rbs201202236k8.htm
 
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

 
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For February 23, 2012
 
Commission File Number: 001-10306

 
The Royal Bank of Scotland Group plc

 
RBS, Gogarburn, PO Box 1000
Edinburgh EH12 1HQ

 
(Address of principal executive offices)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F X
  
Form 40-F ___
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_________

 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_________


Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes
   ___
No X
 
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

 
 
The following information was issued as a Company announcement in London, England and is furnished pursuant to General Instruction B to the General Instructions to Form 6-K:

 
 
 

 
 
 


 

 
 
 
 
 
 
 
 
 
 
 
Appendix 1
 
Income statement reconciliations
 
 
 
Appendix 1 Income statement reconciliations
 
 
 
 
Year ended
 
31 December 2011
  
31 December 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Interest receivable
21,417 
(7)
21,410 
  
22,766 
10 
22,776 
Interest payable
(8,728)
(3)
(8,731)
  
(8,566)
(1)
(8,567)
               
Net interest income
12,689 
(10)
12,679 
  
14,200 
9 
14,209 
               
Fees and commissions receivable
6,384 
- 
6,384 
  
8,194 
(1)
8,193 
Fees and commissions payable
(1,460)
- 
(1,460)
  
(2,211)
- 
(2,211)
Income from trading activities
3,381 
(680)
2,701 
  
6,138 
(1,621)
4,517 
Gain on redemption of own debt
- 
255 
255 
  
- 
553 
553 
Other operating income (excluding insurance premium income)
2,527 
1,595 
4,122 
  
1,213 
266 
1,479 
Insurance net premium income
4,256 
- 
4,256 
  
5,128 
- 
5,128 
               
Non-interest income
15,088 
1,170 
16,258 
  
18,462 
(803)
17,659 
               
Total income
27,777 
1,160 
28,937 
  
32,662 
(794)
31,868 
               
Staff costs
(8,163)
(515)
(8,678)
  
(8,956)
(715)
(9,671)
Premises and equipment
(2,278)
(173)
(2,451)
  
(2,276)
(126)
(2,402)
Other administrative expenses
(3,395)
(1,536)
(4,931)
  
(3,716)
(279)
(3,995)
Depreciation and amortisation
(1,642)
(233)
(1,875)
  
(1,762)
(388)
(2,150)
Write-down of goodwill and other intangible assets
- 
(91)
(91)
  
- 
(10)
(10)
               
Operating expenses
(15,478)
(2,548)
(18,026)
  
(16,710)
(1,518)
(18,228)
               
Profit before other operating charges
12,299 
(1,388)
10,911 
  
15,952 
(2,312)
13,640 
Insurance net claims
(2,968)
- 
(2,968)
  
(4,783)
- 
(4,783)
               
Operating profit before impairment losses
9,331 
(1,388)
7,943 
  
11,169 
(2,312)
8,857 
Impairment losses
(7,439)
(1,270)
(8,709)
  
(9,256)
- 
(9,256)
               
Operating profit/(loss)
1,892 
(2,658)
(766)
  
1,913 
(2,312)
(399)
 
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Year ended
 
31 December 2011
  
31 December 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Operating profit/(loss)
1,892 
(2,658)
(766)
  
1,913 
(2,312)
(399)
Fair value of own debt (1)
1,846 
(1,846)
- 
  
174 
(174)
- 
Asset Protection Scheme (2)
(906)
906 
- 
  
(1,550)
1,550 
- 
Payment Protection Insurance costs
(850)
850 
- 
  
- 
- 
- 
Sovereign debt impairment
(1,099)
1,099 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(222)
222 
- 
  
(369)
369 
- 
Integration and restructuring costs
(1,064)
1,064 
- 
  
(1,032)
1,032 
- 
Gain on redemption of own debt
255 
(255)
- 
  
553 
(553)
- 
Strategic disposals
(104)
104 
- 
  
171 
(171)
- 
Bank levy
(300)
300 
- 
  
- 
- 
- 
Bonus tax
(27)
27 
- 
  
(99)
99 
- 
Write-down of goodwill and other intangible assets
(11)
11 
- 
  
(10)
10 
- 
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds
(169)
169 
- 
  
- 
- 
- 
RFS Holdings minority interest
(7)
7 
- 
  
(150)
(150)
- 
               
Loss before tax
(766)
- 
(766)
  
(399)
- 
(399)
Tax charge
(1,250)
- 
(1,250)
  
(634)
- 
(634)
               
Loss from continuing operations
(2,016)
- 
(2,016)
  
(1,033)
- 
(1,033)
Profit/(loss) from discontinued operations, net of tax
47 
- 
47 
  
(633)
- 
(633)
               
Loss for the year
(1,969)
- 
(1,969)
  
(1,666)
- 
(1,666)
Non-controlling interests
(28)
- 
(28)
  
665 
- 
665 
Preference share and other dividends
- 
- 
- 
  
(124)
- 
(124)
               
Loss attributable to ordinary and B shareholders
(1,997)
- 
(1,997)
  
(1,125)
- 
(1,125)
 
 
Notes:
 
(1)
Reallocation of £225 million (2010 - £75 million loss) to income from trading activities and £1,621 million (2010 - £249 million gain) to other operating income.
(2)
Reallocation to income from trading activities.
 
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
31 December 2011
  
30 September 2011
  
31 December 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Interest receivable
5,234 
- 
5,234 
  
5,371 
- 
5,371 
  
5,611 
1 
5,612 
Interest payable
(2,158)
(2)
(2,160)
  
(2,293)
(1)
(2,294)
  
(2,033)
1 
(2,032)
                       
Net interest income
3,076 
(2)
3,074 
  
3,078 
(1)
3,077 
  
3,578 
2 
3,580 
                       
Fees and commissions receivable
1,590 
- 
1,590 
  
1,452 
- 
1,452 
  
2,053 
(1)
2052 
Fees and commissions payable
(573)
- 
(573)
  
(304)
- 
(304)
  
(449)
- 
(449)
Income from trading activities
140 
(378)
(238)
  
547 
410 
957 
  
979 
(615)
364 
Gain on redemption of own debt
- 
(1)
(1)
  
- 
1 
1 
  
- 
- 
- 
Other operating income (excluding insurance premium income)
405 
(200)
205 
  
549 
1,835 
2,384 
  
26 
977 
1,003 
Insurance net premium income
981 
- 
981 
  
1,036 
- 
1,036 
  
1,272 
- 
1,272 
                       
Non-interest income
2,543 
(579)
1,964 
  
3,280 
2,246 
5,526 
  
3,881 
361 
4,242 
                       
Total income
5,619 
(581)
5,038 
  
6,358 
2,245 
8,603 
  
7,459 
363 
7,822 
                       
Staff costs
(1,781)
(212)
(1,993)
  
(1,963)
(113)
(2,076)
  
(2,059)
(135)
(2,194)
Premises and equipment
(575)
(99)
(674)
  
(584)
(20)
(604)
  
(636)
(73)
(709)
Other administrative expenses
(838)
(458)
(1,296)
  
(858)
(104)
(962)
  
(938)
(110)
(1,048)
Depreciation and amortisation
(450)
(63)
(513)
  
(416)
(69)
(485)
  
