 357 |
Wealth | 2,220 | 16,130 | 223 | 66 | 1.4 | 30 | 18 | 9 |
International Banking | 3,982 | 63,173 | 1,484 | 855 | 2.3 | 58 | 125 | 92 |
Ulster Bank | 2,928 | 36,858 | 3,619 | 1,633 | 9.8 | 45 | 1,161 | 48 |
US Retail & Commercial | 145 | 48,602 | 914 | 509 | 1.9 | 56 | 485 | 550 |
Retail & Commercial | 9,809 | 386,950 | 14,841 | 7,550 | 3.8 | 51 | 3,717 | 2,191 |
Markets | 45,084 | 25,300 | 366 | 316 | 1.4 | 86 | 20 | 33 |
Direct Line Group and other | 2,140 | 601 | — | — | — | — | — | — |
Core | 57,033 | 412,851 | 15,207 | 7,866 | 3.7 | 52 | 3,737 | 2,224 |
Non-Core | 1,656 | 113,001 | 23,444 | 10,352 | 20.7 | 44 | 5,407 | 3,818 |
Group | 58,689 | 525,852 | 38,651 | 18,218 | 7.4 | 47 | 9,144 | 6,042 |
· | Total REIL decreased by £1.3 billion to £41.1 billion compared with December 2011 as improvements in International Banking and in Non-Core were partially offset by the continued increase in REIL in UK Corporate and Ulster Bank Core mortgage and corporate portfolios. |
· | Non-Core REIL decreased by £2.6 billion or 11% reflecting a mixture of repayments and write-offs within UK Corporate, Markets and International Banking corporate portfolios. |
· | Conditions in Ireland remain difficult and economic indicators continue to be weak, this is reflected in the Ulster Bank credit metrics with Core REIL increasing by £2.0 billion since 31 December 2011, primarily within mortgage and commercial real estate portfolios, to £7.5 billion and is now 23% of loans and advances to customers. Impairments continue to outpace write-offs. |
· | The provision coverage increased to 52% at 31 December 2012 from 49% at 31 December 2011 as the economic conditions remain challenging particularly in relation to Ulster Bank and commercial real estate portfolios. |
· | The impairment charge for 2012 of £5.3 billion was 26% lower than in 2011. The main drivers were lower impairment across Non-Core portfolios (down £1.5 billion or 40%) mainly as a result of lower impairments across Ulster Bank’s commercial real estate portfolio (down £1.3 billion or 58%) and continued improvement across Core UK portfolios. |
Total | Non-Core (1) | ||||
2012 | 2011 | 2012 | 2011 | ||
Lending (gross) | £63.0bn | £74.8bn | £26.4bn | £34.3bn | |
Of which REIL | £22.1bn | £22.9bn | £17.1bn | £18.8bn | |
Provisions | £10.1bn | £9.5bn | £8.3bn | £8.2bn | |
REIL as a % of gross loans to customers | 35.1% | 30.6% | 64.8% | 54.8% | |
Provisions as a % of REIL | 46% | 41% | 49% | 44% |
(1) | Excludes property related lending to customers in other sectors managed by Real Estate Finance. |
Core | ||||||||
2010 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m |
Central and local government | 6,781 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 57,033 | 144 | 126 | 0.3 | 88 | 0.2 | (5) | 1 |
- other | 46,910 | 567 | 402 | 1.2 | 71 | 0.9 | 191 | 53 |
Residential mortgages | 140,359 | 3,999 | 693 | 2.8 | 17 | 0.5 | 578 | 243 |
Personal lending | 33,581 | 3,131 | 2,545 | 9.3 | 81 | 7.6 | 1,157 | 1,271 |
Property | 42,455 | 3,287 | 818 | 7.7 | 25 | 1.9 | 739 | 98 |
Construction | 8,680 | 610 | 222 | 7.0 | 36 | 2.6 | 189 | 38 |
Manufacturing | 25,797 | 555 | 266 | 2.2 | 48 | 1.0 | 119 | 124 |
Service industries and business activities | ||||||||
- retail, wholesale and repairs | 21,974 | 611 | 259 | 2.8 | 42 | 1.2 | 199 | 103 |
- transport and storage | 15,946 | 112 | 40 | 0.7 | 36 | 0.3 | 40 | 35 |
- health, education and recreation | 17,456 | 507 | 134 | 2.9 | 26 | 0.8 | 145 | 64 |
- hotels and restaurants | 8,189 | 741 | 236 | 9.0 | 32 | 2.9 | 165 | 49 |
- utilities | 7,098 | 22 | 3 | 0.3 | 14 | — | 1 | — |
- other | 24,464 | 583 | 276 | 2.4 | 47 | 1.1 | 137 | 98 |
Agriculture, forestry and fishing | 3,758 | 94 | 57 | 2.5 | 61 | 1.5 | 24 | 5 |
Finance leases and instalment credit | 8,321 | 244 | 140 | 2.9 | 57 | 1.7 | 63 | 42 |
Interest accruals | 831 | — | — | — | — | — | — | — |
Latent | — | — | 1,649 | — | — | — | (5) | — |
469,633 | 15,207 | 7,866 | 3.2 | 52 | 1.7 | 3,737 | 2,224 | |
of which: | ||||||||
UK | ||||||||
- residential mortgages | 99,928 | 2,010 | 307 | 2.0 | 15 | 0.3 | 164 | 16 |
- personal lending | 23,035 | 2,888 | 2,341 | 12.5 | 81 | 10.2 | 1,033 | 1,142 |
- property | 34,970 | 2,454 | 500 | 7.0 | 20 | 1.4 | 394 | 43 |
- other | 161,746 | 2,657 | 1,743 | 1.6 | 66 | 1.1 | 689 | 318 |
Europe | ||||||||
- residential mortgages | 19,473 | 1,506 | 280 | 7.7 | 19 | 1.4 | 184 | 6 |
- personal lending | 2,270 | 203 | 164 | 8.9 | 81 | 7.2 | 43 | 19 |
- property | 5,139 | 631 | 240 | 12.3 | 38 | 4.7 | 241 | 1 |
- other | 38,992 | 1,565 | 1,343 | 4.0 | 86 | 3.4 | 468 | 85 |
US | ||||||||
- residential mortgages | 20,548 | 460 | 97 | 2.2 | 21 | 0.5 | 225 | 221 |
- personal lending | 6,816 | 35 | 35 | 0.5 | 100 | 0.5 | 81 | 110 |
- property | 1,611 | 144 | 43 | 8.9 | 30 | 2.7 | 84 | 54 |
- other | 33,110 | 388 | 649 | 1.2 | 167 | 2.0 | 35 | 171 |
RoW | ||||||||
- residential mortgages | 410 | 23 | 9 | 5.6 | 39 | 2.2 | 5 | — |
- personal lending | 1,460 | 5 | 5 | 0.3 | 100 | 0.3 | — | — |
- property | 735 | 58 | 35 | 7.9 | 60 | 4.8 | 20 | — |
- other | 19,390 | 180 | 75 | 0.9 | 42 | 0.4 | 71 | 38 |
Group before RFS MI | 469,633 | 15,207 | 7,866 | 3.2 | 52 | 1.7 | 3,737 | 2,224 |
Core | ||||||||
2009 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m |
Central and local government | 6,128 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 47,574 | 168 | 135 | 0.4 | 80 | 0.3 | 12 | — |
- other | 50,673 | 1,038 | 259 | 2.0 | 25 | 0.5 | 256 | 113 |
Residential mortgages | 127,975 | 2,670 | 341 | 2.1 | 13 | 0.3 | 305 | 146 |
Personal lending | 35,313 | 3,344 | 2,560 | 9.5 | 77 | 7.2 | 1,816 | 1,398 |
Property | 49,054 | 1,766 | 468 | 3.6 | 27 | 1.0 | 417 | 37 |
Construction | 9,502 | 457 | 131 | 4.8 | 29 | 1.4 | 58 | 30 |
Manufacturing | 30,272 | 491 | 191 | 1.6 | 39 | 0.6 | 136 | 93 |
Service industries and business activities | 100,438 | 1,762 | 669 | 1.8 | 38 | 0.7 | 500 | 365 |
Agriculture, forestry and fishing | 3,726 | 90 | 46 | 2.4 | 51 | 1.2 | 24 | 4 |
Finance leases and instalment credit | 8,147 | 303 | 116 | 3.7 | 38 | 1.4 | 52 | 100 |
Interest accruals | 1,179 | — | — | — | — | — | — | — |
Latent | — | — | 2,005 | — | — | — | 991 | — |
469,981 | 12,089 | 6,921 | 2.6 | 57 | 1.5 | 4,567 | 2,286 | |
of which: | ||||||||
UK | 315,254 | 7,704 | 4,209 | 2.4 | 55 | 1.3 | 2,884 | 1,645 |
Europe | 66,707 | 2,607 | 1,709 | 3.9 | 66 | 2.6 | 750 | 46 |
US | 64,526 | 1,497 | 876 | 2.3 | 59 | 1.4 | 813 | 576 |
RoW | 23,494 | 281 | 127 | 1.2 | 45 | 0.5 | 120 | 19 |
Group before RFS MI | 469,981 | 12,089 | 6,921 | 2.6 | 57 | 1.5 | 4,567 | 2,286 |
Non-Core | Credit metrics | ||||||||||||||||
2012 | 2012 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | ||||||||
Government (1) | Government (1) | 9,853 | — | ||||||||||||||
Finance | Finance | 42,198 | 592 | 317 | 1.4 | 54 | 0.8 | 145 | 380 | ||||||||
Personal | - mortgages | 149,625 | 6,549 | 1,824 | 4.4 | 28 | 1.2 | 948 | 461 | ||||||||
Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | - unsecured | 32,212 | 2,903 | 2,409 | 9.0 | 83 | 7.5 | 631 | 793 | |
2011 | |||||||||||||||||
Central and local government | 1,383 | — | |||||||||||||||
Finance | |||||||||||||||||
- banks | 619 | 1 | 0.2 | 100 | 0.2 | — | |||||||||||
- other | 3,229 | 317 | 147 | 9.8 | 46 | 4.6 | (118) | 43 | |||||||||
Residential mortgages | 5,102 | 380 | 180 | 7.4 | 47 | 3.5 | 300 | 318 | |||||||||
Personal lending | 1,556 | 110 | 92 | 7.1 | 84 | 5.9 | 67 | 351 | |||||||||
Property | 38,064 | 17,969 | 7,861 | 47.2 | 44 | 20.7 | 3,200 | 1,004 | Property | 72,219 | 21,223 | 9,859 | 29.4 | 46 | 13.7 | 2,212 | 1,080 |
Construction | 2,672 | 1,102 | 475 | 41.2 | 43 | 17.8 | (39) | 101 | Construction | 8,049 | 1,483 | 640 | 18.4 | 43 | 8.0 | 94 | 182 |
Manufacturing | 4,931 | 423 | 283 | 8.6 | 67 | 5.7 | 121 | 90 | Manufacturing | 23,787 | 755 | 357 | 3.2 | 47 | 1.5 | 134 | 203 |
Service industries and business activities | |||||||||||||||||
- retail, wholesale and repairs | 2,339 | 388 | 204 | 16.6 | 53 | 8.7 | (28) | 53 | |||||||||
- transport and storage | 5,477 | 264 | 94 | 4.8 | 36 | 1.7 | 31 | 14 | |||||||||
- health, education and recreation | 1,419 | 501 | 245 | 35.3 | 49 | 17.3 | 134 | 43 | |||||||||
- hotels and restaurants | 1,161 | 485 | 289 | 41.8 | 60 | 24.9 | 125 | 71 | |||||||||
- utilities | 1,849 | 66 | 22 | 3.6 | 33 | 1.2 | 3 | ||||||||||
- other | 3,772 | 1,308 | 504 | 34.7 | 39 | 13.4 | 246 | 184 | |||||||||
Agriculture, forestry and fishing | 129 | 47 | 27 | 36.4 | 57 | 20.9 | 8 | 13 | |||||||||
Finance leases and instalment credit | 6,059 | 622 | 398 | 10.3 | 64 | 6.6 | 81 | 102 | |||||||||
Interest accruals | 116 | — | |||||||||||||||
Finance leases (2) | Finance leases (2) | 13,609 | 442 | 294 | 3.2 | 67 | 2.2 | 44 | 263 | ||||||||
Retail, wholesale and repairs | Retail, wholesale and repairs | 21,936 | 1,143 | 644 | 5.2 | 56 | 2.9 | 230 | 176 | ||||||||
Transport and storage | Transport and storage | 18,341 | 834 | 336 | 4.5 | 40 | 1.8 | 289 | 102 | ||||||||
Health, education and leisure | Health, education and leisure | 16,705 | 1,190 | 521 | 7.1 | 44 | 3.1 | 144 | 100 | ||||||||
Hotels and restaurants | Hotels and restaurants | 7,877 | 1,597 | 726 | 20.3 | 45 | 9.2 | 176 | 102 | ||||||||
Utilities | Utilities | 6,631 | 118 | 21 | 1.8 | 18 | 0.3 | (4) | — | ||||||||
Other | Other | 30,057 | 2,177 | 1,240 | 7.2 | 57 | 4.1 | 322 | 395 | ||||||||
Latent | — | 647 | — | (293) | — | Latent | — | 1,960 | — | (73) | — | ||||||
79,877 | 23,983 | 11,469 | 30.0 | 48 | 14.4 | 3,838 | 2,390 | 453,099 | 41,006 | 21,148 | 9.1 | 52 | 4.7 | 5,292 | 4,237 | ||
of which: | of which: | ||||||||||||||||
UK | UK | ||||||||||||||||
- residential mortgages | 1,423 | 52 | 11 | 3.7 | 21 | 0.8 | 6 | 1 | - residential mortgages | 109,530 | 2,440 | 457 | 2.2 | 19 | 0.4 | 122 | 32 |
- personal lending | 127 | 37 | 30 | 29.1 | 81 | 23.6 | (12) | 179 | - personal lending | 20,498 | 2,477 | 2,152 | 12.1 | 87 | 10.5 | 479 | 610 |
- property | 24,610 | 5,405 | 2,291 | 22.0 | 42 | 9.3 | 1,034 | 377 | - property | 53,730 | 10,521 | 3,944 | 19.6 | 37 | 7.3 | 964 | 490 |
- construction | - construction | 6,507 | 1,165 | 483 | 17.9 | 41 | 7.4 | 100 | 158 | ||||||||
- other | 19,756 | 2,298 | 1,504 | 11.6 | 65 | 7.6 | 174 | 349 | - other | 122,029 | 3,729 | 2,611 | 3.1 | 70 | 2.1 | 674 | 823 |
Europe | Europe | ||||||||||||||||
- residential mortgages | 553 | 84 | 49 | 15.2 | 58 | 8.9 | 30 | — | - residential mortgages | 17,836 | 3,092 | 1,151 | 17.3 | 37 | 6.5 | 526 | 50 |
- personal lending | 492 | 66 | 55 | 13.4 | 83 | 11.2 | 33 | 104 | - personal lending | 1,905 | 226 | 208 | 11.9 | 92 | 10.9 | 38 | 13 |
- property | 11,538 | 12,035 | 5,384 | 104.3 | 45 | 46.7 | 2,134 | 497 | - property | 14,634 | 10,347 | 5,766 | 70.7 | 56 | 39.4 | 1,264 | 441 |
- construction | - construction | 1,132 | 289 | 146 | 25.5 | 51 | 12.9 | (11) | 12 | ||||||||
- other | 11,068 | 2,641 | 1,315 | 23.9 | 50 | 11.9 | 277 | 107 | - other | 27,424 | 4,451 | 2,996 | 16.2 | 67 | 10.9 | 817 | 539 |
US | US | ||||||||||||||||
- residential mortgages | 2,926 | 244 | 120 | 8.3 | 49 | 4.1 | 264 | 317 | - residential mortgages | 21,929 | 990 | 208 | 4.5 | 21 | 0.9 | 298 | 377 |
- personal lending | 936 | 7 | 0.7 | 100 | 0.7 | 46 | 68 | - personal lending | 8,748 | 199 | 48 | 2.3 | 24 | 0.5 | 109 | 162 | |
- property | 1,370 | 218 | 68 | 15.9 | 31 | 5.0 | (18) | 95 | - property | 3,343 | 170 | 29 | 5.1 | 17 | 0.9 | (11) | 83 |
- construction | - construction | 388 | 8 | 1 | 2.1 | 13 | 0.3 | — | 12 | ||||||||
- other | 2,104 | 213 | 329 | 10.1 | 154 | 15.6 | (192) | 96 | - other | 29,354 | 352 | 630 | 1.2 | 179 | 2.1 | (86) | 149 |
RoW | RoW | ||||||||||||||||
- residential mortgages | 200 | — | - residential mortgages | 330 | 27 | 8 | 8.2 | 30 | 2.4 | 2 | |||||||
- personal lending | 1 | — | - personal lending | 1,061 | 1 | 0.1 | 100 | 0.1 | 5 | 8 | |||||||
- property | 546 | 311 | 118 | 57.0 | 38 | 21.6 | 50 | 35 | - property | 512 | 185 | 120 | 36.1 | 65 | 23.4 | (5) | 66 |
- construction | - construction | 22 | 21 | 10 | 95.5 | 48 | 45.5 | 5 | — | ||||||||
- other | 2,227 | 372 | 188 | 16.7 | 51 | 8.4 | 12 | 165 | - other | 12,187 | 316 | 179 | 2.6 | 57 | 1.5 | 2 | 210 |
Group before RFS MI | 79,877 | 23,983 | 11,469 | 30.0 | 48 | 14.4 | 3,838 | 2,390 | |||||||||
Group | Group | 453,099 | 41,006 | 21,148 | 9.1 | 52 | 4.7 | 5,292 | 4,237 | ||||||||
Banks | Banks | 31,394 | 134 | 114 | 0.4 | 85 | 0.4 | 23 | 29 |
Non-Core | Credit metrics | ||||||||||||||||
2010 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |||||||||
Central and local government | 1,671 | — | |||||||||||||||
2011 | 2011 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | ||||||||
Government (1) | Government (1) | 9,742 | — | ||||||||||||||
Finance | Finance | 51,870 | 1,062 | 726 | 2.0 | 68 | 1.4 | 89 | 87 | ||||||||
- banks | 1,003 | 1 | 0.1 | 100 | 0.1 | (8) | 11 | ||||||||||
- other | 7,651 | 562 | 193 | 7.3 | 34 | 2.5 | 7 | 88 | |||||||||
Residential mortgages | 6,142 | 277 | 184 | 4.5 | 66 | 3.0 | 436 | 426 | |||||||||
Personal lending | 3,891 | 413 | 349 | 10.6 | 85 | 9.0 | 213 | 306 | |||||||||
Personal | - mortgages | 149,273 | 5,270 | 1,396 | 3.5 | 26 | 0.9 | 1,076 | 516 | ||||||||
- unsecured | 34,424 | 3,070 | 2,456 | 8.9 | 80 | 7.1 | 782 | 1,286 | |||||||||
Property | 47,651 | 16,297 | 5,918 | 34.2 | 36 | 12.4 | 3,943 | 911 | Property | 81,058 | 22,101 | 8,994 | 27.3 | 41 | 11.1 | 3,669 | 1,171 |
Construction | 3,352 | 1,854 | 653 | 55.3 | 35 | 19.5 | 341 | 108 | Construction | 9,869 | 1,943 | 761 | 19.7 | 39 | 7.7 | 140 | 244 |
Manufacturing | 6,520 | 644 | 237 | 9.9 | 37 | 3.6 | (211) | 1,423 | Manufacturing | 28,639 | 913 | 525 | 3.2 | 58 | 1.8 | 227 | 215 |
Service industries and business activities | |||||||||||||||||
- retail, wholesale and repairs | 3,191 | 546 | 313 | 17.1 | 57 | 9.8 | 135 | 58 | |||||||||
- transport and storage | 8,195 | 136 | 78 | 1.7 | 57 | 1.0 | 47 | 4 | |||||||||
- health, education and recreation | 1,865 | 548 | 185 | 29.4 | 34 | 9.9 | 14 | 135 | |||||||||
- hotels and restaurants | 1,492 | 528 | 268 | 35.4 | 51 | 18.0 | 156 | 57 | |||||||||
- utilities | 2,110 | 69 | 20 | 3.3 | 29 | 0.9 | 13 | 7 | |||||||||
- other | 5,530 | 855 | 473 | 15.5 | 55 | 8.6 | 241 | 212 | |||||||||
Agriculture, forestry and fishing | 135 | 58 | 29 | 43.0 | 50 | 21.5 | 7 | 1 | |||||||||
Finance leases and instalment credit | 8,529 | 603 | 414 | 7.1 | 69 | 4.9 | 189 | 71 | |||||||||
Interest accruals | 278 | — | |||||||||||||||
Finance leases (2) | Finance leases (2) | 14,499 | 794 | 508 | 5.5 | 64 | 3.5 | 112 | 170 | ||||||||
Retail, wholesale and repairs | Retail, wholesale and repairs | 24,378 | 1,067 | 549 | 4.4 | 51 | 2.3 | 180 | 172 | ||||||||
Transport and storage | Transport and storage | 22,058 | 606 | 154 | 2.7 | 25 | 0.7 | 78 | 43 | ||||||||
Health, education and leisure | Health, education and leisure | 17,492 | 1,192 | 502 | 6.8 | 42 | 2.9 | 304 | 98 | ||||||||
Hotels and restaurants | Hotels and restaurants | 8,870 | 1,490 | 675 | 16.8 | 45 | 7.6 | 334 | 131 | ||||||||
Utilities | Utilities | 8,406 | 88 | 23 | 1.0 | 26 | 0.3 | 3 | |||||||||
Other | Other | 33,490 | 2,661 | 1,217 | 7.9 | 46 | 3.6 | 792 | 391 | ||||||||
Latent | — | 1,001 | — | (116) | — | Latent | — | 2,065 | — | (545) | — | ||||||
109,206 | 23,391 | 10,316 | 21.4 | 44 | 9.4 | 5,407 | 3,818 | 494,068 | 42,257 | 20,551 | 8.6 | 49 | 4.2 | 7,241 | 4,527 | ||
of which: | of which: | ||||||||||||||||
UK | UK | ||||||||||||||||
- residential mortgages | 1,665 | 52 | 7 | 3.1 | 13 | 0.4 | 5 | 1 | - residential mortgages | 106,388 | 2,262 | 431 | 2.1 | 19 | 0.4 | 180 | 25 |
- personal lending | 585 | 195 | 177 | 33.3 | 91 | 30.3 | 13 | 11 | - personal lending | 22,008 | 2,717 | 2,209 | 12.3 | 81 | 10.0 | 645 | 1,007 |
- property | 30,492 | 5,532 | 1,719 | 18.1 | 31 | 5.6 | 1,152 | 354 | - property | 60,041 | 11,147 | 3,837 | 18.6 | 34 | 6.4 | 1,411 | 493 |
- construction | - construction | 7,589 | 1,427 | 560 | 18.8 | 39 | 7.4 | 187 | 228 | ||||||||
- other | 30,188 | 2,995 | 1,837 | 9.9 | 61 | 6.1 | 508 | 386 | - other | 132,548 | 4,635 | 2,943 | 3.5 | 63 | 2.2 | 514 | 655 |
Europe | Europe | ||||||||||||||||
- residential mortgages | 621 | 45 | 21 | 7.2 | 47 | 3.4 | 37 | — | - residential mortgages | 18,946 | 2,205 | 713 | 11.6 | 32 | 3.8 | 467 | 10 |
- personal lending | 600 | 198 | 152 | 33.0 | 77 | 25.3 | 23 | 5 | - personal lending | 2,464 | 209 | 180 | 8.5 | 86 | 7.3 | 25 | 126 |
- property | 12,636 | 9,903 | 3,959 | 78.4 | 40 | 31.3 | 2,587 | 209 | - property | 16,384 | 10,314 | 4,947 | 63.0 | 48 | 30.2 | 2,296 | 504 |
- construction | - construction | 1,754 | 362 | 185 | 20.6 | 51 | 10.5 | (62) | — | ||||||||
- other | 14,388 | 2,385 | 1,111 | 16.6 | 47 | 7.7 | 295 | 1,338 | - other | 34,497 | 4,261 | 2,873 | 12.4 | 67 | 8.3 | 1,267 | 293 |
US | US | ||||||||||||||||
- residential mortgages | 3,653 | 180 | 156 | 4.9 | 87 | 4.3 | 390 | 424 | - residential mortgages | 23,237 | 770 | 240 | 3.3 | 31 | 1.0 | 426 | 481 |
- personal lending | 2,704 | 20 | 0.7 | 100 | 0.7 | 79 | 161 | - personal lending | 8,441 | 143 | 66 | 1.7 | 46 | 0.8 | 112 | 153 | |
- property | 3,318 | 621 | 159 | 18.7 | 26 | 4.8 | 237 | 166 | - property | 3,783 | 329 | 92 | 8.7 | 28 | 2.4 | (2) | 139 |
- construction | - construction | 457 | 121 | 10 | 26.5 | 8 | 2.2 | 9 | 16 | ||||||||
- other | 3,670 | 482 | 484 | 13.1 | 100 | 13.2 | (111) | 353 | - other | 37,015 | 517 | 895 | 1.4 | 173 | 2.4 | (175) | 180 |
RoW | RoW | ||||||||||||||||
- residential mortgages | 203 | — | 4 | 1 | - residential mortgages | 702 | 33 | 12 | 4.7 | 36 | 1.7 | 3 | — | ||||
- personal lending | 2 | — | 98 | 129 | - personal lending | 1,511 | 1 | 0.1 | 100 | 0.1 | — | ||||||
- property | 1,205 | 241 | 81 | 20.0 | 34 | 6.7 | (33) | 182 | - property | 850 | 311 | 118 | 36.6 | 38 | 13.9 | (36) | 35 |
- construction | - construction | 69 | 33 | 6 | 47.8 | 18 | 8.7 | 6 | — | ||||||||
- other | 3,276 | 542 | 433 | 16.5 | 80 | 13.2 | 123 | 98 | - other | 15,384 | 460 | 233 | 3.0 | 51 | 1.5 | (32) | 182 |
Group before RFS MI | 109,206 | 23,391 | 10,316 | 21.4 | 44 | 9.4 | 5,407 | 3,818 | |||||||||
Group | Group | 494,068 | 42,257 | 20,551 | 8.6 | 49 | 4.2 | 7,241 | 4,527 | ||||||||
Banks | Banks | 44,080 | 137 | 123 | 0.3 | 90 | 0.3 | — |
Non-Core | ||||||||
2009 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m |
Central and local government | 1,532 | — | — | — | — | — | — | — |
Finance | ||||||||
- banks | 1,360 | 38 | 22 | 2.8 | 58 | 1.6 | 22 | — |
- other | 9,713 | 501 | 160 | 5.2 | 32 | 1.6 | 630 | 579 |
Residential mortgages | 12,932 | 614 | 210 | 4.7 | 34 | 1.6 | 604 | 496 |
Personal lending | 6,358 | 596 | 366 | 9.4 | 61 | 5.8 | 701 | 604 |
Property | 50,372 | 12,552 | 2,954 | 24.9 | 24 | 5.9 | 2,879 | 613 |
Construction | 5,258 | 1,775 | 388 | 33.8 | 22 | 7.4 | 421 | 257 |
Manufacturing | 14,402 | 2,640 | 1,897 | 18.3 | 72 | 13.2 | 1,384 | 691 |
Service industries and business activities | 33,638 | 3,546 | 1,191 | 10.5 | 34 | 3.5 | 1,464 | 916 |
Agriculture, forestry and fishing | 553 | 47 | 27 | 8.5 | 57 | 4.9 | 6 | 1 |
Finance leases and instalment credit | 11,956 | 591 | 302 | 4.9 | 51 | 2.5 | 219 | 35 |
Interest accruals | 549 | — | — | — | — | — | — | — |
Latent | — | — | 735 | — | — | — | 193 | — |
148,623 | 22,900 | 8,252 | 15.4 | 36 | 5.6 | 8,523 | 4,192 | |
of which: | ||||||||
UK | 79,043 | 8,400 | 2,713 | 10.6 | 32 | 3.4 | 2,709 | 1,279 |
Europe | 41,096 | 10,783 | 3,740 | 26.2 | 35 | 9.1 | 2,520 | 381 |
US | 19,546 | 2,618 | 1,144 | 13.4 | 44 | 5.9 | 2,460 | 2,080 |
RoW | 8,938 | 1,099 | 655 | 12.3 | 60 | 7.3 | 834 | 452 |
Group before RFS MI | 148,623 | 22,900 | 8,252 | 15.4 | 36 | 5.6 | 8,523 | 4,192 |
Credit metrics | |||||||||
2010 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 8,452 | — | — | — | — | — | — | — | |
Finance | 54,952 | 1,129 | 595 | 2.1 | 53 | 1.1 | 198 | 141 | |
Personal | - mortgages | 146,501 | 4,276 | 877 | 2.9 | 21 | 0.6 | 1,014 | 669 |
- unsecured | 37,472 | 3,544 | 2,894 | 9.5 | 82 | 7.7 | 1,370 | 1,577 | |
Property | 90,403 | 19,584 | 6,736 | 21.7 | 34 | 7.5 | 4,682 | 1,009 | |
Construction | 12,105 | 2,464 | 875 | 20.4 | 36 | 7.2 | 530 | 146 | |
Manufacturing | 33,485 | 1,199 | 503 | 3.6 | 42 | 1.5 | (92) | 1,547 | |
Finance leases (2) | 16,850 | 847 | 554 | 5.0 | 65 | 3.3 | 252 | 113 | |
Retail, wholesale and repairs | 25,165 | 1,157 | 572 | 4.6 | 49 | 2.3 | 334 | 161 | |
Transport and storage | 24,141 | 248 | 118 | 1.0 | 48 | 0.5 | 87 | 39 | |
Health, education and leisure | 19,431 | 1,055 | 319 | 5.4 | 30 | 1.6 | 159 | 199 | |
Hotels and restaurants | 9,681 | 1,269 | 504 | 13.1 | 40 | 5.2 | 321 | 106 | |
Utilities | 10,046 | 91 | 23 | 0.9 | 25 | 0.2 | 14 | 7 | |
Other | 37,168 | 1,643 | 863 | 4.4 | 53 | 2.3 | 409 | 316 | |
Latent | — | — | 2,658 | — | — | — | (121) | — | |
525,852 | 38,506 | 18,091 | 7.3 | 47 | 3.4 | 9,157 | 6,030 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 101,593 | 2,062 | 314 | 2.0 | 15 | 0.3 | 169 | 17 | |
- personal lending | 23,620 | 3,083 | 2,518 | 13.1 | 82 | 10.7 | 1,046 | 1,153 | |
- property | 65,759 | 7,986 | 2,219 | 12.1 | 28 | 3.4 | 1,546 | 397 | |
- construction | 9,424 | 1,747 | 605 | 18.5 | 35 | 6.4 | 371 | 110 | |
- other | 142,651 | 3,815 | 2,895 | 2.7 | 76 | 2.0 | 826 | 594 | |
Europe | |||||||||
- residential mortgages | 20,094 | 1,551 | 301 | 7.7 | 19 | 1.5 | 221 | 6 | |
- personal lending | 2,870 | 401 | 316 | 14.0 | 79 | 11.0 | 66 | 24 | |
- property | 17,775 | 10,534 | 4,199 | 59.3 | 40 | 23.6 | 2,828 | 210 | |
- construction | 1,887 | 667 | 255 | 35.3 | 38 | 13.5 | 138 | 2 | |
- other | 41,280 | 3,229 | 2,156 | 7.8 | 67 | 5.2 | 633 | 1,414 | |
US | |||||||||
- residential mortgages | 24,201 | 640 | 253 | 2.6 | 40 | 1.0 | 615 | 645 | |
- personal lending | 9,520 | 55 | 55 | 0.6 | 100 | 0.6 | 160 | 271 | |
- property | 4,929 | 765 | 202 | 15.5 | 26 | 4.1 | 321 | 220 | |
- construction | 520 | 50 | 15 | 9.6 | 30 | 2.9 | 26 | 34 | |
- other | 35,868 | 820 | 1,118 | 2.3 | 136 | 3.1 | (102) | 490 | |
RoW | |||||||||
- residential mortgages | 613 | 23 | 9 | 3.8 | 39 | 1.5 | 9 | 1 | |
- personal lending | 1,462 | 5 | 5 | 0.3 | 100 | 0.3 | 98 | 129 | |
- property | 1,940 | 299 | 116 | 15.4 | 39 | 6.0 | (13) | 182 | |
- construction | 274 | — | — | — | — | — | (5) | — | |
- other | 19,572 | 774 | 540 | 4.0 | 70 | 2.8 | 204 | 131 | |
Group | 525,852 | 38,506 | 18,091 | 7.3 | 47 | 3.4 | 9,157 | 6,030 | |
Banks | 58,689 | 145 | 127 | 0.2 | 88 | 0.2 | (13) | 12 |
Credit metrics | |||||||||
2012 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 8,485 | — | — | — | — | — | — | — | |
Finance | 39,658 | 185 | 149 | 0.5 | 81 | 0.4 | 54 | 338 | |
Personal | - mortgages | 146,770 | 6,229 | 1,691 | 4.2 | 27 | 1.2 | 786 | 234 |
- unsecured | 31,247 | 2,717 | 2,306 | 8.7 | 85 | 7.4 | 568 | 718 | |
Property | 43,602 | 4,672 | 1,674 | 10.7 | 36 | 3.8 | 748 | 214 | |
Construction | 6,020 | 757 | 350 | 12.6 | 46 | 5.8 | 119 | 60 | |
Manufacturing | 22,234 | 496 | 225 | 2.2 | 45 | 1.0 | 118 | 63 | |
Finance leases (2) | 9,201 | 159 | 107 | 1.7 | 67 | 1.2 | 35 | 41 | |
Retail, wholesale and repairs | 20,842 | 791 | 439 | 3.8 | 55 | 2.1 | 181 | 129 | |
Transport and storage | 14,590 | 440 | 112 | 3.0 | 25 | 0.8 | 72 | 21 | |
Health, education and leisure | 15,770 | 761 | 299 | 4.8 | 39 | 1.9 | 109 | 67 | |
Hotels and restaurants | 6,891 | 1,042 | 473 | 15.1 | 45 | 6.9 | 138 | 56 | |
Utilities | 5,131 | 10 | 5 | 0.2 | 50 | 0.1 | — | — | |
Other | 26,315 | 1,374 | 794 | 5.2 | 58 | 3.0 | 189 | 175 | |
Latent | — | — | 1,325 | — | — | — | (145) | — | |
396,756 | 19,633 | 9,949 | 4.9 | 51 | 2.5 | 2,972 | 2,116 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 109,511 | 2,440 | 457 | 2.2 | 19 | 0.4 | 122 | 32 | |
- personal lending | 20,443 | 2,454 | 2,133 | 12.0 | 87 | 10.4 | 474 | 594 | |
- property | 35,532 | 2,777 | 896 | 7.8 | 32 | 2.5 | 395 | 181 | |
- construction | 5,101 | 671 | 301 | 13.2 | 45 | 5.9 | 109 | 47 | |
- other | 108,713 | 2,662 | 1,737 | 2.4 | 65 | 1.6 | 499 | 379 | |
Europe | |||||||||
- residential mortgages | 17,446 | 3,060 | 1,124 | 17.5 | 37 | 6.4 | 521 | 24 | |
- personal lending | 1,540 | 143 | 138 | 9.3 | 97 | 9.0 | 29 | 11 | |
- property | 4,896 | 1,652 | 685 | 33.7 | 41 | 14.0 | 350 | 6 | |
- construction | 513 | 60 | 39 | 11.7 | 65 | 7.6 | 4 | 10 | |
- other | 22,218 | 2,280 | 1,711 | 10.3 | 75 | 7.7 | 362 | 267 | |
US | |||||||||
- residential mortgages | 19,483 | 702 | 102 | 3.6 | 15 | 0.5 | 141 | 176 | |
- personal lending | 8,209 | 119 | 34 | 1.4 | 29 | 0.4 | 65 | 112 | |
- property | 2,847 | 112 | 13 | 3.9 | 12 | 0.5 | 3 | 27 | |
- construction | 384 | 5 | — | 1.3 | — | — | 1 | 3 | |
- other | 28,267 | 252 | 432 | 0.9 | 171 | 1.5 | (111) | 90 | |
RoW | |||||||||
- residential mortgages | 330 | 27 | 8 | 8.2 | 30 | 2.4 | 2 | 2 | |
- personal lending | 1,055 | 1 | 1 | 0.1 | 100 | 0.1 | — | 1 | |
- property | 327 | 131 | 80 | 40.1 | 61 | 24.5 | — | — | |
- construction | 22 | 21 | 10 | 95.5 | 48 | 45.5 | 5 | — | |
- other | 9,919 | 64 | 48 | 0.6 | 75 | 0.5 | 1 | 154 | |
Group | 396,756 | 19,633 | 9,949 | 4.9 | 51 | 2.5 | 2,972 | 2,116 | |
Banks | 30,917 | 133 | 113 | 0.4 | 85 | 0.4 | 23 | 29 |
Credit metrics | |||||||||
2011 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 8,359 | — | — | — | — | — | — | — | |
Finance | 48,598 | 745 | 579 | 1.5 | 78 | 1.2 | 207 | 44 | |
Personal | - mortgages | 144,171 | 4,890 | 1,216 | 3.4 | 25 | 0.8 | 776 | 198 |
- unsecured | 32,868 | 2,960 | 2,364 | 9.0 | 80 | 7.2 | 715 | 935 | |
Property | 42,994 | 4,132 | 1,133 | 9.6 | 27 | 2.6 | 469 | 167 | |
Construction | 7,197 | 841 | 286 | 11.7 | 34 | 4.0 | 179 | 143 | |
Manufacturing | 23,708 | 490 | 242 | 2.1 | 49 | 1.0 | 106 | 125 | |
Finance leases (2) | 8,440 | 172 | 110 | 2.0 | 64 | 1.3 | 31 | 68 | |
Retail, wholesale and repairs | 22,039 | 679 | 345 | 3.1 | 51 | 1.6 | 208 | 119 | |
Transport and storage | 16,581 | 342 | 60 | 2.1 | 18 | 0.4 | 47 | 29 | |
Health, education and leisure | 16,073 | 691 | 257 | 4.3 | 37 | 1.6 | 170 | 55 | |
Hotels and restaurants | 7,709 | 1,005 | 386 | 13.0 | 38 | 5.0 | 209 | 60 | |
Utilities | 6,557 | 22 | 1 | 0.3 | 5 | — | — | — | |
Other | 28,769 | 1,282 | 668 | 4.5 | 52 | 2.3 | 538 | 194 | |
Latent | — | — | 1,418 | — | — | — | (252) | — | |
414,063 | 18,251 | 9,065 | 4.4 | 50 | 2.2 | 3,403 | 2,137 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 104,965 | 2,210 | 420 | 2.1 | 19 | 0.4 | 174 | 24 | |
- personal lending | 21,881 | 2,680 | 2,179 | 12.2 | 81 | 10.0 | 657 | 828 | |
- property | 35,431 | 2,984 | 744 | 8.4 | 25 | 2.1 | 378 | 114 | |
- construction | 5,707 | 655 | 236 | 11.5 | 36 | 4.1 | 160 | 138 | |
- other | 114,878 | 2,571 | 1,648 | 2.2 | 64 | 1.4 | 366 | 398 | |
Europe | |||||||||
- residential mortgages | 18,393 | 2,121 | 664 | 11.5 | 31 | 3.6 | 437 | 10 | |
- personal lending | 1,972 | 143 | 125 | 7.3 | 87 | 6.3 | (8) | 22 | |
- property | 4,846 | 1,037 | 365 | 21.4 | 35 | 7.5 | 162 | 10 | |
- construction | 1,019 | 72 | 43 | 7.1 | 60 | 4.2 | 13 | — | |
- other | 24,414 | 2,430 | 1,806 | 10.0 | 74 | 7.4 | 915 | 183 | |
US | |||||||||
- residential mortgages | 20,311 | 526 | 120 | 2.6 | 23 | 0.6 | 162 | 164 | |
- personal lending | 7,505 | 136 | 59 | 1.8 | 43 | 0.8 | 66 | 85 | |
- property | 2,413 | 111 | 24 | 4.6 | 22 | 1.0 | 16 | 43 | |
- construction | 412 | 98 | 1 | 23.8 | 1 | 0.2 | — | 5 | |
- other | 34,971 | 345 | 583 | 1.0 | 169 | 1.7 | 26 | 96 | |
RoW | |||||||||
- residential mortgages | 502 | 33 | 12 | 6.6 | 36 | 2.4 | 3 | — | |
- personal lending | 1,510 | 1 | 1 | 0.1 | 100 | 0.1 | — | — | |
- property | 304 | — | — | — | — | — | (87) | — | |
- construction | 59 | 16 | 6 | 27.1 | 38 | 10.2 | 6 | — | |
- other | 12,570 | 82 | 29 | 0.7 | 35 | 0.2 | (43) | 17 | |
Group | 414,063 | 18,251 | 9,065 | 4.4 | 50 | 2.2 | 3,403 | 2,137 | |
Banks | 43,374 | 136 | 122 | 0.3 | 90 | 0.3 | — | — |
Credit metrics | |||||||||
2010 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 6,781 | — | — | — | — | — | — | — | |
Finance | 47,161 | 567 | 402 | 1.2 | 71 | 0.9 | 191 | 53 | |
Personal | - mortgages | 140,359 | 3,999 | 693 | 2.8 | 17 | 0.5 | 578 | 243 |
- unsecured | 33,581 | 3,131 | 2,545 | 9.3 | 81 | 7.6 | 1,157 | 1,271 | |
Property | 42,455 | 3,287 | 818 | 7.7 | 25 | 1.9 | 739 | 98 | |
Construction | 8,680 | 610 | 222 | 7.0 | 36 | 2.6 | 189 | 38 | |
Manufacturing | 25,797 | 555 | 266 | 2.2 | 48 | 1.0 | 119 | 124 | |
Finance leases (2) | 8,321 | 244 | 140 | 2.9 | 57 | 1.7 | 63 | 42 | |
Retail, wholesale and repairs | 21,974 | 611 | 259 | 2.8 | 42 | 1.2 | 199 | 103 | |
Transport and storage | 15,946 | 112 | 40 | 0.7 | 36 | 0.3 | 40 | 35 | |
Health, education and leisure | 17,456 | 507 | 134 | 2.9 | 26 | 0.8 | 145 | 64 | |
Hotels and restaurants | 8,189 | 741 | 236 | 9.0 | 32 | 2.9 | 165 | 49 | |
Utilities | 7,098 | 22 | 3 | 0.3 | 14 | — | 1 | — | |
Other | 29,053 | 677 | 329 | 2.3 | 49 | 1.1 | 161 | 103 | |
Latent | — | — | 1,653 | — | — | — | (5) | — | |
412,851 | 15,063 | 7,740 | 3.6 | 51 | 1.9 | 3,742 | 2,223 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 99,928 | 2,010 | 307 | 2.0 | 15 | 0.3 | 164 | 16 | |
- personal lending | 23,035 | 2,888 | 2,341 | 12.5 | 81 | 10.2 | 1,033 | 1,142 | |
- property | 34,970 | 2,454 | 500 | 7.0 | 20 | 1.4 | 394 | 43 | |
- construction | 7,041 | 536 | 183 | 7.6 | 34 | 2.6 | 148 | 29 | |
- other | 113,415 | 2,031 | 1,480 | 1.8 | 73 | 1.3 | 541 | 289 | |
Europe | |||||||||
- residential mortgages | 19,473 | 1,506 | 280 | 7.7 | 19 | 1.4 | 184 | 6 | |
- personal lending | 2,270 | 203 | 164 | 8.9 | 81 | 7.2 | 43 | 19 | |
- property | 5,139 | 631 | 240 | 12.3 | 38 | 4.7 | 241 | 1 | |
- construction | 1,014 | 67 | 32 | 6.6 | 48 | 3.2 | 35 | (1) | |
- other | 27,759 | 1,444 | 1,268 | 5.2 | 88 | 4.6 | 438 | 85 | |
US | |||||||||
- residential mortgages | 20,548 | 460 | 97 | 2.2 | 21 | 0.5 | 225 | 221 | |
- personal lending | 6,816 | 35 | 35 | 0.5 | 100 | 0.5 | 81 | 110 | |
- property | 1,611 | 144 | 43 | 8.9 | 30 | 2.7 | 84 | 54 | |
- construction | 442 | 7 | 7 | 1.6 | 100 | 1.6 | 6 | 10 | |
- other | 31,848 | 381 | 642 | 1.2 | 169 | 2.0 | 29 | 161 | |
RoW | |||||||||
- residential mortgages | 410 | 23 | 9 | 5.6 | 39 | 2.2 | 5 | — | |
- personal lending | 1,460 | 5 | 5 | 0.3 | 100 | 0.3 | — | — | |
- property | 735 | 58 | 35 | 7.9 | 60 | 4.8 | 20 | — | |
- construction | 183 | — | — | — | — | — | — | — | |
- other | 14,754 | 180 | 72 | 1.2 | 40 | 0.5 | 71 | 38 | |
Group | 412,851 | 15,063 | 7,740 | 3.6 | 51 | 1.9 | 3,742 | 2,223 | |
Banks | 57,033 | 144 | 126 | 0.3 | 88 | 0.2 | (5) | 1 |
Credit metrics | |||||||||
2012 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 1,368 | — | — | — | — | — | — | — | |
Finance | 2,540 | 407 | 168 | 16.0 | 41 | 6.6 | 91 | 42 | |
Personal | - mortgages | 2,855 | 320 | 133 | 11.2 | 42 | 4.7 | 162 | 227 |
- unsecured | 965 | 186 | 103 | 19.3 | 55 | 10.7 | 63 | 75 | |
Property | 28,617 | 16,551 | 8,185 | 57.8 | 49 | 28.6 | 1,464 | 866 | |
Construction | 2,029 | 726 | 290 | 35.8 | 40 | 14.3 | (25) | 122 | |
Manufacturing | 1,553 | 259 | 132 | 16.7 | 51 | 8.5 | 16 | 140 | |
Finance leases (2) | 4,408 | 283 | 187 | 6.4 | 66 | 4.2 | 9 | 222 | |
Retail, wholesale and repairs | 1,094 | 352 | 205 | 32.2 | 58 | 18.7 | 49 | 47 | |
Transport and storage | 3,751 | 394 | 224 | 10.5 | 57 | 6.0 | 217 | 81 | |
Health, education and leisure | 935 | 429 | 222 | 45.9 | 52 | 23.7 | 35 | 33 | |
Hotels and restaurants | 986 | 555 | 253 | 56.3 | 46 | 25.7 | 38 | 46 | |
Utilities | 1,500 | 108 | 16 | 7.2 | 15 | 1.1 | (4) | — | |
Other | 3,742 | 803 | 446 | 21.5 | 56 | 11.9 | 133 | 220 | |
Latent | — | — | 635 | — | — | — | 72 | — | |
56,343 | 21,373 | 11,199 | 37.9 | 52 | 19.9 | 2,320 | 2,121 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 19 | — | — | — | — | — | — | — | |
- personal lending | 55 | 23 | 19 | 41.8 | 83 | 34.5 | 5 | 16 | |
- property | 18,198 | 7,744 | 3,048 | 42.6 | 39 | 16.7 | 569 | 309 | |
- construction | 1,406 | 494 | 182 | 35.1 | 37 | 12.9 | (9) | 111 | |
- other | 13,316 | 1,067 | 874 | 8.0 | 82 | 6.6 | 175 | 444 | |
Europe | |||||||||
- residential mortgages | 390 | 32 | 27 | 8.2 | 84 | 6.9 | 5 | 26 | |
- personal lending | 365 | 83 | 70 | 22.7 | 84 | 19.2 | 9 | 2 | |
- property | 9,738 | 8,695 | 5,081 | 89.3 | 58 | 52.2 | 914 | 435 | |
- construction | 619 | 229 | 107 | 37.0 | 47 | 17.3 | (15) | 2 | |
- other | 5,206 | 2,171 | 1,285 | 41.7 | 59 | 24.7 | 455 | 272 | |
US | |||||||||
- residential mortgages | 2,446 | 288 | 106 | 11.8 | 37 | 4.3 | 157 | 201 | |
- personal lending | 539 | 80 | 14 | 14.8 | 18 | 2.6 | 44 | 50 | |
- property | 496 | 58 | 16 | 11.7 | 28 | 3.2 | (14) | 56 | |
- construction | 4 | 3 | 1 | 75.0 | 33 | 25.0 | (1) | 9 | |
- other | 1,087 | 100 | 198 | 9.2 | 198 | 18.2 | 25 | 59 | |
RoW | |||||||||
- residential mortgages | — | — | — | — | — | — | — | — | |
- personal lending | 6 | — | — | — | — | — | 5 | 7 | |
- property | 185 | 54 | 40 | 29.2 | 74 | 21.6 | (5) | 66 | |
- construction | — | — | — | — | — | — | — | — | |
- other | 2,268 | 252 | 131 | 11.1 | 52 | 5.8 | 1 | 56 | |
Group | 56,343 | 21,373 | 11,199 | 37.9 | 52 | 19.9 | 2,320 | 2,121 | |
Banks | 477 | 1 | 1 | 0.2 | 100 | 0.2 | — | — |
Credit metrics | |||||||||
2011 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 1,383 | — | — | — | — | — | — | — | |
Finance | 3,272 | 317 | 147 | 9.7 | 46 | 4.5 | (118) | 43 | |
Personal | - mortgages | 5,102 | 380 | 180 | 7.4 | 47 | 3.5 | 300 | 318 |
- unsecured | 1,556 | 110 | 92 | 7.1 | 84 | 5.9 | 67 | 351 | |
Property | 38,064 | 17,969 | 7,861 | 47.2 | 44 | 20.7 | 3,200 | 1,004 | |
Construction | 2,672 | 1,102 | 475 | 41.2 | 43 | 17.8 | (39) | 101 | |
Manufacturing | 4,931 | 423 | 283 | 8.6 | 67 | 5.7 | 121 | 90 | |
Finance leases (2) | 6,059 | 622 | 398 | 10.3 | 64 | 6.6 | 81 | 102 | |
Retail, wholesale and repairs | 2,339 | 388 | 204 | 16.6 | 53 | 8.7 | (28) | 53 | |
Transport and storage | 5,477 | 264 | 94 | 4.8 | 36 | 1.7 | 31 | 14 | |
Health, education and leisure | 1,419 | 501 | 245 | 35.3 | 49 | 17.3 | 134 | 43 | |
Hotels and restaurants | 1,161 | 485 | 289 | 41.8 | 60 | 24.9 | 125 | 71 | |
Utilities | 1,849 | 66 | 22 | 3.6 | 33 | 1.2 | 3 | 3 | |
Other | 4,721 | 1,379 | 549 | 29.2 | 40 | 11.6 | 254 | 197 | |
Latent | — | — | 647 | — | — | — | (293) | — | |
80,005 | 24,006 | 11,486 | 30.0 | 48 | 14.4 | 3,838 | 2,390 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 1,423 | 52 | 11 | 3.7 | 21 | 0.8 | 6 | 1 | |
- personal lending | 127 | 37 | 30 | 29.1 | 81 | 23.6 | (12) | 179 | |
- property | 24,610 | 8,163 | 3,093 | 33.2 | 38 | 12.6 | 1,033 | 379 | |
- construction | 1,882 | 772 | 324 | 41.0 | 42 | 17.2 | 27 | 90 | |
- other | 17,670 | 2,064 | 1,295 | 11.7 | 63 | 7.3 | 148 | 257 | |
Europe | |||||||||
- residential mortgages | 553 | 84 | 49 | 15.2 | 58 | 8.9 | 30 | — | |
- personal lending | 492 | 66 | 55 | 13.4 | 83 | 11.2 | 33 | 104 | |
- property | 11,538 | 9,277 | 4,582 | 80.4 | 49 | 39.7 | 2,134 | 494 | |
- construction | 735 | 290 | 142 | 39.5 | 49 | 19.3 | (75) | — | |
- other | 10,083 | 1,831 | 1,067 | 18.2 | 58 | 10.5 | 352 | 110 | |
US | |||||||||
- residential mortgages | 2,926 | 244 | 120 | 8.3 | 49 | 4.1 | 264 | 317 | |
- personal lending | 936 | 7 | 7 | 0.7 | 100 | 0.7 | 46 | 68 | |
- property | 1,370 | 218 | 68 | 15.9 | 31 | 5.0 | (18) | 96 | |
- construction | 45 | 23 | 9 | 51.1 | 39 | 20.0 | 9 | 11 | |
- other | 2,044 | 172 | 312 | 8.4 | 181 | 15.3 | (201) | 84 | |
RoW | |||||||||
- residential mortgages | 200 | — | — | — | — | — | — | — | |
- personal lending | 1 | — | — | — | — | — | — | — | |
- property | 546 | 311 | 118 | 57.0 | 38 | 21.6 | 51 | 35 | |
- construction | 10 | 17 | — | 170.0 | — | — | — | — | |
- other | 2,814 | 378 | 204 | 13.4 | 54 | 7.2 | 11 | 165 | |
Group | 80,005 | 24,006 | 11,486 | 30.0 | 48 | 14.4 | 3,838 | 2,390 | |
Banks | 706 | 1 | 1 | 0.1 | 100 | 0.1 | — | — |
Credit metrics | |||||||||
2010 | Gross loans £m | REIL £m | Provisions £m | REIL as a % of gross loans % | Provisions as a % of REIL % | Provisions as a % of gross loans % | Impairment charge £m | Amounts written-off £m | |
Government (1) | 1,671 | — | — | — | — | — | — | — | |
Finance | 7,791 | 562 | 193 | 7.2 | 34 | 2.5 | 7 | 88 | |
Personal | - mortgages | 6,142 | 277 | 184 | 4.5 | 66 | 3.0 | 436 | 426 |
- unsecured | 3,891 | 413 | 349 | 10.6 | 85 | 9.0 | 213 | 306 | |
Property | 47,948 | 16,297 | 5,918 | 34.0 | 36 | 12.3 | 3,943 | 911 | |
Construction | 3,425 | 1,854 | 653 | 54.1 | 35 | 19.1 | 341 | 108 | |
Manufacturing | 7,688 | 644 | 237 | 8.4 | 37 | 3.1 | (211) | 1,423 | |
Finance leases (2) | 8,529 | 603 | 414 | 7.1 | 69 | 4.9 | 189 | 71 | |
Retail, wholesale and repairs | 3,191 | 546 | 313 | 17.1 | 57 | 9.8 | 135 | 58 | |
Transport and storage | 8,195 | 136 | 78 | 1.7 | 57 | 1.0 | 47 | 4 | |
Health, education and leisure | 1,975 | 548 | 185 | 27.7 | 34 | 9.4 | 14 | 135 | |
Hotels and restaurants | 1,492 | 528 | 268 | 35.4 | 51 | 18.0 | 156 | 57 | |
Utilities | 2,948 | 69 | 20 | 2.3 | 29 | 0.7 | 13 | 7 | |
Other | 8,115 | 966 | 534 | 11.9 | 55 | 6.6 | 248 | 213 | |
Latent | — | — | 1,005 | — | — | — | (116) | — | |
113,001 | 23,443 | 10,351 | 20.7 | 44 | 9.2 | 5,415 | 3,807 | ||
of which: | |||||||||
UK | |||||||||
- residential mortgages | 1,665 | 52 | 7 | 3.1 | 13 | 0.4 | 5 | 1 | |
- personal lending | 585 | 195 | 177 | 33.3 | 91 | 30.3 | 13 | 11 | |
- property | 30,789 | 5,532 | 1,719 | 18.0 | 31 | 5.6 | 1,152 | 354 | |
- construction | 2,383 | 1,211 | 422 | 50.8 | 35 | 17.7 | 223 | 81 | |
- other | 29,236 | 1,784 | 1,415 | 6.1 | 79 | 4.8 | 285 | 305 | |
Europe | |||||||||
- residential mortgages | 621 | 45 | 21 | 7.2 | 47 | 3.4 | 37 | — | |
- personal lending | 600 | 198 | 152 | 33.0 | 77 | 25.3 | 23 | 5 | |
- property | 12,636 | 9,903 | 3,959 | 78.4 | 40 | 31.3 | 2,587 | 209 | |
- construction | 873 | 600 | 223 | 68.7 | 37 | 25.5 | 103 | 3 | |
- other | 13,521 | 1,785 | 888 | 13.2 | 50 | 6.6 | 195 | 1,329 | |
US | |||||||||
- residential mortgages | 3,653 | 180 | 156 | 4.9 | 87 | 4.3 | 390 | 424 | |
- personal lending | 2,704 | 20 | 20 | 0.7 | 100 | 0.7 | 79 | 161 | |
- property | 3,318 | 621 | 159 | 18.7 | 26 | 4.8 | 237 | 166 | |
- construction | 78 | 43 | 8 | 55.1 | 19 | 10.3 | 20 | 24 | |
- other | 4,020 | 439 | 476 | 10.9 | 108 | 11.8 | (131) | 329 | |
RoW | |||||||||
- residential mortgages | 203 | — | — | — | — | — | 4 | 1 | |
- personal lending | 2 | — | — | — | — | — | 98 | 129 | |
- property | 1,205 | 241 | 81 | 20.0 | 34 | 6.7 | (33) | 182 | |
- construction | 91 | — | — | — | — | — | (5) | — | |
- other | 4,818 | 594 | 468 | 12.3 | 79 | 9.7 | 133 | 93 | |
Group | 113,001 | 23,443 | 10,351 | 20.7 | 44 | 9.2 | 5,415 | 3,807 | |
Banks | 1,654 | 1 | 1 | 0.1 | 100 | 0.1 | (8) | 11 |
(1) |
(2) |
193 Business review Risk and balance sheet management continued |
UK Retail | UK Corporate | Wealth | International Banking | Ulster Bank | US Retail & Commercial | Markets | Core | Non-Core | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 January 2012 | 4,599 | 5,001 | 211 | 1,632 | 5,523 | 1,007 | 414 | 18,387 | 24,007 | 42,394 |
Currency translation and other adjustments | 53 | (6) | (1) | (227) | (115) | (47) | 184 | (159) | (487) | (646) |
Additions | 1,771 | 4,362 | 111 | 286 | 3,299 | 660 | 56 | 10,545 | 5,800 | 16,345 |
Transfers (1) | (33) | 7 | — | (110) | — | — | 6 | (130) | 70 | (60) |
Transfer to performing book | — | (133) | (8) | (624) | — | — | (75) | (840) | (1,035) | (1,875) |
Repayments | (1,222) | (3,265) | (50) | (90) | (1,102) | (83) | (80) | (5,892) | (4,860) | (10,752) |
Amounts written-off | (599) | (514) | (15) | (445) | (72) | (391) | (109) | (2,145) | (2,121) | (4,266) |
At 31 December 2012 | 4,569 | 5,452 | 248 | 422 | 7,533 | 1,146 | 396 | 19,766 | 21,374 | 41,140 |
Non-Core (by donating divisions) | UK Corporate | International Banking | Ulster Bank | US Retail & Commercial | Other | Total |
£m | £m | £m | £m | £m | £m | |
At 1 January 2012 | 3,685 | 8,051 | 11,675 | 486 | 110 | 24,007 |
Currency translation and other adjustments | (57) | (104) | (231) | (20) | (75) | (487) |
Additions | 1,542 | 2,210 | 1,713 | 323 | 12 | 5,800 |
Transfers | 11 | 59 | — | — | — | 70 |
Transfer to performing book | (171) | (863) | — | — | (1) | (1,035) |
Repayments | (1,798) | (1,379) | (1,618) | (62) | (3) | (4,860) |
Amounts written-off | (590) | (1,067) | (140) | (309) | (15) | (2,121) |
At 31 December 2012 | 2,622 | 6,907 | 11,399 | 418 | 28 | 21,374 |
(1) | Represents transfers to/from REIL from/to potential problem loans. |
UK Retail | UK Corporate | Wealth | GTS (1) | Ulster Bank | US R&C (2) | Total R&C (2) | GBM (3) | Total Core | Non-Core | RFS MI | Group | |||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
At 1 January | 2,741 | 1,732 | 66 | 147 | 1,633 | 505 | 6,824 | 1,042 | 7,866 | 10,316 | — | 18,182 | ||
Intra-group transfers | — | 177 | — | — | — | — | 177 | — | 177 | (177) | — | — | ||
Transfers to disposal groups | (335) | (436) | — | (2) | — | — | (773) | — | (773) | — | — | (773) | ||
Currency translation and other adjustments | — | 25 | 3 | 2 | (79) | (6) | (55) | (21) | (76) | (207) | — | (283) | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | — | — | — | 8 | 8 | ||
Amounts written-off | (823) | (653) | (11) | (79) | (124) | (371) | (2,061) | (76) | (2,137) | (2,390) | — | (4,527) | ||
Recoveries of amounts previously written-off | 68 | 17 | — | — | 1 | 76 | 162 | 5 | 167 | 360 | — | 527 | ||
Charged to income statement | ||||||||||||||