(448)
(98)
(546)
Write down of goodwill and other intangible assets
- 
(91)
(91)
  
- 
- 
- 
  
- 
(10)
(10)
                       
Operating expenses
(3,644)
(923)
(4,567)
  
(3,821)
(306)
(4,127)
  
(4,081)
(426)
(4,507)
                       
Profit before other operating charges
1,975 
(1,504)
471 
  
2,537 
1,939 
4,476 
  
3,378 
(63)
3,315 
Insurance net claims
(529)
- 
(529)
  
(734)
- 
(734)
  
(1,182)
- 
(1,182)
                       
Operating profit/(loss) before impairment losses
1,446 
(1,504)
(58)
  
1,803 
1,939 
3,742 
  
2,196 
(63)
2,133 
Impairment losses
(1,692)
(226)
(1,918)
  
(1,536)
(202)
(1,738)
  
(2,141)
- 
(2,141)
                       
Operating (loss)/profit
(246)
(1,730)
(1,976)
  
267 
1,737 
2,004 
  
55 
(63)
(8)
 
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
31 December 2011
  
30 September 2011
  
31 December 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Operating(loss)/profit
(246)
(1,730)
(1,976)
  
267 
1,737 
2,004 
  
55 
(63)
(8)
Fair value of own debt (1)
(370)
370 
- 
  
2,357 
(2,357)
- 
  
582 
(582)
- 
Asset Protection Scheme (2)
(209)
209 
- 
  
(60)
60 
- 
  
(725)
725 
- 
Sovereign debt impairment
(224)
224 
- 
  
(142)
142 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(53)
53 
- 
  
(69)
69 
- 
  
(96)
96 
- 
Integration and restructuring costs
(478)
478 
- 
  
(233)
233 
- 
  
(299)
299 
- 
Gain on redemption of own debt
(1)
1 
- 
  
1 
(1)
- 
  
- 
- 
- 
Strategic disposals
(82)
82 
- 
  
(49)
49 
- 
  
502 
(502)
- 
Bank levy
(300)
300 
- 
  
- 
- 
- 
  
- 
- 
- 
Bonus tax
- 
- 
- 
  
(5)
5 
- 
  
(15)
15 
- 
Write-down of goodwill and other intangible assets
(11)
11 
- 
  
- 
- 
- 
  
(10)
10 
- 
Interest rate hedge adjustments on impaired available-for-sale
   Greek government bonds
- 
- 
- 
  
(60)
60 
- 
  
- 
- 
- 
RFS Holdings minority interest
(2)
2 
- 
  
(3)
3 
- 
  
(2)
2 
- 
                       
(Loss)/profit before tax
(1,976)
- 
(1,976)
  
2,004 
- 
2,004 
  
(8)
- 
(8)
Tax credit/(charge)
186 
- 
186 
  
(791)
- 
(791)
  
3 
- 
3 
                       
(Loss)/profit from continuing operations
(1,790)
- 
(1,790)
  
1,213 
- 
1,213 
  
(5)
- 
(5)
Profit/(loss) from discontinued operations, net of tax
10 
- 
10 
  
6 
- 
6 
  
55 
- 
55 
                       
(Loss)/profit for the period
(1,780)
- 
(1,780)
  
1,219 
- 
1,219 
  
50 
- 
50 
Non-controlling interests
(18)
- 
(18)
  
7 
- 
7 
  
(38)
- 
(38)
                       
(Loss)/profit attributable to ordinary and B shareholders
(1,798)
- 
(1,798)
  
1,226 
- 
1,226 
  
12 
- 
12 
 
Notes:
 
(1)
Reallocation of £170 million loss (Q3 2011 - £470 million; Q4 2010 - £110 million) to income from trading activities and £200 million loss (Q3 2011 - £1,887 million; Q4 2010 - £472 million) to other operating income.
(2)
Reallocation to income from trading activities.
 

 
 
 
 
 
 
 
 
 
 
 
Appendix 2
 
 
Businesses outlined for disposal
 
 
 
 

 
 
Appendix 2 Businesses outlined for disposal
 
To comply with EC State Aid requirements the Group agreed to make a series of divestments by the end of 2013: the disposal of RBS Insurance, Global Merchant Services and its interest in RBS Sempra Commodities JV. The Group also agreed to dispose of its RBS England and Wales and NatWest Scotland branch-based businesses, along with certain SME and corporate activities across the UK ('UK branch-based businesses'). The disposals of Global Merchant Services and RBS Sempra Commodities JV businesses have now effectively been completed.
 
The sale of the Group's UK branch-based businesses to Santander UK plc continues to make good progress and is expected to substantially complete in the fourth quarter of 2012, subject to regulatory approvals and other conditions.
 
The disposal of RBS Insurance, the base case plan for which is by way of a public flotation, is targeted to commence in the second half of 2012, subject to market conditions. External advisors have been appointed to assist the Group with the disposal and the process of separation is proceeding on plan. In the meantime, the business continues to be managed and reported as a separate core division.
 
The table below shows total income and operating profit of RBS Insurance and the UK branch-based businesses.
 
 
 
Total income
  
Operating profit/(loss)
before impairments
  
Operating profit/(loss)
 
2011 
2010 
  
2011 
2010 
  
2011 
2010 
 
£m 
£m 
  
£m 
£m 
  
£m 
£m 
                 
RBS Insurance (1)
4,286 
5,302 
  
407 
(341)
  
407 
(341)
UK branch-based businesses (2)
959 
902 
  
518 
439 
  
319 
160 
                 
Total
5,245 
6,204 
  
925 
98 
  
726 
(181)
 
The table below shows the estimated risk-weighted assets, total assets and capital of the businesses identified for disposal.
 
 
 
RWAs
  
Total assets
  
Capital
 
2011 
2010 
  
2011 
2010 
  
2011 
2010 
 
£bn 
£bn 
  
£bn 
£bn 
  
£bn 
£bn 
                 
RBS Insurance (1)
n/m 
n/m 
  
13.9 
14.0 
  
4.4 
4.0 
UK branch-based businesses (2)
11.1 
13.2 
  
19.3 
19.9 
  
1.0 
1.2 
                 
Total
11.1 
13.2 
  
33.2 
33.9 
  
5.4 
5.2 
 
Notes:
 
(1)
Total income includes investment income of £302 million (2010 - £309 million). Total assets and estimated capital include approximately £0.9 billion of goodwill, of which £0.7 billion is attributed to RBS Insurance by RBS Group.
(2)
Estimated notional equity based on 9% of RWAs.


Appendix 2 Businesses outlined for disposal (continued)
 
Further information on the UK branch-based businesses by division is shown in the tables below:
 
 
 
Division
  
Total
 
UK 
Retail 
UK 
Corporate 
  
2011 
2010 
 
£m 
£m 
  
£m 
£m 
           
Income statement
          
Net interest income
329 
360 
  
689 
656 
Non-interest income
108 
162 
  
270 
246 
           
Total income
437 
522 
  
959 
902 
           
Direct expenses
          
  - staff
(74)
(84)
  
(158)
(176)
  - other
(106)
(60)
  
(166)
(144)
Indirect expenses
(67)
(50)
  
(117)
(143)
           
 
(247)
(194)
  
(441)
(463)
           
Operating profit before impairment losses
190 
328 
  
518 
439 
Impairment losses (1)
(92)
(107)
  
(199)
(279)
           
Operating profit
98 
221 
  
319 
160 
           
Analysis of income by product
          
Loans and advances
125 
311 
  
436 
445 
Deposits
101 
144 
  
245 
261 
Mortgages
134 
- 
  
134 
120 
Other
77 
67 
  
144 
76 
           
Total income
437 
522 
  
959 
902 
           
Net interest margin
4.92% 
2.85% 
  
3.57% 
3.24% 
Employee numbers (full time equivalents rounded to the
  nearest hundred)
2,800 
1,600 
  
4,400 
4,400 
 
Note:
 
(1)
For the year ended 31 December 2011, impairment losses benefited from £75 million of latent and other provision releases.
 
 
 
Division
  
Total
 
UK 
Retail 
UK 
Corporate 
Global 
Banking 
& Markets 
  
 
2011 
 
2010 
 
£bn 
£bn 
£bn 
  
£bn 
£bn 
             
Capital and balance sheet
            
Total third party assets  (excluding mark-to-
  market derivatives)
7.2 
11.7 
- 
  
18.9 
19.9 
Loans and advances to customers (gross)
7.3 
12.2 
- 
  
19.5 
20.7 
Customer deposits
8.8 
13.0 
- 
  
21.8 
24.0 
Derivative assets
- 
- 
0.4 
  
0.4 
n/a 
Derivative liabilities
- 
- 
0.1 
  
0.1 
n/a 
Risk elements in lending
0.5 
1.0 
- 
  
1.5 
1.7 
Loan:deposit ratio
79% 
90% 
- 
  
86% 
83% 
Risk-weighted assets
3.6 
7.5 
- 
  
11.1 
13.2 
 
 
 

 
 
Appendix 2 Businesses outlined for disposal (continued)
 
The following information has been prepared to present RBS Insurance Group on a stand alone basis. The income statement includes the results of Direct Line Versicherung AG (DLVAG) (which is owned by National Westminster Bank plc), however the balance sheet excludes the balance sheet of DLVAG. The total assets and net assets of DLVAG are included in note 1 below.
 
 
RBS Insurance
Year ended
 
31 December 2011
  
31 December 2010
  
31 December 2009
 
Core 
Non-Core 
Total 
  
Core 
Non-Core 
Total 
  
Core 
Non-Core 
Total 
Income Statement
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Earned premiums
4,221 
304 
4,525 
  
4,459 
733 
5,192 
  
4,519 
810 
5,329 
Reinsurers' share
(252)
(18)
(270)
  
(148)
(31)
(179)
  
(165)
(26)
(191)
                       
Net premium income
3,969 
286 
4,255 
  
4,311 
702 
5,013 
  
4,354 
784 
5,138 
Fees and commissions
(400)
(93)
(493)
  
(410)
89 
(321)
  
(367)
(119)
(486)
Instalment income
138 
7 
145 
  
159 
35 
194 
  
171 
35 
206 
Other income
100 
(23)
77 
  
179 
(72)
107 
  
151 
(67)
84 
                       
Total income
3,807 
177 
3,984 
  
4,239 
754 
4,993 
  
4,309 
633 
4,942 
Net claims
(2,772)
(195)
(2,967)
  
(3,932)
(737)
(4,669)
  
(3,606)
(588)
(4,194)
                       
Underwriting profit/(loss)
1,035 
(18)
1,017 
  
307 
17 
324 
  
703 
45 
748 
                       
Staff expenses
(288)
(2)
(290)
  
(287)
(2)
(289)
  
(304)
(9)
(313)
Other expenses
(333)
(16)
(349)
  
(325)
(47)
(372)
  
(368)
(60)
(428)
                       
Total direct expenses
(621)
(18)
(639)
  
(612)
(49)
(661)
  
(672)
(69)
(741)
Indirect expenses
(225)
(46)
(271)
  
(267)
(46)
(313)
  
(270)
(58)
(328)
                       
Total expenses
(846)
(64)
(910)
  
(879)
(95)
(974)
  
(942)
(127)
(1,069)
                       
Technical result
189 
(82)
107 
  
(572)
(78)
(650)
  
(239)
(82)
(321)
Investment impairments
- 
(2)
(2)
  
- 
- 
- 
  
(8)
- 
(8)
Investment income
265 
37 
02 
  
277 
32 
309 
  
305 
40 
345 
                       
Operating profit/(loss)
454 
(47)
407 
  
(295)
(46)
(341)
  
58 
(42)
16 
 
 
Appendix 2 Businesses outlined for disposal (continued)
 
 
RBS insurance (continued)
31 December 2011
  
31 December 2010
  
31 December 2009
 
Core 
Non-Core 
Total 
  
Core 
Non-Core 
Total 
  
Core 
Non-Core 
Total 
Balance Sheet (1)
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Assets
                      
Property, plant and equipment
60 
- 
60 
  
53 
- 
53 
  
67 
- 
67 
Investment properties
70 
- 
70 
  
84 
- 
84 
  
78 
- 
78 
Intangible assets
362 
- 
362 
  
280 
- 
280 
  
282 
- 
282 
Financial investments
6,912 
861 
7,773 
  
6,706 
939 
7,645 
  
6,263 
869 
7,132 
Loans and receivables including reinsurance
  receivables (2)
2,206 
159 
2,365 
  
1,792 
267 
2,059 
  
2,324 
388 
2,712 
Other assets, prepayments and accrued income
731 
20 
751 
  
808 
170 
978 
  
820 
60 
880 
Reinsurers share of insurance liabilities
298 
101 
399 
  
241 
117 
358 
  
258 
77 
335 
Cash and cash equivalents
1,304 
57 
1,361 
  
1,626 
196 
1,822 
  
1,123 
144 
1,267 
                       
Total assets
11,943 
1,198 
13,141 
  
11,590 
1,689 
13,279 
  
11,215 
1,538 
12,753 
                       
Liabilities
                      
Insurance liabilities (3)
7,101 
881 
7,982 
  
7,460 
1,362 
8,822 
  
6,956 
1,177 
8,133 
Borrowings
305 
11 
316 
  
309 
2 
311 
  
290 
- 
290 
Other liabilities, accruals and deferred income
916 
15 
931 
  
560 
67 
627 
  
592 
112 
704 
                       
Total liabilities
8,322 
907 
9,229 
  
8,329 
1,431 
9,760 
  
7,838 
1,289 
9,127 
                       
Equity (4)
3,621 
291 
3,912 
  
3,261 
258 
3,519 
  
3,377 
249 
3,626 
                       
Total liabilities and equity
11,943 
1,198 
13,141 
  
11,590 
1,689 
13,279 
  
11,215 
1,538 
12,753 
 
Notes:
 
(1)
Total assets of DLVAG at 31 December 2011 were £320 million (2010 - £322 million; 2009 - £337 million) and total equity was £103 million (2010 - £103 million; 2009 - £108 million). 
(2)
Total reinsurance receivables at 31 December 2011 were £41 million (2010 - £41 million; 2009 - £42 million).
(3)
Insurance liabilities include unearned premium reserves.
(4)
Non-Core equity includes £259 million at 31 December 2011 which was a non-controlling interest (2010 - £259 million; 2009 - £259 million). Equity excludes goodwill of £0.7 billion which is attributed to RBS Insurance division by RBS Group.
 