- continuing operations | 788 | 782 | 25 | 166 | 1,384 | 247 | 3,392 | 11 | 3,403 | 3,838 | — | 7,241 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | (8) | (8) | ||
Unwind of discount (4) | (96) | (36) | (2) | — | (66) | — | (200) | (13) | (213) | (271) | — | (484) | ||
At 31 December | 2,343 | 1,608 | 81 | 234 | 2,749 | 451 | 7,466 | 948 | 8,414 | 11,469 | — | 19,883 | ||
Individually assessed | ||||||||||||||
- banks | — | — | 2 | 7 | — | — | 9 | 113 | 122 | 1 | — | 123 | ||
- customers | — | 679 | 70 | 193 | 991 | 73 | 2,006 | 668 | 2,674 | 9,960 | — | 12,634 | ||
Collectively assessed | 2,157 | 662 | — | 17 | 1,282 | 161 | 4,279 | — | 4,279 | 861 | — | 5,140 | ||
Latent | 186 | 267 | 9 | 17 | 476 | 217 | 1,172 | 167 | 1,339 | 647 | — | 1,986 | ||
2,343 | 1,608 | 81 | 234 | 2,749 | 451 | 7,466 | 948 | 8,414 | 11,469 | — | 19,883 | |||
2010 | ||||||||||||||
At 1 January | 2,677 | 1,271 | 55 | 189 | 962 | 478 | 5,632 | 1,289 | 6,921 | 8,252 | 2,110 | 17,283 | ||
Intra-group transfers | — | — | — | — | (351) | — | (351) | (217) | (568) | 568 | — | — | ||
Transfers to disposal groups | — | — | — | — | — | — | — | — | — | (72) | — | (72) | ||
Currency translation and other adjustments | — | 71 | 4 | (2) | (22) | 19 | 70 | (86) | (16) | 59 | — | 43 | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | — | — | (20) | (2,152) | (2,172) | ||
Amounts written-off | (1,135) | (349) | (9) | (49) | (48) | (547) | (2,137) | (87) | (2,224) | (3,818) | — | (6,042) | ||
Recoveries of amounts previously written-off | 128 | 8 | — | 1 | 1 | 72 | 210 | 3 | 213 | 198 | — | 411 | ||
Charged to income statement | ||||||||||||||
- continuing operations | 1,160 | 761 | 18 | 8 | 1,161 | 483 | 3,591 | 146 | 3,737 | 5,407 | — | 9,144 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | 42 | 42 | ||
Unwind of discount (4) | (89) | (30) | (2) | — | (70) | — | (191) | (6) | (197) | (258) | — | (455) | ||
At 31 December | 2,741 | 1,732 | 66 | 147 | 1,633 | 505 | 6,824 | 1,042 | 7,866 | 10,316 | — | 18,182 | ||
Individually assessed | ||||||||||||||
- banks | — | — | 2 | 7 | — | — | 9 | 117 | 126 | 1 | — | 127 | ||
- customers | — | 546 | 57 | 111 | 502 | 56 | 1,272 | 676 | 1,948 | 8,161 | — | 10,109 | ||
Collectively assessed | 2,526 | 689 | — | 14 | 733 | 177 | 4,139 | — | 4,139 | 1,157 | — | 5,296 | ||
Latent | 215 | 497 | 7 | 15 | 398 | 272 | 1,404 | 249 | 1,653 | 997 | — | 2,650 | ||
2,741 | 1,732 | 66 | 147 | 1,633 | 505 | 6,824 | 1,042 | 7,866 | 10,316 | — | 18,182 |
UK Retail | UK Corporate | Wealth | GTS (1) | Ulster Bank | US R&C (2) | Total R&C (2) | GBM (3) | Total Core | Non-Core | RFS MI | Group | |||
2009 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
At 1 January | 2,086 | 696 | 34 | 43 | 491 | 298 | 3,648 | 621 | 4,269 | 5,182 | 1,565 | 11,016 | ||
Transfers to disposal groups | — | — | — | — | — | — | — | (16) | (16) | (305) | (3) | (324) | ||
Currency translation and other adjustments | 67 | 5 | 1 | 128 | (109) | (34) | 58 | 365 | 423 | (851) | (102) | (530) | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | (62) | (62) | (3) | — | (65) | ||
Amounts written-off | (1,150) | (352) | (12) | (23) | (34) | (546) | (2,117) | (169) | (2,286) | (4,192) | (461) | (6,939) | ||
Recoveries of amounts previously written-off | 97 | 20 | — | 2 | 1 | 58 | 178 | 11 | 189 | 136 | 74 | 399 | ||
Charged to income statement | ||||||||||||||
- continuing operations | 1,679 | 923 | 33 | 39 | 649 | 702 | 4,025 | 542 | 4,567 | 8,523 | — | 13,090 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | 1,044 | 1,044 | ||
Unwind of discount (4) | (102) | (21) | (1) | — | (36) | — | (160) | (3) | (163) | (238) | (7) | (408) | ||
At 31 December | 2,677 | 1,271 | 55 | 189 | 962 | 478 | 5,632 | 1,289 | 6,921 | 8,252 | 2,110 | 17,283 | ||
Individually assessed | ||||||||||||||
- banks | — | — | 2 | 8 | — | — | 10 | 125 | 135 | 22 | — | 157 | ||
- customers | — | 205 | 44 | 156 | 280 | 14 | 699 | 573 | 1,272 | 6,229 | 1,295 | 8,796 | ||
Collectively assessed | 2,475 | 475 | — | 17 | 412 | 130 | 3,509 | — | 3,509 | 1,266 | 479 | 5,254 | ||
Latent | 202 | 591 | 9 | 8 | 270 | 334 | 1,414 | 591 | 2,005 | 735 | 336 | 3,076 | ||
2,677 | 1,271 | 55 | 189 | 962 | 478 | 5,632 | 1,289 | 6,921 | 8,252 | 2,110 | 17,283 |
2012 | 2011 | 2010 | |||||||||
Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | Core £m | Non-Core £m | Total £m | |||
Impaired loans | |||||||||||
- UK | 9,332 | 9,081 | 18,413 | 9,754 | 10,580 | 20,334 | 8,575 | 7,835 | 16,410 | ||
- overseas | 8,219 | 11,867 | 20,086 | 6,839 | 12,885 | 19,724 | 4,936 | 14,408 | 19,344 | ||
17,551 | 20,948 | 38,499 | 16,593 | 23,465 | 40,058 | 13,511 | 22,243 | 35,754 | |||
Accruing loans past due 90 days or more | |||||||||||
- UK | 1,759 | 248 | 2,007 | 1,430 | 508 | 1,938 | 1,434 | 939 | 2,373 | ||
- overseas | 456 | 178 | 634 | 364 | 34 | 398 | 262 | 262 | 524 | ||
2,215 | 426 | 2,641 | 1,794 | 542 | 2,336 | 1,696 | 1,201 | 2,897 | |||
Total REIL | 19,766 | 21,374 | 41,140 | 18,387 | 24,007 | 42,394 | 15,207 | 23,444 | 38,651 | ||
REIL as a % of gross loans and advances (1) | 4.9% | 38.2% | 9.1% | 4.4% | 30.1% | 8.6% | 3.7% | 20.8% | 7.3% | ||
Provisions as a % of REIL | 51% | 52% | 52% | 50% | 48% | 49% | 52% | 44% | 47% |
(1) | Includes disposal groups but excludes reverse repos. |
2012 | 2011 | 2010 | |||||||||
Core | Non-Core | Total | Core | Non-Core | Total | Core | Non-Core | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Past due 1-29 days | 5,349 | 250 | 5,599 | 5,722 | 724 | 6,446 | 6,401 | 822 | 7,223 | ||
Past due 30-59 days | 1,062 | 55 | 1,117 | 1,556 | 171 | 1,727 | 1,725 | 392 | 2,117 | ||
Past due 60-89 days | 1,151 | 26 | 1,177 | 975 | 107 | 1,082 | 922 | 271 | 1,193 | ||
Past due 90 days or more | 2,215 | 426 | 2,641 | 1,794 | 542 | 2,336 | 1,696 | 1,201 | 2,897 | ||
9,777 | 757 | 10,534 | 10,047 | 1,544 | 11,591 | 10,744 | 2,686 | 13,430 |
UK Retail | UK Corporate | Wealth | International Banking | Ulster Bank | US R&C (1) | Total R&C (1) | Markets | Central Items | Total Core | Non-Core | RFS MI | Group | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
At 1 January 2012 | 2,679 | 2,061 | 81 | 851 | 2,749 | 455 | 8,876 | 311 | — | 9,187 | 11,487 | — | 20,674 | ||
Currency translation and other adjustments | 12 | 87 | — | (131) | (54) | 53 | (33) | 77 | — | 44 | (369) | — | (325) | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | — | — | — | (1) | (4) | (5) | ||
Amounts written-off | (599) | (514) | (15) | (445) | (72) | (391) | (2,036) | (109) | — | (2,145) | (2,121) | — | (4,266) | ||
Recoveries of amounts previously written-off | 96 | 18 | — | 9 | 2 | 85 | 210 | 1 | — | 211 | 130 | — | 341 | ||
Charged to income statement | |||||||||||||||
- continuing operations | 529 | 836 | 46 | 111 | 1,364 | 83 | 2,969 | 25 | 1 | 2,995 | 2,320 | — | 5,315 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | — | 4 | 4 | ||
Unwind of discount (2) | (88) | (56) | (3) | (4) | (79) | — | (230) | — | — | (230) | (246) | — | (476) | ||
At 31 December 2012 | 2,629 | 2,432 | 109 | 391 | 3,910 | 285 | 9,756 | 305 | 1 | 10,062 | 11,200 | — | 21,262 | ||
Individually assessed | |||||||||||||||
- banks | — | — | — | 6 | — | — | 6 | 107 | — | 113 | 1 | — | 114 | ||
- customers | — | 1,024 | 96 | 270 | 1,213 | 46 | 2,649 | 189 | 1 | 2,839 | 9,805 | — | 12,644 | ||
Collectively assessed | 2,439 | 1,111 | — | — | 2,110 | 125 | 5,785 | — | — | 5,785 | 757 | — | 6,542 | ||
Latent | 190 | 297 | 13 | 115 | 587 | 114 | 1,316 | 9 | — | 1,325 | 637 | — | 1,962 | ||
2,629 | 2,432 | 109 | 391 | 3,910 | 285 | 9,756 | 305 | 1 | 10,062 | 11,200 | — | 21,262 |
Non-Core (by donating division) | ||||||
UK Corporate | International Banking | Ulster Bank | US R&C (1) | Other | Total | |
£m | £m | £m | £m | £m | £m | |
At 1 January 2012 | 1,633 | 3,027 | 6,363 | 416 | 48 | 11,487 |
Currency translation and other adjustments | (100) | (58) | (107) | (89) | (15) | (369) |
Disposal of subsidiaries | — | — | — | (1) | — | (1) |
Amounts written-off | (590) | (1,067) | (140) | (309) | (15) | (2,121) |
Recoveries of amounts previously written-off | 21 | 38 | 4 | 63 | 4 | 130 |
Charged to income statement | ||||||
- continuing operations | 241 | 913 | 983 | 177 | 6 | 2,320 |
Unwind of discount (2) | (38) | (38) | (170) | — | — | (246) |
At 31 December 2012 | 1,167 | 2,815 | 6,933 | 257 | 28 | 11,200 |
Individually assessed | ||||||
- banks | — | 1 | — | — | — | 1 |
- customers | 688 | 2,604 | 6,481 | 24 | 8 | 9,805 |
Collectively assessed | 422 | — | 225 | 92 | 18 | 757 |
Latent | 57 | 210 | 227 | 141 | 2 | 637 |
1,167 | 2,815 | 6,933 | 257 | 28 | 11,200 |
UK Retail | UK Corporate | Wealth | International Banking | Ulster Bank | US R&C (1) | Total R&C (1) | Markets | Total Core | Non-Core | RFS MI | Group | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
At 1 January 2011 | 2,741 | 1,746 | 66 | 855 | 1,633 | 509 | 7,550 | 316 | 7,866 | 10,352 | — | 18,218 | ||
Intra-group transfers | — | 177 | — | — | — | — | 177 | — | 177 | (177) | — | — | ||
Currency translation and other adjustments | — | 25 | 3 | (37) | (79) | (5) | (93) | 17 | (76) | (225) | — | (301) | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | — | — | — | 8 | 8 | ||
Amounts written-off | (823) | (658) | (11) | (125) | (124) | (373) | (2,114) | (23) | (2,137) | (2,390) | — | (4,527) | ||
Recoveries of amounts previously written-off | 69 | 17 | — | 3 | 1 | 76 | 166 | 1 | 167 | 360 | — | 527 | ||
Charged to income statement | ||||||||||||||
- continuing operations | 788 | 790 | 25 | 168 | 1,384 | 248 | 3,403 | — | 3,403 | 3,838 | — | 7,241 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | (8) | (8) | ||
Unwind of discount (2) | (96) | (36) | (2) | (13) | (66) | — | (213) | — | (213) | (271) | — | (484) | ||
At 31 December 2011 | 2,679 | 2,061 | 81 | 851 | 2,749 | 455 | 8,876 | 311 | 9,187 | 11,487 | — | 20,674 | ||
Individually assessed | ||||||||||||||
- banks | — | — | 2 | 44 | — | — | 46 | 76 | 122 | 1 | — | 123 | ||
- customers | — | 838 | 70 | 637 | 991 | 73 | 2,609 | 224 | 2,833 | 9,965 | — | 12,798 | ||
Collectively assessed | 2,474 | 894 | — | 2 | 1,282 | 162 | 4,814 | — | 4,814 | 874 | — | 5,688 | ||
Latent | 205 | 329 | 9 | 168 | 476 | 220 | 1,407 | 11 | 1,418 | 647 | — | 2,065 | ||
2,679 | 2,061 | 81 | 851 | 2,749 | 455 | 8,876 | 311 | 9,187 | 11,487 | — | 20,674 |
UK Retail | UK Corporate | Wealth | International Banking | Ulster Bank | US R&C (1) | Total R&C (1) | Markets | Total Core | Non-Core | RFS MI | Group | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
At 1 January 2010 | 2,677 | 1,287 | 55 | 1,139 | 962 | 482 | 6,602 | 319 | 6,921 | 8,553 | 2,110 | 17,584 | ||
Transfers to disposal groups | — | — | — | — | — | — | — | — | — | (72) | — | (72) | ||
Intra-group transfers | — | — | — | (217) | (351) | — | (568) | — | (568) | 568 | — | — | ||
Currency translation and other adjustments | — | 71 | 4 | (98) | (22) | 20 | (25) | 9 | (16) | (206) | — | (222) | ||
Disposal of subsidiaries | — | — | — | — | — | — | — | — | — | (20) | (2,152) | (2,172) | ||
Amounts written-off | (1,135) | (357) | (9) | (92) | (48) | (550) | (2,191) | (33) | (2,224) | (3,818) | — | (6,042) | ||
Recoveries of amounts previously written-off | 128 | 8 | — | 2 | 1 | 72 | 211 | 2 | 213 | 198 | — | 411 | ||
Charged to income statement | ||||||||||||||
- continuing operations | 1,160 | 768 | 18 | 125 | 1,161 | 485 | 3,717 | 20 | 3,737 | 5,407 | — | 9,144 | ||
- discontinued operations | — | — | — | — | — | — | — | — | — | — | 42 | 42 | ||
Unwind of discount (2) | (89) | (31) | (2) | (4) | (70) | — | (196) | (1) | (197) | (258) | — | (455) | ||
At 31 December 2010 | 2,741 | 1,746 | 66 | 855 | 1,633 | 509 | 7,550 | 316 | 7,866 | 10,352 | — | 18,218 | ||
Individually assessed | ||||||||||||||
- banks | — | — | 2 | 46 | — | — | 48 | 78 | 126 | 1 | — | 127 | ||
- customers | — | 546 | 57 | 572 | 502 | 56 | 1,733 | 215 | 1,948 | 8,176 | — | 10,124 | ||
Collectively assessed | 2,526 | 703 | — | — | 733 | 177 | 4,139 | — | 4,139 | 1,170 | — | 5,309 | ||
Latent | 215 | 497 | 7 | 237 | 398 | 276 | 1,630 | 23 | 1,653 | 1,005 | — | 2,658 | ||
2,741 | 1,746 | 66 | 855 | 1,633 | 509 | 7,550 | 316 | 7,866 | 10,352 | — | 18,218 |
(1) |
Retail & Commercial. |
Recognised in interest income. |
2011 £m | 2010 £m | 2009 £m | |
Latent loss | (545) | (121) | 1,184 |
Collectively assessed | 2,591 | 3,070 | 3,994 |
Individually assessed | 5,195 | 6,208 | 7,878 |
Customer loans | 7,241 | 9,157 | 13,056 |
Bank loans | — | (13) | 34 |
Securities | 1,468 | 112 | 809 |
Charge to income statement | 8,709 | 9,256 | 13,899 |
Charge relating to customer loans as a % of gross customer loans (1) | 1.5% | 1.7% | 2.3% |
2012 | 2011 | 2010 | |||||||||
Core | Non-Core | Total | Core | Non-Core | Total | Core | Non-Core | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Individually assessed | 2,839 | 9,805 | 12,644 | 2,833 | 9,965 | 12,798 | 1,948 | 8,176 | 10,124 | ||
Collectively assessed | 5,785 | 757 | 6,542 | 4,814 | 874 | 5,688 | 4,139 | 1,170 | 5,309 | ||
Latent loss | 1,325 | 637 | 1,962 | 1,418 | 647 | 2,065 | 1,653 | 1,005 | 2,658 | ||
Loans and advances to customers | 9,949 | 11,199 | 21,148 | 9,065 | 11,486 | 20,551 | 7,740 | 10,351 | 18,091 | ||
Loans and advances to banks | 113 | 1 | 114 | 122 | 1 | 123 | 126 | 1 | 127 | ||
Total provisions | 10,062 | 11,200 | 21,262 | 9,187 | 11,487 | 20,674 | 7,866 | 10,352 | 18,218 | ||
Provisions as a % of REIL | 51% | 52% | 52% | 50% | 48% | 49% | 52% | 44% | 47% | ||
Customer provisions as a % of customer loans (1) | 2.5% | 20.0% | 4.7% | 2.2% | 14.4% | 4.2% | 1.9% | 9.1% | 3.4% |
(1) | Includes disposal groups and excludes reverse repos. |
· | Within Core, the increase in collectively assessed provisions related primarily to Ulster Bank’s mortgage and corporate portfolio reflecting a continuation of difficult conditions in Ireland. |
· | Non-Core individually assessed provisions decreased by £0.2 billion, principally reflecting write-offs in Markets and UK Corporate. |
UK Retail | UK Corporate | Wealth | International Banking | Ulster Bank | US R&C (1) | Total R&C (1) | Markets | Central Items | Total Core | Non-Core | Group | |||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||
Individually assessed | — | 554 | 42 | 136 | 457 | 15 | 1,205 | 28 | 1 | 1,233 | 1,936 | 3,169 | ||
Collectively assessed | 544 | 317 | — | (1) | 787 | 237 | 1,884 | — | — | 1,884 | 312 | 2,196 | ||
Latent loss | (15) | (35) | 4 | (47) | 120 | (169) | (143) | (3) | — | (145) | 72 | (73) | ||
Loans to customers | 529 | 836 | 46 | 88 | 1,364 | 83 | 2,946 | 25 | 1 | 2,972 | 2,320 | 5,292 | ||
Loans to banks | — | — | — | 23 | — | — | 23 | — | — | 23 | — | 23 | ||
Securities - other | — | 2 | — | — | — | 8 | 10 | 12 | 39 | 61 | (97) | (36) | ||
Charge to income statement | 529 | 838 | 46 | 111 | 1,364 | 91 | 2,979 | 37 | 40 | 3,056 | 2,223 | 5,279 |
2011 | ||||||||||||||
Individually assessed | — | 612 | 24 | 233 | 637 | 64 | 1,570 | 10 | — | 1,580 | 3,615 | 5,195 | ||
Collectively assessed | 798 | 392 | — | — | 655 | 230 | 2,075 | — | — | 2,075 | 516 | 2,591 | ||
Latent loss | (10) | (213) | 1 | (65) | 92 | (46) | (241) | (11) | — | (252) | (293) | (545) | ||
Loans to customers | 788 | 791 | 25 | 168 | 1,384 | 248 | 3,404 | (1) | — | 3,403 | 3,838 | 7,241 | ||
Securities | ||||||||||||||
- sovereign debt (2) | — | — | — | — | — | — | — | — | 1,268 | 1,268 | — | 1,268 | ||
- other | — | 2 | — | — | — | 78 | 80 | 39 | (2) | 117 | 83 | 200 | ||
Charge to income statement | 788 | 793 | 25 | 168 | 1,384 | 326 | 3,484 | 38 | 1,266 | 4,788 | 3,921 | 8,709 |
(1) | Retail & Commercial. |
(2) | Includes related interest rate hedge instruments. |
Non-Core (by donating division) | ||||||
UK Corporate | International Banking | Ulster Bank | US R&C (1) | Other | Total | |
2012 | £m | £m | £m | £m | £m | £m |
Individually assessed | 206 | 913 | 842 | (25) | — | 1,936 |
Collectively assessed | 71 | — | 25 | 208 | 8 | 312 |
Latent loss | (37) | 1 | 116 | (6) | (2) | 72 |
Loans to customers | 240 | 914 | 983 | 177 | 6 | 2,320 |
Securities | — | (97) | — | — | — | (97) |
Charge to income statement | 240 | 817 | 983 | 177 | 6 | 2,223 |
2011 | ||||||
Individually assessed | 512 | 679 | 2,426 | (3) | 1 | 3,615 |
Collectively assessed | 129 | — | 29 | 372 | (14) | 516 |
Latent loss | (113) | — | (106) | (66) | (8) | (293) |
Loans to customers | 528 | 679 | 2,349 | 303 | (21) | 3,838 |
Securities | — | 78 | — | — | 5 | 83 |
Charge to income statement | 528 | 757 | 2,349 | 303 | (16) | 3,921 |
(1) | Retail & Commercial. |
2012 | 2011 | 2010 | ||||||||||
Core | Non-Core | Total | Core | Non-Core | Total | Core | Non-Core | Total | ||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Individually assessed | 1,233 | 1,936 | 3,169 | 1,580 | 3,615 | 5,195 | 1,489 | 4,719 | 6,208 | |||
Collectively assessed | 1,884 | 312 | 2,196 | 2,075 | 516 | 2,591 | 2,258 | 812 | 3,070 | |||
Latent loss | (145) | 72 | (73) | (252) | (293) | (545) | (5) | (116) | (121) | |||
Loans to customers | 2,972 | 2,320 | 5,292 | 3,403 | 3,838 | 7,241 | 3,742 | 5,415 | 9,157 | |||
Loans to banks | 23 | — | 23 | — | — | — | (5) | (8) | (13) | |||
Securities | - sovereign debt (1) | — | — | — | 1,268 | — | 1,268 | — | — | — | ||
- other | 61 | (97) | (36) | 117 | 83 | 200 | 44 | 68 | 112 | |||
Charge to income statement | 3,056 | 2,223 | 5,279 | 4,788 | 3,921 | 8,709 | 3,781 | 5,475 | 9,256 | |||
Charge as a % of gross loans (1) | 0.7% | 4.2% | 1.2% | 0.8% | 4.8% | 1.5% | 0.9% | 4.8% | 1.7% |
(1) | Includes related interest rate hedge adjustments. |
(2) | Customer loan impairment charge as a percentage of gross loans and advances to customers including assets of disposal groups and excluding reverse |
2012 | 2011 | 2010 | ||||||||||
Core | Non-Core | Total | Core | Non-Core | Total | Core | Non-Core | Total | ||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Loan impairment losses | ||||||||||||
- customers | 2,972 | 2,320 | 5,292 | 3,403 | 3,838 | 7,241 | 3,742 | 5,415 | 9,157 | |||
- banks | 23 | — | 23 | — | — | — | (5) | (8) | (13) | |||
2,995 | 2,320 | 5,315 | 3,403 | 3,838 | 7,241 | 3,737 | 5,407 | 9,144 | ||||
Impairment losses on securities | ||||||||||||
- debt securities | 47 | (114) | (67) | 1,381 | 52 | 1,433 | 40 | 41 | 81 | |||
- equity securities | 14 | 17 | 31 | 4 | 31 | 35 | 4 | 27 | 31 | |||
61 | (97) | (36) | 1,385 | 83 | 1,468 | 44 | 68 | 112 | ||||
Charge to income statement | 3,056 | 2,223 | 5,279 | 4,788 | 3,921 | 8,709 | 3,781 | 5,475 | 9,256 |
2011 | 2010 | 2009 | ||||||||||
Core | Non-Core | RFS MI | Total | Core | Non-Core | Total | Core | Non-Core | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||
Loan impairment losses | ||||||||||||
- customers | 3,403 | 3,838 | — | 7,241 | 3,742 | 5,415 | 9,157 | 4,555 | 8,501 | 13,056 | ||
- banks | — | — | — | — | (5) | (8) | (13) | 12 | 22 | 34 | ||
3,403 | 3,838 | — | 7,241 | 3,737 | 5,407 | 9,144 | 4,567 | 8,523 | 13,090 | |||
Impairment losses on securities | ||||||||||||
- debt securities | 1,381 | 50 | 2 | 1,433 | 40 | 41 | 81 | 98 | 503 | 601 | ||
- equity securities | 4 | 31 | — | 35 | 4 | 27 | 31 | 13 | 195 | 208 | ||
1,385 | 81 | 2 | 1,468 | 44 | 68 | 112 | 111 | 698 | 809 | |||
Charge to income statement | 4,788 | 3,919 | 2 | 8,709 | 3,781 | 5,475 | 9,256 | 4,678 | 9,221 | 13,899 |
2012 | 2011 | 2010 | |
£m | £m | £m | |
Potential problem loans | 807 | 739 | 633 |
2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||||
US | UK | Other (1) | Total | US | UK | Other (1) | Total | UK | US | Other (1) | Total | UK | US | Other (1) | Total | UK | US | Other (1) | Total | ||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
Central and local government | 20,848 | 13,436 | 25,552 | 59,836 | 22,244 | 8,377 | 32,865 | 63,486 | 9,774 | 19,046 | 16,155 | 44,975 | 13,436 | 20,848 | 25,552 | 59,836 | 8,377 | 22,244 | 32,865 | 63,486 | |||
Banks | 376 | 1,391 | 11,408 | 13,175 | 704 | 4,297 | 11,981 | 16,982 | 1,085 | 357 | 7,419 | 8,861 | 1,391 | 376 | 11,408 | 13,175 | 4,297 | 704 | 11,981 | 16,982 | |||
Other financial institutions | 17,453 | 3,100 | 11,199 | 31,752 | 15,973 | 1,662 | 11,513 | 29,148 | 2,861 | 10,613 | 10,416 | 23,890 | 3,100 | 17,453 | 11,199 | 31,752 | 1,662 | 15,973 | 11,513 | 29,148 | |||
Corporate | 131 | 1,105 | 1,299 | 2,535 | 65 | 438 | 1,011 | 1,514 | 1,318 | 719 | 1,130 | 3,167 | 1,105 | 131 | 1,299 | 2,535 | 438 | 65 | 1,011 | 1,514 | |||
Total | 38,808 | 19,032 | 49,458 | 107,298 | 38,986 | 14,774 | 57,370 | 111,130 | 15,038 | 30,735 | 35,120 | 80,893 | 19,032 | 38,808 | 49,458 | 107,298 | 14,774 | 38,986 | 57,370 | 111,130 | |||
Of which ABS | 20,256 | 3,659 | 16,820 | 40,735 | 20,872 | 4,002 | 17,641 | 42,515 | 3,558 | 14,209 | 12,976 | 30,743 | 3,659 | 20,256 | 16,820 | 40,735 | 4,002 | 20,872 | 17,641 | 42,515 | |||
AFS reserves (gross) | 486 | 845 | (1,815) | (484) | (304) | 158 | (2,559) | (2,705) | 667 | 763 | (1,277) | 153 | 845 | 486 | (1,815) | (484) | 158 | (304) | (2,559) | (2,705) |
(1) | Includes eurozone countries as detailed |
Less than 12 months | More than 12 months | Total | Less than 12 months | More than 12 months | Total | |||||||||||
Fair value | Gross unrealised losses | Fair value | Gross unrealised losses | Fair value | Gross unrealised losses | Fair value | Gross unrealised losses | Fair value | Gross unrealised losses | Fair value | Gross unrealised losses | |||||
2011 | £m | £m | £m | |||||||||||||
Central and local government - Other | 2,878 | 65 | 778 | 106 | 3,656 | 171 | ||||||||||
2012 | £m | £m | £m | |||||||||||||
Central and local government | ||||||||||||||||
- US | 59 | 1 | — | 59 | 1 | |||||||||||
- other | 1,625 | 2 | 145 | 12 | 1,770 | 14 | ||||||||||
Banks | 3,924 | 49 | 5,676 | 789 | 9,600 | 838 | 398 | 2 | 3,466 | 507 | 3,864 | 509 | ||||
Other financial institutions | 472 | 41 | 6,504 | 2,345 | 6,976 | 2,386 | 248 | 19 | 7,686 | 1,300 | 7,934 | 1,319 | ||||
Corporate | 204 | 11 | 78 | 2 | 282 | 13 | 346 | 4 | 4 | — | 350 | 4 | ||||
Total | 7,478 | 166 | 13,036 | 3,242 | 20,514 | 3,408 | 2,676 | 28 | 11,301 | 1,819 | 13,977 | 1,847 | ||||
Of which ABS | 878 | 54 | 11,908 | 3,104 | 12,786 | 3,158 | 398 | 20 | 10,999 | 1,797 | 11,397 | 1,817 | ||||
2010 | ||||||||||||||||
Central and local government | ||||||||||||||||
- UK | 716 | 10 | — | 716 | 10 | |||||||||||
- US | 74 | 1 | 163 | 1 | 237 | 2 | ||||||||||
- Other | 4,328 | 6 | 1,738 | 612 | 6,066 | 618 | ||||||||||
Banks | 1,655 | 16 | 6,202 | 770 | 7,857 | 786 | ||||||||||
Other financial institutions | 2,993 | 73 | 6,972 | 2,553 | 9,965 | 2,626 | ||||||||||
Corporate | 163 | 32 | 114 | 23 | 277 | 55 | ||||||||||
Total | 9,929 | 138 | 15,189 | 3,959 | 25,118 | 4,097 | ||||||||||
Of which ABS | 2,519 | 101 | 12,867 | 3,296 | 15,386 | 3,397 |
2011 | ||||||||
Central and local government - other | 2,878 | 65 | 778 | 106 | 3,656 | 171 | ||
Banks | 3,924 | 49 | 5,676 | 789 | 9,600 | 838 | ||
Other financial institutions | 472 | 41 | 6,504 | 2,345 | 6,976 | 2,386 | ||
Corporate | 204 | 11 | 78 | 2 | 282 | 13 | ||
Total | 7,478 | 166 | 13,036 | 3,242 | 20,514 | 3,408 | ||
Of which ABS | 878 | 54 | 11,908 | 3,104 | 12,786 | 3,158 |
2010 | ||||||||
Central and local government | ||||||||
- UK | 716 | 10 | — | — | 716 | 10 | ||
- US | 74 | 1 | 163 | 1 | 237 | 2 | ||
- Other | 4,328 | 6 | 1,738 | 612 | 6,066 | 618 | ||
Banks | 1,655 | 16 | 6,202 | 770 | 7,857 | 786 | ||
Other financial institutions | 2,993 | 73 | 6,972 | 2,553 | 9,965 | 2,626 | ||
Corporate | 163 | 32 | 114 | 23 | 277 | 55 | ||
Total | 9,929 | 138 | 15,189 | 3,959 | 25,118 | 4,097 | ||
Of which ABS | 2,519 | 101 | 12,867 | 3,296 | 15,386 | 3,397 |
Market risk | |
202 | Introduction |
202 | Governance |
202 | Risk measurement |
202 | Key principles |
203 | Risk appetite |
203 | Risk models |
205 | Stress testing |
205 | Pricing models |
206 | Market risk analyses |
206 | Trading revenues |
207 | Daily VaR graph |
207 | Trading book |
208 | VaR non-trading portfolios |
208 | VaR |
209 | Structured credit portfolio |
209 | Market risk capital |
209 | Minimum capital requirements |
210 | IRC by rating and product category |
210 | Securitisation positions in the trading book |
Lending | |||||||||||||||||||||
Central and local government | Central banks | Other banks | Other financial institutions | Corporate | Personal | Total lending | Of which Non-Core | Debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Contingent liabilities and commitments | Total | CDS notional less fair value | ||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||
Eurozone | |||||||||||||||||||||
Ireland | 45 | 1,467 | 136 | 336 | 18,994 | 18,858 | 39,836 | 10,156 | 886 | 2,824 | 43,546 | 2,928 | 46,474 | 53 | |||||||
Spain | 9 | 3 | 206 | 154 | 5,775 | 362 | 6,509 | 3,735 | 6,155 | 2,393 | 15,057 | 2,630 | 17,687 | (1,013) | |||||||
Italy | — | 73 | 233 | 299 | 2,444 | 23 | 3,072 | 1,155 | 1,258 | 2,314 | 6,644 | 3,150 | 9,794 | (452) | |||||||
Greece | 7 | 6 | — | 31 | 427 | 14 | 485 | 94 | 409 | 355 | 1,249 | 52 | 1,301 | 1 | |||||||
Portugal | — | — | 10 | — | 495 | 5 | 510 | 341 | 113 | 519 | 1,142 | 268 | 1,410 | 55 | |||||||
Germany | — | 18,068 | 653 | 305 | 6,608 | 155 | 25,789 | 5,402 | 15,767 | 16,037 | 57,593 | 7,527 | 65,120 | (2,401) | |||||||
Netherlands | 2,567 | 7,654 | 623 | 1,575 | 4,827 | 20 | 17,266 | 2,498 | 9,893 | 10,285 | 37,444 | 10,216 | 47,660 | (1,295) | |||||||
France | 481 | 3 | 1,273 | 437 | 3,761 | 79 | 6,034 | 2,317 | 7,794 | 9,058 | 22,886 | 10,217 | 33,103 | (2,846) | |||||||
Luxembourg | — | — | 101 | 1,779 | 2,228 | 2 | 4,110 | 1,497 | 130 | 3,689 | 7,929 | 2,007 | 9,936 | (404) | |||||||
Belgium | 213 | 8 | 287 | 354 | 588 | 20 | 1,470 | 480 | 652 | 3,010 | 5,132 | 1,359 | 6,491 | (99) | |||||||
Other | 121 | — | 28 | 115 | 1,375 | 26 | 1,665 | 324 | 710 | 1,971 | 4,346 | 1,365 | 5,711 | (25) | |||||||
Total | 3,443 | 27,282 | 3,550 | 5,385 | 47,522 | 19,564 | 106,746 | 27,999 | 43,767 | 52,455 | 202,968 | 41,719 | 244,687 | (8,426) | |||||||
Other countries | |||||||||||||||||||||
India | — | 275 | 610 | 35 | 2,949 | 127 | 3,996 | 350 | 1,530 | 218 | 5,744 | 1,280 | 7,024 | (105) | |||||||
China | 74 | 178 | 1,237 | 17 | 654 | 30 | 2,190 | 50 | 597 | 413 | 3,200 | 1,559 | 4,759 | (62) | |||||||
South Korea | — | 5 | 812 | 3 | 576 | 1 | 1,397 | 3 | 845 | 404 | 2,646 | 627 | 3,273 | (22) | |||||||
Turkey | 215 | 193 | 253 | 66 | 1,072 | 16 | 1,815 | 423 | 361 | 94 | 2,270 | 437 | 2,707 | 10 | |||||||
Russia | — | 36 | 970 | 8 | 659 | 62 | 1,735 | 76 | 186 | 66 | 1,987 | 356 | 2,343 | (343) | |||||||
Brazil | — | — | 936 | — | 227 | 4 | 1,167 | 70 | 790 | 24 | 1,981 | 319 | 2,300 | (377) | |||||||
Romania | 66 | 145 | 30 | 8 | 413 | 392 | 1,054 | 1,054 | 220 | 6 | 1,280 | 160 | 1,440 | 8 | |||||||
Mexico | — | 7 | 233 | — | 683 | 1 | 924 | 39 | 83 | 131 | 1,138 | 353 | 1,491 | 10 | |||||||
Poland | 35 | 208 | 3 | 9 | 624 | 6 | 885 | 45 | 116 | 56 | 1,057 | 701 | 1,758 | (99) |
Lending | |||||||||||||||||||||
Central and local government | Central banks | Other banks | Other financial institutions | Corporate | Personal | Total lending | Of which Non-Core | Debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Contingent liabilities and commitments | Total | CDS notional less fair value | ||||||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||
Eurozone | |||||||||||||||||||||
Ireland | 61 | 2,119 | 87 | 813 | 19,886 | 20,228 | 43,194 | 10,758 | 1,323 | 2,940 | 47,457 | 4,316 | 51,773 | (32) | |||||||
Spain | 19 | 5 | 166 | 92 | 6,991 | 407 | 7,680 | 4,538 | 7,107 | 2,047 | 16,834 | 3,061 | 19,895 | (964) | |||||||
Italy | 45 | 78 | 668 | 418 | 2,483 | 27 | 3,719 | 1,901 | 3,836 | 2,032 | 9,587 | 3,853 | 13,440 | (838) | |||||||
Greece | 14 | 36 | 18 | 31 | 191 | 16 | 306 | 130 | 974 | 227 | 1,507 | 164 | 1,671 | 182 | |||||||
Portugal | 86 | — | 63 | — | 611 | 6 | 766 | 316 | 242 | 394 | 1,402 | 734 | 2,136 | 41 | |||||||
Germany | — | 10,894 | 1,060 | 422 | 7,519 | 162 | 20,057 | 6,471 | 14,747 | 15,266 | 50,070 | 8,917 | 58,987 | (1,551) | |||||||
Netherlands | 914 | 6,484 | 554 | 1,801 | 6,170 | 81 | 16,004 | 3,205 | 12,523 | 9,058 | 37,585 | 18,141 | 55,726 | (1,530) | |||||||
France | 511 | 3 | 1,095 | 470 | 4,376 | 102 | 6,557 | 2,787 | 14,041 | 8,607 | 29,205 | 11,640 | 40,845 | (1,925) | |||||||
Luxembourg | — | 25 | 26 | 734 | 2,503 | 3 | 3,291 | 1,517 | 378 | 2,545 | 6,214 | 2,383 | 8,597 | (532) | |||||||
Belgium | 102 | 14 | 441 | 32 | 893 | 327 | 1,809 | 501 | 803 | 2,238 | 4,850 | 1,492 | 6,342 | 57 | |||||||
Other | 124 | 1 | 142 | 119 | 1,505 | 24 | 1,915 | 332 | 535 | 1,370 | 3,820 | 2,037 | 5,857 | (82) | |||||||
Total | 1,876 | 19,659 | 4,320 | 4,932 | 53,128 | 21,383 | 105,298 | 32,456 | 56,509 | 46,724 | 208,531 | 56,738 | 265,269 | (7,174) | |||||||
Other countries | |||||||||||||||||||||
India | — | — | 1,307 | 307 | 2,665 | 273 | 4,552 | 653 | 1,686 | 178 | 6,416 | 1,281 | 7,697 | (195) | |||||||
China | 17 | 298 | 1,223 | 16 | 753 | 64 | 2,371 | 236 | 573 | 252 | 3,196 | 1,589 | 4,785 | (117) | |||||||
South Korea | — | 276 | 1,033 | 5 | 558 | 2 | 1,874 | 53 | 1,353 | 493 | 3,720 | 1,143 | 4,863 | (159) | |||||||
Turkey | 282 | 68 | 448 | 37 | 1,386 | 12 | 2,233 | 692 | 550 | 111 | 2,894 | 686 | 3,580 | (91) | |||||||
Russia | — | 110 | 244 | 7 | 1,181 | 58 | 1,600 | 125 | 124 | 51 | 1,775 | 596 | 2,371 | (134) | |||||||
Brazil | — | — | 825 | — | 315 | 5 | 1,145 | 120 | 687 | 15 | 1,847 | 190 | 2,037 | (369) | |||||||
Romania | 36 | 178 | 21 | 21 | 426 | 446 | 1,128 | 1,123 | 310 | 8 | 1,446 | 319 | 1,765 | 23 | |||||||
Mexico | — | 8 | 149 | — | 999 | 1 | 1,157 | 303 | 144 | 122 | 1,423 | 840 | 2,263 | 84 | |||||||
Poland | — | 168 | 7 | 7 | 655 | 6 | 843 | 108 | 271 | 69 | 1,183 | 1,020 | 2,203 | (94) |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 3,443 | — | — | 18,406 | 81 | 19,597 | 15,049 | 22,954 | 1,925 | 28,322 | 37,080 | 36,759 | 6,488 | (6,376) | ||||||
Central banks | 27,282 | — | — | 20 | — | 6 | — | 26 | 5,770 | 33,078 | — | — | — | — | ||||||
Other banks | 3,550 | — | — | 8,423 | (752) | 1,272 | 1,502 | 8,193 | 29,685 | 41,428 | 19,736 | 19,232 | 2,303 | (2,225) | ||||||
Other financial institutions | 5,385 | — | — | 10,494 | (1,129) | 1,138 | 471 | 11,161 | 10,956 | 27,502 | 17,949 | 16,608 | 693 | (620) | ||||||
Corporate | 47,522 | 14,152 | 7,267 | 964 | 23 | 528 | 59 | 1,433 | 4,118 | 53,073 | 76,966 | 70,119 | 2,241 | (1,917) | ||||||
Personal | 19,564 | 2,280 | 1,069 | — | — | — | — | — | 1 | 19,565 | — | — | — | — | ||||||
106,746 | 16,432 | 8,336 | 38,307 | (1,777) | 22,541 | 17,081 | 43,767 | 52,455 | 202,968 | 151,731 | 142,718 | 11,725 | (11,138) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 1,876 | — | — | 23,201 | (893) | 25,041 | 14,256 | 33,986 | 1,537 | 37,399 | 28,825 | 29,075 | 2,899 | (2,843) | ||||||
Central banks | 19,659 | — | — | — | — | 7 | — | 7 | 6,382 | 26,048 | — | — | — | — | ||||||
Other banks | 4,320 | — | — | 9,192 | (916) | 1,719 | 1,187 | 9,724 | 25,639 | 39,683 | 16,616 | 16,256 | 1,042 | (1,032) | ||||||
Other financial institutions | 4,932 | — | — | 10,583 | (737) | 908 | 83 | 11,408 | 9,025 | 25,365 | 12,921 | 12,170 | 173 | (182) | ||||||
Corporate | 53,128 | 12,404 | 5,393 | 813 | 45 | 831 | 260 | 1,384 | 4,141 | 58,653 | 70,354 | 63,790 | (267) | 461 | ||||||
Personal | 21,383 | 1,642 | 537 | — | — | — | — | — | — | 21,383 | — | — | — | — | ||||||
105,298 | 14,046 | 5,930 | 43,789 | (2,501) | 28,506 | 15,786 | 56,509 | 46,724 | 208,531 | 128,716 | 121,291 | 3,847 | (3,596) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 67,624 | 5,585 | 1,085 | 131 | 198 | 23 | — | — | 68,907 | 5,739 | ||||
Other financial institutions | 79,824 | 5,605 | 759 | 89 | 2,094 | 278 | 147 | 14 | 82,824 | 5,986 | ||||
Total | 147,448 | 11,190 | 1,844 | 220 | 2,292 | 301 | 147 | 14 | 151,731 | 11,725 |
AFS and LAR debt securities | AFS reserves | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | |||||||||||||||
Total debt securities | Notional | Fair value | ||||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 45 | — | — | 102 | (46) | 20 | 19 | 103 | 92 | 240 | 2,145 | 2,223 | 466 | (481) | ||||||
Central banks | 1,467 | — | — | — | — | — | — | — | — | 1,467 | — | — | — | — | ||||||
Other banks | 136 | — | — | 177 | (39) | 195 | 14 | 358 | 1,459 | 1,953 | 110 | 107 | 21 | (21) | ||||||
Other financial institutions | 336 | — | — | 61 | — | 116 | 35 | 142 | 855 | 1,333 | 523 | 630 | 64 | (74) | ||||||
Corporate | 18,994 | 10,269 | 5,689 | 148 | 3 | 135 | — | 283 | 417 | 19,694 | 425 | 322 | (11) | 10 | ||||||
Personal | 18,858 | 2,258 | 1,048 | — | — | — | — | — | 1 | 18,859 | — | — | — | — | ||||||
39,836 | 12,527 | 6,737 | 488 | (82) | 466 | 68 | 886 | 2,824 | 43,546 | 3,203 | 3,282 | 540 | (566) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 61 | — | — | 104 | (45) | 93 | 88 | 109 | 20 | 190 | 1,872 | 2,014 | 360 | (387) | ||||||
Central banks | 2,119 | — | — | — | — | 7 | — | 7 | 126 | 2,252 | — | — | — | — | ||||||
Other banks | 87 | — | — | 435 | (51) | 96 | 45 | 486 | 1,523 | 2,096 | 317 | 312 | 103 | (95) | ||||||
Other financial institutions | 813 | — | — | 291 | (1) | 205 | — | 496 | 837 | 2,146 | 566 | 597 | 45 | (84) | ||||||
Corporate | 19,886 | 8,291 | 4,072 | 91 | (2) | 140 | 6 | 225 | 434 | 20,545 | 483 | 344 | (20) | 17 | ||||||
Personal | 20,228 | 1,638 | 534 | — | — | — | — | — | — | 20,228 | — | — | — | — | ||||||
43,194 | 9,929 | 4,606 | 921 | (99) | 541 | 139 | 1,323 | 2,940 | 47,457 | 3,238 | 3,267 | 488 | (549) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 1,586 | 300 | 2 | — | — | — | — | — | 1,588 | 300 | ||||
Other financial institutions | 1,325 | 232 | 161 | 1 | 129 | 7 | — | — | 1,615 | 240 | ||||
Total | 2,911 | 532 | 163 | 1 | 129 | 7 | — | — | 3,203 | 540 |
HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | |||||||||||||||||
AFS and LAR debt securities | AFS reserves | Total debt securities | Notional | Fair value | ||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 9 | — | — | 33 | (15) | 360 | 751 | (358) | 35 | (314) | 5,151 | 5,155 | 538 | (522) | ||||||
Central banks | 3 | — | — | — | — | — | — | — | — | 3 | — | — | — | — | ||||||
Other banks | 206 | — | — | 4,892 | (867) | 162 | 214 | 4,840 | 1,622 | 6,668 | 1,965 | 1,937 | 154 | (152) | ||||||
Other financial institutions | 154 | — | — | 1,580 | (639) | 65 | 8 | 1,637 | 282 | 2,073 | 2,417 | 2,204 | 157 | (128) | ||||||
Corporate | 5,775 | 1,190 | 442 | 9 | — | 27 | — | 36 | 454 | 6,265 | 4,831 | 3,959 | 448 | (399) | ||||||
Personal | 362 | — | — | — | — | — | — | — | — | 362 | — | — | — | — | ||||||
6,509 | 1,190 | 442 | 6,514 | (1,521) | 614 | 973 | 6,155 | 2,393 | 15,057 | 14,364 | 13,255 | 1,297 | (1,201) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 19 | — | — | 88 | (7) | 1,172 | 1,248 | 12 | 53 | 84 | 3,820 | 3,923 | 436 | (435) | ||||||
Central banks | 5 | — | — | — | — | — | — | — | — | 5 | — | — | — | — | ||||||
Other banks | 166 | — | — | 5,264 | (834) | 147 | 118 | 5,293 | 1,482 | 6,941 | 2,087 | 2,159 | 133 | (135) | ||||||
Other financial institutions | 92 | — | — | 1,724 | (474) | 34 | 7 | 1,751 | 22 | 1,865 | 1,648 | 1,388 | 72 | (45) | ||||||
Corporate | 6,991 | 1,871 | 572 | 9 | 38 | 50 | 8 | 51 | 490 | 7,532 | 5,192 | 4,224 | 231 | (168) | ||||||
Personal | 407 | 1 | — | — | — | — | — | — | — | 407 | — | — | — | — | ||||||
7,680 | 1,872 | 572 | 7,085 | (1,277) | 1,403 | 1,381 | 7,107 | 2,047 | 16,834 | 12,747 | 11,694 | 872 | (783) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 6,595 | 499 | 68 | 5 | 32 | 4 | — | — | 6,695 | 508 | ||||
Other financial institutions | 7,238 | 736 | 162 | 3 | 269 | 50 | — | — | 7,669 | 789 | ||||
Total | 13,833 | 1,235 | 230 | 8 | 301 | 54 | — | — | 14,364 | 1,297 |
AFS and LAR debt securities | AFS reserves | HFT debt securities | Total debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||
Notional | Fair value | |||||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | — | — | — | 704 | (220) | 4,336 | 4,725 | 315 | 90 | 405 | 12,125 | 12,218 | 1,750 | (1,708) | ||||||
Central banks | 73 | — | — | — | — | — | — | — | — | 73 | — | — | — | — | ||||||
Other banks | 233 | — | — | 119 | (14) | 67 | 88 | 98 | 1,064 | 1,395 | 6,078 | 5,938 | 1,215 | (1,187) | ||||||
Other financial institutions | 299 | — | — | 685 | (15) | 40 | 13 | 712 | 686 | 1,697 | 872 | 762 | 60 | (51) | ||||||
Corporate | 2,444 | 361 | 113 | 75 | — | 58 | — | 133 | 474 | 3,051 | 4,742 | 4,299 | 350 | (281) | ||||||
Personal | 23 | — | — | — | — | — | — | — | — | 23 | — | — | — | — | ||||||
3,072 | 361 | 113 | 1,583 | (249) | 4,501 | 4,826 | 1,258 | 2,314 | 6,644 | 23,817 | 23,217 | 3,375 | (3,227) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 45 | — | — | 906 | (99) | 5,113 | 3,175 | 2,844 | 71 | 2,960 | 8,998 | 8,519 | 641 | (552) | ||||||
Central banks | 78 | — | — | — | — | — | — | — | — | 78 | — | — | — | — | ||||||
Other banks | 668 | — | — | 198 | (11) | 67 | 16 | 249 | 782 | 1,699 | 4,417 | 4,458 | 421 | (414) | ||||||
Other financial institutions | 418 | — | — | 646 | (5) | 49 | — | 695 | 759 | 1,872 | 723 | 697 | 21 | (13) | ||||||
Corporate | 2,483 | 314 | 141 | 20 | — | 36 | 8 | 48 | 420 | 2,951 | 4,506 | 3,966 | 150 | (88) | ||||||
Personal | 27 | — | — | — | — | — | — | — | — | 27 | — | — | — | — | ||||||
3,719 | 314 | 141 | 1,770 | (115) | 5,265 | 3,199 | 3,836 | 2,032 | 9,587 | 18,644 | 17,640 | 1,233 | (1,067) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 12,904 | 1,676 | 487 | 94 | 61 | 10 | — | — | 13,452 | 1,780 | ||||
Other financial institutions | 10,138 | 1,550 | 8 | 2 | 219 | 43 | — | — | 10,365 | 1,595 | ||||
Total | 23,042 | 3,226 | 495 | 96 | 280 | 53 | — | — | 23,817 | 3,375 |
Lending | REIL | Provisions | AFS and LAR debt securities | AFS reserves | Total debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||
HFT debt securities | Notional | Fair value | ||||||||||||||||||
Long | Short | Bought | Sold | Bought | Sold | |||||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 7 | — | — | 312 | — | 102 | 5 | 409 | — | 416 | 3,158 | 3,165 | 2,228 | (2,230) | ||||||
Central banks | 6 | — | — | — | — | — | — | — | — | 6 | — | — | — | — | ||||||
Other banks | — | — | — | — | — | — | — | — | 290 | 290 | 22 | 22 | 3 | (3) | ||||||
Other financial institutions | 31 | — | — | — | — | — | — | — | 2 | 33 | 34 | 34 | 8 | (8) | ||||||
Corporate | 427 | 256 | 256 | — | — | — | — | — | 63 | 490 | 434 | 428 | 144 | (142) | ||||||
Personal | 14 | — | — | — | — | — | — | — | — | 14 | — | — | — | — | ||||||
485 | 256 | 256 | 312 | — | 102 | 5 | 409 | 355 | 1,249 | 3,648 | 3,649 | 2,383 | (2,383) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 14 | — | — | 895 | (694) | 118 | 39 | 974 | 7 | 995 | 2,960 | 3,061 | 854 | (871) | ||||||
Central banks | 36 | — | — | — | — | — | — | — | — | 36 | — | — | — | — | ||||||
Other banks | 18 | — | — | — | — | — | — | — | 167 | 185 | 21 | 19 | 3 | (3) | ||||||
Other financial institutions | 31 | — | — | — | — | — | — | — | 3 | 34 | 35 | 35 | 11 | (11) | ||||||
Corporate | 191 | 48 | 48 | — | — | — | — | — | 50 | 241 | 511 | 616 | 44 | (49) | ||||||
Personal | 16 | — | — | — | — | — | — | — | — | 16 | — | — | — | — | ||||||
306 | 48 | 48 | 895 | (694) | 118 | 39 | 974 | 227 | 1,507 | 3,527 | 3,731 | 912 | (934) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 2,001 | 1,345 | 1 | 1 | — | — | — | — | 2,002 | 1,346 | ||||
Other financial institutions | 1,507 | 945 | 63 | 45 | 76 | 47 | — | — | 1,646 | 1,037 | ||||
Total | 3,508 | 2,290 | 64 | 46 | 76 | 47 | — | — | 3,648 | 2,383 |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | — | — | — | 56 | (58) | 36 | 152 | (60) | 19 | (41) | 3,304 | 3,413 | 997 | (985) | ||||||
Other banks | 10 | — | — | 91 | (36) | 12 | 2 | 101 | 389 | 500 | 1,197 | 1,155 | 264 | (260) | ||||||
Other financial institutions | — | — | — | 5 | — | 7 | — | 12 | 30 | 42 | 8 | 5 | 1 | (1) | ||||||
Corporate | 495 | 27 | 27 | 42 | — | 18 | — | 60 | 81 | 636 | 366 | 321 | 68 | (48) | ||||||
Personal | 5 | — | — | — | — | — | — | — | — | 5 | — | — | — | — | ||||||
510 | 27 | 27 | 194 | (94) | 73 | 154 | 113 | 519 | 1,142 | 4,875 | 4,894 | 1,330 | (1,294) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 86 | — | — | 92 | (26) | 68 | 122 | 38 | 29 | 153 | 2,844 | 2,923 | 471 | (460) | ||||||
Other banks | 63 | — | — | 106 | (24) | 46 | 2 | 150 | 307 | 520 | 1,085 | 1,107 | 231 | (243) | ||||||
Other financial institutions | — | — | — | 47 | — | 7 | — | 54 | 7 | 61 | 9 | 6 | (1) | — | ||||||
Corporate | 611 | 27 | 21 | — | 1 | — | — | — | 51 | 662 | 581 | 507 | 48 | (29) | ||||||
Personal | 6 | — | — | — | — | — | — | — | — | 6 | — | — | — | — | ||||||
766 | 27 | 21 | 245 | (49) | 121 | 124 | 242 | 394 | 1,402 | 4,519 | 4,543 | 749 | (732) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 2,922 | 786 | 46 | 12 | — | — | — | — | 2,968 | 798 | ||||
Other financial institutions | 1,874 | 517 | — | — | 33 | 15 | — | — | 1,907 | 532 | ||||
Total | 4,796 | 1,303 | 46 | 12 | 33 | 15 | — | — | 4,875 | 1,330 |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | — | — | — | 12,035 | 523 | 4,136 | 2,084 | 14,087 | 423 | 14,510 | 2,631 | 2,640 | 76 | (67) | ||||||
Central banks | 18,068 | — | — | — | — | — | — | — | 5,704 | 23,772 | — | — | — | — | ||||||
Other banks | 653 | — | — | 1,376 | 5 | 294 | 761 | 909 | 6,003 | 7,565 | 4,765 | 4,694 | 307 | (310) | ||||||
Other financial institutions | 305 | — | — | 563 | (33) | 187 | 95 | 655 | 3,321 | 4,281 | 3,653 | 3,403 | 7 | (2) | ||||||