 
 

 
 
 
 
 
 
 
 
 
 
Appendix 3
 
Additional risk management
disclosures
 
 
Appendix 3 Additional risk management disclosures
 
Loans and advances to customers by sector and geography
The following tables analyse loans and advances to customers (excluding reverse repos and assets of disposal groups) by sector and geography (by location of office). Refer to Risk management: Credit risk for the Group summary. All assets, including loans, of businesses held for disposal are included as one line on the balance sheet, as required by IFRS.
 
 
 
 
31 December 2011
  
30 September 2011
  
31 December 2010
 
Core 
Non- 
Core 
Total 
  
Core 
Non- 
Core 
Total 
  
Core 
Non- 
Core 
Total 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
UK
                      
Central and local government
8,012 
25 
8,037 
  
7,680 
83 
7,763 
  
5,728 
173 
5,901 
Finance
30,874 
2,361 
33,235 
  
29,754 
3,795 
33,549 
  
27,995 
6,023 
34,018 
Residential mortgages
99,303 
1,423 
100,726 
  
104,040 
1,497 
105,537 
  
99,928 
1,665 
101,593 
Personal lending
20,080 
127 
20,207 
  
21,930 
295 
22,225 
  
23,035 
585 
23,620 
Property
31,141 
24,610 
55,751 
  
36,106 
25,953 
62,059 
  
34,970 
30,492 
65,462 
Construction
5,291 
1,882 
7,173 
  
6,203 
2,245 
8,448 
  
7,041 
2,310 
9,351 
Manufacturing
9,641 
835 
10,476 
  
11,123 
867 
11,990 
  
12,300 
1,510 
13,810 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
11,071 
1,441 
12,512 
  
12,325 
1,553 
13,878 
  
12,554 
1,853 
14,407 
  - transport and storage
8,589 
3,439 
12,028 
  
8,835 
3,664 
12,499 
  
8,105 
5,015 
13,120 
  - health, education and
    recreation
8,734 
757 
9,491 
  
11,894 
742 
12,636 
  
13,502 
1,039 
14,541 
  - hotels and restaurants
5,599 
569 
6,168 
  
6,264 
684 
6,948 
  
6,558 
808 
7,366 
  - utilities
2,462 
922 
3,384 
  
3,788 
715 
4,503 
  
3,101 
1,035 
4,136 
  - other
13,963 
1,644 
15,607 
  
13,952 
2,154 
16,106 
  
14,445 
1,991 
16,436 
Agriculture, forestry and
  fishing
2,660 
76 
2,736 
  
2,963 
73 
3,036 
  
2,872 
67 
2,939 
Finance leases and
  instalment credit
5,618 
5,598 
11,216 
  
5,524 
6,925 
12,449 
  
5,589 
7,785 
13,374 
Interest accruals
375 
- 
375 
  
352 
1 
353 
  
415 
98 
513 
                       
 
263,413 
45,709 
309,122 
  
282,733 
51,246 
333,979 
  
278,138 
62,449 
340,587 
                       
Europe
                      
Central and local government
116 
715 
831 
  
209 
805 
1,014 
  
365 
1,017 
1,382 
Finance
2,534 
474 
3,008 
  
2,654 
644 
3,298 
  
2,642 
1,019 
3,661 
Residential mortgages
18,393 
553 
18,946 
  
19,109 
590 
19,699 
  
19,473 
621 
20,094 
Personal lending
1,972 
492 
2,464 
  
2,126 
526 
2,652 
  
2,270 
600 
2,870 
Property
4,846 
11,538 
16,384 
  
5,359 
12,255 
17,614 
  
5,139 
12,636 
17,775 
Construction
1,019 
735 
1,754 
  
1,279 
754 
2,033 
  
1,014 
873 
1,887 
Manufacturing
4,383 
3,732 
8,115 
  
4,807 
3,872 
8,679 
  
5,853 
4,181 
10,034 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
3,992 
772 
4,764 
  
3,559 
721 
4,280 
  
4,126 
999 
5,125 
  - transport and storage
5,667 
862 
6,529 
  
5,281 
1,093 
6,374 
  
5,625 
1,369 
6,994 
  - health, education and
    recreation
1,235 
349 
1,584 
  
1,334 
339 
1,673 
  
1,442 
496 
1,938 
  - hotels and restaurants
892 
535 
1,427 
  
1,029 
560 
1,589 
  
1,055 
535 
1,590 
  - utilities
1,569 
530 
2,099 
  
1,852 
598 
2,450 
  
1,412 
623 
2,035 
  - other
2,966 
1,555 
4,521 
  
3,554 
1,634 
5,188 
  
3,877 
2,050 
5,927 
Agriculture, forestry and
  fishing
699 
53 
752 
  
760 
62 
822 
  
849 
68 
917 
Finance leases and
  instalment credit
260 
435 
695 
  
259 
515 
774 
  
370 
744 
1,114 
Interest accruals
101 
71 
172 
  
105 
98 
203 
  
143 
101 
244 
                       
 
50,644 
23,401 
74,045 
  
53,276 
25,066 
78,342 
  
55,655 
27,932 
83,587 

 
Appendix 3 Additional risk management disclosures (continued)
 
Loans and advances to customers by sector and geography (continued)
 
 
 
31 December 2011
  
30 September 2011
  
31 December 2010
 
Core 
Non- 
Core 
Total 
  
Core 
Non- 
Core 
Total 
  
Core 
Non- 
Core 
Total 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
US
                      
Central and local government
177 
14 
191 
  
164 
15 
179 
  
263 
53 
316 
Finance
8,993 
341 
9,334 
  
10,035 
368 
10,403 
  
9,522 
587 
10,109 
Residential mortgages
20,311 
2,926 
23,237 
  
20,285 
3,040 
23,325 
  
20,548 
3,653 
24,201 
Personal lending
7,505 
936 
8,441 
  
6,543 
1,986 
8,529 
  
6,816 
2,704 
9,520 
Property
2,413 
1,370 
3,783 
  
2,338 
1,549 
3,887 
  
1,611 
3,318 
4,929 
Construction
412 
45 
457 
  
443 
54 
497 
  
442 
78 
520 
Manufacturing
6,782 
42 
6,824 
  
6,545 
54 
6,599 
  
5,459 
143 
5,602 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
4,975 
98 
5,073 
  