Corporate | 6,608 | 191 | 80 | 109 | 9 | 14 | 7 | 116 | 586 | 7,310 | 20,433 | 18,311 | 148 | (126) | ||||||
Personal | 155 | 19 | 19 | — | — | — | — | — | — | 155 | — | — | — | — | ||||||
25,789 | 210 | 99 | 14,083 | 504 | 4,631 | 2,947 | 15,767 | 16,037 | 57,593 | 31,482 | 29,048 | 538 | (505) | |||||||
2010 | ||||||||||||||||||||
Central and local government | — | — | — | 10,648 | 1 | 5,964 | 4,124 | 12,488 | 160 | 12,648 | 2,056 | 2,173 | 25 | (19) | ||||||
Central banks | 10,894 | — | — | — | — | — | — | — | 6,233 | 17,127 | — | — | — | — | ||||||
Other banks | 1,060 | — | — | 1,291 | 3 | 567 | 481 | 1,377 | 6,289 | 8,726 | 3,848 | 3,933 | 73 | (88) | ||||||
Other financial institutions | 422 | — | — | 494 | (47) | 195 | 17 | 672 | 1,951 | 3,045 | 2,712 | 2,633 | (18) | 18 | ||||||
Corporate | 7,519 | 163 | 44 | 219 | 4 | 44 | 53 | 210 | 633 | 8,362 | 20,731 | 19,076 | (382) | 372 | ||||||
Personal | 162 | — | — | — | — | — | — | — | — | 162 | — | — | — | — | ||||||
20,057 | 163 | 44 | 12,652 | (39) | 6,770 | 4,675 | 14,747 | 15,266 | 50,070 | 29,347 | 27,815 | (302) | 283 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 14,644 | 171 | 163 | 4 | 8 | — | — | — | 14,815 | 175 | ||||
Other financial institutions | 16,315 | 357 | 18 | — | 334 | 6 | — | — | 16,667 | 363 | ||||
Total | 30,959 | 528 | 181 | 4 | 342 | 6 | — | — | 31,482 | 538 |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 2,567 | — | — | 1,447 | 74 | 849 | 591 | 1,705 | 41 | 4,313 | 1,206 | 1,189 | 31 | (31) | ||||||
Central banks | 7,654 | — | — | — | — | 6 | — | 6 | 7 | 7,667 | — | — | — | — | ||||||
Other banks | 623 | — | — | 802 | 217 | 365 | 278 | 889 | 7,574 | 9,086 | 965 | 995 | 41 | (42) | ||||||
Other financial institutions | 1,575 | — | — | 6,804 | (386) | 290 | 108 | 6,986 | 1,914 | 10,475 | 5,772 | 5,541 | 142 | (131) | ||||||
Corporate | 4,827 | 621 | 209 | 199 | 6 | 113 | 5 | 307 | 749 | 5,883 | 15,416 | 14,238 | 257 | (166) | ||||||
Personal | 20 | 3 | 2 | — | — | — | — | — | — | 20 | — | — | — | — | ||||||
17,266 | 624 | 211 | 9,252 | (89) | 1,623 | 982 | 9,893 | 10,285 | 37,444 | 23,359 | 21,963 | 471 | (370) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 914 | — | — | 3,469 | 16 | 1,426 | 607 | 4,288 | 46 | 5,248 | 1,195 | 999 | (2) | (4) | ||||||
Central banks | 6,484 | — | — | — | — | — | — | — | — | 6,484 | — | — | — | — | ||||||
Other banks | 554 | — | — | 984 | 2 | 223 | 275 | 932 | 5,021 | 6,507 | 784 | 789 | 12 | (10) | ||||||
Other financial institutions | 1,801 | — | — | 6,612 | (185) | 344 | 12 | 6,944 | 3,116 | 11,861 | 4,210 | 3,985 | 48 | (46) | ||||||
Corporate | 6,170 | 388 | 149 | 264 | 3 | 152 | 57 | 359 | 875 | 7,404 | 12,330 | 11,113 | (72) | 177 | ||||||
Personal | 81 | 3 | 3 | — | — | — | — | — | — | 81 | — | — | — | — | ||||||
16,004 | 391 | 152 | 11,329 | (164) | 2,145 | 951 | 12,523 | 9,058 | 37,585 | 18,519 | 16,886 | (14) | 117 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 7,605 | 107 | 88 | 1 | 6 | — | — | — | 7,699 | 108 | ||||
Other financial institutions | 14,529 | 231 | 308 | 37 | 676 | 81 | 147 | 14 | 15,660 | 363 | ||||
Total | 22,134 | 338 | 396 | 38 | 682 | 81 | 147 | 14 | 23,359 | 471 |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 481 | — | — | 2,648 | (14) | 8,705 | 5,669 | 5,684 | 357 | 6,522 | 3,467 | 2,901 | 228 | (195) | ||||||
Central banks | 3 | — | — | 20 | — | — | — | 20 | 12 | 35 | — | — | — | — | ||||||
Other banks | 1,273 | — | — | 889 | (17) | 157 | 75 | 971 | 7,271 | 9,515 | 4,232 | 3,995 | 282 | (236) | ||||||
Other financial institutions | 437 | — | — | 642 | (40) | 325 | 126 | 841 | 675 | 1,953 | 2,590 | 2,053 | 136 | (117) | ||||||
Corporate | 3,761 | 128 | 74 | 240 | 9 | 72 | 34 | 278 | 743 | 4,782 | 23,224 | 21,589 | 609 | (578) | ||||||
Personal | 79 | — | — | — | — | — | — | — | — | 79 | — | — | — | — | ||||||
6,034 | 128 | 74 | 4,439 | (62) | 9,259 | 5,904 | 7,794 | 9,058 | 22,886 | 33,513 | 30,538 | 1,255 | (1,126) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 511 | — | — | 5,912 | 40 | 10,266 | 3,968 | 12,210 | 362 | 13,083 | 2,225 | 2,287 | 87 | (92) | ||||||
Central banks | 3 | — | — | — | — | — | — | — | 15 | 18 | — | — | — | — | ||||||
Other banks | 1,095 | — | — | 774 | — | 410 | 204 | 980 | 7,183 | 9,258 | 3,631 | 3,071 | 63 | (43) | ||||||
Other financial institutions | 470 | — | — | 666 | (22) | 42 | 23 | 685 | 375 | 1,530 | 1,722 | 1,609 | — | (2) | ||||||
Corporate | 4,376 | 230 | 46 | 71 | 1 | 185 | 90 | 166 | 672 | 5,214 | 19,771 | 18,466 | (181) | 159 | ||||||
Personal | 102 | — | — | — | — | — | — | — | — | 102 | — | — | — | — | ||||||
6,557 | 230 | 46 | 7,423 | 19 | 10,903 | 4,285 | 14,041 | 8,607 | 29,205 | 27,349 | 25,433 | (31) | 22 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 13,353 | 453 | 162 | 13 | 79 | 8 | — | — | 13,594 | 474 | ||||
Other financial institutions | 19,641 | 758 | 24 | 1 | 254 | 22 | — | — | 19,919 | 781 | ||||
Total | 32,994 | 1,211 | 186 | 14 | 333 | 30 | — | — | 33,513 | 1,255 |
AFS and LAR debt securities | HFT debt securities | Derivatives (gross of collateral) and repos | Balance sheet exposures | Credit default protection (reference entity) | ||||||||||||||||
AFS reserves | Total debt securities | Notional | Fair value | |||||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Other banks | 101 | — | — | 10 | — | 7 | — | 17 | 546 | 664 | — | — | — | — | ||||||
Other financial institutions | 1,779 | — | — | 54 | (7) | 82 | 80 | 56 | 2,963 | 4,798 | 2,080 | 1,976 | 118 | (108) | ||||||
Corporate | 2,228 | 897 | 301 | 5 | — | 58 | 6 | 57 | 180 | 2,465 | 2,478 | 2,138 | 146 | (116) | ||||||
Personal | 2 | — | — | — | — | — | — | — | — | 2 | — | — | — | — | ||||||
4,110 | 897 | 301 | 69 | (7) | 147 | 86 | 130 | 3,689 | 7,929 | 4,558 | 4,114 | 264 | (224) | |||||||
2010 | ||||||||||||||||||||
Central and local government | — | — | — | — | — | 24 | — | 24 | — | 24 | — | — | — | — | ||||||
Central banks | 25 | — | — | — | — | — | — | — | — | 25 | — | — | — | — | ||||||
Other banks | 26 | — | — | 30 | (1) | 45 | — | 75 | 499 | 600 | — | — | — | — | ||||||
Other financial institutions | 734 | — | — | 99 | (3) | 32 | 19 | 112 | 1,800 | 2,646 | 1,296 | 1,220 | (5) | 1 | ||||||
Corporate | 2,503 | 807 | 206 | 5 | 1 | 183 | 21 | 167 | 246 | 2,916 | 2,367 | 1,918 | (16) | 13 | ||||||
Personal | 3 | — | — | — | — | — | — | — | — | 3 | — | — | — | — | ||||||
3,291 | 807 | 206 | 134 | (3) | 284 | 40 | 378 | 2,545 | 6,214 | 3,663 | 3,138 | (21) | 14 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 1,535 | 93 | 16 | — | — | — | — | — | 1,551 | 93 | ||||
Other financial institutions | 2,927 | 164 | 10 | — | 70 | 7 | — | — | 3,007 | 171 | ||||
Total | 4,462 | 257 | 26 | — | 70 | 7 | — | — | 4,558 | 264 |
HFT debt securities | Derivatives (gross of collateral) and repos | Credit default protection (reference entity) | ||||||||||||||||||
AFS and LAR debt securities | AFS reserves | Total debt securities | Balance sheet exposures | Notional | Fair value | |||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 213 | — | — | 742 | (116) | 608 | 722 | 628 | 89 | 930 | 1,612 | 1,505 | 120 | (110) | ||||||
Central banks | 8 | — | — | — | — | — | — | — | 3 | 11 | — | — | — | — | ||||||
Other banks | 287 | — | — | 4 | — | — | — | 4 | 2,450 | 2,741 | 312 | 302 | 14 | (13) | ||||||
Other financial institutions | 354 | — | — | — | — | 1 | 4 | (3) | 191 | 542 | — | — | — | — | ||||||
Corporate | 588 | 31 | 21 | 3 | — | 20 | — | 23 | 277 | 888 | 563 | 570 | 12 | (12) | ||||||
Personal | 20 | — | — | — | — | — | — | — | — | 20 | — | — | — | — | ||||||
1,470 | 31 | 21 | 749 | (116) | 629 | 726 | 652 | 3,010 | 5,132 | 2,487 | 2,377 | 146 | (135) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 102 | — | — | 763 | (54) | 529 | 602 | 690 | 92 | 884 | 880 | 986 | 53 | (57) | ||||||
Central banks | 14 | — | — | — | — | — | — | — | 7 | 21 | — | — | — | — | ||||||
Other banks | 441 | — | — | 39 | 1 | 66 | 2 | 103 | 1,822 | 2,366 | 278 | 266 | 2 | (1) | ||||||
Other financial institutions | 32 | — | — | — | — | — | — | — | 126 | 158 | — | — | — | — | ||||||
Corporate | 893 | 27 | 27 | 1 | — | 11 | 2 | 10 | 191 | 1,094 | 628 | 594 | (6) | 6 | ||||||
Personal | 327 | — | — | — | — | — | — | — | — | 327 | — | — | — | — | ||||||
1,809 | 27 | 27 | 803 | (53) | 606 | 606 | 803 | 2,238 | 4,850 | 1,786 | 1,846 | 49 | (52) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 1,602 | 97 | 2 | — | 12 | 1 | — | — | 1,616 | 98 | ||||
Other financial institutions | 866 | 48 | 1 | — | 4 | — | — | — | 871 | 48 | ||||
Total | 2,468 | 145 | 3 | — | 16 | 1 | — | — | 2,487 | 146 |
HFT debt securities | Derivatives (gross of collateral) and repos | Credit default protection (reference entity) | ||||||||||||||||||
AFS and LAR debt securities | AFS reserves | Total debt securities | Balance sheet exposures | Notional | Fair value | |||||||||||||||
Lending | REIL | Provisions | Long | Short | Bought | Sold | Bought | Sold | ||||||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Central and local government | 121 | — | — | 327 | (47) | 445 | 331 | 441 | 779 | 1,341 | 2,281 | 2,350 | 54 | (47) | ||||||
Central banks | — | — | — | — | — | — | — | — | 44 | 44 | — | — | — | — | ||||||
Other banks | 28 | — | — | 63 | (1) | 13 | 70 | 6 | 1,017 | 1,051 | 90 | 87 | 2 | (1) | ||||||
Other financial institutions | 115 | — | — | 100 | (9) | 25 | 2 | 123 | 37 | 275 | — | — | — | — | ||||||
Corporate | 1,375 | 181 | 55 | 134 | (4) | 13 | 7 | 140 | 94 | 1,609 | 4,054 | 3,944 | 70 | (59) | ||||||
Personal | 26 | — | — | — | — | — | — | — | — | 26 | — | — | — | — | ||||||
1,665 | 181 | 55 | 624 | (61) | 496 | 410 | 710 | 1,971 | 4,346 | 6,425 | 6,381 | 126 | (107) | |||||||
2010 | ||||||||||||||||||||
Central and local government | 124 | — | — | 324 | (25) | 268 | 283 | 309 | 697 | 1,130 | 1,975 | 2,190 | (26) | 34 | ||||||
Central banks | 1 | — | — | — | — | — | — | — | 1 | 2 | — | — | — | — | ||||||
Other banks | 142 | — | — | 71 | (1) | 52 | 44 | 79 | 564 | 785 | 148 | 142 | 1 | — | ||||||
Other financial institutions | 119 | — | — | 4 | — | — | 5 | (1) | 29 | 147 | — | — | — | — | ||||||
Corporate | 1,505 | 238 | 67 | 133 | (1) | 30 | 15 | 148 | 79 | 1,732 | 3,254 | 2,966 | (63) | 51 | ||||||
Personal | 24 | — | — | — | — | — | — | — | — | 24 | — | — | — | — | ||||||
1,915 | 238 | 67 | 532 | (27) | 350 | 347 | 535 | 1,370 | 3,820 | 5,377 | 5,298 | (88) | 85 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 2,877 | 58 | 50 | 1 | — | — | — | — | 2,927 | 59 | ||||
Other financial institutions | 3,464 | 67 | 4 | — | 30 | — | — | — | 3,498 | 67 | ||||
Total | 6,341 | 125 | 54 | 1 | 30 | — | — | — | 6,425 | 126 |
· | Clearly defined responsibilities and authorities for the primary groups involved in market risk management in the Group; |
· | An independent market risk management process; |
· | Daily monitoring, analysis and reporting of market risk exposures against market risk limits; |
· | Clearly defined limit structure and escalation process in the event of a market risk limit excess; |
· | A market risk measurement methodology that captures correlation effects and allows aggregation of market risk across risk types, markets and business lines; |
· |
Use of VaR as a measure of the one-day and SVaR as a measure of the ten-day market risk exposure of all trading positions; |
· | Use of non-VaR based limits and other controls; |
· | Use of stress testing and scenario analysis to support the market risk measurement and risk management process by assessing how portfolios and global business lines perform under extreme market conditions; |
· | Use of |
· | Adherence to the risks not in VaR |
· | A |
· | Historical simulation VaR may not provide the best estimate of future market movements. It can only provide a |
· | The use of a 99% confidence level does not reflect the extent of potential losses beyond that percentile. |
· | The use of a one-day time horizon will not fully capture the profit and loss implications of positions that cannot be liquidated or hedged within one day. |
· | The Group computes the VaR of trading portfolios at the close of business. Positions may change substantially during the course of the trading day and, if so, intra-day profit and losses will be incurred. |
· | Some RNIVs are quantified using a (standalone) VaR approach. For these RNIVs, two values are calculated: (i) the VaR RNIV; and (ii) the SVaR RNIV. |
· | Some RNIVs are quantified using a stress scenario approach. For these RNIVs, an assessment of ten-day extreme, but plausible, market moves is used in combination with position sensitivities to give a stress-type loss number - the stressed RNIV value. |
· | Perform accuracy testing of the valuation methods used within VaR on appropriately chosen test portfolios. Ensure that tests capture the effect of using external data proxies where these are used. |
· | Back-test the approach using the relevant portfolio. |
· | Back-test the approach using hypothetical portfolio(s) where this is helpful for isolating the performance of specific areas of the model. |
· | Identify all risks not adequately captured in VaR, and ensure that such risks are captured via the risks not in VaR process. |
· | Identify any model weaknesses or scope limitations, their effect and how they have been addressed. |
· | Identify ongoing model testing designed to give early warning of market or portfolio weakness becoming significant. |
· | Perform impact assessment. Estimate the impact on total one-day and ten-day 99% VaR at the total legal entity level and the major business level, and individual risk factor level one-day and ten-day 99% VaR at the total legal entity level. |
· | |
· | The assumptions underlying the model will be tested, where feasible against actual behaviour. The validation report will judge the reasonableness and stability of the assumptions and specify which assumptions, if any, should be routinely monitored in production; |
· | Compare model results with independent model replication; |
· | Compare outcome with results from alternative methods; |
· | Test parameter selection and calibration; |
· | Ensure that model outputs are sufficiently conservative in areas where there is significant model uncertainty; |
· | Confirm applicability of tests for accuracy, and stability; recalculate; and ensure that results are robust; and |
· | Ensure appropriate factor sensitivity analysis has been performed and documented. |
· | directly mark a position with a price (e.g. spot foreign exchange); or |
· | indirectly mark a position through the marking of inputs to an approved model, which will in turn generate a price. |
· | Appropriate financial controls - business unit controllers are responsible for ensuring that independent price verification processes are in place covering all trading book positions held by their business. The independent pricing verification policy requires that daily independent price verification is performed for positions where prices/model inputs are readily available on a daily basis. For positions where prices/model inputs are available on a less regular basis, verification may occur on a frequency that is less than daily. Where practical, verification is performed to a frequency that matches the availability of this independent price information. |
· | Compliance statements - business unit control is required to prepare and maintain compliance statements that benchmark price verification procedures against the independent pricing policy. Each compliance statement requires review and sign-off from the relevant financial controller, market risk manager and front office management every six months at least. |
(1) |
· |
· | The average daily revenue earned by |
to £15 million. The number of days with negative revenue |
45. The most frequent |
2011 | 2010 | 2009 | ||||||||||||
Trading VaR | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | ||
Interest rate | 53.4 | 68.1 | 79.2 | 27.5 | 51.6 | 57.0 | 83.0 | 32.5 | 57.0 | 50.5 | 112.8 | 28.1 | ||
Credit spread | 82.7 | 74.3 | 151.1 | 47.4 | 166.3 | 133.4 | 243.2 | 110.2 | 148.3 | 174.8 | 231.2 | 66.9 | ||
Currency | 10.3 | 16.2 | 19.2 | 5.2 | 17.9 | 14.8 | 28.0 | 8.4 | 17.9 | 20.7 | 35.8 | 9.2 | ||
Equity | 9.4 | 8.0 | 17.3 | 4.6 | 9.5 | 10.9 | 17.9 | 2.7 | 13.0 | 13.1 | 23.2 | 2.7 | ||
Commodity | 1.4 | 2.3 | 7.0 | — | 9.5 | 0.5 | 18.1 | 0.5 | 14.3 | 8.9 | 32.1 | 6.5 | ||
Diversification (1) | (52.3) | (75.6) | (86.1) | |||||||||||
105.5 | 116.6 | 181.3 | 59.7 | 168.5 | 141.0 | 252.1 | 103.0 | 155.2 | 181.9 | 229.0 | 76.8 | |||
Core (total) | 75.8 | 89.1 | 133.9 | 41.7 | 103.6 | 101.2 | 153.4 | 58.3 | 101.5 | 127.3 | 137.8 | 54.8 | ||
Core CEM | 36.8 | 52.4 | 54.1 | 21.9 | 53.3 | 54.6 | 82.4 | 30.3 | 29.7 | 38.6 | 41.3 | 11.5 | ||
Core excluding CEM | 59.2 | 42.1 | 106.2 | 35.3 | 82.8 | 78.7 | 108.7 | 53.6 | 86.7 | 97.4 | 128.5 | 54.9 | ||
Non-Core | 64.4 | 34.6 | 128.6 | 30.0 | 105.7 | 101.4 | 169.4 | 63.2 | 86.3 | 84.8 | 162.1 | 29.3 |
2012 | 2011 | 2010 | ||||||||||||
Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | |||
Interest rate | 62.6 | 75.6 | 95.7 | 40.8 | 53.4 | 68.1 | 79.2 | 27.5 | 51.6 | 57.0 | 83.0 | 32.5 | ||
Credit spread | 69.2 | 74.1 | 94.9 | 44.9 | 82.7 | 74.3 | 151.1 | 47.4 | 166.3 | 133.4 | 243.2 | 110.2 | ||
Currency | 10.3 | 7.6 | 21.3 | 2.6 | 10.3 | 16.2 | 19.2 | 5.2 | 17.9 | 14.8 | 28.0 | 8.4 | ||
Equity | 6.0 | 3.9 | 12.5 | 1.7 | 9.4 | 8.0 | 17.3 | 4.6 | 9.5 | 10.9 | 17.9 | 2.7 | ||
Commodity | 2.0 | 1.5 | 6.0 | 0.9 | 1.4 | 2.3 | 7.0 | — | 9.5 | 0.5 | 18.1 | 0.5 | ||
Diversification (1) | (55.4) | (52.3) | (75.6) | |||||||||||
Total | 97.3 | 107.3 | 137.0 | 66.5 | 105.5 | 116.6 | 181.3 | 59.7 | 168.5 | 141.0 | 252.1 | 103.0 | ||
Core | 74.6 | 88.1 | 118.0 | 47.4 | 75.8 | 89.1 | 133.9 | 41.7 | 103.6 | 101.2 | 153.4 | 58.3 | ||
Non-Core | 30.1 | 22.8 | 41.9 | 22.0 | 64.4 | 34.6 | 128.6 | 30.0 | 105.7 | 101.4 | 169.4 | 63.2 | ||
CEM | 78.5 | 84.9 | 86.0 | 71.7 | 50.1 | 75.8 | 78.8 | 30.3 | ||||||
Total (excluding CEM) | 47.1 | 57.6 | 76.4 | 32.2 | 75.5 | 49.9 | 150.0 | 41.6 |
(1) | The Group benefits from diversification, which reflects the risk reduction achieved by allocating investments across various financial instrument types, |
· | The Group’s |
· | The average and period end interest rate VaR for |
· | The Non-Core VaR was significantly lower in 2012, as Non-Core |
· |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||||||
Non-trading VaR | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | ||||||||||||||||
Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | Average £m | Period end £m | Maximum £m | Minimum £m | |||||||||||||||||
Interest rate | 8.8 | 9.9 | 11.1 | 5.7 | 8.7 | 10.4 | 20.5 | 4.4 | 13.0 | 13.9 | 26.3 | 7.7 | 6.9 | 4.5 | 10.7 | 4.1 | 8.8 | 9.9 | 11.1 | 5.7 | 8.7 | 10.4 | 20.5 | 4.4 | ||||
Credit spread | 18.2 | 13.6 | 39.3 | 12.1 | 32.0 | 16.1 | 101.2 | 15.4 | 81.7 | 100.3 | 131.5 | 39.7 | 10.5 | 8.8 | 15.4 | 7.3 | 18.2 | 13.6 | 39.3 | 12.1 | 32.0 | 16.1 | 101.2 | 15.4 | ||||
Currency | 2.1 | 4.0 | 5.9 | 0.1 | 2.1 | 3.0 | 7.6 | 0.3 | 1.4 | 0.6 | 7.0 | 0.2 | 3.0 | 1.3 | 4.5 | 1.3 | 2.1 | 4.0 | 5.9 | 0.1 | 2.1 | 3.0 | 7.6 | 0.3 | ||||
Equity | 2.1 | 1.9 | 3.1 | 1.6 | 1.2 | 3.1 | 4.6 | 0.2 | 3.3 | 2.2 | 5.8 | 1.6 | 1.7 | 0.3 | 1.9 | 0.3 | 2.1 | 1.9 | 3.1 | 1.6 | 1.2 | 3.1 | 4.6 | 0.2 | ||||
Diversification (1) | (13.6) | (15.9) | (20.4) | (5.4) | (13.6) | (15.9) | ||||||||||||||||||||||
19.7 | 15.8 | 41.6 | 13.4 | 30.9 | 16.7 | 98.0 | 13.7 | 80.4 | 96.6 | 126.9 | 46.8 | |||||||||||||||||
Total | 11.8 | 9.5 | 18.3 | 8.5 | 19.7 | 15.8 | 41.6 | 13.4 | 30.9 | 16.7 | 98.0 | 13.7 | ||||||||||||||||
Core | 19.3 | 15.1 | 38.9 | 13.5 | 30.5 | 15.6 | 98.1 | 12.8 | 78.4 | 95.9 | 126.9 | 46.8 | 11.3 | 7.5 | 19.0 | 7.1 | 19.3 | 15.1 | 38.9 | 13.5 | 30.5 | 15.6 | 98.1 | 12.8 | ||||
Non-Core | 3.4 | 2.5 | 4.3 | 2.2 | 1.3 | 2.8 | 4.1 | 0.2 | 3.5 | 1.9 | 16.9 | — | ||||||||||||||||
Non-Core | 2.5 | 3.4 | 3.6 | 1.6 | 3.4 | 2.5 | 4.3 | 2.2 | 1.3 | 2.8 | 4.1 | 0.2 | ||||||||||||||||
CEM | 1.0 | 1.1 | 0.9 | 0.4 | 0.9 | 0.3 | ||||||||||||||||||||||
Total (excluding CEM) | 11.5 | 9.4 | 17.8 | 8.2 | 19.7 | 15.5 | 41.4 | 13.7 |
(1) | The Group benefits from diversification, which reflects the risk reduction achieved by allocating investments across various financial instrument types, |
· | The |
· | The |
· | The Non-Core period end VaR was higher in 2012 than in 2011, due to improvements in the time series mapping on certain Australian bonds and the purchase of additional hedges. |
Drawn notional | Fair value | ||||||||||
CDOs | CLOs | MBS (1) | Other ABS | Total | CDOs | CLOs | MBS (1) | Other ABS | Total | ||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
1-2 years | — | — | — | 27 | 27 | — | — | — | 22 | 22 | |
2-3 years | — | — | 10 | 196 | 206 | — | — | 9 | 182 | 191 | |
4-5 years | — | 37 | 37 | 95 | 169 | — | 34 | 30 | 88 | 152 | |
5-10 years | 32 | 503 | 270 | 268 | 1,073 | 30 | 455 | 184 | 229 | 898 | |
>10 years | 2,180 | 442 | 464 | 593 | 3,679 | 766 | 371 | 291 | 347 | 1,775 | |
2,212 | 982 | 781 | 1,179 | 5,154 | 796 | 860 | 514 | 868 | 3,038 | ||
2010 | |||||||||||
1-2 years | — | — | — | 47 | 47 | — | — | — | 42 | 42 | |
2-3 years | 85 | 19 | 44 | 98 | 246 | 81 | 18 | 37 | 91 | 227 | |
3-4 years | — | 41 | 20 | 205 | 266 | — | 37 | 19 | 191 | 247 | |
4-5 years | 16 | — | — | — | 16 | 15 | — | — | — | 15 | |
5-10 years | 98 | 466 | 311 | 437 | 1,312 | 87 | 422 | 220 | 384 | 1,113 | |
>10 years | 412 | 663 | 584 | 550 | 2,209 | 161 | 515 | 397 | 367 | 1,440 | |
611 | 1,189 | 959 | 1,337 | 4,096 | 344 | 992 | 673 | 1,075 | 3,084 |
2009 | |||||||||||
1-2 years | — | — | — | 81 | 81 | — | — | — | 68 | 68 | |
2-3 years | 40 | — | — | 19 | 59 | 24 | — | — | 18 | 42 | |
3-4 years | 19 | 18 | 42 | 99 | 178 | 16 | 17 | 31 | 76 | 140 | |
4-5 years | 17 | 47 | 36 | 332 | 432 | 3 | 41 | 29 | 275 | 348 | |
5-10 years | 107 | 685 | 424 | 521 | 1,737 | 90 | 594 | 251 | 394 | 1,329 | |
>10 years | 594 | 1,114 | 820 | 573 | 3,101 | 193 | 896 | 468 | 325 | 1,882 | |
777 | 1,864 | 1,322 | 1,625 | 5,588 | 326 | 1,548 | 779 | 1,156 | 3,809 |
Drawn notional | Fair value | ||||||||||
CDOs (1) | CLOs (2) | MBS (3) | Other ABS (4) | Total | CDOs (1) | CLOs (2) | MBS (3) | Other ABS (4) | Total | ||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
1-2 years | — | — | — | 80 | 80 | — | — | — | 74 | 74 | |
3-4 years | — | — | 27 | 82 | 109 | — | — | 24 | 76 | 100 | |
4-5 years | — | — | 95 | — | 95 | — | — | 86 | — | 86 | |
5-10 years | — | 310 | 92 | — | 402 | — | 295 | 44 | — | 339 | |
>10 years | 289 | 279 | 380 | 398 | 1,346 | 116 | 256 | 253 | 254 | 879 | |
289 | 589 | 594 | 560 | 2,032 | 116 | 551 | 407 | 404 | 1,478 | ||
2011 | |||||||||||
1-2 years | — | — | — | 27 | 27 | — | — | — | 22 | 22 | |
2-3 years | — | — | 10 | 196 | 206 | — | — | 9 | 182 | 191 | |
4-5 years | — | 37 | 37 | 95 | 169 | — | 34 | 30 | 88 | 152 | |
5-10 years | 32 | 503 | 270 | 268 | 1,073 | 30 | 455 | 184 | 229 | 898 | |
>10 years | 2,180 | 442 | 464 | 593 | 3,679 | 766 | 371 | 291 | 347 | 1,775 | |
2,212 | 982 | 781 | 1,179 | 5,154 | 796 | 860 | 514 | 868 | 3,038 | ||
2010 | |||||||||||
1-2 years | — | — | — | 47 | 47 | — | — | — | 42 | 42 | |
2-3 years | 85 | 19 | 44 | 98 | 246 | 81 | 18 | 37 | 91 | 227 | |
3-4 years | — | 41 | 20 | 205 | 266 | — | 37 | 19 | 191 | 247 | |
4-5 years | 16 | — | — | — | 16 | 15 | — | — | — | 15 | |
5-10 years | 98 | 466 | 311 | 437 | 1,312 | 87 | 422 | 220 | 384 | 1,113 | |
>10 years | 412 | 663 | 584 | 550 | 2,209 | 161 | 515 | 397 | 367 | 1,440 | |
611 | 1,189 | 959 | 1,337 | 4,096 | 344 | 992 | 673 | 1,075 | 3,084 |
(1) | Collateralised debt obligations. |
(2) | Collateralised loan obligations. |
(3) | Mortgage-backed securities. |
(4) | Asset-backed securities. |
· | The structured credit portfolio drawn notional and fair values declined across all asset classes from 31 December 2011 to 31 December 2012. Key drivers were: (i) during the first half of 2012, the liquidation of legacy trust preferred securities and commercial real estate CDOs and subsequent sale of the underlying assets; and (ii) during the second half of 2012, the sale of underlying assets from CDO collateral pools and legacy conduits. |
2012 | 2011 | |
£m | £m | |
Interest rate position risk requirement | 254 | 1,107 |
Equity position risk requirement | 1 | 3 |
Option position risk requirement | 26 | 26 |
Commodity position risk requirement | 2 | 2 |
Foreign currency position risk requirement | 12 | 10 |
Specific interest rate risk of securitisation positions | 156 | 250 |
Total (standard method) | 451 | 1,398 |
Pillar 1 model based position risk requirement | 2,959 | 3,725 |
Total position risk requirement | 3,410 | 5,123 |
2012 | |||||
Average (1) | Maximum (1) | Minimum (1) | Period end | 2011 | |
£m | £m | £m | £m | £m | |
Value-at-risk (VaR) (1) | 939 | 1,190 | 757 | 825 | 887 |
Stressed VaR (SVaR) | 1,523 | 1,793 | 1,160 | 1,226 | 1,682 |
Incremental risk charge (IRC) | 521 | 659 | 372 | 467 | 469 |
All price risk (APR) | 149 | 290 | 12 | 12 | 297 |
(1) | The average, maximum and minimum are based on the monthly Pillar 1 model based capital requirements. |
· | The FSA approved the inclusion of the Group’s US trading subsidiary RBS Securities Inc. in the regulatory models in March 2012. This resulted in the model-based charges for VaR, SVaR and |
· | SVaR decreased during the remainder of 2012, due to the disposal of assets in Non-Core and general de-risking in sovereign and agency positions in Markets. |
· |
Internal ratings | ||||||||
2012 | AAA £m | AA £m | A £m | BBB £m | BB £m | B £m | CCC £m | Total (1) £m |
Product categories | ||||||||
Cash - ABS | 59.2 | — | — | (0.1) | (0.9) | — | — | 58.2 |
Cash - regular | 39.5 | 146.9 | 9.8 | 59.9 | 8.6 | 16.9 | 12.7 | 294.3 |
Derivatives - credit | (0.3) | (14.0) | 4.0 | 30.4 | 28.4 | 5.6 | (2.7) | 51.4 |
Derivatives - interest rate | (1.0) | — | 1.5 | 0.1 | (2.1) | (0.3) | — | (1.8) |
Other | 13.8 | — | — | — | — | — | — | 13.8 |
Total | 111.2 | 132.9 | 15.3 | 90.3 | 34.0 | 22.2 | 10.0 | 415.9 |
(1) | The figures presented are based on the spot IRC charge at 31 December 2012 and will therefore not agree with the IRC position risk requirement, as this is based on the 60 day average. The figures presented above are in capital terms. |
2012 | Ratings (1) | Total (1,2) £m | STD PRR (3) % | Capital deductions £m | |||||
AAA £m | AA £m | A £m | BBB £m | BB £m | Below BB £m | ||||
Trading book securitisation charge | 15.5 | 7.4 | 15.2 | 35.3 | 75.8 | 6.2 | 155.4 | 36.6 | 1,369.6 |
(1) | Based on S&P ratings. |
(2) | Excludes the capital deductions. |
(3) | Percentage of total standardised position risk requirement. |
Country risk | |
212 | Introduction |
212 | External environment |
213 | Governance, monitoring and management |
214 | Country risk exposure |
214 | Definitions |
215 | Summary |
219 | Total eurozone |
220 | Eurozone periphery - total |
221 | Eurozone periphery - by country |
232 | Eurozone non-periphery - total |
233 | Eurozone non-periphery - by country |
Lending | |||||||||||||||||||||||||
Central | Other | Other | Total | Of which | Debt | Net | Balance | Off-balance | CDS notional less fair | Gross | |||||||||||||||
Govt | banks | banks | FI | Corporate | Personal | lending | Non-Core | securities | Derivatives | Repos | sheet | sheet | Total | value | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Eurozone | |||||||||||||||||||||||||
Ireland | 42 | 73 | 98 | 532 | 17,921 | 17,893 | 36,559 | 9,506 | 787 | 1,692 | 579 | 39,617 | 2,958 | 42,575 | (137) | 17,066 | 7,994 | ||||||||
Spain | — | 6 | 1 | 59 | 4,260 | 340 | 4,666 | 2,759 | 5,374 | 1,754 | — | 11,794 | 1,624 | 13,418 | (375) | 5,694 | 610 | ||||||||
Italy | 9 | 21 | 200 | 218 | 1,392 | 23 | 1,863 | 900 | 1,607 | 2,297 | — | 5,767 | 2,616 | 8,383 | (492) | 9,597 | 3 | ||||||||
Portugal | — | — | — | — | 336 | 7 | 343 | 251 | 215 | 514 | — | 1,072 | 258 | 1,330 | (94) | 618 | 26 | ||||||||
Greece | — | 7 | — | 1 | 179 | 14 | 201 | 68 | 1 | 360 | — | 562 | 27 | 589 | (4) | 623 | — | ||||||||
Cyprus | — | — | — | 2 | 274 | 15 | 291 | 121 | 4 | 35 | — | 330 | 47 | 377 | — | 54 | 15 | ||||||||
Eurozone periphery | 51 | 107 | 299 | 812 | 24,362 | 18,292 | 43,923 | 13,605 | 7,988 | 6,652 | 579 | 59,142 | 7,530 | 66,672 | (1,102) | 33,652 | 8,648 | ||||||||
Germany | — | 20,018 | 660 | 460 | 3,756 | 83 | 24,977 | 2,817 | 12,763 | 9,476 | 323 | 47,539 | 7,294 | 54,833 | (1,333) | 57,202 | 8,407 | ||||||||
Netherlands | 7 | 1,822 | 496 | 1,785 | 3,720 | 26 | 7,856 | 2,002 | 8,447 | 9,089 | 354 | 25,746 | 11,473 | 37,219 | (1,470) | 23,957 | 10,057 | ||||||||
France | 494 | 9 | 2,498 | 124 | 2,426 | 71 | 5,622 | 1,621 | 5,823 | 7,422 | 450 | 19,317 | 9,460 | 28,777 | (2,197) | 44,920 | 14,324 | ||||||||
Belgium | — | — | 186 | 249 | 414 | 22 | 871 | 368 | 1,408 | 3,140 | 50 | 5,469 | 1,308 | 6,777 | (233) | 4,961 | 1,256 | ||||||||
Luxembourg | — | 13 | 99 | 717 | 1,817 | 4 | 2,650 | 973 | 251 | 1,462 | 145 | 4,508 | 2,190 | 6,698 | (306) | 3,157 | 5,166 | ||||||||
Other | 126 | — | 19 | 90 | 856 | 14 | 1,105 | 88 | 1,242 | 1,737 | 11 | 4,095 | 1,269 | 5,364 | (194) | 6,029 | 2,325 | ||||||||
Total eurozone | 678 | 21,969 | 4,257 | 4,237 | 37,351 | 18,512 | 87,004 | 21,474 | 37,922 | 38,978 | 1,912 | 165,816 | 40,524 | 206,340 | (6,835) | 173,878 | 50,183 | ||||||||
Other | |||||||||||||||||||||||||
Japan | — | 832 | 315 | 193 | 319 | 15 | 1,674 | 123 | 6,438 | 2,883 | 199 | 11,194 | 622 | 11,816 | (70) | 13,269 | 16,350 | ||||||||
India | — | 100 | 1,021 | 48 | 2,628 | 106 | 3,903 | 170 | 1,074 | 64 | — | 5,041 | 914 | 5,955 | (43) | 167 | 108 | ||||||||
China | 2 | 183 | 829 | 48 | 585 | 29 | 1,676 | 33 | 262 | 903 | 94 | 2,935 | 739 | 3,674 | 50 | 903 | 3,833 | ||||||||
Russia | — | 53 | 848 | 14 | 494 | 55 | 1,464 | 56 | 409 | 23 | — | 1,896 | 391 | 2,287 | (254) | 23 | — | ||||||||
Brazil | — | — | 950 | — | 125 | 3 | 1,078 | 60 | 596 | 73 | — | 1,747 | 189 | 1,936 | 393 | 85 | — | ||||||||
South Korea | — | 22 | 771 | 71 | 289 | 2 | 1,155 | 2 | 307 | 221 | 30 | 1,713 | 704 | 2,417 | (60) | 616 | 449 | ||||||||
Turkey | 115 | 163 | 82 | 94 | 928 | 12 | 1,394 | 258 | 181 | 93 | — | 1,668 | 481 | 2,149 | (36) | 114 | 449 | ||||||||
Romania | 20 | 65 | 9 | 2 | 347 | 331 | 774 | 773 | 315 | 3 | — | 1,092 | 80 | 1,172 | (12) | 3 | — | ||||||||
Poland | — | 164 | — | 16 | 536 | 6 | 722 | 26 | 289 | 36 | — | 1,047 | 802 | 1,849 | (84) | 54 | 29 |
Lending | |||||||||||||||||||||||||
Central | Other | Other | Total | Of which | Debt | Net | Balance | Off-balance | CDS notional | Gross | |||||||||||||||
Govt | banks | banks | FI | Corporate | Personal | lending | Non-Core | securities | Derivatives | Repos | sheet | sheet | Total | less fair value | Derivatives | Repos | |||||||||
2011 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Eurozone | |||||||||||||||||||||||||
Ireland | 45 | 1,467 | 136 | 333 | 18,994 | 18,858 | 39,833 | 10,156 | 886 | 2,273 | 551 | 43,543 | 2,928 | 46,471 | 53 | 21,462 | 7,409 | ||||||||
Spain | 9 | 3 | 130 | 154 | 5,775 | 362 | 6,433 | 3,735 | 6,155 | 2,391 | 2 | 14,981 | 2,630 | 17,611 | (1,013) | 6,775 | 589 | ||||||||
Italy | — | 73 | 233 | 299 | 2,444 | 23 | 3,072 | 1,155 | 1,258 | 2,314 | — | 6,644 | 3,150 | 9,794 | (452) | 10,947 | 305 | ||||||||
Portugal | — | — | 10 | — | 495 | 5 | 510 | 341 | 113 | 519 | — | 1,142 | 268 | 1,410 | 55 | 633 | 220 | ||||||||
Greece | 7 | 6 | — | 31 | 427 | 14 | 485 | 94 | 409 | 355 | — | 1,249 | 52 | 1,301 | 1 | 541 | — | ||||||||
Cyprus | — | — | — | 38 | 250 | 14 | 302 | 133 | 2 | 56 | — | 360 | 68 | 428 | — | 57 | 200 | ||||||||
Eurozone periphery | 61 | 1,549 | 509 | 855 | 28,385 | 19,276 | 50,635 | 15,614 | 8,823 | 7,908 | 553 | 67,919 | 9,096 | 77,015 | (1,356) | 40,415 | 8,723 | ||||||||
Germany | — | 18,068 | 653 | 305 | 6,608 | 155 | 25,789 | 5,402 | 15,767 | 10,169 | 166 | 51,891 | 7,527 | 59,418 | (2,401) | 68,650 | 6,142 | ||||||||
Netherlands | 8 | 7,654 | 623 | 1,557 | 4,827 | 20 | 14,689 | 2,498 | 9,893 | 10,010 | 275 | 34,867 | 13,561 | 48,428 | (1,295) | 25,858 | 23,926 | ||||||||
France | 481 | 3 | 1,273 | 282 | 3,761 | 79 | 5,879 | 2,317 | 7,794 | 8,701 | 345 | 22,719 | 10,217 | 32,936 | (2,846) | 46,205 | 22,230 | ||||||||
Belgium | — | 8 | 287 | 354 | 588 | 20 | 1,257 | 480 | 652 | 2,959 | 51 | 4,919 | 1,359 | 6,278 | (99) | 8,998 | 1,949 | ||||||||
Luxembourg | — | — | 101 | 925 | 2,228 | 2 | 3,256 | 1,497 | 130 | 2,884 | 805 | 7,075 | 2,007 | 9,082 | (404) | 4,535 | 3,976 | ||||||||
Other | 121 | — | 28 | 77 | 1,125 | 12 | 1,363 | 191 | 708 | 1,894 | — | 3,965 | 1,297 | 5,262 | (25) | 10,407 | 1,254 | ||||||||
Total eurozone | 671 | 27,282 | 3,474 | 4,355 | 47,522 | 19,564 | 102,868 | 27,999 | 43,767 | 44,525 | 2,195 | 193,355 | 45,064 | 238,419 | (8,426) | 205,068 | 68,200 | ||||||||
Other | |||||||||||||||||||||||||
Japan | — | 2,085 | 688 | 96 | 433 | 26 | 3,328 | 338 | 12,456 | 2,443 | 191 | 18,418 | 452 | 18,870 | (365) | 15,421 | 12,678 | ||||||||
India | — | 275 | 610 | 35 | 2,949 | 127 | 3,996 | 350 | 1,530 | 218 | — | 5,744 | 1,280 | 7,024 | (105) | 555 | 72 | ||||||||
China | 9 | 178 | 1,237 | 16 | 654 | 30 | 2,124 | 50 | 597 | 410 | 3 | 3,134 | 1,559 | 4,693 | (62) | 414 | 6,187 | ||||||||
Russia | — | 36 | 970 | 8 | 659 | 62 | 1,735 | 76 | 186 | 47 | — | 1,968 | 356 | 2,324 | (343) | 47 | 703 | ||||||||
Brazil | — | — | 936 | — | 227 | 4 | 1,167 | 70 | 790 | 24 | — | 1,981 | 319 | 2,300 | 164 | 62 | — | ||||||||
South Korea | — | 5 | 812 | 2 | 576 | 1 | 1,396 | 3 | 845 | 251 | 153 | 2,645 | 627 | 3,272 | (22) | 775 | 552 | ||||||||
Turkey | 215 | 193 | 252 | 66 | 1,072 | 16 | 1,814 | 423 | 361 | 94 | — | 2,269 | 437 | 2,706 | 10 | 111 | 139 | ||||||||
Romania | 66 | 145 | 30 | 8 | 413 | 392 | 1,054 | 1,054 | 220 | 6 | — | 1,280 | 160 | 1,440 | 8 | 6 | — | ||||||||
Poland | 35 | 208 | 3 | 9 | 624 | 6 | 885 | 45 | 116 | 56 | — | 1,057 | 701 | 1,758 | (99) | 73 | 1 |
Lending | Off- | CDS notional | |||||||||||||||||||||||
Central | Other | Other | Total | Of which | Debt | Net | Balance | balance | less fair | Gross | |||||||||||||||
Govt | banks | banks | FI | Corporate | Personal | lending | Non-Core | securities | Derivatives | Repos | sheet | sheet | Total | value | Derivatives | Repos | |||||||||
2010 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Eurozone | |||||||||||||||||||||||||
Ireland | 61 | 2,119 | 87 | 813 | 19,886 | 20,228 | 43,194 | 10,758 | 1,323 | 2,542 | 398 | 47,457 | 4,316 | 51,773 | (32) | 18,444 | 7,124 | ||||||||
Spain | 19 | 5 | 166 | 92 | 6,991 | 407 | 7,680 | 4,538 | 7,107 | 2,045 | 2 | 16,834 | 3,061 | 19,895 | (964) | 5,870 | 515 | ||||||||
Italy | 45 | 78 | 668 | 418 | 2,483 | 27 | 3,719 | 1,901 | 3,836 | 2,031 | 1 | 9,587 | 3,853 | 13,440 | (838) | 9,474 | 58 | ||||||||
Portugal | 86 | — | 63 | — | 611 | 6 | 766 | 316 | 242 | 394 | — | 1,402 | 734 | 2,136 | 41 | 555 | 782 | ||||||||
Greece | 14 | 36 | 18 | 31 | 191 | 16 | 306 | 130 | 974 | 227 | — | 1,507 | 164 | 1,671 | 182 | 360 | 181 | ||||||||
Cyprus | — | — | 1 | 38 | 285 | 13 | 337 | 142 | — | 55 | 14 | 406 | 38 | 444 | — | 82 | 218 | ||||||||
Eurozone periphery | 225 | 2,238 | 1,003 | 1,392 | 30,447 | 20,697 | 56,002 | 17,785 | 13,482 | 7,294 | 415 | 77,193 | 12,166 | 89,359 | (1,611) | 34,785 | 8,878 | ||||||||
Germany | — | 10,894 | 1,060 | 422 | 7,519 | 162 | 20,057 | 6,471 | 14,747 | 8,600 | 6,666 | 50,070 | 8,917 | 58,987 | (1,551) | 57,138 | 12,107 | ||||||||
Netherlands | 914 | 6,484 | 554 | 1,801 | 6,170 | 81 | 16,004 | 3,205 | 12,523 | 8,684 | 374 | 37,585 | 18,141 | 55,726 | (1,530) | 21,701 | 24,088 | ||||||||
France | 511 | 3 | 1,095 | 470 | 4,376 | 102 | 6,557 | 2,787 | 14,041 | 7,949 | 658 | 29,205 | 11,640 | 40,845 | (1,925) | 37,241 | 17,984 | ||||||||
Belgium | 102 | 14 | 441 | 32 | 893 | 327 | 1,809 | 501 | 803 | 2,238 | — | 4,850 | 1,492 | 6,342 | 57 | 7,391 | 1,352 | ||||||||
Luxembourg | — | 25 | 26 | 734 | 2,503 | 3 | 3,291 | 1,517 | 378 | 1,469 | 1,076 | 6,214 | 2,383 | 8,597 | (532) | 2,608 | 2,332 | ||||||||
Other | 124 | 1 | 141 | 81 | 1,220 | 11 | 1,578 | 190 | 535 | 1,293 | 8 | 3,414 | 1,999 | 5,413 | (82) | 6,703 | 450 | ||||||||
Total eurozone | 1,876 | 19,659 | 4,320 | 4,932 | 53,128 | 21,383 | 105,298 | 32,456 | 56,509 | 37,527 | 9,197 | 208,531 | 56,738 | 265,269 | (7,174) | 167,567 | 67,191 | ||||||||
Other | |||||||||||||||||||||||||
Japan | — | 1,379 | 369 | 316 | 809 | 24 | 2,897 | 792 | 12,169 | 1,794 | 73 | 16,933 | 576 | 17,509 | (93) | 15,998 | 12,535 | ||||||||
India | — | — | 1,307 | 307 | 2,665 | 273 | 4,552 | 653 | 1,686 | 178 | — | 6,416 | 1,281 | 7,697 | (195) | 231 | — | ||||||||
China | 17 | 298 | 1,223 | 16 | 753 | 64 | 2,371 | 236 | 573 | 250 | 2 | 3,196 | 1,589 | 4,785 | (117) | 254 | 1,762 | ||||||||
Russia | — | 110 | 244 | 7 | 1,181 | 58 | 1,600 | 125 | 124 | 27 | 24 | 1,775 | 596 | 2,371 | (134) | 27 | 1,075 | ||||||||
Brazil | — | — | 825 | — | 315 | 5 | 1,145 | 120 | 687 | 8 | 7 | 1,847 | 190 | 2,037 | (369) | 28 | 7 | ||||||||
South Korea | — | 276 | 1,033 | 5 | 558 | 2 | 1,874 | 53 | 1,353 | 490 | 3 | 3,720 | 1,143 | 4,863 | (159) | 754 | 333 | ||||||||
Turkey | 282 | 68 | 448 | 37 | 1,386 | 12 | 2,233 | 692 | 550 | 111 | — | 2,894 | 686 | 3,580 | (91) | 111 | 21 | ||||||||
Romania | 36 | 178 | 21 | 21 | 426 | 446 | 1,128 | 1,123 | 310 | 8 | — | 1,446 | 319 | 1,765 | 23 | 8 | — | ||||||||
Poland | — | 168 | 7 | 7 | 655 | 6 | 843 | 108 | 271 | 69 | — | 1,183 | 1,020 | 2,203 | (94) | 88 | 16 |
· | Balance sheet and off-balance sheet exposures to nearly all countries shown in the table declined during 2012, as the Group maintained a cautious stance and many clients reduced debt levels. The reductions were seen in all broad product categories and in all client groups. Non-Core lending exposure declined as the strategy for disposal progressed, particularly in Germany, Spain and Ireland. Most of the Group’s country risk exposure was in International Banking (primarily lending and off-balance sheet exposure to corporates), Markets (mostly derivatives and repos with financial institutions), Ulster Bank (mostly lending exposure to corporates and consumers in Ireland) and Group Treasury (largely AFS debt securities and liquidity with central banks). |
· | Total eurozone - Balance sheet exposure declined by £27.5 billion or 14% during 2012 to £165.8 billion, with reductions seen primarily in periphery countries but also in the Netherlands, Germany, France and Luxembourg. This reflected exchange rate movements, sales of Greek, Spanish and Portuguese AFS bonds, write-offs, active exposure management and debt reduction efforts by bank clients. |
· |
· | Japan - Exposure decreased during 2012, principally in the first half of the year, reflecting a reduction in International Banking’s cash management business and a change in Japanese yen clearing status from direct (self-clearing) membership to agency. The Group no longer needs to hold positions resulting in a £2.2 billion reduction in AFS Japanese government bonds. |
· | China - Lending exposure and off-balance sheet exposure to banks decreased by £0.4 billion and £0.8 billion respectively, as a result of a slowdown in economic growth, changes in local regulations and risk/return considerations. Derivatives exposure to public sector entities increased by £0.7 billion, reflecting fluctuations in short-term hedging by bank clients. |
· | The Group uses CDS contracts to service customer activity as well as manage counterparty and country exposure. During 2012, eurozone gross notional CDS contracts, bought and sold, decreased significantly. This was caused by maturing contracts and by efforts to reduce counterparty credit exposures and risk-weighted assets mainly through derivative compression trades. The fair value of bought and sold CDS contracts also decreased due to the reduction in gross notional CDS positions and a |
· | Greek sovereign CDS positions were fully closed out in April 2012, as the use of the collective action clause in the Greek debt swap resulted in a |
· | Outside the |
· | During 2012 the credit quality of CDS bought protection counterparties shown in the individual country tables, deteriorated primarily reflecting rating model changes in the fourth quarter of the year resulting in more conservative internal ratings (refer to Changes to wholesale credit risk models on page 121). There was also a |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 678 | — | — | 11,487 | 267 | 17,430 | 8,469 | 20,448 | 1,797 | — | 22,923 | 783 | 23,706 | 5,307 | — | ||||||||
Central bank | 21,969 | — | — | — | — | — | — | — | 35 | — | 22,004 | — | 22,004 | 36 | 4,648 | ||||||||
Other banks | 4,257 | — | — | 5,588 | (509) | 1,021 | 611 | 5,998 | 25,956 | 1,161 | 37,372 | 4,400 | 41,772 | 148,534 | 28,679 | ||||||||
Other FI | 4,237 | — | — | 9,367 | (1,081) | 1,261 | 142 | 10,486 | 7,595 | 727 | 23,045 | 5,537 | 28,582 | 15,055 | 16,124 | ||||||||
Corporate | 37,351 | 14,253 | 7,451 | 794 | 33 | 311 | 115 | 990 | 3,594 | 24 | 41,959 | 29,061 | 71,020 | 4,945 | 732 | ||||||||
Personal | 18,512 | 3,351 | 1,733 | — | — | — | — | — | 1 | — | 18,513 | 743 | 19,256 | 1 | — | ||||||||
87,004 | 17,604 | 9,184 | 27,236 | (1,290) | 20,023 | 9,337 | 37,922 | 38,978 | 1,912 | 165,816 | 40,524 | 206,340 | 173,878 | 50,183 | |||||||||
2011 | |||||||||||||||||||||||
Government | 671 | — | — | 18,406 | 81 | 19,597 | 15,049 | 22,954 | 1,924 | — | 25,549 | 1,056 | 26,605 | 4,979 | 791 | ||||||||