4,851 
109 
4,960 
  
4,264 
237 
4,501 
  - transport and storage
1,832 
937 
2,769 
  
1,699 
985 
2,684 
  
1,786 
1,408 
3,194 
  - health, education and
    recreation
2,946 
88 
3,034 
  
2,572 
94 
2,666 
  
2,380 
313 
2,693 
  - hotels and restaurants
627 
57 
684 
  
532 
62 
594 
  
486 
136 
622 
  - utilities
1,033 
28 
1,061 
  
952 
27 
979 
  
1,117 
53 
1,170 
  - other
4,927 
394 
5,321 
  
4,447 
423 
4,870 
  
4,042 
577 
4,619 
Agriculture, forestry and
  fishing
27 
- 
27 
  
24 
- 
24 
  
31 
- 
31 
Finance leases and
  instalment credit
2,471 
- 
2,471 
  
2,531 
- 
2,531 
  
2,315 
- 
2,315 
Interest accruals
181 
45 
226 
  
172 
53 
225 
  
183 
73 
256 
                       
 
65,612 
7,321 
72,933 
  
64,133 
8,819 
72,952 
  
61,265 
13,333 
74,598 
                       
RoW
                      
Central and local government
54 
629 
683 
  
44 
604 
648 
  
425 
428 
853 
Finance
4,051 
53 
4,104 
  
5,651 
77 
5,728 
  
6,751 
22 
6,773 
Residential mortgages
502 
200 
702 
  
507 
192 
699 
  
410 
203 
613 
Personal lending
1,510 
1 
1,511 
  
1,553 
3 
1,556 
  
1,460 
2 
1,462 
Property
304 
546 
850 
  
269 
871 
1,140 
  
735 
1,205 
1,940 
Construction
59 
10 
69 
  
67 
9 
76 
  
183 
91 
274 
Manufacturing
2,395 
322 
2,717 
  
2,341 
440 
2,781 
  
2,185 
686 
2,871 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
1,276 
28 
1,304 
  
1,472 
44 
1,516 
  
1,030 
102 
1,132 
  - transport and storage
366 
239 
605 
  
421 
267 
688 
  
430 
403 
833 
  - health, education and
    recreation
358 
225 
583 
  
424 
340 
764 
  
132 
17 
149 
  - hotels and restaurants
25 
- 
25 
  
16 
52 
68 
  
90 
13 
103 
  - utilities
1,479 
369 
1,848 
  
1,620 
385 
2,005 
  
1,468 
399 
1,867 
  - other
2,372 
179 
2,551 
  
2,791 
268 
3,059 
  
2,100 
912 
3,012 
Agriculture, forestry and
  fishing
85 
- 
85 
  
20 
- 
20 
  
6 
- 
6 
Finance leases and
  instalment credit
91 
26 
117 
  
90 
27 
117 
  
47 
- 
47 
Interest accruals
18 
- 
18 
  
32 
- 
32 
  
90 
6 
96 
                       
 
14,945 
2,827 
17,772 
  
17,318 
3,579 
20,897 
  
17,542 
4,489 
22,031 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography
The following tables analyse loans and advances to banks and customers (excluding reverse repos and assets of disposal groups) and related REIL, provisions, impairments and write-offs by sector and geography (by location of office) for the Group, Core and Non-Core. Loans, REIL and provisions exclude amounts relating to businesses held for disposal, consistent with the balance sheet presentation required by IFRS.
 
31 December 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
%
 
FY 
Impairment 
charge 
£m 
FY
Amounts
written-off
£m
Group
                
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
4,934
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
5,193
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
                 
 
517,865
40,845
19,883
7.9
49
3.8
7,241 
4,527
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
30 September 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 
% 
 
YTD 
Impairment 
charge 
£m 
 
 
YTD 
Amounts 
written-off 
£m 
                 
Group
                
Central and local government
9,604 
76 
- 
0.8 
- 
- 
- 
- 
Finance - banks
52,727 
149 
126 
0.3 
85 
0.2 
- 
- 
              - other
52,978 
979 
670 
1.8 
68 
1.3 
4 
62 
Residential mortgages
149,260 
5,313 
1,420 
3.6 
27 
1.0 
949 
392 
Personal lending
34,962 
3,256 
2,622 
9.3 
81 
7.5 
535 
806 
Property
84,700 
22,354 
8,831 
26.4 
40 
10.4 
2,936 
731 
Construction
11,054 
1,753 
740 
15.9 
42 
6.7 
32 
168 
Manufacturing
30,049 
1,106 
489 
3.7 
44 
1.6 
105 
158 
Service industries and
  business activities
                
  - retail, wholesale and repairs
24,634 
1,094 
555 
4.4 
51 
2.3 
135 
93 
  - transport and storage
22,245 
544 
141 
2.4 
26 
0.6 
53 
35 
  - health, education and
    recreation
17,739 
1,197 
401 
6.7 
34 
2.3 
176 
72 
  - hotels and restaurants
9,199 
1,574 
701 
17.1 
45 
7.6 
266 
54 
  - utilities
9,937 
80 
22 
0.8 
28 
0.2 
1 
2 
  - other
29,223 
2,239 
1,162 
7.7 
52 
4.0 
690 
311 
Agriculture, forestry and fishing
3,902 
151 
59 
3.9 
39 
1.5 
(21)
11 
Finance leases and instalment
  credit
15,871 
861 
517 
5.4 
60 
3.3 
81 
125 
Interest accruals
813 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
2,267 
- 
- 
- 
(355)
- 
                 
 
558,897 
42,726 
20,723 
7.6 
49 
3.7 
5,587 
3,020 
                 
of which:
                
UK
                
  - residential mortgages
105,537 
2,292 
424 
2.2 
18 
0.4 
152 
14 
  - personal lending
22,225 
2,913 
2,368 
13.1 
81 
10.7 
510 
666 
  - property
62,059 
8,373 
2,799 
13.5 
33 
4.5 
1,063 
421 
  - other
177,452 
5,343 
3,387 
3.0 
63 
1.9 
436 
650 
Europe
                
  - residential mortgages
19,699 
2,248 
722 
11.4 
32 
3.7 
445 
7 
  - personal lending
2,652 
210 
178 
7.9 
85 
6.7 
(68)
20 
  - property
17,614 
13,165 
5,753 
74.7 
44 
32.7 
1,809 
189 
  - other
51,977 
5,188 
3,146 
10.0 
61 
6.1 
938 
195 
US
                
  - residential mortgages
23,325 
749 
265 
3.2 
35 
1.1 
352 
371 
  - personal lending
8,529 
131 
75 
1.5 
57 
0.9 
93 
116 
  - property
3,887 
377 
119 
9.7 
32 
3.1 
(10)
87 
  - other
38,275 
633 
946 
1.7 
149 
2.5 
(175)
111 
RoW
                
  - residential mortgages
699 
24 
9 
3.4 
38 
1.3 
- 
- 
  - personal lending
1,556 
2 
1 
0.1 
50 
0.1 
- 
4 
  - property
1,140 
439 
160 
38.5 
36 
14.0 
74 
34 
  - other
22,271 
639 
371 
2.9 
58 
1.7 
(32)
135 
                 
 
558,897 
42,726 
20,723 
7.6 
49 
3.7 
5,587 
3,020 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
31 December 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 
% 
 
FY 
Impairment 
charge 
£m 
 
FY 
Amounts 
written-off 
£m 
                 
Group
                
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 
                 
 
578,839 
38,598 
18,182 
6.7 
47 
3.1 
9,144 
6,042 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
31 December 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 
% 
 
 
FY 
Impairment 
charge 
£m 
 
 
FY 
Amounts 
written-off 
£m 
                 
Core
                
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 
2,636 
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 
2,552 
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 
                 