Central bank | 27,282 | — | — | 20 | — | 6 | — | 26 | 35 | — | 27,343 | — | 27,343 | 38 | 15,103 | ||||||||
Other banks | 3,474 | — | — | 8,423 | (752) | 1,272 | 1,502 | 8,193 | 28,595 | 1,090 | 41,352 | 4,493 | 45,845 | 175,187 | 31,157 | ||||||||
Other FI | 4,355 | — | — | 10,494 | (1,129) | 1,138 | 471 | 11,161 | 9,854 | 1,102 | 26,472 | 8,199 | 34,671 | 18,204 | 20,436 | ||||||||
Corporate | 47,522 | 14,152 | 7,267 | 964 | 24 | 528 | 59 | 1,433 | 4,116 | 3 | 53,074 | 30,551 | 83,625 | 6,659 | 713 | ||||||||
Personal | 19,564 | 2,280 | 1,069 | — | — | — | — | — | 1 | — | 19,565 | 765 | 20,330 | 1 | — | ||||||||
102,868 | 16,432 | 8,336 | 38,307 | (1,776) | 22,541 | 17,081 | 43,767 | 44,525 | 2,195 | 193,355 | 45,064 | 238,419 | 205,068 | 68,200 | |||||||||
2010 | |||||||||||||||||||||||
Government | 1,876 | — | — | 23,201 | (893) | 25,041 | 14,256 | 33,986 | 1,537 | — | 37,399 | 313 | 37,712 | 4,712 | 18 | ||||||||
Central bank | 19,659 | — | — | — | — | 7 | — | 7 | 13 | 6,369 | 26,048 | 1 | 26,049 | 25 | 30,283 | ||||||||
Other banks | 4,320 | — | — | 9,192 | (916) | 1,719 | 1,187 | 9,724 | 24,193 | 1,447 | 39,684 | 5,463 | 45,147 | 142,668 | 25,111 | ||||||||
Other FI | 4,932 | — | — | 10,583 | (737) | 908 | 83 | 11,408 | 7,648 | 1,377 | 25,365 | 10,189 | 35,554 | 13,842 | 11,384 | ||||||||
Corporate | 53,128 | 12,404 | 5,393 | 813 | 45 | 831 | 260 | 1,384 | 4,136 | 4 | 58,652 | 39,997 | 98,649 | 6,319 | 395 | ||||||||
Personal | 21,383 | 1,642 | 537 | — | — | — | — | — | — | — | 21,383 | 775 | 22,158 | 1 | — | ||||||||
105,298 | 14,046 | 5,930 | 43,789 | (2,501) | 28,506 | 15,786 | 56,509 | 37,527 | 9,197 | 208,531 | 56,738 | 265,269 | 167,567 | 67,191 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 40,154 | 38,580 | 1,407 | (1,405) | 37,080 | 36,759 | 6,488 | (6,376) | 28,825 | 29,075 | 2,899 | (2,843) | |||||
Other banks | 13,249 | 13,014 | 266 | (217) | 19,736 | 19,232 | 2,303 | (2,225) | 16,616 | 16,256 | 1,042 | (1,032) | |||||
Other FI | 11,015 | 9,704 | 104 | (92) | 17,949 | 16,608 | 693 | (620) | 12,921 | 12,170 | 173 | (182) | |||||
Corporate | 39,639 | 35,851 | (455) | 465 | 76,966 | 70,119 | 2,241 | (1,917) | 70,354 | 63,790 | (267) | 461 | |||||
104,057 | 97,149 | 1,322 | (1,249) | 151,731 | 142,718 | 11,725 | (11,138) | 128,716 | 121,291 | 3,847 | (3,596) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 8,828 | 126 | 34,862 | 597 | 8,056 | 204 | — | — | 51,746 | 927 | ||||
Other FI | 23,912 | 88 | 23,356 | 319 | 4,111 | (17) | 932 | 5 | 52,311 | 395 | ||||
32,740 | 214 | 58,218 | 916 | 12,167 | 187 | 932 | 5 | 104,057 | 1,322 | |||||
2011 | ||||||||||||||
Banks | 67,624 | 5,585 | 1,085 | 131 | 198 | 23 | — | — | 68,907 | 5,739 | ||||
Other FI | 79,824 | 5,605 | 759 | 89 | 2,094 | 278 | 147 | 14 | 82,824 | 5,986 | ||||
147,448 | 11,190 | 1,844 | 220 | 2,292 | 301 | 147 | 14 | 151,731 | 11,725 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 51 | — | — | 644 | (132) | 3,686 | 2,698 | 1,632 | 134 | — | 1,817 | 16 | 1,833 | 361 | — | ||||||||
Central bank | 107 | — | — | — | — | — | — | — | — | — | 107 | — | 107 | — | — | ||||||||
Other banks | 299 | — | — | 3,551 | (660) | 165 | 131 | 3,585 | 4,093 | 476 | 8,453 | 75 | 8,528 | 29,706 | 4,186 | ||||||||
Other FI | 812 | — | — | 2,065 | (541) | 466 | 40 | 2,491 | 746 | 103 | 4,152 | 1,414 | 5,566 | 1,557 | 4,136 | ||||||||
Corporate | 24,362 | 12,146 | 6,757 | 192 | 2 | 128 | 40 | 280 | 1,678 | — | 26,320 | 5,414 | 31,734 | 2,027 | 326 | ||||||||
Personal | 18,292 | 3,347 | 1,713 | — | — | — | — | — | 1 | — | 18,293 | 611 | 18,904 | 1 | — | ||||||||
43,923 | 15,493 | 8,470 | 6,452 | (1,331) | 4,445 | 2,909 | 7,988 | 6,652 | 579 | 59,142 | 7,530 | 66,672 | 33,652 | 8,648 | |||||||||
2011 | |||||||||||||||||||||||
Government | 61 | — | — | 1,207 | (339) | 4,854 | 5,652 | 409 | 236 | — | 706 | 118 | 824 | 380 | — | ||||||||
Central bank | 1,549 | — | — | — | — | — | — | — | — | — | 1,549 | — | 1,549 | — | — | ||||||||
Other banks | 509 | — | — | 5,279 | (956) | 436 | 318 | 5,397 | 4,350 | 480 | 10,736 | 67 | 10,803 | 34,296 | 4,085 | ||||||||
Other FI | 855 | — | — | 2,331 | (654) | 228 | 56 | 2,503 | 1,783 | 73 | 5,214 | 1,862 | 7,076 | 3,635 | 4,638 | ||||||||
Corporate | 28,385 | 12,272 | 6,567 | 274 | 4 | 240 | — | 514 | 1,538 | — | 30,437 | 6,412 | 36,849 | 2,103 | — | ||||||||
Personal | 19,276 | 2,258 | 1,048 | — | — | — | — | — | 1 | — | 19,277 | 637 | 19,914 | 1 | — | ||||||||
50,635 | 14,530 | 7,615 | 9,091 | (1,945) | 5,758 | 6,026 | 8,823 | 7,908 | 553 | 67,919 | 9,096 | 77,015 | 40,415 | 8,723 | |||||||||
2010 | |||||||||||||||||||||||
Government | 225 | — | — | 2,085 | (871) | 6,564 | 4,672 | 3,977 | 180 | — | 4,382 | 226 | 4,608 | 304 | — | ||||||||
Central bank | 2,238 | — | — | — | — | 7 | — | 7 | 1 | 125 | 2,371 | 1 | 2,372 | 1 | 1,160 | ||||||||
Other banks | 1,003 | — | — | 6,003 | (920) | 356 | 181 | 6,178 | 4,013 | 261 | 11,455 | 293 | 11,748 | 29,469 | 4,238 | ||||||||
Other FI | 1,392 | — | — | 2,708 | (480) | 295 | 7 | 2,996 | 1,618 | 25 | 6,031 | 2,558 | 8,589 | 3,006 | 3,476 | ||||||||
Corporate | 30,447 | 10,726 | 4,899 | 120 | 37 | 226 | 22 | 324 | 1,482 | 4 | 32,257 | 8,441 | 40,698 | 2,004 | 4 | ||||||||
Personal | 20,697 | 1,639 | 534 | — | — | — | — | — | — | — | 20,697 | 647 | 21,344 | 1 | — | ||||||||
56,002 | 12,365 | 5,433 | 10,916 | (2,234) | 7,448 | 4,882 | 13,482 | 7,294 | 415 | 77,193 | 12,166 | 89,359 | 34,785 | 8,878 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 24,785 | 24,600 | 1,452 | (1,459) | 25,883 | 26,174 | 5,979 | (5,926) | 20,494 | 20,440 | 2,762 | (2,705) | |||||
Other banks | 6,023 | 5,996 | 230 | (202) | 9,372 | 9,159 | 1,657 | (1,623) | 7,927 | 8,055 | 891 | (890) | |||||
Other FI | 2,592 | 2,350 | 76 | (67) | 3,854 | 3,635 | 290 | (262) | 2,981 | 2,723 | 148 | (153) | |||||
Corporate | 5,824 | 5,141 | 52 | (47) | 10,798 | 9,329 | 999 | (860) | 11,273 | 9,657 | 453 | (317) | |||||
39,224 | 38,087 | 1,810 | (1,775) | 49,907 | 48,297 | 8,925 | (8,671) | 42,675 | 40,875 | 4,254 | (4,065) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 3,517 | 153 | 14,725 | 780 | 5,153 | 214 | — | — | 23,395 | 1,147 | ||||
Other FI | 5,647 | 240 | 9,021 | 401 | 896 | 22 | 265 | — | 15,829 | 663 | ||||
9,164 | 393 | 23,746 | 1,181 | 6,049 | 236 | 265 | — | 39,224 | 1,810 | |||||
2011 | ||||||||||||||
Banks | 26,008 | 4,606 | 604 | 112 | 93 | 14 | — | — | 26,705 | 4,732 | ||||
Other FI | 22,082 | 3,980 | 394 | 51 | 726 | 162 | — | — | 23,202 | 4,193 | ||||
48,090 | 8,586 | 998 | 163 | 819 | 176 | — | — | 49,907 | 8,925 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 42 | — | — | 127 | (23) | 79 | 56 | 150 | 2 | — | 194 | 2 | 196 | 6 | — | ||||||||
Central bank | 73 | — | — | — | — | — | — | — | — | — | 73 | — | 73 | — | — | ||||||||
Other banks | 98 | — | — | 191 | (6) | 18 | 1 | 208 | 695 | 476 | 1,477 | — | 1,477 | 15,258 | 3,547 | ||||||||
Other FI | 532 | — | — | 46 | — | 325 | 2 | 369 | 583 | 103 | 1,587 | 601 | 2,188 | 1,365 | 4,121 | ||||||||
Corporate | 17,921 | 11,058 | 6,226 | 60 | — | — | — | 60 | 411 | — | 18,392 | 1,840 | 20,232 | 436 | 326 | ||||||||
Personal | 17,893 | 3,286 | 1,686 | — | — | — | — | — | 1 | — | 17,894 | 515 | 18,409 | 1 | — | ||||||||
36,559 | 14,344 | 7,912 | 424 | (29) | 422 | 59 | 787 | 1,692 | 579 | 39,617 | 2,958 | 42,575 | 17,066 | 7,994 | |||||||||
2011 | |||||||||||||||||||||||
Government | 45 | — | — | 102 | (46) | 20 | 19 | 103 | 92 | — | 240 | 2 | 242 | 102 | — | ||||||||
Central bank | 1,467 | — | — | — | — | — | — | — | — | — | 1,467 | — | 1,467 | — | — | ||||||||
Other banks | 136 | — | — | 177 | (39) | 195 | 14 | 358 | 981 | 478 | 1,953 | — | 1,953 | 19,090 | 3,441 | ||||||||
Other FI | 333 | — | — | 61 | — | 116 | 35 | 142 | 782 | 73 | 1,330 | 546 | 1,876 | 1,831 | 3,968 | ||||||||
Corporate | 18,994 | 10,269 | 5,689 | 148 | 3 | 135 | — | 283 | 417 | — | 19,694 | 1,841 | 21,535 | 438 | — | ||||||||
Personal | 18,858 | 2,258 | 1,048 | — | — | — | — | — | 1 | — | 18,859 | 539 | 19,398 | 1 | — | ||||||||
39,833 | 12,527 | 6,737 | 488 | (82) | 466 | 68 | 886 | 2,273 | 551 | 43,543 | 2,928 | 46,471 | 21,462 | 7,409 | |||||||||
2010 | |||||||||||||||||||||||
Government | 61 | — | — | 104 | (45) | 93 | 88 | 109 | 20 | — | 190 | 1 | 191 | 20 | — | ||||||||
Central bank | 2,119 | — | — | — | — | 7 | — | 7 | 1 | 125 | 2,252 | — | 2,252 | 1 | 1,160 | ||||||||
Other banks | 87 | — | — | 435 | (51) | 96 | 45 | 486 | 1,265 | 258 | 2,096 | 83 | 2,179 | 15,892 | 2,702 | ||||||||
Other FI | 813 | — | — | 291 | (1) | 205 | — | 496 | 826 | 11 | 2,146 | 1,050 | 3,196 | 2,084 | 3,258 | ||||||||
Corporate | 19,886 | 8,291 | 4,072 | 91 | (2) | 140 | 6 | 225 | 430 | 4 | 20,545 | 2,638 | 23,183 | 446 | 4 | ||||||||
Personal | 20,228 | 1,638 | 534 | — | — | — | — | — | — | — | 20,228 | 544 | 20,772 | 1 | — | ||||||||
43,194 | 9,929 | 4,606 | 921 | (99) | 541 | 139 | 1,323 | 2,542 | 398 | 47,457 | 4,316 | 51,773 | 18,444 | 7,124 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 2,486 | 2,525 | 72 | (71) | 2,145 | 2,223 | 466 | (481) | 1,872 | 2,014 | 360 | (387) | |||||
Other banks | 43 | 32 | 1 | (2) | 110 | 107 | 21 | (21) | 317 | 312 | 103 | (95) | |||||
Other FI | 759 | 677 | 21 | (33) | 523 | 630 | 64 | (74) | 566 | 597 | 45 | (84) | |||||
Corporate | 236 | 165 | (17) | 17 | 425 | 322 | (11) | 10 | 483 | 344 | (20) | 17 | |||||
3,524 | 3,399 | 77 | (89) | 3,203 | 3,282 | 540 | (566) | 3,238 | 3,267 | 488 | (549) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 214 | 6 | 1,461 | 41 | 32 | (1) | — | — | 1,707 | 46 | ||||
Other FI | 528 | 16 | 970 | 7 | 319 | 8 | — | — | 1,817 | 31 | ||||
742 | 22 | 2,431 | 48 | 351 | 7 | — | — | 3,524 | 77 | |||||
2011 | ||||||||||||||
Banks | 1,586 | 300 | 2 | — | — | — | — | — | 1,588 | 300 | ||||
Other FI | 1,325 | 232 | 161 | 1 | 129 | 7 | — | — | 1,615 | 240 | ||||
2,911 | 532 | 163 | 1 | 129 | 7 | — | — | 3,203 | 540 |
· | Ulster Bank Group’s (UBG) Irish exposure comprises personal lending (largely mortgages) and corporate lending and commitments, plus some lending to financial institutions (refer to the Ulster Bank Group (Core and Non-Core) section on page 149 for further details). In addition, International Banking has lending exposure and commitments, and Markets has derivative and repo exposure to financial institutions and large international clients with funding subsidiaries based in |
· | Group exposure decreased further during 2012, principally lending, which fell £3.3 billion as a result of de-risking of the |
· | Exposure to the central bank fluctuates, driven by regulatory requirements and deposits of |
· | Markets, International Banking and UBG account for the large majority of the Group’s exposure to financial institutions, the main categories being derivatives and repos, where exposure is affected predominantly by market movements and much of it is collateralised. |
· | Lending exposure fell by £1.1 billion during 2012, driven by exchange rate movements and write-offs. Commercial real estate lending amounted to £10.4 billion at 31 December 2012, down £0.5 billion from 31 December 2011 amid continuing adverse market conditions. The commercial real estate lending exposure was nearly all in UBG (£7.7 billion of this in Non-Core) and included REIL of £8.0 billion which were 55% covered by provisions. |
· | Overall lending exposure fell by £1.0 billion as a result of exchange rate movements, amortisation, maturities, a small amount of write-offs, low new business volumes and active risk management. Residential mortgage loans amounted to £16.9 billion at 31 December 2012, including REIL of £3.0 billion and loan provisions of £1.5 billion. The housing market continues to suffer from weak domestic demand, with house prices that stabilised in the course of 2012 at approximately 50% below their 2007 peak. |
· | Non-Core lending exposure was £9.5 billion at 31 December 2012, down £0.7 billion since 31 December 2011. The lending portfolio largely consisted of exposures to commercial real estate (82%), retail (4%) and leisure (4%). |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | 37 | (10) | 786 | 403 | 420 | 18 | — | 438 | 14 | 452 | 56 | — | ||||||||
Central bank | 6 | — | — | — | — | — | — | — | — | — | 6 | — | 6 | — | — | ||||||||
Other banks | 1 | — | — | 3,169 | (634) | 100 | 76 | 3,193 | 1,254 | — | 4,448 | 42 | 4,490 | 5,116 | 610 | ||||||||
Other FI | 59 | — | — | 1,661 | (540) | 96 | 18 | 1,739 | 26 | — | 1,824 | 139 | 1,963 | 50 | — | ||||||||
Corporate | 4,260 | 601 | 246 | 4 | — | 36 | 18 | 22 | 456 | — | 4,738 | 1,373 | 6,111 | 472 | — | ||||||||
Personal | 340 | 61 | 27 | — | — | — | — | — | — | — | 340 | 56 | 396 | — | — | ||||||||
4,666 | 662 | 273 | 4,871 | (1,184) | 1,018 | 515 | 5,374 | 1,754 | — | 11,794 | 1,624 | 13,418 | 5,694 | 610 | |||||||||
2011 | |||||||||||||||||||||||
Government | 9 | — | — | 33 | (15) | 360 | 751 | (358) | 35 | — | (314) | 116 | (198) | 40 | — | ||||||||
Central bank | 3 | — | — | — | — | — | — | — | — | — | 3 | — | 3 | — | — | ||||||||
Other banks | 130 | — | — | 4,892 | (867) | 162 | 214 | 4,840 | 1,620 | 2 | 6,592 | 41 | 6,633 | 5,180 | 122 | ||||||||
Other FI | 154 | — | — | 1,580 | (639) | 65 | 8 | 1,637 | 282 | — | 2,073 | 169 | 2,242 | 1,084 | 467 | ||||||||
Corporate | 5,775 | 1,190 | 442 | 9 | — | 27 | — | 36 | 454 | — | 6,265 | 2,247 | 8,512 | 471 | — | ||||||||
Personal | 362 | — | — | — | — | — | — | — | — | — | 362 | 57 | 419 | — | — | ||||||||
6,433 | 1,190 | 442 | 6,514 | (1,521) | 614 | 973 | 6,155 | 2,391 | 2 | 14,981 | 2,630 | 17,611 | 6,775 | 589 | |||||||||
2010 | |||||||||||||||||||||||
Government | 19 | — | — | 88 | (7) | 1,172 | 1,248 | 12 | 53 | — | 84 | 1 | 85 | 60 | — | ||||||||
Central bank | 5 | — | — | — | — | — | — | — | — | — | 5 | — | 5 | — | — | ||||||||
Other banks | 166 | — | — | 5,264 | (834) | 147 | 118 | 5,293 | 1,480 | 2 | 6,941 | 41 | 6,982 | 5,098 | 515 | ||||||||
Other FI | 92 | — | — | 1,724 | (474) | 34 | 7 | 1,751 | 22 | — | 1,865 | 285 | 2,150 | 145 | — | ||||||||
Corporate | 6,991 | 1,871 | 572 | 9 | 38 | 50 | 8 | 51 | 490 | — | 7,532 | 2,672 | 10,204 | 567 | — | ||||||||
Personal | 407 | 1 | — | — | — | — | — | — | — | — | 407 | 62 | 469 | — | — | ||||||||
7,680 | 1,872 | 572 | 7,085 | (1,277) | 1,403 | 1,381 | 7,107 | 2,045 | 2 | 16,834 | 3,061 | 19,895 | 5,870 | 515 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 5,934 | 5,905 | 361 | (359) | 5,151 | 5,155 | 538 | (522) | 3,820 | 3,923 | 436 | (435) | |||||
Other banks | 1,583 | 1,609 | 34 | (30) | 1,965 | 1,937 | 154 | (152) | 2,087 | 2,159 | 133 | (135) | |||||
Other FI | 1,209 | 1,061 | 47 | (28) | 2,417 | 2,204 | 157 | (128) | 1,648 | 1,388 | 72 | (45) | |||||
Corporate | 2,263 | 2,011 | 7 | (4) | 4,831 | 3,959 | 448 | (399) | 5,192 | 4,224 | 231 | (168) | |||||
10,989 | 10,586 | 449 | (421) | 14,364 | 13,255 | 1,297 | (1,201) | 12,747 | 11,694 | 872 | (783) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 646 | 27 | 3,648 | 168 | 1,409 | 65 | — | — | 5,703 | 260 | ||||
Other FI | 2,335 | 72 | 2,539 | 109 | 324 | 8 | 88 | — | 5,286 | 189 | ||||
2,981 | 99 | 6,187 | 277 | 1,733 | 73 | 88 | — | 10,989 | 449 | |||||
2011 | ||||||||||||||
Banks | 6,595 | 499 | 68 | 5 | 32 | 4 | — | — | 6,695 | 508 | ||||
Other FI | 7,238 | 736 | 162 | 3 | 269 | 50 | — | — | 7,669 | 789 | ||||
13,833 | 1,235 | 230 | 8 | 301 | 54 | — | — | 14,364 | 1,297 |
· | The Group maintains good relationships with multinational banks, other financial institutions and large corporate clients. |
· |
· | The Group has an active portfolio of Spanish government debt and CDS exposures that can result in fluctuations between long and short positions for HFT debt securities. |
· | The Group’s largest exposure was AFS debt securities (mainly the covered bond portfolio) of £4.8 billion at 31 December 2012, which decreased by £1.6 billion during 2012, largely as a result of sales in the first half of the year. The portfolio continued to perform satisfactorily. However, the Group is monitoring the situation closely, including undertaking stress analyses. |
· | Derivative exposure, mostly to Spanish international banks and a few of the large regional banks, declined to £1.3 billion at 31 December 2012 from £1.9 billion at 31 December 2011. The majority of this exposure was collateralised. |
· | Lending to financial institutions decreased to less than £0.1 billion at 31 December 2012 from £0.3 billion at 31 December 2011. |
· | Lending decreased by £1.5 billion and off-balance sheet exposure by £0.9 billion, due to reductions primarily in the commercial real estate and electricity sectors. Commercial real estate lending amounted to £1.6 billion at 31 December 2012, predominantly in Non-Core. The majority of REIL and loan provisions relates to commercial real estate lending and further decreased during 2012, reflecting disposals and restructurings. |
· | At 31 December 2012, Non-Core had lending exposure to Spain of £2.8 billion, a reduction of £1.0 billion or 26% since 31 December 2011. Commercial real estate (63%), construction (14%) and electricity (9%) sectors accounted for the majority of the lending exposure. |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 9 | — | — | 408 | (81) | 2,781 | 2,224 | 965 | 80 | — | 1,054 | — | 1,054 | 131 | — | ||||||||
Central bank | 21 | — | — | — | — | — | — | — | — | — | 21 | — | 21 | — | — | ||||||||
Other banks | 200 | — | — | 125 | (8) | 42 | 54 | 113 | 1,454 | — | 1,767 | 33 | 1,800 | 8,428 | 3 | ||||||||
Other FI | 218 | — | — | 357 | (1) | 23 | 1 | 379 | 99 | — | 696 | 671 | 1,367 | 100 | — | ||||||||
Corporate | 1,392 | 34 | 5 | 87 | 2 | 85 | 22 | 150 | 664 | — | 2,206 | 1,900 | 4,106 | 938 | — | ||||||||
Personal | 23 | — | — | — | — | — | — | — | — | — | 23 | 12 | 35 | — | — | ||||||||
1,863 | 34 | 5 | 977 | (88) | 2,931 | 2,301 | 1,607 | 2,297 | — | 5,767 | 2,616 | 8,383 | 9,597 | 3 | |||||||||
2011 | |||||||||||||||||||||||
Government | — | — | — | 704 | (220) | 4,336 | 4,725 | 315 | 90 | — | 405 | — | 405 | 142 | — | ||||||||
Central bank | 73 | — | — | — | — | — | — | — | — | — | 73 | — | 73 | — | — | ||||||||
Other banks | 233 | — | — | 119 | (14) | 67 | 88 | 98 | 1,064 | — | 1,395 | 23 | 1,418 | 9,117 | 305 | ||||||||
Other FI | 299 | — | — | 685 | (15) | 40 | 13 | 712 | 686 | — | 1,697 | 1,146 | 2,843 | 687 | — | ||||||||
Corporate | 2,444 | 361 | 113 | 75 | — | 58 | — | 133 | 474 | — | 3,051 | 1,968 | 5,019 | 1,001 | — | ||||||||
Personal | 23 | — | — | — | — | — | — | — | — | — | 23 | 13 | 36 | — | — | ||||||||
3,072 | 361 | 113 | 1,583 | (249) | 4,501 | 4,826 | 1,258 | 2,314 | — | 6,644 | 3,150 | 9,794 | 10,947 | 305 | |||||||||
2010 | |||||||||||||||||||||||
Government | 45 | — | — | 906 | (99) | 5,113 | 3,175 | 2,844 | 71 | — | 2,960 | 6 | 2,966 | 156 | — | ||||||||
Central bank | 78 | — | — | — | — | — | — | — | — | — | 78 | — | 78 | — | — | ||||||||
Other banks | 668 | — | — | 198 | (11) | 67 | 16 | 249 | 781 | 1 | 1,699 | 161 | 1,860 | 7,724 | 58 | ||||||||
Other FI | 418 | — | — | 646 | (5) | 49 | — | 695 | 759 | — | 1,872 | 1,218 | 3,090 | 763 | — | ||||||||
Corporate | 2,483 | 314 | 141 | 20 | — | 36 | 8 | 48 | 420 | — | 2,951 | 2,456 | 5,407 | 831 | — | ||||||||
Personal | 27 | — | — | — | — | — | — | — | — | — | 27 | 12 | 39 | — | — | ||||||||
3,719 | 314 | 141 | 1,770 | (115) | 5,265 | 3,199 | 3,836 | 2,031 | 1 | 9,587 | 3,853 | 13,440 | 9,474 | 58 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 13,181 | 13,034 | 717 | (754) | 12,125 | 12,218 | 1,750 | (1,708) | 8,998 | 8,519 | 641 | (552) | |||||
Other banks | 3,537 | 3,488 | 163 | (139) | 6,078 | 5,938 | 1,215 | (1,187) | 4,417 | 4,458 | 421 | (414) | |||||
Other FI | 616 | 607 | 8 | (5) | 872 | 762 | 60 | (51) | 723 | 697 | 21 | (13) | |||||
Corporate | 2,580 | 2,295 | 28 | (20) | 4,742 | 4,299 | 350 | (281) | 4,506 | 3,966 | 150 | (88) | |||||
19,914 | 19,424 | 916 | (918) | 23,817 | 23,217 | 3,375 | (3,227) | 18,644 | 17,640 | 1,233 | (1,067) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 2,113 | 81 | 7,755 | 432 | 3,252 | 105 | — | — | 13,120 | 618 | ||||
Other FI | 2,120 | 96 | 4,344 | 194 | 218 | 8 | 112 | — | 6,794 | 298 | ||||
4,233 | 177 | 12,099 | 626 | 3,470 | 113 | 112 | — | 19,914 | 916 | |||||
2011 | ||||||||||||||
Banks | 12,904 | 1,676 | 487 | 94 | 61 | 10 | — | — | 13,452 | 1,780 | ||||
Other FI | 10,138 | 1,550 | 8 | 2 | 219 | 43 | — | — | 10,365 | 1,595 | ||||
23,042 | 3,226 | 495 | 96 | 280 | 53 | — | — | 23,817 | 3,375 |
· | The Group maintains good relationships with Italian government entities, banks, other financial institutions and large corporate clients. Since the start of 2011, the Group has taken steps to reduce and mitigate its risk through strategic exits where appropriate and through increased collateral requirements, in line with its evolving appetite for Italian risk. Lending exposure to Italian counterparties was reduced by a further £1.2 billion during 2012, to £1.9 billion. |
· | The Group is an active market-maker in Italian government bonds and has an active CDS portfolio, resulting in large and fluctuating gross long and short positions in HFT debt securities. |
· | The majority of the Group’s exposure relates to the top five banks. The Group’s product offering consists largely of collateralised trading products and to a lesser extent, short-term uncommitted lending lines for liquidity purposes. During 2012, derivative exposure decreased by £0.2 billion due to market movements. Risk is mitigated since most facilities are fully collateralised. Lending declined by £0.1 billion to £0.4 billion. |
· | The AFS bond exposure was reduced by £0.3 billion due to sales. |
· | Lending declined by £1.1 billion, particularly to industrials. |
· | Non-Core lending exposure was £0.9 billion at 31 December 2012, a £0.3 billion or 22% reduction since 31 December 2011, primarily due to a fall in exposure to investment funds and industrials. The remaining lending exposure was mainly to the commercial real estate (29%), leisure (25%) and electricity (16%) sectors. |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | 72 | (18) | 28 | 15 | 85 | 17 | — | 102 | — | 102 | 17 | — | ||||||||
Other banks | — | — | — | 66 | (12) | 5 | — | 71 | 380 | — | 451 | — | 451 | 481 | 26 | ||||||||
Other FI | — | — | — | 1 | — | 21 | 11 | 11 | 38 | — | 49 | 3 | 52 | 38 | — | ||||||||
Corporate | 336 | 253 | 188 | 41 | — | 7 | — | 48 | 79 | — | 463 | 247 | 710 | 82 | — | ||||||||
Personal | 7 | — | — | — | — | — | — | — | — | — | 7 | 8 | 15 | — | — | ||||||||
343 | 253 | 188 | 180 | (30) | 61 | 26 | 215 | 514 | — | 1,072 | 258 | 1,330 | 618 | 26 | |||||||||
2011 | |||||||||||||||||||||||
Government | — | — | — | 56 | (58) | 36 | 152 | (60) | 19 | — | (41) | — | (41) | 25 | — | ||||||||
Other banks | 10 | — | — | 91 | (36) | 12 | 2 | 101 | 389 | — | 500 | 2 | 502 | 497 | 217 | ||||||||
Other FI | — | — | — | 5 | — | 7 | — | 12 | 30 | — | 42 | — | 42 | 30 | 3 | ||||||||
Corporate | 495 | 27 | 27 | 42 | 1 | 18 | — | 60 | 81 | — | 636 | 258 | 894 | 81 | — | ||||||||
Personal | 5 | — | — | — | — | — | — | — | — | — | 5 | 8 | 13 | — | — | ||||||||
510 | 27 | 27 | 194 | (93) | 73 | 154 | 113 | 519 | — | 1,142 | 268 | 1,410 | 633 | 220 | |||||||||
2010 | |||||||||||||||||||||||
Government | 86 | — | — | 92 | (26) | 68 | 122 | 38 | 29 | — | 153 | 211 | 364 | 45 | — | ||||||||
Other banks | 63 | — | — | 106 | (24) | 46 | 2 | 150 | 307 | — | 520 | 2 | 522 | 452 | 782 | ||||||||
Other FI | — | — | — | 47 | — | 7 | — | 54 | 7 | — | 61 | 1 | 62 | 7 | — | ||||||||
Corporate | 611 | 27 | 21 | — | 1 | — | — | — | 51 | — | 662 | 512 | 1,174 | 51 | — | ||||||||
Personal | 6 | — | — | — | — | — | — | — | — | — | 6 | 8 | 14 | — | — | ||||||||
766 | 27 | 21 | 245 | (49) | 121 | 124 | 242 | 394 | — | 1,402 | 734 | 2,136 | 555 | 782 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 3,182 | 3,134 | 302 | (275) | 3,304 | 3,413 | 997 | (985) | 2,844 | 2,923 | 471 | (460) | |||||
Other banks | 856 | 863 | 31 | (30) | 1,197 | 1,155 | 264 | (260) | 1,085 | 1,107 | 231 | (243) | |||||
Other FI | 8 | 5 | — | (1) | 8 | 5 | 1 | (1) | 9 | 6 | (1) | — | |||||
Corporate | 426 | 353 | 3 | (7) | 366 | 321 | 68 | (48) | 581 | 507 | 48 | (29) | |||||
4,472 | 4,355 | 336 | (313) | 4,875 | 4,894 | 1,330 | (1,294) | 4,519 | 4,543 | 749 | (732) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 480 | 34 | 1,805 | 133 | 460 | 45 | — | — | 2,745 | 212 | ||||
Other FI | 534 | 38 | 1,126 | 88 | 35 | (2) | 32 | — | 1,727 | 124 | ||||
1,014 | 72 | 2,931 | 221 | 495 | 43 | 32 | — | 4,472 | 336 | |||||
2011 | ||||||||||||||
Banks | 2,922 | 786 | 46 | 12 | — | — | — | — | 2,968 | 798 | ||||
Other FI | 1,874 | 517 | — | — | 33 | 15 | — | — | 1,907 | 532 | ||||
4,796 | 1,303 | 46 | 12 | 33 | 15 | — | — | 4,875 | 1,330 |
· | The Portuguese portfolio, which is managed out of Spain, mainly consists of corporate lending and derivative trading with the largest local banks. Medium-term activity has ceased with the exception of collateralised business. |
· | Exposure declined further during 2012, with continued reductions in lending and off-balance sheet exposure, and sales of Group Treasury’s AFS bonds. |
· | The Group’s exposure to the Portuguese government at 31 December 2012 was £102 million, comprising a very small derivative exposure and a small net long debt securities position, an increase from the net short debt securities position at 31 December 2011. |
· | The remaining exposure is largely focused on the top four systemically important banks. Exposures generally consist of collateralised trading products. |
· | The largest exposure is to the land transport and logistics, electricity and telecommunications sectors, concentrated on a few large, highly creditworthy clients. |
· | Non-Core lending exposure to Portugal decreased by £0.1 billion during 2012, to £0.3 billion. The portfolio largely comprised lending exposure to the land transport and logistics (40%), electricity (37%) and commercial real estate (18%) sectors. |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | — | — | 9 | — | 9 | 17 | — | 26 | — | 26 | 151 | — | ||||||||
Central bank | 7 | — | — | — | — | — | — | — | — | — | 7 | — | 7 | — | — | ||||||||
Other banks | — | — | — | — | — | — | — | — | 299 | — | 299 | — | 299 | 411 | — | ||||||||
Other FI | 1 | — | — | — | — | — | 8 | (8) | — | — | (7) | — | (7) | — | — | ||||||||
Corporate | 179 | 38 | 38 | — | — | — | — | — | 44 | — | 223 | 18 | 241 | 61 | — | ||||||||
Personal | 14 | — | — | — | — | — | — | — | — | — | 14 | 9 | 23 | — | — | ||||||||
201 | 38 | 38 | — | — | 9 | 8 | 1 | 360 | — | 562 | 27 | 589 | 623 | — | |||||||||
2011 | |||||||||||||||||||||||
Government | 7 | — | — | 312 | — | 102 | 5 | 409 | — | — | 416 | — | 416 | 71 | — | ||||||||
Central bank | 6 | — | — | — | — | — | — | — | — | — | 6 | — | 6 | — | — | ||||||||
Other banks | — | — | — | — | — | — | — | — | 290 | — | 290 | — | 290 | 405 | — | ||||||||
Other FI | 31 | — | — | — | — | — | — | — | 2 | — | 33 | — | 33 | 2 | — | ||||||||
Corporate | 427 | 256 | 256 | — | — | — | — | — | 63 | — | 490 | 42 | 532 | 63 | — | ||||||||
Personal | 14 | — | — | — | — | — | — | — | — | — | 14 | 10 | 24 | — | — | ||||||||
485 | 256 | 256 | 312 | — | 102 | 5 | 409 | 355 | — | 1,249 | 52 | 1,301 | 541 | — | |||||||||
2010 | |||||||||||||||||||||||
Government | 14 | — | — | 895 | (694) | 118 | 39 | 974 | 7 | — | 995 | 7 | 1,002 | 23 | — | ||||||||
Central bank | 36 | — | — | — | — | — | — | — | — | — | 36 | — | 36 | — | — | ||||||||
Other banks | 18 | — | — | — | — | — | — | — | 167 | — | 185 | 1 | 186 | 284 | 181 | ||||||||
Other FI | 31 | — | — | — | — | — | — | — | 3 | — | 34 | 3 | 37 | 3 | — | ||||||||
Corporate | 191 | 48 | 48 | — | — | — | — | — | 50 | — | 241 | 143 | 384 | 50 | — | ||||||||
Personal | 16 | — | — | — | — | — | — | — | — | — | 16 | 10 | 26 | — | — | ||||||||
306 | 48 | 48 | 895 | (694) | 118 | 39 | 974 | 227 | — | 1,507 | 164 | 1,671 | 360 | 181 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | — | — | — | — | 3,158 | 3,165 | 2,228 | (2,230) | 2,960 | 3,061 | 854 | (871) | |||||
Other banks | 4 | 4 | 1 | (1) | 22 | 22 | 3 | (3) | 21 | 19 | 3 | (3) | |||||
Other FI | — | — | — | — | 34 | 34 | 8 | (8) | 35 | 35 | 11 | (11) | |||||
Corporate | 319 | 317 | 31 | (33) | 434 | 428 | 144 | (142) | 511 | 616 | 44 | (49) | |||||
323 | 321 | 32 | (34) | 3,648 | 3,649 | 2,383 | (2,383) | 3,527 | 3,731 | 912 | (934) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 64 | 5 | 54 | 6 | — | — | — | — | 118 | 11 | ||||
Other FI | 130 | 18 | 42 | 3 | — | — | 33 | — | 205 | 21 | ||||
194 | 23 | 96 | 9 | — | — | 33 | — | 323 | 32 | |||||
2011 | ||||||||||||||
Banks | 2,001 | 1,345 | 1 | 1 | — | — | — | — | 2,002 | 1,346 | ||||
Other FI | 1,507 | 945 | 63 | 45 | 76 | 47 | — | — | 1,646 | 1,037 | ||||
3,508 | 2,290 | 64 | 46 | 76 | 47 | — | — | 3,648 | 2,383 |
· | The Group’s exposure to Greece decreased further in 2012, largely as a result of the restructuring and sale of Greek government debt and a corporate write-off. The remainder of the exposure is actively managed, in line with the Group’s de-risking strategy that has been in place since early 2010. Much of the remaining exposure is collateralised or guaranteed. The remaining Greek exposure at 31 December 2012 was £0.6 billion. The majority of this was derivative exposure to banks (itself in part collateralised). The rest was mostly corporate lending including exposure to local subsidiaries of international companies. |
· | The Group participated in the restructuring of Greek government debt in March 2012, which resulted in the issuance of new bonds that were sold in March and April, and £0.3 billion of AFS bonds issued by the European Financial Stability Facility incorporated in Luxembourg. The Group no longer holds any AFS bonds issued by the Greek government. A small HFT position, resulting from the sovereign debt restructuring in March, has been retained to enable the Group to quote prices and stay relevant to key clients. |
· | Activity with Greek financial institutions is largely collateralised derivative and repo exposure, and remains under close scrutiny. |
· | Lending exposure fell by £0.2 billion to £0.2 billion, largely due to a single name write-off in the first half of 2012. |
· | The Group’s focus is on short-term trade facilities to the domestic subsidiaries of international clients, increasingly supported by parental guarantees. |
· | Non-Core lending exposure to Greece was £0.1 billion at 31 December 2012, a slight reduction from 31 December 2011. The remaining lending portfolio primarily consisted of the following sectors: commercial real estate (44%), construction (26%) and other services (12%). |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | — | — | 3 | — | 3 | — | — | 3 | — | 3 | — | — | ||||||||
Other banks | — | — | — | — | — | — | — | — | 11 | — | 11 | — | 11 | 12 | — | ||||||||
Other FI | 2 | — | — | — | — | 1 | — | 1 | — | — | 3 | — | 3 | 4 | 15 | ||||||||
Corporate | 274 | 162 | 54 | — | — | — | — | — | 24 | — | 298 | 36 | 334 | 38 | — | ||||||||
Personal | 15 | — | — | — | — | — | — | — | — | — | 15 | 11 | 26 | — | — | ||||||||
291 | 162 | 54 | — | — | 4 | — | 4 | 35 | — | 330 | 47 | 377 | 54 | 15 | |||||||||
2011 | |||||||||||||||||||||||
Other banks | — | — | — | — | — | — | — | — | 6 | — | 6 | 1 | 7 | 7 | — | ||||||||
Other FI | 38 | — | — | — | — | — | — | — | 1 | — | 39 | 1 | 40 | 1 | 200 | ||||||||
Corporate | 250 | 169 | 40 | — | — | 2 | — | 2 | 49 | — | 301 | 56 | 357 | 49 | — | ||||||||
Personal | 14 | — | — | — | — | — | — | — | — | — | 14 | 10 | 24 | — | — | ||||||||
302 | 169 | 40 | — | — | 2 | — | 2 | 56 | — | 360 | 68 | 428 | 57 | 200 | |||||||||
2010 | |||||||||||||||||||||||
Central bank | — | — | — | — | — | — | — | — | — | — | — | 1 | 1 | — | — | ||||||||
Other banks | 1 | — | — | — | — | — | — | — | 13 | — | 14 | 5 | 19 | 19 | — | ||||||||
Other FI | 38 | — | — | — | — | — | — | — | 1 | 14 | 53 | 1 | 54 | 4 | 218 | ||||||||
Corporate | 285 | 175 | 45 | — | — | — | — | — | 41 | — | 326 | 20 | 346 | 59 | — | ||||||||
Personal | 13 | — | — | — | — | — | — | — | — | — | 13 | 11 | 24 | — | — | ||||||||
337 | 175 | 45 | — | — | — | — | — | 55 | 14 | 406 | 38 | 444 | 82 | 218 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 627 | — | — | 10,843 | 399 | 13,744 | 5,771 | 18,816 | 1,663 | — | 21,106 | 767 | 21,873 | 4,946 | — | ||||||||
Central bank | 21,862 | — | — | — | — | — | — | — | 35 | — | 21,897 | — | 21,897 | 36 | 4,648 | ||||||||
Other banks | 3,958 | — | — | 2,037 | 151 | 856 | 480 | 2,413 | 21,863 | 685 | 28,919 | 4,325 | 33,244 | 118,828 | 24,493 | ||||||||
Other FI | 3,425 | — | — | 7,302 | (540) | 795 | 102 | 7,995 | 6,849 | 624 | 18,893 | 4,123 | 23,016 | 13,498 | 11,988 | ||||||||
Corporate | 12,989 | 2,107 | 694 | 602 | 31 | 183 | 75 | 710 | 1,916 | 24 | 15,639 | 23,647 | 39,286 | 2,918 | 406 | ||||||||
Personal | 220 | 4 | 20 | — | — | — | — | — | — | — | 220 | 132 | 352 | — | — | ||||||||
43,081 | 2,111 | 714 | 20,784 | 41 | 15,578 | 6,428 | 29,934 | 32,326 | 1,333 | 106,674 | 32,994 | 139,668 | 140,226 | 41,535 | |||||||||
2011 | |||||||||||||||||||||||
Government | 610 | — | — | 17,199 | 420 | 14,743 | 9,397 | 22,545 | 1,688 | — | 24,843 | 938 | 25,781 | 4,599 | 791 | ||||||||
Central bank | 25,733 | — | — | 20 | — | 6 | — | 26 | 35 | — | 25,794 | — | 25,794 | 38 | 15,103 | ||||||||
Other banks | 2,965 | — | — | 3,144 | 204 | 836 | 1,184 | 2,796 | 24,245 | 610 | 30,616 | 4,426 | 35,042 | 140,891 | 27,072 | ||||||||
Other FI | 3,500 | — | — | 8,163 | (475) | 910 | 415 | 8,658 | 8,071 | 1,029 | 21,258 | 6,337 | 27,595 | 14,569 | 15,798 | ||||||||
Corporate | 19,137 | 1,880 | 700 | 690 | 20 | 288 | 59 | 919 | 2,578 | 3 | 22,637 | 24,139 | 46,776 | 4,556 | 713 | ||||||||
Personal | 288 | 22 | 21 | — | — | — | — | — | — | — | 288 | 128 | 416 | — | — | ||||||||
52,233 | 1,902 | 721 | 29,216 | 169 | 16,783 | 11,055 | 34,944 | 36,617 | 1,642 | 125,436 | 35,968 | 161,404 | 164,653 | 59,477 | |||||||||
2010 | |||||||||||||||||||||||
Government | 1,651 | — | — | 21,116 | (22) | 18,477 | 9,584 | 30,009 | 1,357 | — | 33,017 | 87 | 33,104 | 4,408 | 18 | ||||||||
Central bank | 17,421 | — | — | — | — | — | — | — | 12 | 6,244 | 23,677 | — | 23,677 | 24 | 29,123 | ||||||||
Other banks | 3,317 | — | — | 3,189 | 4 | 1,363 | 1,006 | 3,546 | 20,180 | 1,186 | 28,229 | 5,170 | 33,399 | 113,199 | 20,873 | ||||||||
Other FI | 3,540 | — | — | 7,875 | (257) | 613 | 76 | 8,412 | 6,030 | 1,352 | 19,334 | 7,631 | 26,965 | 10,836 | 7,908 | ||||||||
Corporate | 22,681 | 1,678 | 494 | 693 | 8 | 605 | 238 | 1,060 | 2,654 | — | 26,395 | 31,556 | 57,951 | 4,315 | 391 | ||||||||
Personal | 686 | 3 | 3 | — | — | — | — | — | — | — | 686 | 128 | 814 | — | — | ||||||||
49,296 | 1,681 | 497 | 32,873 | (267) | 21,058 | 10,904 | 43,027 | 30,233 | 8,782 | 131,338 | 44,572 | 175,910 | 132,782 | 58,313 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 15,369 | 13,980 | (45) | 54 | 11,197 | 10,585 | 509 | (450) | 8,331 | 8,635 | 137 | (138) | |||||
Other banks | 7,226 | 7,018 | 36 | (15) | 10,364 | 10,073 | 646 | (602) | 8,689 | 8,201 | 151 | (142) | |||||
Other FI | 8,423 | 7,354 | 28 | (25) | 14,095 | 12,973 | 403 | (358) | 9,940 | 9,447 | 25 | (29) | |||||
Corporate | 33,815 | 30,710 | (507) | 512 | 66,168 | 60,790 | 1,242 | (1,057) | 59,081 | 54,133 | (720) | 778 | |||||
64,833 | 59,062 | (488) | 526 | 101,824 | 94,421 | 2,800 | (2,467) | 86,041 | 80,416 | (407) | 469 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 5,311 | (27) | 20,137 | (183) | 2,903 | (10) | — | — | 28,351 | (220) | ||||
Other FI | 18,265 | (152) | 14,335 | (82) | 3,215 | (39) | 667 | 5 | 36,482 | (268) | ||||
23,576 | (179) | 34,472 | (265) | 6,118 | (49) | 667 | 5 | 64,833 | (488) | |||||
2011 | ||||||||||||||
Banks | 41,616 | 979 | 481 | 19 | 105 | 9 | — | — | 42,202 | 1,007 | ||||
Other FI | 57,742 | 1,625 | 365 | 38 | 1,368 | 116 | 147 | 14 | 59,622 | 1,793 | ||||
99,358 | 2,604 | 846 | 57 | 1,473 | 125 | 147 | 14 | 101,824 | 2,800 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | 8,103 | 453 | 5,070 | 1,592 | 11,581 | 533 | — | 12,114 | 735 | 12,849 | 1,656 | — | ||||||||
Central bank | 20,018 | — | — | — | — | — | — | — | — | — | 20,018 | — | 20,018 | — | — | ||||||||
Other banks | 660 | — | — | 668 | 10 | 280 | 332 | 616 | 5,558 | 183 | 7,017 | 139 | 7,156 | 50,998 | 4,935 | ||||||||
Other FI | 460 | — | — | 285 | (23) | 95 | 30 | 350 | 3,046 | 116 | 3,972 | 933 | 4,905 | 3,911 | 3,066 | ||||||||
Corporate | 3,756 | 460 | 152 | 207 | 14 | 11 | 2 | 216 | 339 | 24 | 4,335 | 5,462 | 9,797 | 637 | 406 | ||||||||
Personal | 83 | 1 | — | — | — | — | — | — | — | — | 83 | 25 | 108 | — | — | ||||||||
24,977 | 461 | 152 | 9,263 | 454 | 5,456 | 1,956 | 12,763 | 9,476 | 323 | 47,539 | 7,294 | 54,833 | 57,202 | 8,407 | |||||||||
2011 | |||||||||||||||||||||||
Government | — | — | — | 12,035 | 523 | 4,136 | 2,084 | 14,087 | 423 | — | 14,510 | 2 | 14,512 | 1,284 | 164 | ||||||||
Central bank | 18,068 | — | — | — | — | — | — | — | 2 | — | 18,070 | — | 18,070 | 2 | — | ||||||||
Other banks | 653 | — | — | 1,376 | 5 | 294 | 761 | 909 | 5,886 | 117 | 7,565 | 284 | 7,849 | 62,744 | 4,277 | ||||||||
Other FI | 305 | — | — | 563 | (33) | 187 | 95 | 655 | 3,272 | 49 | 4,281 | 1,116 | 5,397 | 3,657 | 1,659 | ||||||||
Corporate | 6,608 | 191 | 80 | 109 | 9 | 14 | 7 | 116 | 586 | — | 7,310 | 6,103 | 13,413 | 963 | 42 | ||||||||
Personal | 155 | 19 | 19 | — | — | — | — | — | — | — | 155 | 22 | 177 | — | — | ||||||||
25,789 | 210 | 99 | 14,083 | 504 | 4,631 | 2,947 | 15,767 | 10,169 | 166 | 51,891 | 7,527 | 59,418 | 68,650 | 6,142 | |||||||||
2010 | |||||||||||||||||||||||
Government | — | — | — | 10,648 | 1 | 5,964 | 4,124 | 12,488 | 160 | — | 12,648 | — | 12,648 | 805 | 18 | ||||||||
Central bank | 10,894 | — | — | — | — | — | — | — | 4 | 6,229 | 17,127 | — | 17,127 | 4 | 6,229 | ||||||||
Other banks | 1,060 | — | — | 1,291 | 3 | 567 | 481 | 1,377 | 5,943 | 346 | 8,726 | 250 | 8,976 | 52,483 | 2,854 | ||||||||
Other FI | 422 | — | — | 494 | (47) | 195 | 17 | 672 | 1,860 | 91 | 3,045 | 740 | 3,785 | 2,478 | 3,006 | ||||||||
Corporate | 7,519 | 163 | 44 | 219 | 4 | 44 | 53 | 210 | 633 | — | 8,362 | 7,905 | 16,267 | 1,368 | — | ||||||||
Personal | 162 | — | — | — | — | — | — | — | — | — | 162 | 22 | 184 | — | — | ||||||||
20,057 | 163 | 44 | 12,652 | (39) | 6,770 | 4,675 | 14,747 | 8,600 | 6,666 | 50,070 | 8,917 | 58,987 | 57,138 | 12,107 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 4,288 | 4,191 | 4 | — | 2,631 | 2,640 | 76 | (67) | 2,056 | 2,173 | 25 | (19) | |||||
Other banks | 2,849 | 2,696 | 13 | (11) | 4,765 | 4,694 | 307 | (310) | 3,848 | 3,933 | 73 | (88) | |||||
Other FI | 2,385 | 2,172 | (16) | 18 | 3,653 | 3,403 | 7 | (2) | 2,712 | 2,633 | (18) | 18 | |||||
Corporate | 10,526 | 9,644 | (257) | 261 | 20,433 | 18,311 | 148 | (126) | 20,731 | 19,076 | (382) | 372 | |||||
20,048 | 18,703 | (256) | 268 | 31,482 | 29,048 | 538 | (505) | 29,347 | 27,815 | (302) | 283 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 1,968 | (22) | 6,263 | (87) | 940 | (7) | — | — | 9,171 | (116) | ||||
Other FI | 5,047 | (70) | 5,103 | (55) | 727 | (15) | — | — | 10,877 | (140) | ||||
7,015 | (92) | 11,366 | (142) | 1,667 | (22) | — | — | 20,048 | (256) | |||||
2011 | ||||||||||||||
Banks | 14,644 | 171 | 163 | 4 | 8 | — | — | — | 14,815 | 175 | ||||
Other FI | 16,315 | 357 | 18 | — | 334 | 6 | — | — | 16,667 | 363 | ||||
30,959 | 528 | 181 | 4 | 342 | 6 | — | — | 31,482 | 538 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 7 | — | — | 1,052 | 57 | 1,248 | 993 | 1,307 | 36 | — | 1,350 | 29 | 1,379 | 1,662 | — | ||||||||
Central bank | 1,822 | — | — | — | — | — | — | — | 2 | — | 1,824 | — | 1,824 | 2 | 4,648 | ||||||||
Other banks | 496 | — | — | 575 | 136 | 252 | 86 | 741 | 6,667 | 309 | 8,213 | 3,471 | 11,684 | 16,558 | 3,074 | ||||||||
Other FI | 1,785 | — | — | 6,107 | (508) | 242 | 17 | 6,332 | 1,908 | 45 | 10,070 | 1,311 | 11,381 | 5,087 | 2,335 | ||||||||
Corporate | 3,720 | 508 | 156 | 66 | 2 | 29 | 28 | 67 | 476 | — | 4,263 | 6,650 | 10,913 | 648 | — | ||||||||
Personal | 26 | — | — | — | — | — | — | — | — | — | 26 | 12 | 38 | — | — | ||||||||
7,856 | 508 | 156 | 7,800 | (313) | 1,771 | 1,124 | 8,447 | 9,089 | 354 | 25,746 | 11,473 | 37,219 | 23,957 | 10,057 | |||||||||
2011 | |||||||||||||||||||||||
Government | 8 | — | — | 1,447 | 74 | 849 | 591 | 1,705 | 40 | — | 1,753 | — | 1,753 | 1,521 | — | ||||||||
Central bank | 7,654 | — | — | — | — | 6 | — | 6 | 7 | — | 7,667 | — | 7,667 | 10 | 15,103 | ||||||||
Other banks | 623 | — | — | 802 | 217 | 365 | 278 | 889 | 7,410 | 164 | 9,086 | 3,566 | 12,652 | 17,425 | 2,615 | ||||||||
Other FI | 1,557 | — | — | 6,804 | (386) | 290 | 108 | 6,986 | 1,806 | 108 | 10,457 | 3,388 | 13,845 | 5,082 | 5,792 | ||||||||
Corporate | 4,827 | 621 | 209 | 199 | 6 | 113 | 5 | 307 | 747 | 3 | 5,884 | 6,596 | 12,480 | 1,820 | 416 | ||||||||
Personal | 20 | 3 | 2 | — | — | — | — | — | — | — | 20 | 11 | 31 | — | — | ||||||||
14,689 | 624 | 211 | 9,252 | (89) | 1,623 | 982 | 9,893 | 10,010 | 275 | 34,867 | 13,561 | 48,428 | 25,858 | 23,926 | |||||||||
2010 | |||||||||||||||||||||||
Government | 914 | — | — | 3,469 | 16 | 1,426 | 607 | 4,288 | 46 | — | 5,248 | 46 | 5,294 | 1,682 | — | ||||||||
Central bank | 6,484 | — | — | — | — | — | — | — | — | — | 6,484 | — | 6,484 | 12 | 22,167 | ||||||||
Other banks | 554 | — | — | 984 | 2 | 223 | 275 | 932 | 4,819 | 202 | 6,507 | 3,813 | 10,320 | 13,199 | 837 | ||||||||