 
437,988 
16,862 
8,414 
3.8 
50 
1.9 
3,403 
2,137 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
30 September 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 
% 
 
 
YTD 
Impairment 
charge 
£m 
 
 
YTD 
Amounts 
written-off 
£m 
                 
Core
                
Central and local government
8,097 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
52,018 
138 
125 
0.3 
91 
0.2 
- 
- 
              - other
48,094 
715 
518 
1.5 
72 
1.1 
130 
22 
Residential mortgages
143,941 
4,835 
1,139 
3.4 
24 
0.8 
641 
169 
Personal lending
32,152 
2,957 
2,359 
9.2 
80 
7.3 
514 
718 
Property
44,072 
4,314 
1,035 
9.8 
24 
2.3 
293 
122 
Construction
7,992 
741 
259 
9.3 
35 
3.2 
136 
122 
Manufacturing
24,816 
447 
238 
1.8 
53 
1.0 
48 
89 
Service industries and
  business activities
                
  - retail, wholesale and repairs
22,207 
685 
328 
3.1 
48 
1.5 
126 
68 
  - transport and storage
16,236 
277 
49 
1.7 
18 
0.3 
29 
23 
  - health, education and
    recreation
16,224 
633 
188 
3.9 
30 
1.2 
89 
39 
  - hotels and restaurants
7,841 
982 
359 
12.5 
37 
4.6 
150 
29 
  - utilities
8,212 
18 
1 
0.2 
6 
- 
(1)
- 
  - other
24,744 
1,126 
614 
4.6 
55 
2.5 
490 
154 
Agriculture, forestry and fishing
3,767 
93 
31 
2.5 
33 
0.8 
(22)
4 
Finance leases and instalment
  credit
8,404 
184 
114 
2.2 
62 
1.4 
21 
52 
Interest accruals
661 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
1,516 
- 
- 
- 
(165)
- 
                 
 
469,478 
18,145 
8,873 
3.9 
49 
1.9 
2,479 
1,611 
                 
of which:
                
UK
                
  - residential mortgages
104,040 
2,236 
413 
2.1 
18 
0.4 
146 
13 
  - personal lending
21,930 
2,716 
2,185 
12.4 
80 
10.0 
498 
658 
  - property
36,106 
2,950 
636 
8.2 
22 
1.8 
167 
81 
  - other
153,683 
2,968 
1,811 
1.9 
61 
1.2 
379 
421 
Europe
                
  - residential mortgages
19,109 
2,074 
588 
10.9 
28 
3.1 
331 
3 
  - personal lending
2,126 
143 
124 
6.7 
87 
5.8 
(15)
14 
  - property
5,359 
1,193 
320 
22.3 
27 
6.0 
89 
1 
  - other
40,020 
2,566 
1,783 
6.4 
69 
4.5 
714 
126 
US
                
  - residential mortgages
20,285 
502 
129 
2.5 
26 
0.6 
164 
153 
  - personal lending
6,543 
96 
49 
1.5 
51 
0.7 
31 
42 
  - property
2,338 
108 
30 
4.6 
28 
1.3 
13 
30 
  - other
36,016 
329 
583 
0.9 
177 
1.6 
(20)
52 
RoW
                
  - residential mortgages
507 
23 
9 
4.5 
39 
1.8 
- 
- 
  - personal lending
1,553 
2 
1 
0.1 
50 
0.1 
- 
4 
  - property
269 
63 
49 
23.4 
78 
18.2 
24 
10 
  - other
19,594 
176 
163 
0.9 
93 
0.8 
(42)
3 
                 
 
469,478 
18,145 
8,873 
3.9 
49 
1.9 
2,479 
1,611 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
31 December 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 
% 
FY 
Impairment 
charge 
£m 
 
FY 
Amounts 
written-off 
£m 
                 
Core
                
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 
                 
 
469,633 
15,207 
7,866 
3.2 
52 
1.7 
3,737 
2,224 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
31 December 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 
% 
FY 
Impairment 
charge 
£m 
 
FY 
Amounts 
written-off 
£m 
                 
Non-Core
                
Central and local government
1,383 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
619 
1 
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 
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 
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 
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 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
647 
- 
- 
- 
(293)
- 
                 
 
79,877 
23,983 
11,469 
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 
5,405 
2,291 
22.0 
42 
9.3 
1,034 
377 
  - other
19,756 
2,298 
1,504 
11.6 
65 
7.6 
174 
349 
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 
12,035 
5,384 
104.3 
45 
46.7 
2,134 
497 
  - other
11,068 
2,641 
1,315 
23.9 
50 
11.9 
277 
107 
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)
95 
  - other
2,104 
213 
329 
10.1 
154 
15.6 
(192)
96 
RoW
                
  - residential mortgages
200 
- 
- 
- 
- 
- 
- 
- 
  - personal lending
1 
- 
- 
- 
- 
- 
- 
- 
  - property
546 
311 
118 
57.0 
38 
21.6 
50 
35 
  - other
2,227 
372 
188 
16.7 
51 
8.4 
12 
165 
                 
 
79,877 
23,983 
11,469 
30.0 
48 
14.4 
3,838 
2,390 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
30 September 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 
% 
YTD 
Impairment 
charge 
£m 
 
YTD 
Amounts 
written-off 
£m 
                 
Non-Core
                
Central and local government
1,507 
76 
- 
5.0 
- 
- 
- 
- 
Finance - banks
709 
11 
1 
1.6 
9 
0.1 
- 
- 
              - other
4,884 
264 
152 
5.4 
58 
3.1 
(126)
40 
Residential mortgages
5,319 
478 
281 
9.0 
59 
5.3 
308 
223 
Personal lending
2,810 
299 
263 
10.6 
88 
9.4 
21 
88 
Property
40,628 
18,040 
7,796 
44.4 
43 
19.2 
2,643 
609 
Construction
3,062 
1,012 
481 
33.1 
48 
15.7 
(104)
46 
Manufacturing
5,233 
659 
251 
12.6 
38 
4.8 
57 
69 
Service industries and
  business activities
                
  - retail, wholesale and repairs
2,427 
409 
227 
16.9 
56 
9.4 
9 
25 
  - transport and storage
6,009 
267 
92 
4.4 
34 
1.5 
24 
12 
  - health, education and
    recreation
1,515 
564 
213 
37.2 
38 
14.1 
87 
33 
  - hotels and restaurants
1,358 
592 
342 
43.6 
58 
25.2 
116 
25 
  - utilities
1,725 
62 
21 
3.6 
34 
1.2 
2 
2 
  - other
4,479 
1,113 
548 
24.8 
49 
12.2 
200 
157 
Agriculture, forestry and fishing
135 
58 
28 
43.0 
48 
20.7 
1 
7 
Finance leases and instalment
  credit
7,467 
677 
403 
9.1 
60 
5.4 
60 
73 
Interest accruals
152 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
751 
- 
- 
- 
(190)
- 
                 
 
89,419 
24,581 
11,850 
27.5 
48 
13.3 
3,108 
1,409 
                 
of which:
                
UK
                
  - residential mortgages
1,497 
56 
11 
3.7 
20 
0.7 
6 
1 
  - personal lending
295 
197 
183 
66.8 
93 
62.0 
12 
8 
  - property
25,953 
5,423 
2,163 
20.9 
40 
8.3 
896 
340 
  - other
23,769 
2,375 
1,576 
10.0 
66 
6.6 
57 
229 
Europe
                
  - residential mortgages
590 
174 
134 
29.5 
77 
22.7 
114 
4 
  - personal lending
526 
67 
54 
12.7 
81 
10.3 
(53)
6 
  - property
12,255 
11,972 
5,433 
97.7 
45 
44.3 
1,720 
188 
  - other
11,957 
2,622 
1,363 
21.9 
52 
11.4 
224 
69 
US
                
  - residential mortgages
3,040 
247 
136 
8.1 
55 
4.5 
188 
218 
  - personal lending
1,986 
35 
26 
1.8 
74 
1.3 
62 
74 
  - property
1,549 
269 
89 
17.4 
33 
5.7 
(23)
57 
  - other
2,259 
304 
363 
13.5 
119 
16.1 
(155)
59 
RoW
                
  - residential mortgages
192 
1 
- 
0.5 
- 
- 
- 
- 
  - personal lending
3 
- 
- 
- 
- 
- 
- 
- 
  - property
871 
376 
111 
43.2 
30 
12.7 
50 
24 
  - other
2,677 
463 
208 
17.3 
45 
7.8 
10 
132 
                 
 
89,419 
24,581 
11,850 
27.5 
48 
13.3 
3,108 
1,409 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by sector and geography (continued)
 
 
31 December 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 
% 
 
FY 
Impairment 
charge 
£m 
 
FY 
Amounts 
written-off 
£m 
                 
Non-Core
                
Central and local government
1,671 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
1,003 
1 
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 
Property
47,651 
16,297 
5,918 
34.2 
36 
12.4 
3,943 
911 
Construction
3,352 
1,854 
653 
55.3 
35 
19.5 
341 
108 
Manufacturing
6,520 
644 
237 
9.9 
37 
3.6 
(211)
1,423 
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 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
1,001 
- 
- 
- 
(116)
- 
                 
 
109,206 
23,391 
10,316 
21.4 
44 
9.4 
5,407 
3,818 
                 
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
30,492 
5,532 
1,719 
18.1 
31 
5.6 
1,152 
354 
  - other
30,188 
2,995 
1,837 
9.9 
61 
6.1 
508 
386 
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 
  - other
14,388 
2,385 
1,111 
16.6 
47 
7.7 
295 
1,338 
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 
  - other
3,670 
482 
484 
13.1 
100 
13.2 
(111)
353 
RoW
                
  - residential mortgages
203 
- 
- 
- 
- 
- 
4 
1 
  - personal lending
2 
- 
- 
- 
- 
- 
98 
129 
  - property
1,205 
241 
81 
20.0 
34 
6.7 
(33)
182 
  - other
3,276 
542 
433 
16.5 
80 
13.2 
123 
98 
                 
 
109,206 
23,391 
10,316 
21.4 
44 
9.4 
5,407 
3,818 
 
 
Appendix 3 Additional risk management disclosures (continued)
 
ABS by geography and measurement classification
 
 
           
FVTPL (1)
    
 
US 
UK 
Other 
 Europe 
RoW 
Total 
HFT (2)
DFV (3)
AFS (4)
LAR (5)
31 December 2011
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
                   
Gross exposure
                  
MBS: covered bond
133 
203 
8,256 
- 
8,592 
- 
- 
8,592 
- 
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 
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
                  
MBS: covered bond
136 
209 
7,175 
- 
7,520 
- 
- 
7,520 
- 
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 
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
                  
MBS: covered bond
136 
209 
7,175 
- 
7,520 
- 
- 
7,520 
- 
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 
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 
 
For notes relating to this table refer to page 14.
 
Appendix 3 Additional risk management disclosures (continued)
 
ABS by geography and measurement classification (continued)
 
 
           
FVTPL (1)
    
 
US 
UK 
Other 
 Europe 
RoW 
Total 
HFT (2)
DFV (3)
AFS (4)
LAR (5)
30 September 2011
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
                   
Gross exposure
                  
MBS: covered bond
136 
206 
8,468 
- 
8,810 
- 
- 
8,810 
- 
RMBS: Government sponsored
  or similar
29,011 
15 
6,141 
1 
35,168 
17,622 
- 
17,546 
- 
RMBS: prime
1,464 
3,267 
1,848 
493 
7,072 
1,152 
74 
5,743 
103 
RMBS: non-conforming
1,197 
2,198 
75 
- 
3,470 
678 
- 
1,416 
1,376 
RMBS: sub-prime
2,015 
437 
106 
4 
2,562 
2,355 
- 
24 
183 
CMBS
1,937 
1,748 
881 
30 
4,596 
2,295 
- 
949 
1,352 
CDOs
9,427 
49 
487 
- 
9,963 
5,882 
- 
3,989 
92 
CLOs
5,314 
119 
772 
- 
6,205 
1,050 
- 
4,893 
262 
ABS covered bond
- 
- 
1,466 
- 
1,466 
- 
- 
1,466 
- 
Other ABS
2,074 
1,688 
948 
1,150 
5,860 
1,907 
- 
1,612 
2,341 
                   
 
52,575 
9,727 
21,192 
1,678 
85,172 
32,941 
74 
46,448 
5,709 
                   
Carrying value
                  
MBS: covered bond
139 
214 
7,504 
- 
7,857 
- 
- 
7,857 
- 
RMBS: Government sponsored
  or similar
29,759 
15 
5,790 
1 
35,565 
17,948 
- 
17,617 
- 
RMBS: prime
1,207 
2,755 
1,493 
478 
5,933 
947 
1 
4,891 
94 
RMBS: non-conforming
773 
1,914 
75 
- 
2,762 
366 
- 
1,020 
1,376 
RMBS: sub-prime
928 
159 
83 
4 
1,174 
988 
- 
11 
175 
CMBS
1,811 
1,373 
621 
30 
3,835 
1,759 
- 
838 
1,238 
CDOs
1,913 
16 
298 
- 
2,227 
476 
- 
1,662 
89 
CLOs
4,787 
78 
500 
- 
5,365 
647 
- 
4,479 
239 
ABS covered bond
- 
- 
1,425 
- 
1,425 
- 
- 
1,425 
- 
Other ABS
1,743 
824 
838 
1,114 
4,519 
992 
- 
1,291 
2,236 
                   
 
43,060 
7,348 
18,627 
1,627 
70,662 
24,123 
1 
41,091 
5,447 
                   
Net exposure
                  
MBS: covered bond
139 
214 
7,504 
- 
7,857 
- 
- 
7,857 
- 
RMBS: Government sponsored
  or similar
29,759 
15 
5,790 
1 
35,565 
17,948 
- 
17,617 
- 
RMBS: prime
1,102 
2,740 
1,292 
454 
5,588 
610 
1 
4,883 
94 
RMBS: non-conforming
739 
1,903 
75 
- 
2,717 
322 
- 
1,019 
1,376 
RMBS: sub-prime
506 
159 
78 
4 
747 
569 
- 
3 
175 
CMBS
950 
1,373 
510 
30 
2,863 
802 
- 
837 
1,224 
CDOs
369 
16 
298 
- 
683 
225 
- 
369 
89 
CLOs
1,159 
78 
493 
- 
1,730 
580 
- 
911 
239 
ABS covered bond
- 
- 
1,425 
- 
1,425 
- 
- 
1,425 
- 
Other ABS
1,449 
717 
840 
959 
3,965 
548 
- 
1,292 
2,125 
                   
 
36,172 
7,215 
18,305 
1,448 
63,140 
21,604 
1 
36,213 
5,322 
 
For notes relating to this table refer to page 14.
 