Other FI | 1,801 | — | — | 6,612 | (185) | 344 | 12 | 6,944 | 2,944 | 172 | 11,861 | 4,734 | 16,595 | 5,630 | 1,084 | ||||||||
Corporate | 6,170 | 388 | 149 | 264 | 3 | 152 | 57 | 359 | 875 | — | 7,404 | 9,537 | 16,941 | 1,178 | — | ||||||||
Personal | 81 | 3 | 3 | — | — | — | — | — | — | — | 81 | 11 | 92 | — | — | ||||||||
16,004 | 391 | 152 | 11,329 | (164) | 2,145 | 951 | 12,523 | 8,684 | 374 | 37,585 | 18,141 | 55,726 | 21,701 | 24,088 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 1,352 | 1,227 | (12) | 11 | 1,206 | 1,189 | 31 | (31) | 1,195 | 999 | (2) | (4) | |||||
Other banks | 659 | 695 | (1) | 2 | 965 | 995 | 41 | (42) | 784 | 789 | 12 | (10) | |||||
Other FI | 3,080 | 2,799 | 20 | (23) | 5,772 | 5,541 | 142 | (131) | 4,210 | 3,985 | 48 | (46) | |||||
Corporate | 7,943 | 6,852 | (93) | 87 | 15,416 | 14,238 | 257 | (166) | 12,330 | 11,113 | (72) | 177 | |||||
13,034 | 11,573 | (86) | 77 | 23,359 | 21,963 | 471 | (370) | 18,519 | 16,886 | (14) | 117 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 763 | (17) | 3,112 | (32) | 539 | (3) | — | — | 4,414 | (52) | ||||
Other FI | 4,990 | (33) | 2,046 | 7 | 917 | (13) | 667 | 5 | 8,620 | (34) | ||||
5,753 | (50) | 5,158 | (25) | 1,456 | (16) | 667 | 5 | 13,034 | (86) | |||||
2011 | ||||||||||||||
Banks | 7,605 | 107 | 88 | 1 | 6 | — | — | — | 7,699 | 108 | ||||
Other FI | 14,529 | 231 | 308 | 37 | 676 | 81 | 147 | 14 | 15,660 | 363 | ||||
22,134 | 338 | 396 | 38 | 682 | 81 | 147 | 14 | 23,359 | 471 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 494 | — | — | 537 | (41) | 5,186 | 2,064 | 3,659 | 257 | — | 4,410 | 3 | 4,413 | 270 | — | ||||||||
Central bank | 9 | — | — | — | — | — | — | — | — | — | 9 | — | 9 | — | — | ||||||||
Other banks | 2,498 | — | — | 730 | 5 | 184 | 27 | 887 | 5,608 | 58 | 9,051 | 591 | 9,642 | 41,782 | 11,581 | ||||||||
Other FI | 124 | — | — | 757 | (4) | 252 | 51 | 958 | 833 | 392 | 2,307 | 1,106 | 3,413 | 1,721 | 2,743 | ||||||||
Corporate | 2,426 | 116 | 71 | 218 | 16 | 116 | 15 | 319 | 724 | — | 3,469 | 7,685 | 11,154 | 1,147 | — | ||||||||
Personal | 71 | — | — | — | — | — | — | — | — | — | 71 | 75 | 146 | — | — | ||||||||
5,622 | 116 | 71 | 2,242 | (24) | 5,738 | 2,157 | 5,823 | 7,422 | 450 | 19,317 | 9,460 | 28,777 | 44,920 | 14,324 | |||||||||
2011 | |||||||||||||||||||||||
Government | 481 | — | — | 2,648 | (14) | 8,705 | 5,669 | 5,684 | 357 | — | 6,522 | 911 | 7,433 | 372 | — | ||||||||
Central bank | 3 | — | — | 20 | — | — | — | 20 | — | — | 23 | — | 23 | — | — | ||||||||
Other banks | 1,273 | — | — | 889 | (17) | 157 | 75 | 971 | 7,009 | 262 | 9,515 | 474 | 9,989 | 42,922 | 17,689 | ||||||||
Other FI | 282 | — | — | 642 | (40) | 325 | 126 | 841 | 592 | 83 | 1,798 | 928 | 2,726 | 1,763 | 4,541 | ||||||||
Corporate | 3,761 | 128 | 74 | 240 | 9 | 72 | 34 | 278 | 743 | — | 4,782 | 7,829 | 12,611 | 1,148 | — | ||||||||
Personal | 79 | — | — | — | — | — | — | — | — | — | 79 | 75 | 154 | — | — | ||||||||
5,879 | 128 | 74 | 4,439 | (62) | 9,259 | 5,904 | 7,794 | 8,701 | 345 | 22,719 | 10,217 | 32,936 | 46,205 | 22,230 | |||||||||
2010 | |||||||||||||||||||||||
Government | 511 | — | — | 5,912 | 40 | 10,266 | 3,968 | 12,210 | 362 | — | 13,083 | 15 | 13,098 | 399 | — | ||||||||
Central bank | 3 | — | — | — | — | — | — | — | — | 15 | 18 | — | 18 | — | 727 | ||||||||
Other banks | 1,095 | — | — | 774 | — | 410 | 204 | 980 | 6,554 | 629 | 9,258 | 954 | 10,212 | 35,028 | 16,002 | ||||||||
Other FI | 470 | — | — | 666 | (22) | 42 | 23 | 685 | 361 | 14 | 1,530 | 1,310 | 2,840 | 740 | 1,255 | ||||||||
Corporate | 4,376 | 230 | 46 | 71 | 1 | 185 | 90 | 166 | 672 | — | 5,214 | 9,285 | 14,499 | 1,074 | — | ||||||||
Personal | 102 | — | — | — | — | — | — | — | — | — | 102 | 76 | 178 | — | — | ||||||||
6,557 | 230 | 46 | 7,423 | 19 | 10,903 | 4,285 | 14,041 | 7,949 | 658 | 29,205 | 11,640 | 40,845 | 37,241 | 17,984 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 4,989 | 4,095 | 76 | (66) | 3,467 | 2,901 | 228 | (195) | 2,225 | 2,287 | 87 | (92) | |||||
Other banks | 3,443 | 3,337 | 23 | (5) | 4,232 | 3,995 | 282 | (236) | 3,631 | 3,071 | 63 | (43) | |||||
Other FI | 1,789 | 1,374 | (8) | 9 | 2,590 | 2,053 | 136 | (117) | 1,722 | 1,609 | — | (2) | |||||
Corporate | 11,435 | 10,618 | (106) | 112 | 23,224 | 21,589 | 609 | (578) | 19,771 | 18,466 | (181) | 159 | |||||
21,656 | 19,424 | (15) | 50 | 33,513 | 30,538 | 1,255 | (1,126) | 27,349 | 25,433 | (31) | 22 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 1,779 | 14 | 7,102 | (15) | 921 | 6 | — | — | 9,802 | 5 | ||||
Other FI | 5,995 | (12) | 4,798 | (5) | 1,061 | (3) | — | — | 11,854 | (20) | ||||
7,774 | 2 | 11,900 | (20) | 1,982 | 3 | — | — | 21,656 | (15) | |||||
2011 | ||||||||||||||
Banks | 13,353 | 453 | 162 | 13 | 79 | 8 | — | — | 13,594 | 474 | ||||
Other FI | 19,641 | 758 | 24 | 1 | 254 | 22 | — | — | 19,919 | 781 | ||||
32,994 | 1,211 | 186 | 14 | 333 | 30 | — | — | 33,513 | 1,255 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | — | — | — | 828 | (44) | 1,269 | 711 | 1,386 | 103 | — | 1,489 | — | 1,489 | 404 | — | ||||||||
Other banks | 186 | — | — | 2 | — | 2 | 2 | 2 | 2,618 | 50 | 2,856 | 7 | 2,863 | 4,035 | 1,256 | ||||||||
Other FI | 249 | — | — | — | — | — | — | — | 239 | — | 488 | 30 | 518 | 252 | — | ||||||||
Corporate | 414 | 50 | 15 | 14 | — | 6 | — | 20 | 180 | — | 614 | 1,263 | 1,877 | 270 | — | ||||||||
Personal | 22 | 3 | 20 | — | — | — | — | — | — | — | 22 | 8 | 30 | — | — | ||||||||
871 | 53 | 35 | 844 | (44) | 1,277 | 713 | 1,408 | 3,140 | 50 | 5,469 | 1,308 | 6,777 | 4,961 | 1,256 | |||||||||
2011 | |||||||||||||||||||||||
Government | — | — | — | 742 | (116) | 608 | 722 | 628 | 89 | — | 717 | — | 717 | 492 | — | ||||||||
Central bank | 8 | — | — | — | — | — | — | — | 3 | — | 11 | — | 11 | 3 | — | ||||||||
Other banks | 287 | — | — | 4 | — | — | — | 4 | 2,399 | 51 | 2,741 | 8 | 2,749 | 7,868 | 1,694 | ||||||||
Other FI | 354 | — | — | — | — | 1 | 4 | (3) | 191 | — | 542 | 64 | 606 | 260 | — | ||||||||
Corporate | 588 | 31 | 21 | 3 | — | 20 | — | 23 | 277 | — | 888 | 1,279 | 2,167 | 375 | 255 | ||||||||
Personal | 20 | — | — | — | — | — | — | — | — | — | 20 | 8 | 28 | — | — | ||||||||
1,257 | 31 | 21 | 749 | (116) | 629 | 726 | 652 | 2,959 | 51 | 4,919 | 1,359 | 6,278 | 8,998 | 1,949 | |||||||||
2010 | |||||||||||||||||||||||
Government | 102 | — | — | 763 | (54) | 529 | 602 | 690 | 92 | — | 884 | — | 884 | 745 | — | ||||||||
Central bank | 14 | — | — | — | — | — | — | — | 7 | — | 21 | — | 21 | 7 | — | ||||||||
Other banks | 441 | — | — | 39 | 1 | 66 | 2 | 103 | 1,822 | — | 2,366 | 3 | 2,369 | 6,051 | 961 | ||||||||
Other FI | 32 | — | — | — | — | — | — | — | 126 | — | 158 | 81 | 239 | 201 | — | ||||||||
Corporate | 893 | 27 | 27 | 1 | — | 11 | 2 | 10 | 191 | — | 1,094 | 1,400 | 2,494 | 387 | 391 | ||||||||
Personal | 327 | — | — | — | — | — | — | — | — | — | 327 | 8 | 335 | — | — | ||||||||
1,809 | 27 | 27 | 803 | (53) | 606 | 606 | 803 | 2,238 | — | 4,850 | 1,492 | 6,342 | 7,391 | 1,352 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 1,890 | 1,674 | (31) | 29 | 1,612 | 1,505 | 120 | (110) | 880 | 986 | 53 | (57) | |||||
Other banks | 212 | 222 | 1 | (1) | 312 | 302 | 14 | (13) | 278 | 266 | 2 | (1) | |||||
Corporate | 301 | 276 | (1) | 1 | 563 | 570 | 12 | (12) | 628 | 594 | (6) | 6 | |||||
2,403 | 2,172 | (31) | 29 | 2,487 | 2,377 | 146 | (135) | 1,786 | 1,846 | 49 | (52) |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 244 | (2) | 1,156 | (17) | 281 | (3) | — | — | 1,681 | (22) | ||||
Other FI | 178 | — | 505 | (9) | 39 | — | — | — | 722 | (9) | ||||
422 | (2) | 1,661 | (26) | 320 | (3) | — | — | 2,403 | (31) | |||||
2011 | ||||||||||||||
Banks | 1,602 | 97 | 2 | — | 12 | 1 | — | — | 1,616 | 98 | ||||
Other FI | 866 | 48 | 1 | — | 4 | — | — | — | 871 | 48 | ||||
2,468 | 145 | 3 | — | 16 | 1 | — | — | 2,487 | 146 |
AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | ||||||||||||||||
Lending | REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | |||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Central bank | 13 | — | — | — | — | — | — | — | — | — | 13 | — | 13 | — | — | ||||||||
Other banks | 99 | — | — | 8 | — | 8 | 6 | 10 | 485 | 77 | 671 | — | 671 | 650 | 2,215 | ||||||||
Other FI | 717 | — | — | 51 | (1) | 198 | 4 | 245 | 821 | 68 | 1,851 | 719 | 2,570 | 2,343 | 2,951 | ||||||||
Corporate | 1,817 | 940 | 287 | — | — | 19 | 23 | (4) | 156 | — | 1,969 | 1,469 | 3,438 | 164 | — | ||||||||
Personal | 4 | — | — | — | — | — | — | — | — | — | 4 | 2 | 6 | — | — | ||||||||
2,650 | 940 | 287 | 59 | (1) | 225 | 33 | 251 | 1,462 | 145 | 4,508 | 2,190 | 6,698 | 3,157 | 5,166 | |||||||||
2011 | |||||||||||||||||||||||
Other banks | 101 | — | — | 10 | — | 7 | — | 17 | 530 | 16 | 664 | — | 664 | 664 | 447 | ||||||||
Other FI | 925 | — | — | 54 | (7) | 82 | 80 | 56 | 2,174 | 789 | 3,944 | 711 | 4,655 | 3,676 | 3,529 | ||||||||
Corporate | 2,228 | 897 | 301 | 5 | — | 58 | 6 | 57 | 180 | — | 2,465 | 1,294 | 3,759 | 195 | — | ||||||||
Personal | 2 | — | — | — | — | — | — | — | — | — | 2 | 2 | 4 | — | — | ||||||||
3,256 | 897 | 301 | 69 | (7) | 147 | 86 | 130 | 2,884 | 805 | 7,075 | 2,007 | 9,082 | 4,535 | 3,976 | |||||||||
2010 | |||||||||||||||||||||||
Government | — | — | — | — | — | 24 | — | 24 | — | — | 24 | — | 24 | — | — | ||||||||
Central bank | 25 | — | — | — | — | — | — | — | — | — | 25 | — | 25 | — | — | ||||||||
Other banks | 26 | — | — | 30 | (1) | 45 | — | 75 | 492 | 7 | 600 | 1 | 601 | 610 | 7 | ||||||||
Other FI | 734 | — | — | 99 | (3) | 32 | 19 | 112 | 731 | 1,069 | 2,646 | 696 | 3,342 | 1,740 | 2,325 | ||||||||
Corporate | 2,503 | 807 | 206 | 5 | 1 | 183 | 21 | 167 | 246 | — | 2,916 | 1,684 | 4,600 | 258 | — | ||||||||
Personal | 3 | — | — | — | — | — | — | — | — | — | 3 | 2 | 5 | — | — | ||||||||
3,291 | 807 | 206 | 134 | (3) | 284 | 40 | 378 | 1,469 | 1,076 | 6,214 | 2,383 | 8,597 | 2,608 | 2,332 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Other FI | 1,169 | 1,009 | 32 | (29) | 2,080 | 1,976 | 118 | (108) | 1,296 | 1,220 | (5) | 1 | |||||
Corporate | 1,388 | 1,238 | (9) | 10 | 2,478 | 2,138 | 146 | (116) | 2,367 | 1,918 | (16) | 13 | |||||
2,557 | 2,247 | 23 | (19) | 4,558 | 4,114 | 264 | (224) | 3,663 | 3,138 | (21) | 14 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 96 | 4 | 611 | 23 | 63 | (1) | — | — | 770 | 26 | ||||
Other FI | 1,111 | (12) | 361 | 12 | 315 | (3) | — | — | 1,787 | (3) | ||||
1,207 | (8) | 972 | 35 | 378 | (4) | — | — | 2,557 | 23 | |||||
2011 | ||||||||||||||
Banks | 1,535 | 93 | 16 | — | — | — | — | — | 1,551 | 93 | ||||
Other FI | 2,927 | 164 | 10 | — | 70 | 7 | — | — | 3,007 | 171 | ||||
4,462 | 257 | 26 | — | 70 | 7 | — | — | 4,558 | 264 |
Lending | AFS and LAR debt | AFS | HFT debt securities | Total debt | Net | Balance | Off- balance | Gross | |||||||||||||||
REIL | Provisions | securities | reserves | Long | Short | securities | Derivatives | Repos | sheet | sheet | Total | Derivatives | Repos | ||||||||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||
Government | 126 | — | — | 323 | (26) | 971 | 411 | 883 | 734 | — | 1,743 | — | 1,743 | 954 | — | ||||||||
Central bank | — | — | — | — | — | — | — | — | 33 | — | 33 | — | 33 | 34 | — | ||||||||
Other banks | 19 | — | — | 54 | — | 130 | 27 | 157 | 927 | 8 | 1,111 | 117 | 1,228 | 4,805 | 1,432 | ||||||||
Other FI | 90 | — | — | 102 | (4) | 8 | — | 110 | 2 | 3 | 205 | 24 | 229 | 184 | 893 | ||||||||
Corporate | 856 | 33 | 13 | 97 | (1) | 2 | 7 | 92 | 41 | — | 989 | 1,118 | 2,107 | 52 | — | ||||||||
Personal | 14 | — | — | — | — | — | — | — | — | — | 14 | 10 | 24 | — | — | ||||||||
1,105 | 33 | 13 | 576 | (31) | 1,111 | 445 | 1,242 | 1,737 | 11 | 4,095 | 1,269 | 5,364 | 6,029 | 2,325 | |||||||||
2011 | |||||||||||||||||||||||
Government | 121 | — | — | 327 | (47) | 445 | 331 | 441 | 779 | — | 1,341 | 25 | 1,366 | 930 | 627 | ||||||||
Central bank | — | — | — | — | — | — | — | — | 23 | — | 23 | — | 23 | 23 | — | ||||||||
Other banks | 28 | — | — | 63 | (1) | 13 | 70 | 6 | 1,011 | — | 1,045 | 94 | 1,139 | 9,268 | 350 | ||||||||
Other FI | 77 | — | — | 100 | (9) | 25 | 2 | 123 | 36 | — | 236 | 130 | 366 | 131 | 277 | ||||||||
Corporate | 1,125 | 12 | 15 | 134 | (4) | 11 | 7 | 138 | 45 | — | 1,308 | 1,038 | 2,346 | 55 | — | ||||||||
Personal | 12 | — | — | — | — | — | — | — | — | — | 12 | 10 | 22 | — | — | ||||||||
1,363 | 12 | 15 | 624 | (61) | 494 | 410 | 708 | 1,894 | — | 3,965 | 1,297 | 5,262 | 10,407 | 1,254 | |||||||||
2010 | |||||||||||||||||||||||
Government | 124 | — | — | 324 | (25) | 268 | 283 | 309 | 697 | — | 1,130 | 26 | 1,156 | 777 | — | ||||||||
Central bank | 1 | — | — | — | — | — | — | — | 1 | — | 2 | — | 2 | 1 | — | ||||||||
Other banks | 141 | — | — | 71 | (1) | 52 | 44 | 79 | 550 | 2 | 772 | 149 | 921 | 5,828 | 212 | ||||||||
Other FI | 81 | — | — | 4 | — | — | 5 | (1) | 8 | 6 | 94 | 70 | 164 | 47 | 238 | ||||||||
Corporate | 1,220 | 63 | 22 | 133 | (1) | 30 | 15 | 148 | 37 | — | 1,405 | 1,745 | 3,150 | 50 | — | ||||||||
Personal | 11 | — | — | — | — | — | — | — | — | — | 11 | 9 | 20 | — | — | ||||||||
1,578 | 63 | 22 | 532 | (27) | 350 | 347 | 535 | 1,293 | 8 | 3,414 | 1,999 | 5,413 | 6,703 | 450 |
2012 | 2011 | 2010 | |||||||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | ||||||||||||
Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | Bought | Sold | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||
Government | 2,850 | 2,793 | (82) | 80 | 2,281 | 2,350 | 54 | (47) | 1,975 | 2,190 | (26) | 34 | |||||
Other banks | 63 | 68 | — | — | 90 | 87 | 2 | (1) | 148 | 142 | 1 | — | |||||
Corporate | 2,222 | 2,082 | (41) | 41 | 4,054 | 3,944 | 70 | (59) | 3,254 | 2,966 | (63) | 51 | |||||
5,135 | 4,943 | (123) | 121 | 6,425 | 6,381 | 126 | (107) | 5,377 | 5,298 | (88) | 85 |
AQ1 | AQ2-AQ3 | AQ4-AQ9 | AQ10 | Total | ||||||||||
Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | Notional | Fair value | |||||
2012 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||
Banks | 461 | (4) | 1,893 | (55) | 159 | (2) | — | — | 2,513 | (61) | ||||
Other FI | 944 | (25) | 1,522 | (32) | 156 | (5) | — | — | 2,622 | (62) | ||||
1,405 | (29) | 3,415 | (87) | 315 | (7) | — | — | 5,135 | (123) | |||||
2011 | ||||||||||||||
Banks | 2,877 | 58 | 50 | 1 | — | — | — | — | 2,927 | 59 | ||||
Other FI | 3,464 | 67 | 4 | — | 30 | — | — | — | 3,498 | 67 | ||||
6,341 | 125 | 54 | 1 | 30 | — | — | — | 6,425 | 126 |
(1) | Comprises Austria, Estonia, Finland, Malta, Slovakia and Slovenia. |
· | The Group holds a major and diversified portfolio in eurozone non-periphery countries with significant exposures to financial institutions and corporates, notably in Germany, the Netherlands and France, and a sizeable liquidity portfolio with the German central bank. |
· | Exposure decreased in most product categories and to most client groups during 2012, particularly in lending to corporates, contingent liabilities and commitments, as a result of currency movements and de-risking of the portfolio. |
· | The Group holds significant short-term surplus liquidity with central banks for liquidity, credit risk and capital considerations as well as due to limited alternative investment opportunities. This exposure also fluctuates as part of the Group’s asset and liability management. In the third quarter of 2012 the Group transferred part of its euro payment activity from the RBS N.V. account with the Dutch central bank to the RBS plc account with the German central bank, as part of strategic plans to migrate most of the RBS N.V. balance sheet, activities and exposures to RBS plc. |
· | Germany - Net long HFT positions in German bonds in Markets increased during 2012, driven by market opportunities. Concurrently, German AFS bond positions in Group Treasury were reduced in the first half of the year, in line with internal liquidity management strategies. |
· | France - The Group reduced its long and short HFT positions in Markets throughout 2012 while reducing its net long HFT position in the first half of the year and increasing it again in the second half of the year, in anticipation of changes in credit spreads. AFS bond positions in Group Treasury were gradually reduced as part of general risk management and in line with internal liquidity management strategies. |
· | Belgium - Net HFT government debt exposure increased by £0.7 billion on balance over 2012, as part of regular fluctuations in the Markets business. AFS debt securities exposures increased by £0.1 billion and the negative AFS reserve declined by the same amount as a result of recovery in bond prices. |
· | France - Lending exposure to banks increased as a result of a transfer of bank account services for Group Treasury secured funding transactions from in-house to an external bank, for £1.7 billion. Derivatives exposure to banks decreased by £1.4 billion, spread over a number of banks. |
· | Germany - Lending to corporate clients fell by £2.9 billion, largely as a result of reductions in Non-Core exposure to the transport, commercial real estate, electricity and media sectors. |
· | The Netherlands - Lending to corporate clients decreased by £1.1 billion due to reductions in the commercial real estate and telecommunications sectors, with half of this reduction in the Non-Core portfolio. |
· | France - Lending to corporate clients decreased by £1.3 billion due to reductions in the telecommunications, commercial real estate and construction sectors, half of this reduction is in the Non-Core portfolio. |
· | Germany - Non-Core lending exposure was £2.8 billion at 31 December 2012, down £2.6 billion since 31 December 2011. Most of the lending was in the commercial real estate (64%) and natural resources (12%) sectors. |
· | The Netherlands - Non-Core lending exposure was £2.0 billion at 31 December 2012, down £0.5 billion since 31 December 2011. Most of the lending was in the commercial real estate (56%) and securitisations (21%) sectors. |
· | France - Non-Core lending exposure was £1.6 billion at 31 December 2012, a decline of £0.7 billion since 31 December 2011. The lending portfolio mainly comprised public sector (30%), commercial real estate (23%) and construction (13%) exposures. |
Other risks | |
241 | Operational risk |
244 | Regulatory risk |
249 | Conduct risk |
250 | Reputational risk |
250 | Business risk |
251 | Pension risk |
· |
· |
· |
· |
· |
· |
· |
· |
· | compliance with the |
· | compliance with the requirements of the UK Corporate Governance Code; |
· | effectiveness of the risk frameworks, culture and governance structures |
· | reporting on the material risks for the business against appetite. |
2012 £m | 2011 £m | |
Operational risk minimum capital requirement | 3,668 | 3,034 |
· | tracking, analysing and engaging with policymakers on proposed changes; |
· | implementing change programmes to ensure compliance with new requirements; |
· | revisiting strategy, business and operating models in response to the new environment; and |
· | driving through cultural and other changes to promote good business practice and to minimise |
· | Publication of results of the Basel III monitoring exercise at 30 June 2011 (published April 2012) and at 31 December 2011 (published September 2012). The latest results (which ignore the transitional provisions which apply) showed good progress, with an average Common Equity Tier 1 ratio of 7.7% across 102 banks with Tier 1 capital above €3 billion. This compares to an effective target of 7%. However, individual bank shortfalls, including surcharges for systemically important banks where applicable, still totalled €374 billion; |
· | The |
· |
· |
· | Final rules for the regulatory treatment of valuation adjustments to derivative liabilities (July 2012); and |
· |
· | European Markets Infrastructure Regulation |
· | Markets in Financial Instruments Directive |
· | Financial Transaction Tax |
· | Other initiatives - these have included proposals to revise the Data Protection Directive, further changes to the market abuse regime and prospectus requirements, |
· | bank account transparency, switching and the potential for making basic bank accounts a legal right for EU citizens; |
· | the Insurance Mediation Directive II, which could have implications for packaged accounts with inbuilt insurance products; |
· | multilateral interchange fees; and |
· | the Mortgage Credit Directive, which is still progressing through the legislative process and which covers areas including responsible lending and pre-contract disclosure. |
· |
· |
· |
· | Agreeing and establishing the Group’s conduct risk policies under four pillars: employee conduct; corporate conduct; market conduct; and conduct towards the Group’s customers. Each is designed to provide high-level direction to the Group and is supported by the Group’s Code of Conduct; |
· | Launching a phased roll-out of these policies, in order of materiality and scheduled to complete in June 2013; |
· | Developing and delivering awareness initiatives and targeted conduct risk training for each policy, aligned to the phased roll-out, to assist businesses and executives in embedding the understanding of conduct risk and provide the necessary clarity for staff on their conduct risk requirements; |
· | Establishing effective leadership and a supporting governance framework, with the participation of all divisions, to oversee the Group’s conduct agenda, notably the new Conduct Risk Committee; and |
· | Completion by the separate AML Change Programme of its Group-wide gap analysis and benchmarking against enhanced policies, including recording identified issues, establishing a new AML organisational reporting and accountability hierarchy, initiating comprehensive and continuing tailored staff training; and establishing a global AML assurance programme. |
Change in value of assets £m | Change in value of liabilities £m | Increase in net pension obligations £m | Change in value of assets £m | Change in value of liabilities £m | Increase in net pension obligations £m | |
At 31 December 2011 | ||||||
At 31 December 2012 | ||||||
Fall in nominal swap yields of 0.25% at all durations with no change in credit spreads or real swap yields | 106 | 200 | (94) | 76 | 255 | (179) |
Fall in real swap yields of 0.25% at all durations with no change in credit spreads or nominal swap yields | 557 | 911 | (354) | 578 | 995 | (417) |
Fall in credit spreads of 0.25% at all durations with no change in nominal or real swap yields | 104 | 1,118 | (1,014) | 71 | 1,261 | (1,190) |
Fall in equity values of 10% | (935) | — | (935) | (862) | — | (862) |
At 31 December 2011 | |||
Fall in nominal swap yields of 0.25% at all durations with no change in credit spreads or real swap yields | 106 | 200 | (94) |
Fall in real swap yields of 0.25% at all durations with no change in credit spreads or nominal swap yields | 557 | 911 | (354) |
Fall in credit spreads of 0.25% at all durations with no change in nominal or real swap yields | 104 | 1,118 | (1,014) |
Fall in equity values of 10% | (935) | — | (935) |
At 31 December 2010 | |||
Fall in nominal swap yields of 0.25% at all durations with no change in credit spreads or real swap yields | 67 | 193 | (126) |
Fall in real swap yields of 0.25% at all durations with no change in credit spreads or nominal swap yields | 355 | 799 | (444) |
Fall in credit spreads of 0.25% at all durations with no change in nominal or real swap yields | 98 | 1,005 | (907) |
Fall in equity values of 10% | (1,083) | — | (1,083) |
2011 | 2010 | 2009 | |
£m | £m | £m | |
Loans and advances | 20,586 | 18,033 | 14,240 |
Debt securities | 10,703 | 11,747 | 7,816 |
Derivatives | 3,056 | 2,043 | 6,834 |
34,345 | 31,823 | 28,890 | |
Core | 7,626 | 6,646 | 5,552 |
Non-Core | 26,719 | 25,177 | 23,338 |
34,345 | 31,823 | 28,890 |
2011 | 2010 | ||||||||||||
Original Scheme rules | Modified Scheme rules | Original Scheme rules | Modified Scheme rules | ||||||||||
Gross loss amount | Cash recoveries to date | Net triggered loss | Net triggered total | Gross loss amount | Cash recoveries to date | Net triggered loss | Net triggered total | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | ||||||
Core | 8,451 | (2,240) | 1,567 | 7,778 | 6,865 | (1,042) | 1,559 | 7,382 | |||||
Non-Core | 17,486 | (2,992) | 8,158 | 22,652 | 13,946 | (1,876) | 6,923 | 18,993 | |||||
25,937 | (5,232) | 9,725 | 30,430 | 20,811 | (2,918) | 8,482 | 26,375 | ||||||
Loss credits | 1,802 | 1,241 | |||||||||||
32,232 | 27,616 |
2011 | 2010 | 2009 | |
£bn | £bn | £bn | |
Core | 40.2 | 54.7 | 76.1 |
Non-Core | 28.9 | 50.9 | 51.5 |
APS RWAs | 69.1 | 105.6 | 127.6 |
Letter from the Chairman | |
Our governance structure | |
Our Board | |
Executive Committee | |
Corporate governance | |
Report of the Group Audit Committee | |
Report of the Board Risk Committee | |
Directors’ remuneration report | |
Other remuneration | |
Compliance report | |
Report of the directors | |
Statement of directors’ responsibilities |
Chairman | ||||
Philip Hampton (age Date of appointment: appointed to the Board on 19 January 2009 and to the position of Chairman on 3 February 2009 Previously chairman of J Sainsbury plc and group finance director at Lloyds TSB Group, BT Group plc, | External appointments ·Non-executive director of Anglo American plc Board Committee membership ·Group Nominations Committee (Chair) | |||
Executive directors | ||||
Group Chief Executive | Stephen Hester (age Date of appointment: appointed to the Board on 1 October 2008 and to the position of Group Chief Executive on 21 November 2008 Previously chief executive of The British Land Company PLC, chief operating officer of Abbey National plc and prior to that held positions with Credit Suisse First Boston including chief financial officer, head of fixed income and co-head of European investment banking. | External appointments ·Trustee of The Foundation and Friends of the Royal Botanical Gardens, Kew Board Committee membership ·Executive Committee | ||
Group Finance Director | Bruce Van Saun (age Date of appointment: 1 October 2009 | External appointments ·Non-executive director of Direct Line Insurance Group plc · Non-executive director of Worldpay (Ship Midco Limited) Board Committee membership ·Executive Committee |
Independent non-executive directors | ||||
Sandy Crombie (age Senior Independent Director Date of appointment:1 June 2009 Previously group chief executive of Standard Life plc. He was also previously a director of the Association of British Insurers, a member of the former Chancellor of the Exchequer’s High Level Group on Financial Services and Chairman of the Edinburgh World City of Literature Trust. In 2007 he was the Prince of Wales’ Ambassador for Corporate Social Responsibility in | External appointments ·Chairman of Creative Scotland ·Member and vice-chairman of the Board of Governors of The Royal Conservatoire of Scotland ·President of the Cockburn Association Board Committee membership ·Group Sustainability Committee (Chair) ·Board Risk Committee ·Group Nominations Committee ·Group Performance and Remuneration Committee |
Alison Davis (age Date of appointment:1 August 2011 Former director of City National Bank, First Data Corporation and chair of the board of LECG Corporation. She previously worked at McKinsey & Company, AT Kearney, as chief financial officer at Barclays Global Investors (now BlackRock) and managing partner of Belvedere Capital, | External appointments ·Non-executive director of Unisys Corporation ·Non-executive director, chair of compensation committee and member of audit committee of Diamond Foods Inc. · Non-executive director, chair of audit committee and member of compliance committee of Xoom Corporation · Chair of the Governing Board of Women’s Initiative for Self Employment Board Committee membership ·Group Nominations Committee ·Group Performance and Remuneration Committee · Group Sustainability Committee | |||
Tony Di Iorio (age Date of appointment:1 September 2011 Has worked for a variety of financial institutions starting with Peat Marwick (now KPMG) and then Goldman Sachs, Africa. | External appointments ·None Board Committee membership ·Board Risk Committee ·Group Audit Committee ·Group Nominations Committee |
Independent non-executive directors | ||||
Penny Hughes, Date of appointment:1 January 2010 Previously a director and chairman of the Remuneration Committee of Skandinaviska Enskilda Banken AB and a non-executive director of Home Retail Group plc and chairman of its Remuneration Committee. She spent the majority of her executive career at Coca-Cola where she held a number of leadership positions, latterly as President, Coca-Cola Great Britain and Ireland. Former non-executive directorships include Vodafone Group plc, Reuters Group PLC, Cable & Wireless Worldwide plc and The Gap Inc. | External appointments · ·Trustee of the British Museum Board Committee membership ·Group Performance and Remuneration Committee (Chair) ·Group Nominations Committee |
Joe MacHale (age Date of appointment: 1 September 2004 Held a number of senior executive positions with | External appointments ·Chairman of Prytania Holdings LLP · | |||
·Non-executive director of Board Committee membership ·Board Risk Committee · Group Nominations Committee | ||||
Brendan Nelson (age Date of appointment:1 April 2010 Former global chairman, financial services for KPMG. Previously held senior leadership roles within KPMG including as a member of the KPMG UK board from 1999 to 2006 and as vice chairman from 2006. Chairman of the Audit Committee of the Institute of Chartered Accountants of Scotland from 2005 to 2008. | External appointments ·Non-executive director and chairman of the ·Board member of Financial Skills Partnership ·Member of the Financial Reporting Review Panel · Board Committee membership ·Group Audit Committee (Chair) ·Board Risk Committee ·Group Nominations Committee | |||
Baroness Noakes, DBE (age Date of appointment:1 August 2011 An experienced director on UK listed company boards with extensive and varied political and public sector experience. A qualified chartered accountant, | External appointments ·Non-executive director and chairman of · ·Trustee of the Thomson Reuters Founders Share Company Ltd Board Committee membership ·Board Risk Committee · Group Audit Committee ·Group Nominations Committee |
Independent non-executive directors | ||||
Arthur ‘Art’ Ryan (age Date of appointment:1 October 2008 Former chairman, chief executive officer and president of Prudential Financial Inc. Previously he held senior positions with Chase Manhattan Bank | External appointments ·Non-executive director of Regeneron Pharmaceuticals Inc. ·Active member of numerous community boards Board Committee membership ·Group Nominations Committee · Group Performance and Remuneration Committee | |||
Philip Scott (age Date of appointment: 1 November 2009 Wide-ranging experience of financial services and risk management, including previous responsibility for Aviva’s continental European and International life and long-term savings businesses. He held a number of senior executive positions during his career at Aviva including his role as group finance director until January 2010. President | External appointments ·Non-executive director and chairman of the Board Committee membership ·Board Risk Committee (Chair) ·Group Audit Committee ·Group Nominations Committee | |||
Group Secretary | ||||
Aileen Taylor (age Date of appointment:1 May 2010 A qualified solicitor, joined RBS in 2000. She was appointed Deputy Group Secretary and Head of Group Secretariat in 2007, and prior to that held various legal, secretariat and risk roles including Head of External Risk, Retail, Head of Regulatory Risk, Retail Direct and Head of Legal and Compliance at Direct Line Financial Services. | She is a fellow of the Chartered Institute of Bankers in Scotland |
· | establishment of Group strategy and consideration of strategic challenges; |
· | management of the business and affairs of the Group; |
· | ensuring the Group manages risk effectively through the approval and monitoring of the Group’s risk appetite; |
· | considering stress scenarios and agreed mitigants and identifying longer term strategic threats to the Group’s business operations; |
· | the allocation and raising of capital; and |
· | the preparation and approval of the Group’s annual report and accounts. |
Total number of Board meetings in | Attended/ scheduled |
Sandy Crombie | 9/9 |
Alison Davis | |
Tony Di Iorio | |
Philip Hampton | 9/9 |
Stephen Hester | 9/9 |
Penny Hughes | 9/9 |
Joe MacHale | 9/9 |
Brendan Nelson | 9/9 |
Baroness Noakes | 9/9 |
Art Ryan (1) | |
Philip Scott | 9/9 |
Bruce Van Saun | 9/9 |
Former director | |
(1) |
(2) |
Retired from the Board on |
· |
· |
discussing the outcomes and recommendations with the Chairman; and; |
· | recommending the outcomes and areas for improvement to the Board members. |
· | the Group has a highly capable Board which is well-balanced and diverse, with the skills required to respond to the very full agenda and key priorities of the Group; |
· | Board composition and executive succession planning should remain under review; |
· | the Board is headed by a strong and effective Chairman and Board meetings are open and transparent with constructive discussion, particularly around culture. The skills and contribution that the executive directors bring to the Board was recognised; |
· | as a result of the continued challenging external and regulatory environment, and the number of regulatory investigations, a substantial time commitment is required from the non-executive directors; |
· | whilst improvements in the quality and clarity of Board and Board Committee papers during 2012 was acknowledged, Board information flows should remain under review so that improvements can be made on a continuous basis; |
· | Board committees continue to play a key role supporting the work of the Board and the directors, individually and collectively, dedicate extensive time to the Group; and |
· |
Key themes included | Proposed action |
Board | |
The Board | |
Group Sustainability Committee | The Group Sustainability Committee to be |
· | reviewing the structure, size and composition of the Board and making recommendations to the Board on any appropriate changes; |
· | assisting the Board in the formal selection and appointment of directors (executive and non-executive) having regard to the overall balance of skills, knowledge, experience and diversity on the Board; |
· | reviewing membership and chairmanship of |
· | considering succession planning for the Chairman and the executive and non-executive directors, taking into account the skills and expertise which will be needed on the Board in the future. No director is involved in decisions regarding his or her own succession; and |
· | making recommendations to the Board concerning the re-election by shareholders of directors under the provisions of the Code. In so doing, they will have due regard to their performance and ability to continue to contribute to the Board in light of the knowledge, skills and experience required and the need for progressive refreshing of the Board. |
Total number of meetings in | Attended/ scheduled |
Philip Hampton (Chairman) | |
Sandy Crombie | |
Alison Davis | 4/4 |
Tony Di lorio | 4/4 |
Penny Hughes | 4/ |
Joe MacHale | |
Brendan Nelson | |
Baroness Noakes | 4/4 |
Art Ryan(1) | |
Philip Scott | |
Former member | |
(1) | Unable to attend one Committee meeting during 2012 due to family illness. |
(2) | Retired from the Board on |
· | sustainability and reputational issues related to customer and citizenship activities; |
· | oversight of the delivery of the Purpose, Vision and Values cultural and behavioural change; and |
· | oversight of the sustainability aspects of the people agenda. |
· | the Group Chief Executive and Group Finance Director meet regularly with UKFI, the organisation set up to manage the Government’s investments in financial institutions, to discuss the strategy and financial performance of the Group. The Group Chief Executive and Group Finance Director also undertake an extensive annual programme of meetings with the company’s largest institutional shareholders. |
· | the Chairman independently meets with the Group’s largest institutional shareholders annually to hear their feedback on management, strategy, business performance and corporate governance. Additionally, the Chairman, Senior Independent Director and chairs of the Board |
· | the Senior Independent Director is available if any shareholder has concerns that they feel are not being addressed through the normal channels. |
· | the Chair of the Group Performance and Remuneration Committee consults extensively with institutional shareholders in respect of the Group’s remuneration policy. |
· | the |
· | the |
· |
· |
· | the |
· | valuation of the |
· | carrying value of the Group’s goodwill and other intangible assets; |
· | the |
· | the methodology and |
· | the Group’s provisions for outstanding litigation and regulatory investigations; and |
· | the |
Attended/ scheduled | ||
Brendan Nelson (chairman) | ||
Tony Di Iorio | 7/7 | |
Baroness Noakes | ||
Philip Scott | 7/7 | |
· | the directors’ going concern conclusion, including the Group’s capital, liquidity and funding position. Further information is set out on page 307; |
· | the adequacy of loan impairment provisions in Ulster Bank. The Irish economy showed some signs of stabilisation but there remained significant uncertainty. The Committee considered the level of provision for loan impairment in light of these uncertainties. It monitored external conditions closely and compared loss experience with forecasts. Loan impairments in the Corporate and Non-core divisions were also carefully reviewed. During 2012, the Committee also revisited the application of IAS 39 to loan impairment rules and concluded that the Group applies them on a neutral and consistent basis; |
· | the Group’s forbearance policies. The Committee considered the impact of forbearance on provision levels and monitored emerging trends and reporting capabilities across the Group’s various portfolios; |
· | the approach to valuation of the Group’s financial instruments measured at fair value, including its credit market exposures and liabilities carried at fair value; |
· | the adequacy of reserves held to meet the claims in the Group’s general insurance business. The Committee considered management’s assessment of the full cost of settling outstanding general insurance claims including claims estimated to have been incurred but not yet reported and for claims handling expenses. It is comfortable that the level of provision is appropriate based on claims experience and on statistical models; |
· | valuation of the Group’s defined benefit pension scheme. The Committee considered the assumptions that had been set in valuing the fund and the sensitivities on those assumptions; |
· | carrying value of the Group’s goodwill and other intangible assets; |
· | the background to and the judgements that had been made by management in assessing the recoverability of the Group’s deferred tax assets; |
· | adequacy of the Group’s provision held for the mis-selling of payment protection insurance and interest rate hedging products. The Group has established a provision which represents the Group’s best estimate of the redress that will be payable by the Group. The Committee challenged management’s judgements and is satisfied that the level of provision is appropriate; |
· | the Group’s provisions made for outstanding litigation and regulatory investigations and the extent to which reliable estimates could be made for the purposes of the accounts; |
· | the Group’s provision for redress and other costs following the Group’s IT incident in June 2012; |
· | the impact of the announcement that Santander would not complete its planned purchase of certain UK branch-based businesses. The Committee considered whether the assets and liabilities should continue to be “held for sale” at 31 December 2012 and concluded that they should no longer be held for sale and that they should be reclassified to the relevant balance sheet captions in the consolidated balance sheet; and |
· | the quality and transparency of disclosures bearing in mind regulatory developments and expectations. The Committee received a report on the recommendations of the Financial Stability Board’s Enhanced Disclosure Task Force and the Group’s plans to meet the recommendations. |
· |
· |
· |
· |
· |
· | the |
· | bookkeeping or other services related to the accounting records or financial statements; |
· | financial information systems design and implementation; |
· | appraisal or valuation services, fairness opinions or contribution-in-kind reports; |
· | actuarial services; |
· | internal audit outsourcing services; |
· | management functions or human resources; |
· | broker or dealer, investment adviser, or investment banking services; |
· | legal services and expert services unrelated to the audit; or |
· | other services determined to be impermissible by the US Public Company Accounting Oversight Board. |
· | capital raising, including consents, comfort letters and relevant reviews of registration statements; |
· | provision of accounting opinions relating to the financial statements of the Group and its subsidiaries; |
· | provision of reports that, according to law or regulation, must be rendered by the External Auditors; |
· | permissible services relating to companies that will remain outside the Group; |
· | reports providing assurance to third parties over certain of the Group's internal controls prepared under Standards for Attestation Engagements (SSAE) No. 16 or similar auditing standards in other jurisdictions; and |
· | reports and letters providing assurance to the Group in relation to a third party company where the Group is acting as equity/ debt underwriter in a transaction, in the ordinary course of business. |
Summary of category of engagement | Reason for selection of External Auditors |
Assurance testing and agreed upon procedures to regulators (three engagements) | The External Auditors’ knowledge of the Group and extensive experience in such work ensured time and cost savings were achieved in both instances. |
Business product development and launch (one engagement) | The External Auditors were selected following a competitive tender. They were appointed based on their firm-wide capability, the quality and relevant expertise of the team, and the competitive fee levels. |
Provision of advice to management and independent assurance and assessment (one engagement) | The External Auditors were considered to be the most suitable firm to undertake this work given their extensive knowledge of the Group’s systems, end-to-end process and financial reporting framework. The considerable time pressures associated with this project meant that by appointing the External Auditors a number of efficiency savings were ensured. |
Attended/ scheduled | |
Philip Scott (chairman) | 7/7 |
Sandy Crombie | 7/7 |
Tony Di Iorio (1) | 6/7 |
Joe MacHale | 5/7 |
Brendan Nelson | 7/7 |
Baroness Noakes (2) | 5/5 |
(1) | Missed one meeting owing to travel disruption as a consequence of Hurricane Sandy. |
(2) | Joined the Committee on 1 March 2012; attended all previous meetings as an attendee. |
· | Repayment of the liquidity support to UK Government in May 2012; |
· | The successful flotation of more than one third of our stake in Direct Line Insurance Group plc in difficult market conditions; and |
· | The exit from the Asset Protection Scheme in October 2012. |
· | Core Operating Profit of £6.3 billion, which represents a strong performance; |
· | Further significant progress in removing Non-Core assets, a key part in managing down legacy issues. Non-Core third party assets are down £36 billion in 2012 to £57 billion, representing 92% progress towards the 2013 target of c.£40 billion; |
· | Capital, funding and liquidity positions remain robust with key performance indicators (KPIs) on short-term wholesale funding, liquidity portfolio, leverage ratio, Core Tier 1 capital ratio and loan:deposit ratio all exceeding or in line with medium-term targets; |
· | Core Return on Equity (ROE) was 10%, with Retail & Commercial ROE at 10% or 14% excluding Ulster Bank. The ROE for Markets was 10% in challenging market conditions; |
· | Group expenses were 6% lower than in 2011 with staff costs down 6%; and |
· | Impairment losses totalled £5.3 billion, down 29% from 2011. |
· | Total variable compensation has been reduced from 2011 by 14% at a Group level and 20% for Markets (the reductions are 23% and 40% respectively after the application of clawback) as further evidence of the action that has been taken to bring down overall levels of pay; |
· | Variable compensation (pre clawback) as a percentage of operating profit before variable compensation decreased from 28% to 16% for 2012 for the Group and from 25% to 16% for Markets. Full details can be found in Note 3 to the consolidated accounts on pages 339 and 340; |
· | Since 2010, total variable compensation for the Group has been reduced by over 50%; |
· | Within the context of reduced variable pools, incentive awards continue to be targeted towards high performers and, as a consequence, 40% of employees eligible for an award will receive zero for 2012; |
· | Of those employees who do receive an award for 2012, 68% will receive less than £2,000 in total and 81% will receive less than £5,000; and |
· | Average salary increases across the Group for 2013 will be less than 2%. |
· | Simplification of sales incentives with a broad move to a balanced scorecard type approach focused on customer service and risk; |
· | All executives and Code Staff have culture included as part of their 2013 objectives supported by quantitative and qualitative measures; |
· | Full review of balanced scorecard metrics, supported by independent control function review in advance of variable pools being agreed; |
· | This year, all our employees will be paid salaries at or above the Living Wage; and |
· | Shareholding requirements for the executive directors have been strengthened and new requirements introduced for senior executives to better align their interests with those of shareholders. |
· | Year end performance reviews and remuneration arrangements for members of the Group’s Executive and Management Committees and objectives for 2012. The year end performance reviews included input from the Board Risk Committee on the risk management performance of Executive and Management Committee members; |
· | Year end performance reviews and remuneration arrangements for APS in scope employees, Code Staff, and High Earners; |
· | Approval of Group and Divisional variable pay pools; |
· | Approval of the Directors’ remuneration report; |
· | Outcomes of the annual performance evaluation of the Committee; |
· | Remuneration arrangements for executive directors which included a reduction to the LTIP award level for executive directors; |
· | Introduction of a new accountability review process which informs clawback decisions; and |
· | Assessment of the performance to date of unvested LTIP awards and award levels and performance targets for 2012 awards. |
· | Outcomes of the first quarter accountability reviews; |
· | Review of remuneration proposals for Direct Line Insurance Group plc on divestment; |
· | Presentation from the Wealth division on business and strategic priorities and people plan; |
· | Review of government proposals on Shareholder Voting Rights and remuneration aspects of CRD IV; and |
· | Update on LTIP performance conditions and vesting outcomes for executive directors 2009 long term incentive awards. |
· | Half year performance reviews for executive directors, Group Executive and Management Committee members; |
· | Outcomes of the second quarter accountability reviews; |
· | Formal remuneration strategy session to discuss and agree remuneration approach and priorities for the forthcoming year; |
· | Presentation from Markets and International Banking on business and strategic priorities and people plan; and |
· | Approval of remuneration arrangements for Direct Line Insurance Group plc on divestment. |
· | Approval of remuneration approach for the most senior and highest paid employees in the Group (including executive directors and Group Executive and Management Committee members); |
· | Outcomes of the third quarter accountability reviews; |
· | Assessed and affirmed accountability review decision making principles; |
· | 2012 preliminary variable pay pool discussions for Group and Divisions; |
· | Content for shareholder consultations undertaken in December 2012 and January 2013; |
· | Review of Committee remit and name; |
· | Review of incentive plans; |
· | Approval of revised shareholding requirements for executive directors and the introduction of new shareholding requirements for Group Executive Committee members; and |
· | Improved review of performance across key areas of customer; risk; people and financial. |
· | Exists to enable RBS to respond in instances where current and/or new information would change the annual incentive and/or LTIP decisions made in previous years, and/or the decisions made in the current year. |
· | The process for review assessments (which consider material risk management, control and general policy breach failures, accountability for those events and appropriate action against individuals) is operated across divisions and functions. Divisional reviews are undertaken on a quarterly basis. |
· | A Group Accountability Review Panel ensures consistency of decision making across the Group. |
· | Decisions must take into account not only any financial losses but also behavioural issues and reputational or internal costs. |
· | Actions may include recommendations for compensation adjustments (e.g. current year variable pay reduction, clawback) disciplinary investigations and performance adjustments (e.g. a change to performance rating). |
· | Clawback may be up to 100% of unvested awards and can be applied regardless of whether or not disciplinary action has been undertaken. |
· | A key principle is that clawback quantum should not be formulaic. |
· | Collective responsibility may be considered where a committee or group of employees are deemed to have not appropriately discharged their duties. |
· | These principles apply to all of our people and any leavers with unvested awards. |
· | attract, retain, motivate and reward high-calibre employees to deliver long term business performance within acceptable risk parameters; and |
· | provide clear alignment between annual and long-term targets for individuals and Group/divisional strategic plans. |
Element of pay | Objective | Operation |
Base salary | To attract and retain employees by being competitive in the specific market in which the individual works. | Base salaries are reviewed annually and should reflect the talents, skills and competencies that the individual brings to the Group. Salaries should be sufficient so that inappropriate risk-taking is not encouraged. |
Annual incentives | To support a culture where employees recognise the importance of serving customers well and are rewarded for superior individual performance. | The annual incentive pool is based on a balanced scorecard of measures including customer, financial, risk and people measures. Allocation from the pool depends on divisional, functional and individual performance. Individual performance assessment is supported by a structured performance management framework. Our policy is that awards are subject to individual performance. Guaranteed awards are only used in very limited circumstances in accordance with the FSA Remuneration Code. Immediate cash awards are limited to a maximum of £2,000. Under the Group-wide deferral arrangements a significant proportion of annual incentive awards for our more senior employees are deferred over a three year period. Deferred awards are subject to clawback. For Code Staff, 50% of any annual incentive is delivered in the form of Group shares and subject to an additional six month retention period post vesting. In certain circumstances, formulaic short-term incentive arrangements are used to align the objectives of employees with the strategy of the relevant division in which they work. All incentive awards are subject to appropriate governance, including independent review by the risk management, finance and human resources functions, with oversight from the Group Performance and Reward Committee, which has delegated authority from the Committee over incentive schemes operating over a period of 12 months or less. |
Long-term Incentive Plan (LTIP) | To encourage the creation of value over the long term and to align further the rewards of the participants with the returns to shareholders. | The Group provides certain employees in senior roles with long-term incentive awards. Awards are structured as performance-vesting shares. Vesting after a three year period will be based partly on divisional or functional performance and partly on performance across the Group. All awards are subject to clawback. |
Other share plans | To offer employees in certain jurisdictions the opportunity to acquire Group shares. | Employees in certain countries are eligible to contribute to share plans which are not subject to performance conditions. |
Benefits (including pension) | To give employees an opportunity to provide for their retirement. | In most jurisdictions, employee benefits or a cash equivalent are provided from a flexible benefits account. |
(1) | The following groups of employees have been identified as meeting the FSA’s criteria for Code Staff: |
Element of pay | Operation | Maximum potential | Performance metrics and period | Changes to policy since last approved |
Base salary | Reviewed annually and considered against annual market data and in the context of wider Group increases. | Rate at 1 January 2013: Stephen Hester: £1,200,000 Bruce Van Saun: £750,000 | N/A | A 2% increase to the salary of Bruce Van Saun to £765,000 with effect from 1 April 2013. |
Annual incentive | Any annual incentive to be awarded entirely in shares. Shares vest in two equal tranches on the first and second anniversary of the date of grant. Provision for clawback prior to vesting. Additional six month holding period post vesting. | Normal maximum: 200% of base salary Exceptional maximum: 250% of base salary | Balanced scorecard of KPIs measured over the financial year. KPIs are: · Strategic progress; · Business delivery and financial performance; · Risk and control; · Stakeholder management; and · People management See page 287 for further details | No change. |
Long-term incentive | Awards granted over shares which vest at the end of a three year period subject to performance conditions being met. Provision for clawback prior to vesting. Additional six month holding period post vesting. | Maximum under plan rules is 400% of salary. 2013 LTIP awards will be granted subject to an overall cap of 300% of salary at grant. Each of the four performance elements has the potential to deliver shares worth 100% of salary at grant. However, there is an overall cap on vesting equivalent to 300% of salary at grant. The notional value of these awards would be 45% of face value, which is 135% of salary. | Performance conditions measured over three financial years. Performance measures and relative weightings are: · Core Bank Economic Profit - 25% · Total Shareholder Return (TSR) relative to comparator group of international banks - 25% · Balance sheet and risk - 25% · Strategic scorecard - 25% · Financial and risk performance underpin. The LTIP measures have been selected in consultation with shareholders. The objective is to have a balanced range of measures that encourage the building of a safer, stronger and more sustainable business. See page 288 for further details on the measures. | No change. |
Benefits (including pension) | Flexible benefits opportunity as for all employees. Pension allowance. Opportunity to sacrifice salary into defined contribution pension scheme. | Pension allowance of 35% of salary. | N/A | No change. |
Core objectives | Stephen Hester | Bruce Van Saun |
Strategic progress | Revise original Strategic Plan to respond to significant changes in the macro environment. Deliver execution of revised strategy including focus on brand values and fair outcomes for customers. Develop strategy for implementation of ring-fencing. Progress plans towards Government exit. | Monitor and improve the Group and divisional strategic plans. Drive effective design and implementation of revised plan. |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, and EU mandated disposals. | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong Group Finance Director role to the business through strategic planning, budgeting, forecasting and reporting. Monitor and control Group budget. Ensure a robust capital and funding planning framework. Drive efficiency. Successful further Direct Line Insurance Group plc ‘selldown’ and re-plan of EU mandated branch disposals. |
Risk and control | Delivery of measures relating to wholesale funding reliance, liquidity reserves and leverage ratio. Further progress on risk appetite, risk frameworks and conduct risk, in support of the continued culture change across the Group. | Progress on key risk requirements. Implementation of effective regulatory changes impacting capital, funding, and liquidity. Improve quality of risk and financial data. Continue development of Group Internal Audit function. |
Stakeholder management | Achievement of customer performance measures. Build/maintain strong and effective relationships with external stakeholders, including senior leaders in the new UK regulatory framework. | Continue to develop effective external relationships, including investors, rating agencies and regulators. |
People management | Ensure each division/function has a people plan. Embed the Group’s purpose, vision and values through high quality leadership teams. Build talent management and performance management. Maintain leadership and employee engagement as measured by the employee survey. | Lead upgraded team and build positive culture and sense of purpose. Contribute to overall Group management. Partner colleagues in leading the Group’s purpose, vision and values to support culture change. |
Weighting | ||
1 | Barclays | 200% |
2 | Lloyds Banking Group | |
3 | HSBC | 150% |
4 | Standard Chartered | |
5 to 20 | Bank of America, BBVA, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse Group, Deutsche Bank, JP Morgan Chase, National Australia Bank Limited, Royal Bank of Canada, Santander, Societe Generale, The Toronto-Dominion Bank Group, UBS, Unicredito, Wells Fargo & Company | 50% |
· | 20% of the award will vest if the Group’s TSR is at the median of the companies in the comparator group. |
· | 100% of the award will vest if the Group’s TSR is at the upper quartile of the companies in the comparator group. |
Performance measures | |
Balance Sheet and Risk measures and targets | Non-Core Run-Down |
Core Tier 1 capital ratio | |
Wholesale funding | |
Liquidity reserves | |
Leverage ratio | |
Loan:deposit ratio | |
Earnings volatility | |
Strategic Scorecard measures and targets | Customer franchise |
Cost:income ratio in Core bank | |
Lending targets | |
Sustainability performance | |
Progress in people issues |
Vesting point | Indicative performance | |
Does not meet | 0% | Over half of objectives not met |
Partially meets | 25% | Half of objectives met |
Significantly meets | 62.5% | Two-thirds of objectives met |
Fully meets | 100% | Objectives met or exceeded in all material respects |
Qualified by Group Performance and Remuneration Committee discretion taking into account changes in circumstances over the performance period, the relative importance of the measures, the margin by which individual targets have been missed or exceeded, and any other relevant factors. |
Date of current contract | Notice period - from the company | Notice period - from executive | |
Stephen Hester | 4 November 2008 | 12 months | 12 months |
Bruce Van Saun | 8 September 2009 | 12 months | 12 months |
Chairman’s fee | £750,000 |
Senior Independent Director (composite fee) | £150,000 |
Chairman of Group Audit Committee, Board Risk Committee or Group Performance and Remuneration Committee (composite fee) | £150,000 |
Non-executive Director Group Board fee | £72,500 |
Membership of Group Audit Committee, Board Risk Committee or Group Performance and Remuneration Committee fee | £25,000 |
Membership of Group Sustainability Committee fee | £12,500 |
Membership of Group Nominations Committee fee | £5,500 |
Performance related pay | Total remuneration | |||||||||
Salary £000 | Benefits £000 | Pension £000 | Subtotal £000 | Annual incentive (1) £000 | LTIP (2) £000 | Subtotal £000 | 2012 £000 | 2011 £000 | ||
Stephen Hester | 1,200 | 26 | 420 | 1,646 | — | — | — | 1,646 | 1,646 | |
Bruce Van Saun (3) | 750 | 134 | 408 | 1,292 | 980 | — | 980 | 2,272 | 2,119 |
(1) | Stephen Hester waived any annual incentive entitlement for the 2012 performance year. Bruce Van Saun has been awarded an annual incentive of £980,000 which will be granted as an award entirely in shares in March 2013 and will vest in March 2014 and 2015. For subsequent reporting years, the shares awarded to Bruce Van Saun will be detailed in the Deferred Awards table (see page 299). Further details of the performance assessment of the executive directors in 2012 is outlined on pages 242 and 243. |
(2) | The nil value under the LTIP column reflects awards granted under the Medium-term Performance Plan and Executive Share Option Plan in 2009. The awards did not vest in 2012 as a result of the performance conditions not being met. |
(3) | Bruce Van Saun resigned as a non-executive director of ConvergEx Holdings LLC during 2012 and received a pro rated fee of US$62,500 for 2012. Mr Van Saun was appointed as a non-executive director of Lloyd’s of London Franchise Board during 2012 for which he received a pro rated fee of £19,450. He is also a non-executive director of Direct Line Insurance Group plc , the fees for which are paid direct to the Group and is a non-executive director of Worldpay (Ship Midco Limited) for which no fees are payable. Mr Van Saun makes contributions towards his pension through a salary sacrifice arrangement to an Unfunded Unapproved Retirement Benefit Scheme, which operates on a defined contribution basis. The total contribution to the defined contribution arrangements amounted to £408,000 in 2012 (£403,000 in 2011). The rate of return on his accrued contributions is determined annually by the Committee to reflect a long-term low risk investment return on an unsecured basis. For 2012 this rate was 6.2% reflecting December 2011 CPI plus 2%. |
Salary/ fees £000 | Benefits £000 | 2012 Total £000 | 2011 Total £000 | |||||||||||||
Chairman | ||||||||||||||||
Philip Hampton | 750 | — | 750 | 750 |
Board fees | Board Committee fees | 2012 Total | 2011 Total | |||||||||||||
£000 | £000 | £000 | £000 | |||||||||||||
Non-executive directors | ||||||||||||||||
Sandy Crombie | 150 | — | 150 | 150 | ||||||||||||
Alison Davis | 73 | 41 | 114 | 43 | ||||||||||||
Tony Di Iorio | 73 | 55 | 128 | 43 | ||||||||||||
Penny Hughes | 150 | — | 150 | 150 | ||||||||||||
Joe MacHale (1) | 73 | 60 | 133 | 133 | ||||||||||||
Brendan Nelson | 150 | — | 150 | 150 | ||||||||||||
Baroness Noakes | 73 | 51 | 124 | 43 | ||||||||||||
Art Ryan (2) | 73 | 20 | 93 | 95 | ||||||||||||
Philip Scott | 150 | — | 150 | 150 | ||||||||||||
Former non-executive director | ||||||||||||||||
John McFarlane (3) | 18 | 8 | 26 | 103 |
(1) | Board Committee fee includes membership of the Asset Protection Scheme Senior Oversight Committee. |
(2) | Art Ryan is a non-executive director of RBS Citizens Financial Group, Inc. for which he received fees of US$131,000 during 2012. |
(3) | Retired from the Board with effect from 31 March 2012. |
Core objectives | Targets for 2012 | Progress in 2012 |
Strategic progress | Revise original Strategic Plan to respond to significant changes in the macro environment and outlook for wholesale banking. Deliver execution of revised strategy. | The continued challenges in the economic and regulatory environment prompted revision of the Group’s strategy, including a restructured wholesale business. The revised strategy continues to deliver on safety and soundness, whilst rebalancing the Group towards retail and commercial business and delivering economic returns for the Core Bank by the end of plan period. The revised strategy for the investment banking business was implemented successfully, with restructuring targets for 2012 broadly met. The Asset Protection Scheme was successfully exited in October; this was at the earliest opportunity post payment of the minimum fee. |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, EU mandated disposals and restructuring of the wholesale business. | Core ROE was stable at 10%, Retail and Commercial (ex Ulster) remained strong at 14%, and Markets improved to 10%. Operating profit for Core (£6.3 billion) and Group (£3.5 billion) were both ahead of budget. Core cost:income ratio was 59%, with Core Tier 1 ratio at 10.3%. Core bank business lending and home loans increased by £3 billion despite weak customer confidence. More than £58 billion loans and facilities were offered to UK businesses, of which over £30 billion was to SMEs; £16 billion of UK home loans were advanced, including £3 billion to first time buyers. The new Funding for Lending Scheme allowed RBS to cut interest rates on loans to small businesses and the cost of borrowing for first time homebuyers. Branch disposal did not proceed due to unexpected withdrawal of Santander; in contrast, Direct Line Insurance Group plc divestment successfully executed on time and with positive market reception. |
Risk and control | Continue culture change across the Group including delivery of measures relating to wholesale funding reliance and liquidity reserves and leverage ratio. Deliver against agreed APS objectives. | All risk reduction quantitative measures were met or exceeded. The liquidity portfolio is ahead of target at £147 billion, while short-term wholesale funding was cut to £42 billion. The Group loan:deposit ratio improved to 100%, with Core loan:deposit ratio ahead of target at 90%. Leverage was on target at 15x. The new conduct risk framework was launched. As part of the response to the LIBOR findings and industry-wide challenges on behaviour and ethics, led the development of the Group’s purpose, vision and values to support cultural and behavioural change. Performance against agreed APS objectives secured exit from the Scheme. |
Stakeholder management | Achievement of customer franchise measures, maintain strong and effective relationships with external stakeholders and continue progress on Treating Customers Fairly (TCF) actions. | Customer metrics were impacted by the technology incident in the second half of 2012 - although strong leadership and successful delivery of ‘no customer out of pocket’. Constructive engagement with regulators overall and specifically on LIBOR, conduct risk/cultural change, and the technology incident. Early engagement with the new Financial Conduct Authority. Continued positive feedback from key shareholders. Increased engagement with external stakeholders on how banks should behave in society and cultural change. Continued good progress to address risks identified by UK/US regulators relating to TCF. |
People management | Ensure each division/function has high quality leadership teams, build out performance management, talent management and succession planning across the Group. Maintain effective employee engagement. | The Group Chief Executive continues to be widely acknowledged internally and externally as having provided strong leadership to the Group in extraordinary circumstances. People Plans in place with continual improvement on talent bench strength. Key replacement appointments made to Management Committee. Female executive representation increased to 19%. The Group’s ‘Your Feedback 2012’ survey results were stable on leadership and employee engagement in a challenging context. The Group’s purpose, vision and values will support improvements in employee engagement. |
Core objectives | Targets for 2012 | Progress in 2012 |
Strategic progress | Monitor and improve the Group and divisional strategic plans. Drive effective design and implementation of revised plan. Work with CEO on Group Strategy/M&A/APS. | Revised strategy agreed by the Board, with rigour of process acknowledged by Board and regulators. Continued challenge and good progress made on 2012 costs, capital resource usage, and targets for 2013 budgets. Strong leadership displayed on key strategic projects; APS exit at the earliest opportunity and with minimum fee payment. |
Business delivery and financial performance | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong Group Finance Director role to the business through strategic planning, budgeting, forecasting and reporting. Ensure a robust capital and funding planning framework. Drive efficiency. Successful completion of EU mandated disposals. | Continued achievement of ‘best in class’ for external reporting within the UK market, with risk disclosures seen as setting the standard; significant improvements with internal reporting processes. Led the ‘safety and soundness’ agenda across the Group, beating targets. Continued strong contribution to de-risking strategy with significant reduction in short term funding reliance; all liquidity requirements met, in compliance with FSA requirements. Actively driving out costs through the creation and embedding of a sizeable cost management programme, as well as making significant progress in the transformation of the Finance function through changes to operating model, ways of working and systems solutions. Direct Line Insurance Group plc divestment well received by investors and the market, and is widely viewed as a “textbook” execution due to the uptake and price behaviour; branch disposal did not proceed due to unexpected withdrawal of Santander. The DLG IPO is a particular credit to the Group Finance Director’s exceptional abilities and leadership. |
Risk and control | Implementation of effective regulatory changes impacting capital, funding, liquidity. Improve quality of risk and financial data. Continue development of Internal Audit function. Deliver against agreed APS objectives. | More robust capital planning, recognising regulatory changes. Strong stewardship over the financial risk and control environment and good partnership working with risk function. Significant improvements in risk-weighted assets reporting and control, and in data quality through leadership of a number of key initiatives across the group. Effective response to the technology incident, giving strong leadership to the function. Internal Audit strategy and plan well received by Group Audit Committee. All APS objectives met. |
Stakeholder management | Continue to develop effective external relationships, including investors, rating agencies and regulators. | Excellent contribution to external relations, articulating results with clarity and credibility. Successful engagement with equity and debt investors; good engagement with the new UK regulators, US regulators and ratings agencies. Significant success in achieving narrower funding and certificates of deposits spreads, and diversification of the debt investor base. Under the Group Finance Director’s leadership, RBS has effectively withstood a ratings downgrade of ‘one notch’, whilst other peers were downgraded by ‘two notches’. Effective working with the Group Audit Committee. |
People management | Lead upgraded team and build positive culture. Contribute to overall Group management. | Key strategic hires for Group Internal Audit and Group Strategy positions working well; upgrades to their teams underway. Following LIBOR and other industry-wide challenges on ethical conduct behaviours, the Group’s purpose, vision and values were given early consideration by the Finance function to bring to life. Improved engagement within the Finance function as measured through the ‘Your Feedback 2012’ survey. Robust programmes for internal talent in place across all levels, as well as strong focus on initiatives in recognition, diversity and training & development. |
Performance measure | Weighting | Rationale | Vesting | Current assessment of performance |
Economic profit | 50% | Ensures that performance reflects enduring earnings for the Bank. | Maximum vesting of the economic profit measure will be triggered by early delivery of Core business profitability, well ahead of the range implied by the published Strategic Plan targets and also in excess of the cost of capital. | Analysis of economic profit outcome is currently under review and decision on vesting level will be taken before the awards vest in May 2013. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance over the measurement period ending 31 December 2012, this element of the award will not vest. |
Absolute TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s share price reaches £5.75. Maximum: 100% vesting if the Group’s share price reaches £7.75. Pro-rata vesting in between these points. | Based on share price performance to date, the threshold targets have not yet been met. |
Performance measure | Weighting | Rationale | Vesting | 2011 LTIP Current assessment of performance | 2012 LTIP Current assessment of performance |
Core Bank economic profit | 25% | Ensures that performance reflects risk adjusted enduring earnings for the Bank. | Threshold: 25% vesting for meeting minimum economic profit targets. Maximum: 100% vesting for performance ahead of the Group’s Strategic Plan. | Continued difficult economic conditions have been experienced in a number of our key markets, however threshold targets could be met. | Performance broadly in line with expectations. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. |
Balance sheet & risk | 25% | Ensure alignment with the advancement of the strategic position and capability of the organisation and the building of a sustainable business. | Vesting will be qualified by Group Performance and Remuneration Committee discretion. Indicative vesting levels are: · Over half of objectives not met: 0%; · Half of objectives met: 25%; · Two-thirds of objectives met: 62.5%; and · Objectives met or exceeded in all material respects: 100%. | Most targets have been met or exceeded. Strong performance on capital, leverage and funding measures, risk appetite embedded. Good progress on brand franchises (e.g. ‘Helpful Banking’ in UK), sustainability and employee engagement measures. Further work needed on cost:income ratio. | Majority of performance targets hit, particularly those around securing confidence in safety and soundness and being within risk appetite. On track to achieve other objectives by end of 2014. Despite some difficult reputational issues, progress being made against most customer, community and employee metrics. Core cost: income ratio remains challenging to achieve due to market-driven income pressures. |
Strategic scorecard | 25% |
Implementation of the Group’s recovery plan started in January 2009 with the publication of the preliminary 2008 losses. The share price reached a closing low point of 10.3p per share (103p per share on a post share consolidation basis) on the news. From January 2009 to 27 February 2013, the day the Group’s 2012 results announcement was approved, the Group’s share price has risen 237% which compares to 104% and 55% respectively for the FTSE banks index and the FTSE 100 index as a whole. |
Attended / Scheduled | |
Penny Hughes (Chair) | 9/9 |
Sandy Crombie | 9/9 |
Alison Davis | 9/9 |
John McFarlane (1) | 2/2 |
Art Ryan (2) | 4/5 |
(1) | Stepped down as a member of the Committee on 31 March 2012. |
(2) | Became a member of the Committee on 30 May 2012. |
For | Against | Withheld * |
48,023,557,759 (99.68% of votes cast) | 152,277,626 (0.32% of votes cast) | 42,971,201 |
For | Against | Withheld * |
47,690,076,126 (99.31% of votes cast) | 332,996,089 (0.69% of votes cast) | 195,464,478 |
31 December 2012 | ||||
1 January 2012 Shares beneficially owned or at date of appointment, if later (1) | Shares beneficially owned | % of issued share capital | Value (2) £ | |
Chairman | ||||
Philip Hampton | 27,630 | 27,630 | 0.0046 | 89,659 |
Executive director | ||||
Stephen Hester | 541,135 | 651,177 | 0.1073 | 2,113,069 |
Bruce Van Saun | — | 118,680 | 0.0195 | 385,117 |
Non-executive directors | ||||
Sandy Crombie | 20,000 | 20,000 | 0.0033 | 64,900 |
Alison Davis | 20,000 | 20,000 | 0.0033 | 64,900 |
Tony Di lorio (3) | 30,000 | 30,000 | 0.0049 | 97,350 |
Penny Hughes (1) | 562 | 562 | 0.0001 | 1,824 |
Joe MacHale | 28,431 | 28,431 | 0.0047 | 92,259 |
Brendan Nelson | 12,001 | 12,001 | 0.0020 | 38,943 |
Baroness Noakes | 21,000 | 21,000 | 0.0035 | 68,145 |
Art Ryan | 5,000 | 5,000 | 0.0008 | 16,225 |
Philip Scott | 50,000 | 50,000 | 0.0082 | 162,250 |
(1) | Share interests held at 1 January 2012 in the table above have been restated to reflect the sub-division and consolidation of ordinary shares which took effect in June 2012. The share interests of Penny Hughes have also been restated to reflect the notification to the company on 16 January 2013 of a transaction by a connected person which took place in March 2011. |
(2) | Value is based on the share price at 31 December 2012, which was 324.5p. During the year ended 31 December 2012, the share price ranged from 196.6p to 325.0p. |
(3) | Tony Di Iorio’s interests in the company’s shares are held in the form of American Depository Receipts (ADRs). Each ADR represents 2 ordinary shares of £1.00 each in the company. Tony Di Iorio has interests in 15,000 ADRs representing 30,000 ordinary shares. |
Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | ||
Stephen Hester | 857,843 | (1) | 4.90 | 857,843 | 14.05.13 | |||
1,011,417 | 4.45 | 1,011,417 | 07.03.14 | |||||
1,286,174 | 2.80 | 1,286,174 | 09.03.15 | |||||
1,869,260 | 1,286,174 | 3,155,434 | ||||||
Bruce Van Saun | 518,280 | (2) | 4.90 | 518,280 | 14.05.13 | |||
632,136 | 4.45 | 632,136 | 07.03.14 | |||||
803,859 | 2.80 | 803,859 | 09.03.15 | |||||
1,150,416 | 803,859 | 1,954,275 |
(1) | Stephen Hester has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares in respect of at least one third of the award. |
(2) | Bruce Van Saun has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares for the amount over 300% of his salary. |
Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Value on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |||
Stephen Hester (1) | 458,509 | (2) | 4.45 | 229,255 | 2.62 | 600,648 | 229,254 | 07.03.12 - 07.03.13 | ||
Bruce Van Saun | 95,707 | (3) | 3.79 | 95,707 | 2.35 | 224,911 | — | — | ||
303,088 | (2) | 4.45 | 151,544 | 2.62 | 397,045 | 151,544 | 07.03.12 - 07.03.13 | |||
300,000 | (4) | 2.80 | 300,000 | 09.03.13 - 09.03.14 | ||||||
398,795 | 300,000 | 247,251 | 621,956 | 451,544 |
(1) | Stephen Hester previously waived his deferred award entitlement in respect of the 2009 and 2011 performance years and during 2012 he also waived any entitlement that might have been awarded for the 2012 performance year. |
(2) | The awards granted on 7 March 2011 relate to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2010 performance year. The awards will vest in two tranches with the final tranche due to vest on 7 March 2013 and any vested shares are subject to a further six month retention post-vesting. Mr Hester has voluntarily agreed to a total retention period of 12 months post-vesting. |
(3) | The award was granted in March 2010 and relates to an allocation of shares in respect of annual incentives for the 2009 performance year. |
(4) | The award granted on 9 March 2012 relates to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2011 performance year. The award is due to vest in two equal tranches in March 2013 and March 2014 and any vested shares are subject to a further six month retention post-vesting. |
Options held at 1 January 2012 | Number of options lapsed in 2012 | Option price £ | Options held at 31 December 2012 | ||
Number | Exercise period | ||||
Stephen Hester | 955,000 | 955,000 | 3.72 | — | — |
Bruce Van Saun | 90,530 | 90,530 | 5.67 | — | — |
Scheme interests (share equivalents) at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Scheme interests (share equivalents) at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Stephen Hester | 480,000 | 3.72 | 480,000 | — | — |
Bruce Van Saun | 181,061 | 5.67 | 181,061 | — | — |
Awards held at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Philip Hampton (1) | 517,241 | 2.90 | 517,241 | — | — |
(1) | Philip Hampton waived his right to the above award which was made in 2009 and due to vest in 2012 and therefore the award was lapsed. |
Stephen Hester | Bruce Van Saun | Executive 1 | Executive 2 | Executive 3 | Executive 4 | Executive 5 | Executive 6 | Executive 7 | Executive 8 | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Fixed remuneration | 1,200 | 750 | 1,735 | 775 | 700 | 421 | 311 | 775 | 394 | 650 |
Variable remuneration (cash) | — | — | 2 | 2 | 2 | 2 | 2 | — | 2 | — |
Variable remuneration (shares subject to retention) | — | — | 410 | 280 | 158 | 101 | 116 | — | 105 | — |
Deferred variable remuneration (bond) | — | — | 1,023 | 698 | 393 | 252 | 289 | — | 173 | — |
Deferred variable remuneration (shares subject to retention) | — | 980 | 615 | 420 | 237 | 152 | 174 | — | 70 | — |
Total variable remuneration (1) | — | 980 | 2,050 | 1,400 | 790 | 507 | 581 | — | 350 | — |
Total remuneration | 1,200 | 1,730 | 3,785 | 2,175 | 1,490 | 928 | 892 | 775 | 744 | 650 |
Long Term Incentive Awards (subject to future performance) (2) | 1,620 | 1,013 | 994 | 1,125 | 675 | — | 969 | — | 270 | — |
(1) | Differs to 2011 disclosure with exclusion of prior year Long Term Incentive Awards which vested during 2012. |
(2) | The Long Term Incentive Award (subject to future performance) is made following the end of the 2012 financial year. The amounts shown reflect an approximate notional value, verified by external advisers. The actual value of the award which will vest in 2016 will be dependent on actual performance and share price. |
· | All 21 wrongdoers referred to in the regulatory findings have left the organisation or been subject to disciplinary action. |
· | Individuals found culpable have left the bank with no 2012 variable compensation awards and full clawback of any outstanding past variable compensation applied. |
· | Supervisors with accountability for the business but no knowledge or involvement in the wrongdoing have received zero variable compensation awards for 2012 and a range of clawback from prior years depending on specific findings. |
· | Reduction of variable compensation awards and long-term incentive awards and prior year clawback has been made across RBS and particularly in the Markets division to account for the reputational damage of these events and the risk of additional outstanding legal and regulatory action. |
£m | |
Variable compensation award reduction | 110 |
Long term incentive award reduction | 30 |
Clawback of prior year awards (including LTIP) | 112 |
Committed future reduction 2013/2014 | 50 |
Total | 302 |
Markets £m | Rest of RBS Group £m |
97.0 | 161.0 |
Senior management £m | Others £m |
60.3 | 51.9 |
Form of remuneration | Senior management £m | Others £m |
Variable remuneration (cash) | 0.3 | 0.3 |
Variable remuneration (shares subject to retention) | 11.3 | 17.4 |
Deferred remuneration (bonds) | 23.6 | 38.4 |
Deferred remuneration (shares) | 11.3 | 19.8 |
0% of total variable remuneration was subject to a guaranteed commitment made on recruitment |
to secure the employment of key individuals. |
Senior management £m | Others £m |
17.5 | 6.1 |
Category of deferred remuneration | Senior management £m | Others £m |
Unvested from prior year | 121.0 | 213.6 |
Awarded during the financial year | 53.6 | 77.9 |
Paid out | 41.0 | 111.8 |
Reduced from prior years | 19.1 | 45.6 |
Unvested at year end | 114.5 | 134.1 |
Attended/ scheduled | |
Philip Scott (chairman) | 7/7 |
Sandy Crombie | 7/7 |
Tony Di Iorio (1) | 6/7 |
Joe MacHale | 5/7 |
Brendan Nelson | 7/7 |
Baroness Noakes (2) | 5/5 |
(1) | Missed one meeting owing to travel disruption as a consequence of Hurricane Sandy. |
(2) | Joined the Committee on 1 March 2012; attended all previous meetings as an attendee. |
· |
· |
· | The exit from the |
· | Core Operating Profit of £6.3 billion, which represents a strong performance; |
· | Further significant progress in removing Non-Core assets, a key part in managing down legacy issues. Non-Core third party assets are down £36 billion in 2012 to £57 billion, representing 92% progress towards the 2013 target of c.£40 billion; |
· | Capital, funding and liquidity positions remain robust with key performance indicators (KPIs) on short-term wholesale funding, liquidity portfolio, leverage ratio, Core Tier 1 capital ratio and loan:deposit ratio all exceeding or in line with medium-term targets; |
· | Core Return on Equity (ROE) was 10%, with Retail & Commercial ROE at 10% or 14% excluding Ulster Bank. The ROE for Markets was 10% in challenging market conditions; |
· | Group expenses were 6% lower than in 2011 with staff costs down 6%; and |
· | Impairment losses totalled £5.3 billion, down 29% from 2011. |
· | Total variable compensation has been reduced from 2011 by 14% at a Group level and 20% for Markets (the reductions are 23% and 40% respectively after the application of clawback) as further evidence of the action that has been taken to bring down overall levels of pay; |
· | Variable compensation (pre clawback) as a percentage of operating profit before variable compensation decreased from 28% to 16% for 2012 for the Group and from 25% to 16% for Markets. Full details can be found in Note 3 to the consolidated accounts on pages 339 and 340; |
· | Since 2010, total variable compensation for the Group has been reduced by over 50%; |
· | Within the context of reduced variable pools, incentive awards continue to be targeted towards high performers and, as a consequence, 40% of employees eligible for an award will receive zero for 2012; |
· | Of those employees who do receive an award for 2012, 68% will receive less than £2,000 in total and 81% will receive less than £5,000; and |
· | Average salary increases across the Group for 2013 will be less than 2%. |
· | Simplification of sales incentives with a broad move to a balanced scorecard type approach focused on customer service and risk; |
· | All executives and Code Staff have culture included as part of their 2013 objectives supported by quantitative and qualitative measures; |
· | Full review of balanced scorecard metrics, supported by independent control function review in advance of variable pools being agreed; |
· | This year, all our employees will be paid salaries at or above the Living Wage; and |
· | Shareholding requirements for the executive directors have been strengthened and new requirements introduced for senior executives to better align their interests with those of shareholders. |
· | Year end performance reviews and remuneration arrangements for members of the Group’s Executive and Management Committees and objectives for 2012. The year end performance reviews included input from the Board Risk Committee on the risk management performance of Executive and Management Committee members; |
· | Year end performance reviews and remuneration arrangements for APS in scope employees, Code Staff, and High Earners; |
· | Approval of Group and Divisional variable pay pools; |
· | Approval of the |
· | Outcomes of the annual performance evaluation of the Committee; |
· | Remuneration arrangements for executive directors which included a reduction to the LTIP award level for executive directors; |
· | Introduction of a new accountability review process which informs clawback decisions; and |
· | Assessment of the performance to date of unvested LTIP awards and award levels and performance targets for 2012 awards. |
· | Outcomes of the first quarter accountability reviews; |
· | Review of remuneration proposals for Direct Line Insurance Group plc on divestment; |
· | Presentation from the Wealth division on business and strategic priorities and people plan; |
· | Review of government proposals on Shareholder Voting Rights and remuneration aspects of CRD IV; and |
· | Update on LTIP performance conditions and vesting outcomes for executive directors 2009 long term incentive awards. |
· | Half year performance reviews for executive directors, Group Executive and Management Committee members; |
· | Outcomes of the second quarter accountability reviews; |
· | Formal remuneration strategy session to discuss and agree remuneration approach and priorities for the forthcoming year; |
· | Presentation from Markets and International Banking on business and strategic priorities and people plan; and |
· | Approval of remuneration arrangements for Direct Line Insurance Group plc on divestment. |
· | Approval of remuneration approach for the most senior and highest paid employees in the Group (including executive directors and Group Executive and Management Committee members); |
· | Outcomes of the third quarter accountability reviews; |
· | Assessed and affirmed accountability review decision making principles; |
· | 2012 preliminary variable pay pool discussions for Group and Divisions; |
· | Content for shareholder consultations undertaken in December 2012 and January 2013; |
· | Review of Committee remit and name; |
· | Review of incentive plans; |
· | Approval of revised shareholding requirements for executive directors and the introduction of new shareholding requirements for Group Executive Committee members; and |
· | Improved review of performance across key areas of customer; risk; people and financial. |
· | Exists to enable RBS to respond in instances where current and/or new information would change the annual incentive and/or LTIP decisions made in previous years, and/or the decisions made in the current year. |
· | The process for review assessments (which consider material risk management, control and general policy breach failures, accountability for those events and appropriate action against individuals) is operated across divisions and functions. Divisional reviews are undertaken on a quarterly basis. |
· | A Group Accountability Review Panel ensures consistency of decision making across the Group. |
· | Decisions must take into account not only any financial losses but also behavioural issues and reputational or internal costs. |
· | Actions may include recommendations for compensation adjustments (e.g. current year variable pay reduction, clawback) disciplinary investigations and performance adjustments (e.g. a change to performance rating). |
· | Clawback may be up to 100% of unvested awards and can be applied regardless of whether or not disciplinary action has been undertaken. |
· | A key principle is that clawback quantum should not be formulaic. |
· | Collective responsibility may be considered where a committee or group of employees are deemed to have not appropriately discharged their duties. |
· | These principles apply to all of our people and any leavers with unvested awards. |
· | attract, retain, motivate and reward high-calibre employees to deliver long term business performance within acceptable risk parameters; and |
· | provide clear alignment between annual and long-term targets for individuals and Group/divisional strategic plans. |
Element of pay | Objective | Operation |
Base salary | To attract and retain employees by being competitive in the specific market in which the individual works. | Base salaries are reviewed annually and should reflect the talents, skills and competencies that the individual brings to the Group. Salaries should be sufficient so that inappropriate risk-taking is not encouraged. |
Annual incentives | To support a culture where employees recognise the importance of serving customers well and are rewarded for superior individual performance. | The annual incentive pool is based on a balanced scorecard of measures including customer, financial, risk and people measures. Allocation from the pool depends on divisional, functional and individual performance. Individual performance assessment is supported by a structured performance management framework. Our policy is that awards are subject to individual performance. Guaranteed awards are only used in very limited circumstances in accordance with the FSA Remuneration Code. Immediate cash awards are limited to a maximum of £2,000. Under the Group-wide deferral arrangements a significant proportion of annual incentive awards for our more senior employees are deferred over a three year period. Deferred awards are subject to clawback. For Code Staff, 50% of any annual incentive is delivered in the form of Group shares and subject to an additional six month retention period post vesting. In certain circumstances, formulaic short-term incentive arrangements are used to align the objectives of employees with the strategy of the relevant division in which they work. All incentive awards are subject to appropriate governance, including independent review by the risk management, finance and human resources functions, with oversight from the Group Performance and Reward Committee, which has delegated authority from the Committee over incentive schemes operating over a period of 12 months or less. |
Long-term Incentive Plan (LTIP) | To encourage the creation of value over the long term and to align further the rewards of the participants with the returns to shareholders. | The Group provides certain employees in senior roles with long-term incentive awards. Awards are structured as performance-vesting shares. Vesting after a three year period will be based partly on divisional or functional performance and partly on performance across the Group. All awards are subject to clawback. |
Other share plans | To offer employees in certain jurisdictions the opportunity to acquire Group shares. | Employees in certain countries are eligible to contribute to share plans which are not subject to performance conditions. |
Benefits (including pension) | To give employees an opportunity to provide for their retirement. | In most jurisdictions, employee benefits or a cash equivalent are provided from a flexible benefits account. |
(1) | The following groups of employees have been identified as meeting the FSA’s criteria for Code Staff: |
Element of pay | Operation | Maximum potential | Performance metrics and period | Changes to policy since last approved |
Base salary | Reviewed annually and considered against annual market data and in the context of wider Group increases. | Rate at 1 January 2013: Stephen Hester: £1,200,000 Bruce Van Saun: £750,000 | N/A | A 2% increase to the salary of Bruce Van Saun to £765,000 with effect from 1 April 2013. |
Annual incentive | Any annual incentive to be awarded entirely in shares. Shares vest in two equal tranches on the first and second anniversary of the date of grant. Provision for clawback prior to vesting. Additional six month holding period post vesting. | Normal maximum: 200% of base salary Exceptional maximum: 250% of base salary | Balanced scorecard of KPIs measured over the financial year. KPIs are: · Strategic progress; · Business delivery and financial performance; · Risk and control; · Stakeholder management; and · People management See page 287 for further details | No change. |
Long-term incentive | Awards granted over shares which vest at the end of a three year period subject to performance conditions being met. Provision for clawback prior to vesting. Additional six month holding period post vesting. | Maximum under plan rules is 400% of salary. 2013 LTIP awards will be granted subject to an overall cap of 300% of salary at grant. Each of the four performance elements has the potential to deliver shares worth 100% of salary at grant. However, there is an overall cap on vesting equivalent to 300% of salary at grant. The notional value of these awards would be 45% of face value, which is 135% of salary. | Performance conditions measured over three financial years. Performance measures and relative weightings are: · Core Bank Economic Profit - 25% · Total Shareholder Return (TSR) relative to comparator group of international banks - 25% · Balance sheet and risk - 25% · Strategic scorecard - 25% · Financial and risk performance underpin. The LTIP measures have been selected in consultation with shareholders. The objective is to have a balanced range of measures that encourage the building of a safer, stronger and more sustainable business. See page 288 for further details on the measures. | No change. |
Benefits (including pension) | Flexible benefits opportunity as for all employees. Pension allowance. Opportunity to sacrifice salary into defined contribution pension scheme. | Pension allowance of 35% of salary. | N/A | No change. |
Core objectives | Stephen Hester | Bruce Van Saun |
Strategic progress | Revise original Strategic Plan to respond to significant changes in the macro environment. Deliver execution of revised strategy including focus on brand values and fair outcomes for customers. Develop strategy for implementation of ring-fencing. Progress plans towards Government exit. | Monitor and improve the Group and divisional strategic plans. Drive effective design and implementation of revised plan. |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, and EU mandated disposals. | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong Group Finance Director role to the business through strategic planning, budgeting, forecasting and reporting. Monitor and control Group budget. Ensure a robust capital and funding planning framework. Drive efficiency. Successful further Direct Line Insurance Group plc ‘selldown’ and re-plan of EU mandated branch disposals. |
Risk and control | Delivery of measures relating to wholesale funding reliance, liquidity reserves and leverage ratio. Further progress on risk appetite, risk frameworks and conduct risk, in support of the continued culture change across the Group. | Progress on key risk requirements. Implementation of effective regulatory changes impacting capital, funding, and liquidity. Improve quality of risk and financial data. Continue development of Group Internal Audit function. |
Stakeholder management | Achievement of customer performance measures. Build/maintain strong and effective relationships with external stakeholders, including senior leaders in the new UK regulatory framework. | Continue to develop effective external relationships, including investors, rating agencies and regulators. |
People management | Ensure each division/function has a people plan. Embed the Group’s purpose, vision and values through high quality leadership teams. Build talent management and performance management. Maintain leadership and employee engagement as measured by the employee survey. | Lead upgraded team and build positive culture and sense of purpose. Contribute to overall Group management. Partner colleagues in leading the Group’s purpose, vision and values to support culture change. |
Weighting | ||
1 | Barclays | 200% |
2 | Lloyds Banking Group | |
3 | HSBC | 150% |
4 | Standard Chartered | |
5 to 20 | Bank of America, BBVA, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse Group, Deutsche Bank, JP Morgan Chase, National Australia Bank Limited, Royal Bank of Canada, Santander, Societe Generale, The Toronto-Dominion Bank Group, UBS, Unicredito, Wells Fargo & Company | 50% |
· |
· |
Balance Sheet and Risk measures and targets | |
Core Tier 1 capital ratio | |
Wholesale funding | |
Liquidity reserves | |
Leverage ratio | |
Loan:deposit ratio | |
Earnings volatility | |
Strategic Scorecard measures and targets | Customer franchise |
Cost:income ratio in Core bank | |
Lending targets | |
Sustainability performance | |
Progress in people issues |
Does not meet | 0% | Over half of objectives not met |
Partially meets | 25% | Half of objectives met |
Significantly meets | 62.5% | Two-thirds of objectives met |
Fully meets | 100% | Objectives met or exceeded in all material respects |
Qualified by Group Performance and Remuneration Committee discretion taking into account changes in circumstances over the performance period, the relative importance of the measures, the margin by which individual targets have been missed or exceeded, and any other relevant factors. |
Date of current contract | Notice period - from the company | Notice period - from executive | |
Stephen Hester | 4 November 2008 | 12 months | 12 months |
Bruce Van Saun | 8 September 2009 | 12 months | 12 months |
Senior Independent Director (composite fee) | £150,000 |
Chairman of Group Audit Committee, Board Risk Committee or | £150,000 |
Non-executive Director Group Board fee | £72,500 |
Membership of Group Audit Committee, Board Risk Committee or Group Performance and Remuneration Committee fee | £25,000 |
Membership of Group Sustainability Committee fee | £12,500 |
Membership of Group Nominations Committee fee | £5,500 |
Performance related pay | Total remuneration | |||||||||
Salary £000 | Benefits £000 | Pension £000 | Subtotal £000 | Annual incentive (1) £000 | LTIP (2) £000 | Subtotal £000 | 2012 £000 | 2011 £000 | ||
Stephen Hester | 1,200 | 26 | 420 | 1,646 | — | — | — | 1,646 | 1,646 | |
Bruce Van Saun (3) | 750 | 134 | 408 | 1,292 | 980 | — | 980 | 2,272 | 2,119 |
(1) | Stephen Hester waived any annual incentive entitlement for the 2012 performance year. Bruce Van Saun has been awarded an annual incentive of £980,000 which will be granted as an award entirely in shares in March 2013 and will vest in March 2014 and 2015. For subsequent reporting years, the shares awarded to Bruce Van Saun will be detailed in the Deferred Awards table (see page 299). Further details of the performance assessment of the executive directors in 2012 is outlined on pages 242 and 243. |
(2) | The nil value under the LTIP column reflects awards granted under the Medium-term Performance Plan and Executive Share Option Plan in 2009. The awards did not vest in 2012 as a result of the performance conditions not being met. |
(3) | Bruce Van Saun resigned as a non-executive director of ConvergEx Holdings LLC during 2012 and received a pro rated fee of US$62,500 for 2012. Mr Van Saun was appointed as a non-executive director of Lloyd’s of London Franchise Board during 2012 for which he received a pro rated fee of £19,450. He is also a non-executive director of Direct Line Insurance Group plc , the fees for which are paid direct to the Group and is a non-executive director of Worldpay (Ship Midco Limited) for which no fees are payable. Mr Van Saun makes contributions towards his pension through a salary sacrifice arrangement to an Unfunded Unapproved Retirement Benefit Scheme, which operates on a defined contribution basis. The total contribution to the defined contribution arrangements amounted to £408,000 in 2012 (£403,000 in 2011). The rate of return on his accrued contributions is determined annually by the Committee to reflect a long-term low risk investment return on an unsecured basis. For 2012 this rate was 6.2% reflecting December 2011 CPI plus 2%. |
Salary/ fees £000 | Benefits £000 | 2012 Total £000 | 2011 Total £000 | |||||||||||||
Chairman | ||||||||||||||||
Philip Hampton | 750 | — | 750 | 750 |
Board fees | Board Committee fees | 2012 Total | 2011 Total | |||||||||||||
£000 | £000 | £000 | £000 | |||||||||||||
Non-executive directors | ||||||||||||||||
Sandy Crombie | 150 | — | 150 | 150 | ||||||||||||
Alison Davis | 73 | 41 | 114 | 43 | ||||||||||||
Tony Di Iorio | 73 | 55 | 128 | 43 | ||||||||||||
Penny Hughes | 150 | — | 150 | 150 | ||||||||||||
Joe MacHale (1) | 73 | 60 | 133 | 133 | ||||||||||||
Brendan Nelson | 150 | — | 150 | 150 | ||||||||||||
Baroness Noakes | 73 | 51 | 124 | 43 | ||||||||||||
Art Ryan (2) | 73 | 20 | 93 | 95 | ||||||||||||
Philip Scott | 150 | — | 150 | 150 | ||||||||||||
Former non-executive director | ||||||||||||||||
John McFarlane (3) | 18 | 8 | 26 | 103 |
(1) | Board Committee fee includes membership of the Asset Protection Scheme Senior Oversight Committee. |
(2) | Art Ryan is a non-executive director of RBS Citizens Financial Group, Inc. for which he received fees of US$131,000 during 2012. |
(3) | Retired from the Board with effect from 31 March 2012. |
Progress in 2012 | ||
Revise original Strategic Plan to respond to significant changes in the macro environment and outlook for wholesale banking. Deliver execution of | The continued challenges in the economic and regulatory environment prompted revision of the Group’s strategy, including a restructured wholesale business. The revised strategy continues to deliver on safety and soundness, whilst rebalancing the Group towards retail and commercial business and delivering economic returns for the Core Bank by the end of plan period. The revised strategy for the investment banking business was implemented successfully, with restructuring targets for 2012 broadly met. The Asset Protection Scheme was successfully exited in October; this was at the earliest opportunity post payment of the minimum fee. | |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, EU mandated disposals and restructuring of the wholesale business. | Core ROE was stable at 10%, Retail and Commercial (ex Ulster) remained strong at 14%, and Markets improved to 10%. Operating profit for Core (£6.3 billion) and Group (£3.5 billion) were both ahead of budget. Core cost:income ratio was 59%, with Core Tier 1 ratio at 10.3%. Core bank business lending and home loans increased by £3 billion despite weak customer confidence. More than £58 billion loans and facilities were offered to UK businesses, of which over £30 billion was to SMEs; £16 billion of UK home loans were advanced, including £3 billion to first time buyers. The new Funding for Lending Scheme allowed RBS to cut interest rates on loans to small businesses and the cost of borrowing for first time homebuyers. Branch disposal did not proceed due to unexpected withdrawal of Santander; in contrast, Direct Line Insurance Group plc divestment successfully executed on time and with positive market reception. |
Risk and control | Continue culture change across the Group including delivery of measures relating to wholesale funding reliance and liquidity reserves and leverage ratio. Deliver against agreed APS objectives. | All risk reduction quantitative measures were met or exceeded. The liquidity portfolio is ahead of target at £147 billion, while short-term wholesale funding was cut to £42 billion. The Group loan:deposit ratio improved to 100%, with Core loan:deposit ratio ahead of target at 90%. Leverage was on target at 15x. The new conduct risk framework was launched. As part of the response to the LIBOR findings and industry-wide challenges on behaviour and ethics, led the development of the Group’s purpose, vision and values to support cultural and behavioural change. Performance against agreed APS objectives secured exit from the Scheme. |
Stakeholder management | Achievement of customer franchise measures, maintain strong and effective relationships with external stakeholders and continue progress on Treating Customers Fairly (TCF) actions. | Customer metrics were impacted by the technology incident in the second half of 2012 - although strong leadership and successful delivery of ‘no customer out of pocket’. Constructive engagement with regulators overall and specifically on LIBOR, conduct risk/cultural change, and the technology incident. Early engagement with the new Financial Conduct Authority. Continued positive feedback from key shareholders. Increased engagement with external stakeholders on how banks should behave in society and cultural change. Continued good progress to address risks identified by UK/US regulators relating to TCF. |
People management | Ensure each division/function has high quality leadership teams, build out performance management, talent management and succession planning across the Group. Maintain effective employee engagement. | The Group Chief Executive continues to be widely acknowledged internally and externally as having provided strong leadership to the Group in extraordinary circumstances. People Plans in place with continual improvement on talent bench strength. Key replacement appointments made to Management Committee. Female executive representation increased to 19%. The Group’s ‘Your Feedback 2012’ survey results were stable on leadership and employee engagement in a challenging context. The Group’s purpose, vision and values will support improvements in employee engagement. |
Core objectives | Targets for 2012 | Progress in 2012 |
Strategic progress | Monitor and improve the Group and divisional strategic plans. Drive effective design and implementation of revised plan. Work with CEO on Group Strategy/M&A/APS. | Revised strategy agreed by the Board, with rigour of process acknowledged by Board and regulators. Continued challenge and good progress made on 2012 costs, capital resource usage, and targets for 2013 budgets. Strong leadership displayed on key strategic projects; APS exit at the earliest opportunity and with minimum fee payment. |
Business delivery and financial performance | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong Group Finance Director role to the business through strategic planning, budgeting, forecasting and reporting. Ensure a robust capital and funding planning framework. Drive efficiency. Successful completion of EU mandated disposals. | Continued achievement of ‘best in class’ for external reporting within the UK market, with risk disclosures seen as setting the standard; significant improvements with internal reporting processes. Led the ‘safety and soundness’ agenda across the Group, beating targets. Continued strong contribution to de-risking strategy with significant reduction in short term funding reliance; all liquidity requirements met, in compliance with FSA requirements. Actively driving out costs through the creation and embedding of a sizeable cost management programme, as well as making significant progress in the transformation of the Finance function through changes to operating model, ways of working and systems solutions. Direct Line Insurance Group plc divestment well received by investors and the market, and is widely viewed as a “textbook” execution due to the uptake and price behaviour; branch disposal did not proceed due to unexpected withdrawal of Santander. The DLG IPO is a particular credit to the Group Finance Director’s exceptional abilities and leadership. |
Risk and control | Implementation of effective regulatory changes impacting capital, funding, liquidity. Improve quality of risk and financial data. Continue development of Internal Audit function. Deliver against agreed APS objectives. | More robust capital planning, recognising regulatory changes. Strong stewardship over the financial risk and control environment and good partnership working with risk function. Significant improvements in risk-weighted assets reporting and control, and in data quality through leadership of a number of |
Stakeholder management | Continue to develop effective external relationships, including investors, rating agencies and regulators. | Excellent contribution to external relations, articulating results with clarity and credibility. Successful engagement with equity and debt investors; good engagement with the new UK regulators, US regulators and ratings agencies. Significant success in achieving narrower funding and certificates of deposits spreads, and diversification of the debt investor base. Under the Group Finance Director’s leadership, RBS has effectively withstood a ratings downgrade of ‘one notch’, whilst other peers were downgraded by ‘two notches’. Effective working with the Group Audit Committee. |
People management | Lead upgraded team and build positive culture. Contribute to overall Group management. | Key strategic hires for Group Internal Audit and Group Strategy positions working well; upgrades to their teams underway. Following LIBOR and other industry-wide challenges on ethical conduct behaviours, the Group’s purpose, vision and values were given early consideration by the Finance function to bring to life. Improved engagement within the Finance function as measured through the ‘Your Feedback 2012’ survey. Robust programmes for internal talent in place across all levels, as well as strong focus on initiatives in recognition, diversity and training & development. |
Performance measure | Weighting | Rationale | Vesting | Current assessment of performance |
Economic profit | 50% | Ensures that performance reflects enduring earnings for the Bank. | Maximum vesting of the economic profit measure will be triggered by early delivery of Core business profitability, well ahead of the range implied by the published Strategic Plan targets and also in excess of the cost of capital. | Analysis of economic profit outcome is currently under review and decision on vesting level will be taken before the awards vest in May 2013. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance over the measurement period ending 31 December 2012, this element of the award will not vest. |
Absolute TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s share price reaches £5.75. Maximum: 100% vesting if the Group’s share price reaches £7.75. Pro-rata vesting in between these points. | |
Performance measure | Weighting | Rationale | Vesting | 2011 LTIP Current assessment of performance | 2012 LTIP Current assessment of performance |
Core Bank economic profit | 25% | Ensures that performance reflects risk adjusted enduring earnings for the Bank. | Threshold: 25% vesting for meeting minimum economic profit targets. Maximum: 100% vesting for performance ahead of the Group’s Strategic Plan. | Continued difficult economic conditions have been experienced in a number of our key markets, however threshold targets could be met. | Performance broadly in line with expectations. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. |
Balance sheet & risk | 25% | Ensure alignment with the advancement of the strategic position and capability of the organisation and the building of a sustainable business. | Vesting will be qualified by Group Performance and Remuneration Committee discretion. Indicative vesting levels are: · Over half of objectives not met: 0%; · Half of objectives met: 25%; · Two-thirds of objectives met: 62.5%; and · Objectives met or exceeded in all material respects: 100%. | Most targets have been met or exceeded. Strong performance on capital, leverage and funding measures, risk appetite embedded. Good progress on brand franchises (e.g. ‘Helpful Banking’ in UK), sustainability and employee engagement measures. Further work needed on cost:income ratio. | Majority of performance targets hit, particularly those around securing confidence in safety and soundness and being within risk appetite. On track to achieve other objectives by end of 2014. Despite some difficult reputational issues, progress being made against most customer, community and employee metrics. Core cost: income ratio remains challenging to achieve due to market-driven income pressures. |
Strategic scorecard | 25% |
Implementation of the Group’s recovery plan started in January 2009 with the publication of the preliminary 2008 losses. The share price reached a closing low point of 10.3p per share (103p per share on a post share consolidation basis) on the news. From January 2009 to 27 February 2013, the day the Group’s 2012 results announcement was approved, the Group’s share price has risen 237% which compares to 104% and 55% respectively for the FTSE banks index and the FTSE 100 index as a whole. |
Attended / Scheduled | |
Penny Hughes (Chair) | 9/9 |
Sandy Crombie | 9/9 |
Alison Davis | 9/9 |
John McFarlane (1) | 2/2 |
Art Ryan (2) | 4/5 |
(1) | Stepped down as a member of the Committee on 31 March 2012. |
(2) | Became a member of the Committee on 30 May 2012. |
For | Against | Withheld * |
48,023,557,759 (99.68% of votes cast) | 152,277,626 (0.32% of votes cast) | 42,971,201 |
For | Against | Withheld * |
47,690,076,126 (99.31% of votes cast) | 332,996,089 (0.69% of votes cast) | 195,464,478 |
31 December 2012 | ||||
1 January 2012 Shares beneficially owned or at date of appointment, if later (1) | Shares beneficially owned | % of issued share capital | Value (2) £ | |
Chairman | ||||
Philip Hampton | 27,630 | 27,630 | 0.0046 | 89,659 |
Executive director | ||||
Stephen Hester | 541,135 | 651,177 | 0.1073 | 2,113,069 |
Bruce Van Saun | — | 118,680 | 0.0195 | 385,117 |
Non-executive directors | ||||
Sandy Crombie | 20,000 | 20,000 | 0.0033 | 64,900 |
Alison Davis | 20,000 | 20,000 | 0.0033 | 64,900 |
Tony Di lorio (3) | 30,000 | 30,000 | 0.0049 | 97,350 |
Penny Hughes (1) | 562 | 562 | 0.0001 | 1,824 |
Joe MacHale | 28,431 | 28,431 | 0.0047 | 92,259 |
Brendan Nelson | 12,001 | 12,001 | 0.0020 | 38,943 |
Baroness Noakes | 21,000 | 21,000 | 0.0035 | 68,145 |
Art Ryan | 5,000 | 5,000 | 0.0008 | 16,225 |
Philip Scott | 50,000 | 50,000 | 0.0082 | 162,250 |
(1) | Share interests held at 1 January 2012 in the table above have been restated to reflect the sub-division and consolidation of ordinary shares which took effect in June 2012. The share interests of Penny Hughes have also been restated to reflect the notification to the company on 16 January 2013 of a transaction by a connected person which took place in March 2011. |
(2) | Value is based on the share price at 31 December 2012, which was 324.5p. During the year ended 31 December 2012, the share price ranged from 196.6p to 325.0p. |
(3) | Tony Di Iorio’s interests in the company’s shares are held in the form of American Depository Receipts (ADRs). Each ADR represents 2 ordinary shares of £1.00 each in the company. Tony Di Iorio has interests in 15,000 ADRs representing 30,000 ordinary shares. |
Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | ||
Stephen Hester | 857,843 | (1) | 4.90 | 857,843 | 14.05.13 | |||
1,011,417 | 4.45 | 1,011,417 | 07.03.14 | |||||
1,286,174 | 2.80 | 1,286,174 | 09.03.15 | |||||
1,869,260 | 1,286,174 | 3,155,434 | ||||||
Bruce Van Saun | 518,280 | (2) | 4.90 | 518,280 | 14.05.13 | |||
632,136 | 4.45 | 632,136 | 07.03.14 | |||||
803,859 | 2.80 | 803,859 | 09.03.15 | |||||
1,150,416 | 803,859 | 1,954,275 |
(1) | Stephen Hester has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares in respect of at least one third of the award. |
(2) | Bruce Van Saun has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares for the amount over 300% of his salary. |
Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Value on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |||
Stephen Hester (1) | 458,509 | (2) | 4.45 | 229,255 | 2.62 | 600,648 | 229,254 | 07.03.12 - 07.03.13 | ||
Bruce Van Saun | 95,707 | (3) | 3.79 | 95,707 | 2.35 | 224,911 | — | — | ||
303,088 | (2) | 4.45 | 151,544 | 2.62 | 397,045 | 151,544 | 07.03.12 - 07.03.13 | |||
300,000 | (4) | 2.80 | 300,000 | 09.03.13 - 09.03.14 | ||||||
398,795 | 300,000 | 247,251 | 621,956 | 451,544 |
(1) | Stephen Hester previously waived his deferred award entitlement in respect of the 2009 and 2011 performance years and during 2012 he also waived any entitlement that might have been awarded for the 2012 performance year. |
(2) | The awards granted on 7 March 2011 relate to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2010 performance year. The awards will vest in two tranches with the final tranche due to vest on 7 March 2013 and any vested shares are subject to a further six month retention post-vesting. Mr Hester has voluntarily agreed to a total retention period of 12 months post-vesting. |
(3) | The award was granted in March 2010 and relates to an allocation of shares in respect of annual incentives for the 2009 performance year. |
(4) | The award granted on 9 March 2012 relates to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2011 performance year. The award is due to vest in two equal tranches in March 2013 and March 2014 and any vested shares are subject to a further six month retention post-vesting. |
Options held at 1 January 2012 | Number of options lapsed in 2012 | Option price £ | Options held at 31 December 2012 | ||
Number | Exercise period | ||||
Stephen Hester | 955,000 | 955,000 | 3.72 | — | — |
Bruce Van Saun | 90,530 | 90,530 | 5.67 | — | — |
Scheme interests (share equivalents) at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Scheme interests (share equivalents) at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Stephen Hester | 480,000 | 3.72 | 480,000 | — | — |
Bruce Van Saun | 181,061 | 5.67 | 181,061 | — | — |
Awards held at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Philip Hampton (1) | 517,241 | 2.90 | 517,241 | — | — |
(1) | Philip Hampton waived his right to the above award which was made in 2009 and due to vest in 2012 and therefore the award was lapsed. |
Stephen Hester | Bruce Van Saun | Executive 1 | Executive 2 | Executive 3 | Executive 4 | Executive 5 | Executive 6 | Executive 7 | Executive 8 | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Fixed remuneration | 1,200 | 750 | 1,735 | 775 | 700 | 421 | 311 | 775 | 394 | 650 |
Variable remuneration (cash) | — | — | 2 | 2 | 2 | 2 | 2 | — | 2 | — |
Variable remuneration (shares subject to retention) | — | — | 410 | 280 | 158 | 101 | 116 | — | 105 | — |
Deferred variable remuneration (bond) | — | — | 1,023 | 698 | 393 | 252 | 289 | — | 173 | — |
Deferred variable remuneration (shares subject to retention) | — | 980 | 615 | 420 | 237 | 152 | 174 | — | 70 | — |
Total variable remuneration (1) | — | 980 | 2,050 | 1,400 | 790 | 507 | 581 | — | 350 | — |
Total remuneration | 1,200 | 1,730 | 3,785 | 2,175 | 1,490 | 928 | 892 | 775 | 744 | 650 |
Long Term Incentive Awards (subject to future performance) (2) | 1,620 | 1,013 | 994 | 1,125 | 675 | — | 969 | — | 270 | — |
(1) | Differs to 2011 disclosure with exclusion of prior year Long Term Incentive Awards which vested during 2012. |
(2) | The Long Term Incentive Award (subject to future performance) is made following the end of the 2012 financial year. The amounts shown reflect an approximate notional value, verified by external advisers. The actual value of the award which will vest in 2016 will be dependent on actual performance and share price. |
· | All 21 wrongdoers referred to in the regulatory findings have left the organisation or been subject to disciplinary action. |
· | Individuals found culpable have left the bank with no 2012 variable compensation awards and full clawback of any outstanding past variable compensation applied. |
· | Supervisors with accountability for the business but no knowledge or involvement in the wrongdoing have received zero variable compensation awards for 2012 and a range of clawback from prior years depending on specific findings. |
· | Reduction of variable compensation awards and long-term incentive awards and prior year clawback has been made across RBS and particularly in the Markets division to account for the reputational damage of these events and the risk of additional outstanding legal and regulatory action. |
£m | |
Variable compensation award reduction | 110 |
Long term incentive award reduction | 30 |
Clawback of prior year awards (including LTIP) | 112 |
Committed future reduction 2013/2014 | 50 |
Total | 302 |
Markets £m | Rest of RBS Group £m |
97.0 | 161.0 |
Senior management £m | Others £m |
60.3 | 51.9 |
Form of remuneration | Senior management £m | Others £m |
Variable remuneration (cash) | 0.3 | 0.3 |
Variable remuneration (shares subject to retention) | 11.3 | 17.4 |
Deferred remuneration (bonds) | 23.6 | 38.4 |
Deferred remuneration (shares) | 11.3 | 19.8 |
0% of total variable remuneration was subject to a guaranteed commitment made on recruitment |
to secure the employment of key individuals. |
Senior management £m | Others £m |
17.5 | 6.1 |
Category of deferred remuneration | Senior management £m | Others £m |
Unvested from prior year | 121.0 | 213.6 |
Awarded during the financial year | 53.6 | 77.9 |
Paid out | 41.0 | 111.8 |
Reduced from prior years | 19.1 | 45.6 |
Unvested at year end | 114.5 | 134.1 |
Attended/ scheduled | |
Philip Scott (chairman) | 7/7 |
Sandy Crombie | 7/7 |
Tony Di Iorio (1) | 6/7 |
Joe MacHale | 5/7 |
Brendan Nelson | 7/7 |
Baroness Noakes (2) | 5/5 |
(1) | Missed one meeting owing to travel disruption as a consequence of Hurricane Sandy. |
(2) | Joined the Committee on 1 March 2012; attended all previous meetings as an attendee. |
· |
· | The successful flotation of more than one third of our stake in Direct Line Insurance Group plc in difficult market conditions; and |
· | The exit from the Asset Protection Scheme in October 2012. |
· | Core |
· | Further significant progress in removing Non-Core assets, a key part in managing down legacy issues. Non-Core third party assets are down £36 billion in 2012 to £57 billion, representing 92% progress towards the 2013 target of c.£40 billion; |
· | Capital, funding and liquidity positions remain robust with key performance indicators (KPIs) on short-term wholesale funding, liquidity portfolio, leverage ratio, Core Tier 1 capital ratio and loan:deposit ratio all exceeding or in line with medium-term targets; |
· | Core Return on Equity (ROE) was |
· |
Group expenses were |
· |
· |
· | Variable compensation (pre clawback) as a percentage of operating profit before variable compensation decreased from 28% to 16% for 2012 for the Group and from 25% to 16% for Markets. Full details can be found in Note 3 to the consolidated accounts on pages 339 and 340; |
· | Since 2010, total variable compensation for the Group has been reduced by over 50%; |
· | Within the context of reduced variable pools, incentive awards continue to be targeted towards high performers and, as a consequence, 40% of employees eligible for an award will |
· |
· |
· | Simplification of sales incentives with a broad move to a balanced scorecard type approach focused on customer service and risk; |
· | All executives and Code Staff have culture included as part of their 2013 objectives supported by quantitative and qualitative measures; |
· | Full review of balanced scorecard metrics, supported by independent control function review in advance of variable pools being agreed; |
· | This year, all our employees will be paid salaries at or above the Living Wage; and |
· | Shareholding requirements for the executive directors have been strengthened and new requirements introduced for senior executives to better align their interests with those of shareholders. |
· |
· |
· |
· |
· | Outcomes of the |
· | Remuneration arrangements for executive directors |
· | Introduction of a new accountability review process which informs clawback decisions; and |
· |
· |
· |
· | Presentation from the Wealth division on business and strategic priorities and people plan; |
· | Review of government proposals on Shareholder Voting Rights and remuneration aspects of CRD IV; and |
· |
· |
· | Outcomes of the |
· | Formal remuneration strategy session to discuss and |
· | Presentation from Markets and International Banking on business and strategic priorities and people plan; and |
· |
· |
· |
· |
· |
· | Content for shareholder consultations undertaken in December |
· | Review of Committee remit and name; |
· | Review of incentive plans; |
· | Approval of revised shareholding requirements for executive directors and the introduction of new shareholding requirements for Group Executive Committee members; and |
· |
· | Exists to enable RBS to respond in instances where current and/or new information would change the annual incentive and/or LTIP decisions made in previous years, and/or the decisions made in the current year. |
· | The process for review assessments (which consider material risk management, control and general policy breach failures, accountability for those events and appropriate action against individuals) is operated across divisions and functions. Divisional reviews are undertaken on a quarterly basis. |
· | A Group Accountability Review Panel ensures consistency of decision making across the Group. |
· | Decisions must take into account not only any financial losses but also behavioural issues and reputational or internal costs. |
· | Actions may include recommendations for compensation adjustments (e.g. current year variable pay reduction, clawback) disciplinary investigations and performance adjustments (e.g. a change to performance rating). |
· | Clawback may be up to 100% of unvested awards and can be applied regardless of whether or not disciplinary action has been undertaken. |
· | A key principle is that clawback quantum should not be formulaic. |
· | Collective responsibility may be considered where a committee or group of employees are deemed to have not appropriately discharged their duties. |
· | These principles apply to all of our people and any leavers with unvested awards. |
· | attract, retain, motivate and reward |
· | provide clear alignment between annual and long-term targets for individuals and Group/divisional strategic |
Element of pay | Objective | Operation |
Base salary | Base salaries are reviewed annually and should reflect the talents, skills and competencies that the individual brings to the | |
Annual incentives | To support a culture where employees recognise the importance of serving customers well and are rewarded for superior individual performance. | The annual incentive pool is based on a balanced scorecard of measures including customer, financial, Allocation from the pool depends on divisional, functional and individual performance. Individual performance assessment is supported by a structured performance management framework. Our policy is that awards are subject to individual performance. Guaranteed Immediate cash In certain circumstances, formulaic short-term incentive arrangements are used to align the objectives of employees with the strategy of the relevant division in which they work. All incentive awards are subject to appropriate governance, including independent review by the |
To encourage the creation of value over the long term and to align further | The Group provides certain employees in senior roles with long-term incentive awards. Awards are structured as performance-vesting shares. Vesting after a three year period will be based partly on divisional or functional performance and partly on performance across the Group. All awards are subject to clawback. | |
Other share plans | To offer employees in certain jurisdictions the opportunity to acquire Group shares. | Employees in certain countries are eligible to |
Benefits (including pension) | To give employees an opportunity to provide for their retirement. | In most jurisdictions, employee benefits or a cash equivalent are provided from a flexible benefits account. |
Element of pay | Changes to policy since last approved | ||||
Base salary | Rate at 1 January 2013: Stephen Hester: £1,200,000 Bruce Van Saun: £750,000 | N/A | A 2% increase to the salary of Bruce Van Saun to £765,000 with effect from 1 April | ||
Annual | Provision for clawback prior to Additional six | 200% of base salary Exceptional maximum: 250% of | Balanced scorecard of KPIs measured over the financial year. KPIs are: · Strategic progress; · Risk and control; · Stakeholder management; and · People management See page 287 for further details | No change. | |
Long-term incentive | Awards granted over shares which | ||||
Provision for clawback prior to vesting. Additional six month holding period post vesting. | Each of the four performance elements has the potential to deliver shares worth 100% of salary at grant. However, there is an overall cap on vesting equivalent to 300% of salary The notional value of these awards would be 45% of face value, which is 135% of salary. | Performance conditions measured over three financial years. Performance measures and relative weightings are: · Core Bank Economic Profit - 25% · Strategic scorecard - 25% · Financial and risk performance underpin. The LTIP measures have been selected in consultation with shareholders. The objective is to have a balanced range of measures that encourage the building of a safer, stronger and more sustainable business. See page 288 for further details on the measures. | No change. | ||
Benefits (including | Opportunity to sacrifice salary into defined | No change. |
Core objectives | Stephen Hester | Bruce Van Saun |
Strategic progress | Revise original Strategic Plan to respond to significant changes in the macro | Monitor and improve the Group and |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, and EU mandated disposals | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong |
Risk and control | Delivery of measures relating to wholesale funding reliance, | Progress on key risk requirements. Implementation of effective regulatory changes impacting capital, funding, and liquidity. Improve quality of risk and financial data. Continue development of Group Internal Audit function. |
Stakeholder management | Achievement of customer | Continue to develop effective external relationships, including investors, rating agencies and regulators. |
People management | ||
Ensure each division/function has a people plan. Embed the Group’s purpose, vision and values through high quality leadership | Lead upgraded team and build positive |
Weighting | ||
1 | Barclays | 200% |
2 | Lloyds Banking Group | |
3 | HSBC | 150% |
4 | Standard Chartered | |
5 | Bank of America | 50% |
6 | BBVA | |
7 | BNP Paribas | |
8 | Citigroup | |
9 | Credit Agricole | |
10 | Credit Suisse Group | |
11 | Deutsche Bank | |
12 | JP Morgan Chase | |
13 | National Australia Bank Limited | |
14 | Royal Bank of Canada | |
15 | Santander | |
16 | Societe Generale | |
17 | The Toronto-Dominion Bank Group | |
18 | UBS | |
19 | Unicredito | |
20 | Wells Fargo & Company |
Weighting | ||
1 | Barclays | 200% |
2 | Lloyds Banking Group | |
3 | HSBC | 150% |
4 | Standard Chartered | |
5 to 20 | Bank of America, BBVA, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse Group, Deutsche Bank, JP Morgan Chase, National Australia Bank Limited, Royal Bank of Canada, Santander, Societe Generale, The Toronto-Dominion Bank Group, UBS, Unicredito, Wells Fargo & Company | 50% |
· | 20% of the award will vest if the Group’s TSR is at the median of the companies in the comparator group. |
· | 100% of the award will vest if the Group’s TSR is at the upper quartile of the companies in the comparator group. |
Performance measures | |
Balance Sheet and Risk measures and targets | Non-Core |
Core Tier 1 | |
Wholesale funding | |
Liquidity reserves | |
Leverage ratio | |
Loan:deposit ratio | |
Earnings volatility | |
Strategic Scorecard measures and targets | Customer franchise |
Cost:income ratio in | |
Lending targets | |
Sustainability performance | |
Progress in people issues |
Vesting point | Indicative performance | ||
Does not meet | 0% | Over half of objectives not met | |
Partially meets | 25% | Half of objectives met | |
Significantly meets | 62.5% | Two-thirds of objectives met | |
Fully meets | 100% | Objectives met or exceeded in all material respects | |
Qualified by Group Performance and Remuneration Committee discretion taking into account changes in circumstances over the performance period, the relative importance of the measures, the margin by which individual targets have been missed or exceeded, and any other relevant factors. |
Date of current contract | Notice period - from the company | Notice period - from executive | |
Stephen Hester | 4 November 2008 | 12 months | 12 months |
Bruce Van Saun | 8 September 2009 | 12 months | 12 months |
Salary/ fees £000 | Benefits £000 | 2011 Total £000 | 2010 Total £000 | |
Chairman | ||||
Philip Hampton | 750 | — | 750 | 750 |
Executive directors | ||||
Stephen Hester (1) | 1,200 | 26 | 1,226 | 3,267 |
Bruce Van Saun (1,2) | 744 | 132 | 876 | 2,298 |
Board fees | Board Committee fees | 2011 Total | 2010 Total | |
£000 | £000 | £000 | £000 | |
Non-executive directors | ||||
Sandy Crombie | 150 | — | 150 | 150 |
Alison Davis (1) | 30 | 13 | 43 | — |
Tony Di Iorio (2) | 24 | 19 | 43 | — |
Penny Hughes (3) | 150 | — | 150 | 130 |
Joe MacHale (4) | 73 | 60 | 133 | 141 |
John McFarlane | 73 | 30 | 103 | 103 |
Brendan Nelson (5) | 150 | — | 150 | 111 |
Baroness Noakes (6) | 30 | 13 | 43 | — |
Art Ryan | 73 | 22 | 95 | 103 |
Philip Scott | 150 | — | 150 | 150 |
Former non-executive director | ||||
Colin Buchan (7) | 44 | 33 | 77 | 150 |
Chairman’s fee | £750,000 |
Senior Independent Director (composite fee) | £150,000 |
Chairman of Group Audit Committee, Board Risk Committee or Group Performance and Remuneration Committee (composite fee) | £150,000 |
Non-executive Director Group Board fee | £72,500 |
Membership of Group Audit Committee, Board Risk Committee or Group Performance and Remuneration Committee fee | £25,000 |
Membership of Group Sustainability Committee fee | £12,500 |
Membership of Group Nominations Committee fee | £5,500 |
Performance related pay | Total remuneration | |||||||||
Salary £000 | Benefits £000 | Pension £000 | Subtotal £000 | Annual incentive (1) £000 | LTIP (2) £000 | Subtotal £000 | 2012 £000 | 2011 £000 | ||
Stephen Hester | 1,200 | 26 | 420 | 1,646 | — | — | — | 1,646 | 1,646 | |
Bruce Van Saun (3) | 750 | 134 | 408 | 1,292 | 980 | — | 980 | 2,272 | 2,119 |
(1) | Stephen Hester waived any annual incentive entitlement for the 2012 performance year. Bruce Van Saun has been awarded an annual incentive of £980,000 which will be granted as an award entirely in shares in March 2013 and will vest in March 2014 and 2015. For subsequent reporting years, the shares awarded to Bruce Van Saun will be detailed in the Deferred Awards table (see page 299). Further details of the performance assessment of the executive directors in 2012 is outlined on pages 242 and 243. |
(2) | The nil value under the LTIP column reflects awards granted under the Medium-term Performance Plan and Executive Share Option Plan in 2009. The awards did not vest in 2012 as a result of the performance conditions not being met. |
(3) | Bruce Van Saun resigned as a non-executive director of ConvergEx Holdings LLC during 2012 and received a pro rated fee of US$62,500 for 2012. Mr Van Saun was appointed as a non-executive director of Lloyd’s of London Franchise Board during 2012 for which he received a pro rated fee of £19,450. He is also a non-executive director of Direct Line Insurance Group plc , the fees for which are paid direct to the Group and is a non-executive director of Worldpay (Ship Midco Limited) for which no fees are payable. Mr Van Saun makes contributions towards his pension through a salary sacrifice arrangement to an Unfunded Unapproved Retirement Benefit Scheme, which operates on a defined contribution basis. The total contribution to the defined contribution arrangements amounted to £408,000 in 2012 (£403,000 in 2011). The rate of return on his accrued contributions is determined annually by the Committee to reflect a long-term low risk investment return on an unsecured basis. For 2012 this rate was 6.2% reflecting December 2011 CPI plus 2%. |
Salary/ fees £000 | Benefits £000 | 2012 Total £000 | 2011 Total £000 | |||||||||||||
Chairman | ||||||||||||||||
Philip Hampton | 750 | — | 750 | 750 |
Board fees | Board Committee fees | 2012 Total | 2011 Total | |||||||||||||
£000 | £000 | £000 | £000 | |||||||||||||
Non-executive directors | ||||||||||||||||
Sandy Crombie | 150 | — | 150 | 150 | ||||||||||||
Alison Davis | 73 | 41 | 114 | 43 | ||||||||||||
Tony Di Iorio | 73 | 55 | 128 | 43 | ||||||||||||
Penny Hughes | 150 | — | 150 | 150 | ||||||||||||
Joe MacHale (1) | 73 | 60 | 133 | 133 | ||||||||||||
Brendan Nelson | 150 | — | 150 | 150 | ||||||||||||
Baroness Noakes | 73 | 51 | 124 | 43 | ||||||||||||
Art Ryan (2) | 73 | 20 | 93 | 95 | ||||||||||||
Philip Scott | 150 | — | 150 | 150 | ||||||||||||
Former non-executive director | ||||||||||||||||
John McFarlane (3) | 18 | 8 | 26 | 103 |
(1) |
Board Committee fee includes membership of the Asset Protection Scheme Senior Oversight Committee. |
Retired from the Board with effect from |
Core objectives | Targets for 2012 | Progress in 2012 |
Strategic progress | Revise original Strategic Plan to respond to significant changes in the macro environment and outlook for wholesale banking. Deliver execution of revised strategy. | The continued challenges in the economic and regulatory environment prompted revision of the Group’s strategy, including a restructured wholesale business. The revised strategy continues to deliver on safety and soundness, whilst rebalancing the Group towards retail and commercial business and delivering economic returns for the Core Bank by the end of plan period. The revised strategy for the investment banking business was implemented successfully, with restructuring targets for 2012 broadly met. The Asset Protection Scheme was successfully exited in October; this was at the earliest opportunity post payment of the minimum fee. |
Business delivery and financial performance | Lead delivery of overall performance, including measures relating to ROE, cost management, Core Tier 1 capital ratio, funding and risk profile, lending, EU mandated disposals and restructuring of the wholesale business. | Core ROE was stable at 10%, Retail and Commercial (ex Ulster) remained strong at 14%, and Markets improved to 10%. Operating profit for Core (£6.3 billion) and Group (£3.5 billion) were both ahead of budget. Core cost:income ratio was 59%, with Core Tier 1 ratio at 10.3%. Core bank business lending and home loans increased by £3 billion despite weak customer confidence. More than £58 billion loans and facilities were offered to UK businesses, of which over £30 billion was to SMEs; £16 billion of UK home loans were advanced, including £3 billion to first time buyers. The new Funding for Lending Scheme allowed RBS to cut interest rates on loans to small businesses and the cost of borrowing for first time homebuyers. Branch disposal did not proceed due to unexpected withdrawal of Santander; in contrast, Direct Line Insurance Group plc divestment successfully executed on time and with positive market reception. |
Risk and control | Continue culture change across the Group including delivery of measures relating to wholesale funding reliance and liquidity reserves and leverage ratio. Deliver against agreed APS objectives. | All risk reduction quantitative measures were met or exceeded. The liquidity portfolio is ahead of target at £147 billion, while short-term wholesale funding was cut to £42 billion. The Group loan:deposit ratio improved to 100%, with Core loan:deposit ratio ahead of target at 90%. Leverage was on target at 15x. The new conduct risk framework was launched. As part of the response to the LIBOR findings and industry-wide challenges on behaviour and ethics, led the development of the Group’s purpose, vision and values to support cultural and behavioural change. Performance against agreed APS objectives secured exit from the Scheme. |
Stakeholder management | Achievement of customer franchise measures, maintain strong and effective relationships with external stakeholders and continue progress on Treating Customers Fairly (TCF) actions. | Customer metrics were impacted by the technology incident in the second half of 2012 - although strong leadership and successful delivery of ‘no customer out of pocket’. Constructive engagement with regulators overall and specifically on LIBOR, conduct risk/cultural change, and the technology incident. Early engagement with the new Financial Conduct Authority. Continued positive feedback from key shareholders. Increased engagement with external stakeholders on how banks should behave in society and cultural change. Continued good progress to address risks identified by UK/US regulators relating to TCF. |
People management | Ensure each division/function has high quality leadership teams, build out performance management, talent management and succession planning across the Group. Maintain effective employee engagement. | The Group Chief Executive continues to be widely acknowledged internally and externally as having provided strong leadership to the Group in extraordinary circumstances. People Plans in place with continual improvement on talent bench strength. Key replacement appointments made to Management Committee. Female executive representation increased to 19%. The Group’s ‘Your Feedback 2012’ survey results were stable on leadership and employee engagement in a challenging context. The Group’s purpose, vision and values will support improvements in employee engagement. |
Core objectives | Targets for 2012 | Progress in 2012 |
Strategic progress | Monitor and improve the Group and divisional strategic plans. Drive effective design and implementation of revised plan. Work with CEO on Group Strategy/M&A/APS. | Revised strategy agreed by the Board, with rigour of process acknowledged by Board and regulators. Continued challenge and good progress made on 2012 costs, capital resource usage, and targets for 2013 budgets. Strong leadership displayed on key strategic projects; APS exit at the earliest opportunity and with minimum fee payment. |
Business delivery and financial performance | Ensure statutory, regulatory and management reporting is compliant with all external and internal standards. Continue to improve ‘best in class’ external reporting. Provide strong Group Finance Director role to the business through strategic planning, budgeting, forecasting and reporting. Ensure a robust capital and funding planning framework. Drive efficiency. Successful completion of EU mandated disposals. | Continued achievement of ‘best in class’ for external reporting within the UK market, with risk disclosures seen as setting the standard; significant improvements with internal reporting processes. Led the ‘safety and soundness’ agenda across the Group, beating targets. Continued strong contribution to de-risking strategy with significant reduction in short term funding reliance; all liquidity requirements met, in compliance with FSA requirements. Actively driving out costs through the creation and embedding of a sizeable cost management programme, as well as making significant progress in the transformation of the Finance function through changes to operating model, ways of working and systems solutions. Direct Line Insurance Group plc divestment well received by investors and the market, and is widely viewed as a “textbook” execution due to the uptake and price behaviour; branch disposal did not proceed due to unexpected withdrawal of Santander. The DLG IPO is a particular credit to the Group Finance Director’s exceptional abilities and leadership. |
Risk and control | Implementation of effective regulatory changes impacting capital, funding, liquidity. Improve quality of risk and financial data. Continue development of Internal Audit function. Deliver against agreed APS objectives. | More robust capital planning, recognising regulatory changes. Strong stewardship over the financial risk and control environment and good partnership working with risk function. Significant improvements in risk-weighted assets reporting and control, and in data quality through leadership of a number of key initiatives across the group. Effective response to the technology incident, giving strong leadership to the function. Internal Audit strategy and plan well received by Group Audit Committee. All APS objectives met. |
Stakeholder management | Continue to develop effective external relationships, including investors, rating agencies and regulators. | Excellent contribution to external relations, articulating results with clarity and credibility. Successful engagement with equity and debt investors; good engagement with the new UK regulators, US regulators and ratings agencies. Significant success in achieving narrower funding and certificates of deposits spreads, and diversification of the debt investor base. Under the Group Finance Director’s leadership, RBS has effectively withstood a ratings downgrade of ‘one notch’, whilst other peers were downgraded by ‘two notches’. Effective working with the Group Audit Committee. |
People management | Lead upgraded team and build positive culture. Contribute to overall Group management. | Key strategic hires for Group Internal Audit and Group Strategy positions working well; upgrades to their teams underway. Following LIBOR and other industry-wide challenges on ethical conduct behaviours, the Group’s purpose, vision and values were given early consideration by the Finance function to bring to life. Improved engagement within the Finance function as measured through the ‘Your Feedback 2012’ survey. Robust programmes for internal talent in place across all levels, as well as strong focus on initiatives in recognition, diversity and training & development. |
Performance measure | Weighting | Rationale | Vesting | Current assessment of performance |
Economic profit | 50% | Ensures that performance reflects enduring earnings for the Bank. | Maximum vesting of the economic profit measure will be triggered by early delivery of Core business profitability, well ahead of the range implied by the published Strategic Plan targets and also in excess of the cost of capital. | Analysis of economic profit outcome is currently under review and decision on vesting level will be taken before the awards vest in May 2013. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance over the measurement period ending 31 December 2012, this element of the award will not vest. |
Absolute TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s share price reaches £5.75. Maximum: 100% vesting if the Group’s share price reaches £7.75. Pro-rata vesting in between these points. | Based on share price performance to date, the threshold targets have not yet been met. |
Performance measure | Weighting | Rationale | Vesting | 2011 LTIP Current assessment of performance | 2012 LTIP Current assessment of performance |
Core Bank economic profit | 25% | Ensures that performance reflects risk adjusted enduring earnings for the Bank. | Threshold: 25% vesting for meeting minimum economic profit targets. Maximum: 100% vesting for performance ahead of the Group’s Strategic Plan. | Continued difficult economic conditions have been experienced in a number of our key markets, however threshold targets could be met. | Performance broadly in line with expectations. |
Relative TSR | 25% | Ensure alignment with shareholders. | Threshold: 20% vesting if the Group’s TSR is at the median of the companies in the comparator group. Maximum: 100% vesting if the Group’s TSR is at the upper quartile of the companies in the comparator group. Pro-rata vesting in between these points. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. | Based on share price performance up to 31 December 2012, the threshold targets have not yet been met. |
Balance sheet & risk | 25% | Ensure alignment with the advancement of the strategic position and capability of the organisation and the building of a sustainable business. | Vesting will be qualified by Group Performance and Remuneration Committee discretion. Indicative vesting levels are: · Over half of objectives not met: 0%; · Half of objectives met: 25%; · Two-thirds of objectives met: 62.5%; and · Objectives met or exceeded in all material respects: 100%. | Most targets have been met or exceeded. Strong performance on capital, leverage and funding measures, risk appetite embedded. Good progress on brand franchises (e.g. ‘Helpful Banking’ in UK), sustainability and employee engagement measures. Further work needed on cost:income ratio. | Majority of performance targets hit, particularly those around securing confidence in safety and soundness and being within risk appetite. On track to achieve other objectives by end of 2014. Despite some difficult reputational issues, progress being made against most customer, community and employee metrics. Core cost: income ratio remains challenging to achieve due to market-driven income pressures. |
Strategic scorecard | 25% |
Implementation of the Group’s recovery plan started in January 2009 with the publication of the preliminary 2008 losses. The share price reached a closing low point of 10.3p per share (103p per share on a post share consolidation basis) on the news. From January 2009 to 27 February 2013, the day the Group’s 2012 results announcement was approved, the Group’s share price has risen 237% which compares to 104% and 55% respectively for the FTSE banks index and the FTSE 100 index as a whole. |
Attended / Scheduled | |
Penny Hughes (Chair) | 9/9 |
Sandy Crombie | 9/9 |
Alison Davis | 9/9 |
John McFarlane (1) | 2/2 |
Art Ryan (2) | 4/5 |
(1) | Stepped down as a member of the Committee on 31 March 2012. |
(2) | Became a member of the Committee on 30 May 2012. |
For | Against | Withheld * |
48,023,557,759 (99.68% of votes cast) | 152,277,626 (0.32% of votes cast) | 42,971,201 |
For | Against | Withheld * |
47,690,076,126 (99.31% of votes cast) | 332,996,089 (0.69% of votes cast) | 195,464,478 |
31 December 2012 | ||||
1 January 2012 Shares beneficially owned or at date of appointment, if later (1) | Shares beneficially owned | % of issued share capital | Value (2) £ | |
Chairman | ||||
Philip Hampton | 27,630 | 27,630 | 0.0046 | 89,659 |
Executive director | ||||
Stephen Hester | 541,135 | 651,177 | 0.1073 | 2,113,069 |
Bruce Van Saun | — | 118,680 | 0.0195 | 385,117 |
Non-executive directors | ||||
Sandy Crombie | 20,000 | 20,000 | 0.0033 | 64,900 |
Alison Davis | 20,000 | 20,000 | 0.0033 | 64,900 |
Tony Di lorio (3) | 30,000 | 30,000 | 0.0049 | 97,350 |
Penny Hughes (1) | 562 | 562 | 0.0001 | 1,824 |
Joe MacHale | 28,431 | 28,431 | 0.0047 | 92,259 |
Brendan Nelson | 12,001 | 12,001 | 0.0020 | 38,943 |
Baroness Noakes | 21,000 | 21,000 | 0.0035 | 68,145 |
Art Ryan | 5,000 | 5,000 | 0.0008 | 16,225 |
Philip Scott | 50,000 | 50,000 | 0.0082 | 162,250 |
(1) | Share interests held at 1 January 2012 in the table above have been restated to reflect the sub-division and consolidation of ordinary shares which took effect in June 2012. The share interests of Penny Hughes have also been restated to reflect the notification to the company on 16 January 2013 of a transaction by a connected person which took place in March 2011. |
(2) | Value is based on the share price at 31 December 2012, which was 324.5p. During the year ended 31 December 2012, the share price ranged from 196.6p to 325.0p. |
(3) | Tony Di Iorio’s interests in the company’s shares are held in the form of American Depository Receipts (ADRs). Each ADR represents 2 ordinary shares of £1.00 each in the company. Tony Di Iorio has interests in 15,000 ADRs representing 30,000 ordinary shares. |
Awards held at 1 January 2011 | Awards granted in 2011 | Market price on award £ | Awards vested in 2011 | Market price on vesting £ | Awards held at 31 December 2011 | End of period for qualifying conditions to be fulfilled | Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |||
Stephen Hester | 8,578,432 | (1) | — | 0.49 | 8,578,432 | 14.05.13 | 857,843 | (1) | 4.90 | 857,843 | 14.05.13 | |||||
1,011,417 | 4.45 | 1,011,417 | 07.03.14 | |||||||||||||
— | 10,114,178 | 0.44 | 10,114,178 | 07.03.14 | 1,286,174 | 2.80 | 1,286,174 | 09.03.15 | ||||||||
8,578,432 | 10,114,178 | 18,692,610 | 1,869,260 | 1,286,174 | 3,155,434 | |||||||||||
Bruce Van Saun | 5,182,803 | (2) | — | 0.49 | 5,182,803 | 14.05.13 | 518,280 | (2) | 4.90 | 518,280 | 14.05.13 | |||||
— | 6,321,362 | 0.44 | 6,321,362 | 07.03.14 | 632,136 | 4.45 | 632,136 | 07.03.14 | ||||||||
5,182,803 | 6,321,362 | 11,504,165 | 803,859 | 2.80 | 803,859 | 09.03.15 | ||||||||||
1,150,416 | 803,859 | 1,954,275 |
(1) | Stephen Hester has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares in respect of at least one third of the award. |
(2) | Bruce Van Saun has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares for the amount over 300% of his salary. |
Awards held at 1 January 2011 | Awards granted in 2011 | Market price on award £ | Awards vested in 2011 | Market price on vesting £ | Awards held at 31 December 2011 | End of period for qualifying conditions to be fulfilled | Awards held at 1 January 2012 | Awards granted in 2012 | Market price on award £ | Awards vested in 2012 | Market price on vesting £ | Value on vesting £ | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |||||
Stephen Hester (1) | — | 4,585,094 | (2) | 0.44 | 4,585,094 | 07.03.12 - 07.03.13 | 458,509 | (2) | 4.45 | 229,255 | 2.62 | 600,648 | 229,254 | 07.03.12 - 07.03.13 | |||||
Bruce Van Saun | 957,071 | (3) | 0.38 | 957,071 | 18.06.12 | 95,707 | (3) | 3.79 | 95,707 | 2.35 | 224,911 | — | — | ||||||
— | 3,030,882 | (2) | 0.44 | 3,030,882 | 07.03.12 - 07.03.13 | 303,088 | (2) | 4.45 | 151,544 | 2.62 | 397,045 | 151,544 | 07.03.12 - 07.03.13 | ||||||
957,071 | 3,030,882 | 3,987,953 | 300,000 | (4) | 2.80 | 300,000 | 09.03.13 - 09.03.14 | ||||||||||||
398,795 | 300,000 | 247,251 | 621,956 | 451,544 |
(1) |
(2) | The awards granted on 7 March 2011 relate to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2010 performance year. The |
(3) | The |
(4) | The award granted on 9 March 2012 relates to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2011 performance year. The award is due to vest in two equal tranches in March 2013 and March 2014 and any vested shares are subject to a further six month retention post-vesting. |
Options held at 1 January 2012 | Number of options lapsed in 2012 | Option price £ | Options held at 31 December 2012 | ||
Number | Exercise period | ||||
Stephen Hester | 955,000 | 955,000 | 3.72 | — | — |
Bruce Van Saun | 90,530 | 90,530 | 5.67 | — | — |
Options held at 1 January 2011 | Number of options exercised in 2011 | Market price at date of exercise £ | Option price £ | Options held at 31 December 2011 | ||||
Number | Exercise period | |||||||
Stephen Hester | 9,550,000 | 0.37 | 9,550,000 | 22.06.12 - 21.06.19 | ||||
Bruce Van Saun | 905,306 | 0.57 | 905,306 | 08.09.12 - 07.09.19 |
Scheme interests (share equivalents) at 1 January 2011 | Market price on award £ | Awards vested in 2011 | Awards exercised in 2011 | Scheme interests (share equivalents) at 31 December 2011 | End of period for qualifying conditions to be fulfilled | |
Stephen Hester (1) | 4,800,000 | 0.37 | 4,800,000 | 22.06.12 | ||
Bruce Van Saun (2) | 1,810,611 | 0.57 | 1,810,611 | 22.06.12 |
Scheme interests (share equivalents) at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Scheme interests (share equivalents) at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Stephen Hester | 480,000 | 3.72 | 480,000 | — | — |
Bruce Van Saun | 181,061 | 5.67 | 181,061 | — | — |
Awards held at 1 January 2011 | Awards granted in 2011 | Market price on award £ | Awards vested in 2011 | Market price on vesting £ | Value of awards vested £ | Awards held at 31 December 2011 | End of period for qualifying conditions to be fulfilled | ||||
Stephen Hester | 3,463,298 | (1) | 0.48 | 799,292 | 0.4234 | 338,420 | |||||
0.48 | 2,664,006 | 0.4259 | 1,134,600 | ||||||||
610,687 | (2) | 0.48 | 610,687 | 0.1983 | 121,099 | ||||||
4,073,985 | 4,073,985 | 1,594,119 | |||||||||
Philip Hampton (3) | 5,172,413 | 0.29 | 5,172,413 | 27.02.12 |
Awards held at 1 January 2012 | Market price on award £ | Awards lapsed in 2012 | Awards held at 31 December 2012 | End of period for qualifying conditions to be fulfilled | |
Philip Hampton (1) | 517,241 | 2.90 | 517,241 | — | — |
(1) |
2011 £000 | 2010 £000 | |
Cash allowances in place of pension | ||
Stephen Hester | 420 | 420 |
Amounts credited to defined contribution arrangements | ||
Bruce Van Saun (1) | 403 | 321 |
Stephen Hester | Bruce Van Saun | Executive 1 | Executive 2 | Executive 3 | Executive 4 | Executive 5 | Executive 6 | Executive 7 | Executive 8 | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Fixed remuneration | 1,200 | 744 | 1,730 | 751 | 769 | 688 | 575 | 638 | 769 | 375 |
Upfront variable remuneration (cash) | — | — | 2 | 2 | 2 | 2 | 2 | 2 | — | 2 |
Upfront variable remuneration (shares subject to retention) | — | — | 390 | 500 | 350 | 166 | 180 | 170 | — | 98 |
Deferred variable remuneration (bond) | — | — | 973 | 1,248 | 873 | 413 | 448 | 423 | — | 161 |
Deferred variable remuneration (shares subject to retention) | — | 840 | 585 | 750 | 525 | 249 | 270 | 255 | — | 65 |
Long Term Incentive Awards vested during 2011 | — | — | — | 26 | — | — | 15 | — | — | 7 |
Total variable remuneration | — | 840 | 1,950 | 2,526 | 1,750 | 830 | 915 | 850 | — | 333 |
Total remuneration | 1,200 | 1,584 | 3,680 | 3,277 | 2,519 | 1,518 | 1,490 | 1,488 | 769 | 708 |
Long Term Incentive Awards (subject to future performance) (1) | 1,620 | 1,013 | 991 | — | 1,125 | 675 | 675 | 675 | — | 270 |
Stephen Hester | Bruce Van Saun | Executive 1 | Executive 2 | Executive 3 | Executive 4 | Executive 5 | Executive 6 | Executive 7 | Executive 8 | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Fixed remuneration | 1,200 | 750 | 1,735 | 775 | 700 | 421 | 311 | 775 | 394 | 650 |
Variable remuneration (cash) | — | — | 2 | 2 | 2 | 2 | 2 | — | 2 | — |
Variable remuneration (shares subject to retention) | — | — | 410 | 280 | 158 | 101 | 116 | — | 105 | — |
Deferred variable remuneration (bond) | — | — | 1,023 | 698 | 393 | 252 | 289 | — | 173 | — |
Deferred variable remuneration (shares subject to retention) | — | 980 | 615 | 420 | 237 | 152 | 174 | — | 70 | — |
Total variable remuneration (1) | — | 980 | 2,050 | 1,400 | 790 | 507 | 581 | — | 350 | — |
Total remuneration | 1,200 | 1,730 | 3,785 | 2,175 | 1,490 | 928 | 892 | 775 | 744 | 650 |
Long Term Incentive Awards (subject to future performance) (2) | 1,620 | 1,013 | 994 | 1,125 | 675 | — | 969 | — | 270 | — |
(1) | Differs to 2011 disclosure with exclusion of prior year Long Term Incentive Awards which vested during 2012. |
(2) | The Long Term Incentive Award (subject to future performance) is made following the end of the |
Vesting potential | |||||
Performance categories | Overall weighting % | Weighting per performance year | Final vesting % | ||
2009 % | 2010 % | 2011 % | |||
1. Remake of GBM post 2008 and no material adverse event | 20 | 6 | 6 | 8 | 16 |
2. Achievement of 15% ROE and outlook | 30 | 9 | 9 | 12 | 18 |
3. Sustaining key customer/market positions | 20 | 6 | 6 | 8 | 14 |
4. Management team renewal | 10 | 3 | 3 | 4 | 10 |
5. Efficiency (Balance Sheet, Risk, Cost:income) | 10 | 3 | 3 | 4 | 6 |
6. Funding & Capital Structure | 5 | 1.5 | 1.5 | 2 | 5 |
7. Support of Non-Core | 5 | 1.5 | 1.5 | 2 | 4 |
8. Total | 100 | 30 | 30 | 40 | 73 |
· | All 21 wrongdoers referred to in the regulatory findings have left the organisation or been subject to disciplinary action. |
· | Individuals found culpable have left the bank with no 2012 variable compensation awards and full clawback of any outstanding past variable compensation applied. |
· | Supervisors with accountability for the business but no knowledge or involvement in the wrongdoing have received zero variable compensation awards for 2012 and a range of clawback from prior years depending on specific findings. |
· | Reduction of variable compensation awards and long-term incentive awards and prior year clawback has been made across RBS and particularly in the Markets division to account for the reputational damage of these events and the risk of additional outstanding legal and regulatory action. |
£m | |
Variable compensation award reduction | 110 |
Long term incentive award reduction | 30 |
Clawback of prior year awards (including LTIP) | 112 |
Committed future reduction 2013/2014 | 50 |
Total | 302 |
Global Banking & Markets £m | Rest of RBS Group £m | |
186.0 | 130.6 |
Markets £m | Rest of RBS Group £m |
97.0 | 161.0 |
Senior management £m | Others £m | Others £m | |
68.7 | 55.2 | ||
60.3 | 51.9 |
Form of remuneration | Senior management £m | Others £m | Senior management £m | Others £m |
Variable remuneration (cash) | 0.3 | 0.3 | ||
Variable remuneration (shares subject to retention) | 14.4 | 21.6 | 11.3 | 17.4 |
Deferred remuneration (bonds) | 30.3 | 48.2 | 23.6 | 38.4 |
Deferred remuneration (shares) | 15.7 | 25.8 | 11.3 | 19.8 |
0% of total variable remuneration was subject to a guaranteed commitment made on recruitment |
to secure the employment of key individuals. |
Senior management £m | Others £m | Others £m | |
23.0 | 13.2 | ||
17.5 | 6.1 |
Category of deferred remuneration | Senior management £m | Others £m | Senior management £m | Others £m |
Unvested from prior year | 108.6 | 152.8 | 121.0 | 213.6 |
Awarded during the financial year | 91.7 | 143.1 | 53.6 | 77.9 |
Paid out | 60.4 | 119.8 | 41.0 | 111.8 |
Reduced from prior years | 0.2 | — | 19.1 | 45.6 |
Unvested at year end | 134.2 | 171.1 | 114.5 | 134.1 |