Appendix 3 Additional risk management disclosures (continued)
 
ABS by geography and measurement classification (continued)
 
 
           
FVTPL (1)
    
 
US 
UK 
Other 
 Europe 
RoW  
Total 
HFT (2)
DFV (3)
AFS (4)
LAR (5)
31 December 2010
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
Gross exposure
                  
MBS: covered bond
138 
208 
8,525 
- 
8,871 
- 
- 
8,871 
- 
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 
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
                  
MBS: covered bond
142 
208 
7,522 
- 
7,872 
- 
- 
7,872 
- 
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 
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
                  
MBS: covered bond
142 
208 
7,522 
- 
7,872 
- 
- 
7,872 
- 
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 
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 
 
Notes:
 
(1)
Fair value through profit or loss.
(2)
Held-for-trading.
(3)
Designated as at fair value through profit or loss.
(4)
Available-for-sale.
(5)
Loans and receivables.
 
 

 
 
 
 
 
 
 
 
 
 
Appendix 4
 
Asset Protection Scheme
 
 
 
Appendix 4 Asset Protection Scheme
 
Covered assets: roll forward to 31 December 2011
The Group has paid Asset Protection Scheme (APS) premiums totalling £2,225 million (£125 million in 2011, £700 million in 2010 and £1,400 million in 2009).  From 31 December 2011, premiums of £125 million are payable quarterly until the earlier of 2099 and the date the Group leaves the Scheme.
 
The table below shows the movement in covered assets.
 
 
Covered 
 amount
 
£bn 
   
Covered assets at 31 December 2010
194.7 
Disposals
(4.1)
Maturities, amortisation and early repayments
(33.2)
Effect of foreign currency movements and other adjustments
(1.6)
   
Covered assets at 30 September 2011
155.8 
Disposals
(1.2)
Maturities, amortisation and early repayments
(9.2)
Withdrawals
(12.4)
Effect of foreign currency movements and other adjustments
(1.2)
   
Covered assets at 31 December 2011
131.8 
 
Key points
 
·
The reduction in covered assets was due to run-off of the portfolio, disposals, early repayments and maturing loans.
   
·
The Group continues to take advantage of market conditions and execute sales from a number of its portfolios.
   
·
During the last quarter of 2011, the Group withdrew £12.4 billion of covered assets with a lower than average risk profile from the APS.
 
Credit impairments and write-downs
The table below analyses the credit impairment provision (adjusted for write-downs) and adjustments to par value (including available-for-sale reserves) relating to covered assets.
 
 
 
31 December 
2011 
30 September 
2011 
31 December 
2010 
 
£m 
£m 
£m 
       
Loans and advances
20,586 
20,407 
18,033 
Debt securities
10,703 
11,079 
11,747 
Derivatives
3,056 
3,023 
2,043 
       
 
34,345 
34,509 
31,823 
       
Core
7,626 
8,061 
6,646 
Non-Core
26,719 
26,448 
25,177 
       
 
34,345 
34,509 
31,823 
 
Key points
 
·
The increase in Non-Core impairments of £1.5 billion accounted for the majority of the increase in credit impairments and write-downs in 2011.
·
The increase in Core is largely accounted for by impairments offset by asset withdrawals.
 
 
Appendix 4 Asset Protection Scheme (continued)
 
First loss utilisation
The table below shows the first loss utilisation under the original and modified rules.
 
 
 
Original Scheme rules
  
Modified
Scheme rules
  
 
Gross loss 
amount 
Cash 
recoveries 
to date 
  
Net triggered 
 loss 
Net triggered 
total 
31 December 2011
£m 
£m 
  
£m 
£m 
           
Core
8,451 
(2,240)
  
1,567 
7,778 
Non-Core
17,486 
(2,992)
  
8,158 
22,652 
           
 
25,937 
(5,232)
  
9,725 
30,430 
           
Loss credits
        
1,802 
           
         
32,232 
 
 
30 September 2011
          
           
Core
8,152 
(1,625)
  
2,004 
8,531 
Non-Core
14,974 
(2,477)
  
7,949 
20,446 
           
 
23,126 
(4,102)
  
9,953 
28,977 
           
Loss credits
        
1,792 
           
         
30,769 
           
31 December 2010
          
           
Core
6,865 
(1,042)
  
1,559 
7,382 
Non-Core
13,946 
(1,876)
  
6,923 
18,993 
           
 
20,811 
(2,918)
  
8,482 
26,375 
           
Loss credits
        
1,241 
           
         
27,616 
 
Key points
 
·
The cumulative first loss is £32.2 billion.  However, the Group does not expect to claim under the APS, which has a first loss of £60 billion.
   
·
The Group received loss credits of £0.6 billion in 2011 in relation to disposals. Cumulative loss credits at 31 December 2011 were £1.8 billion.
   
·
The Group continues to expect an average recovery rate of approximately 40% across all portfolios.
 
 
Appendix 4 Asset Protection Scheme (continued)
 
Risk-weighted assets
The table below analyses risk-weighted assets (RWAs) covered by the APS.
 
 
 
31 December 
2011 
30 September 
2011 
31 December 
 2010 
 
£bn 
£bn 
£bn 
       
Core
40.2 
43.9 
54.7 
Non-Core
28.9 
44.7 
50.9 
       
APS RWAs
69.1 
88.6 
105.6 
 
Key points
 
2011 compared with 2010
 
·
The decrease of £36.5 billion in RWAs covered by the APS, reflects pool movements, assets moving into default and changes in risk parameters.
 
Q4 2011 compared with Q3 2011
 
·
RWA decreases in the quarter were as a result of pool movements, asset withdrawals, assets moving into default and changes in risk parameters.
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Appendix 5
 
Divisional reorganisation
 
 
 
Divisional reorganisation
 
Organisational change
In January 2012, the Group announced changes to its wholesale banking operations in light of a changed market and regulatory environment.  The changes will see the reorganisation of the Group's wholesale businesses into 'Markets' and 'International Banking' and the exit and downsizing of selected activities.  The changes will ensure the wholesale businesses continue to deliver against the Group's strategy.
 
The changes will include an exit from cash equities, corporate brokering, equity capital markets and mergers and acquisitions businesses.  Significant reductions in balance sheet, funding requirements and cost base in the remaining wholesale businesses will be implemented.
 
Existing GBM and GTS divisions will be reorganised as follows:
 
·    The 'Markets' business will maintain 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 will combine with the international businesses of our GTS arm into a new 'International Banking' unit and provide 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 currently served within GTS will be managed within RBS's domestic corporate banking businesses in the UK, Ireland (Ulster Bank) and the US (US Retail and Commercial).
 
 
 
Our wholesale business will be retaining its international footprint to ensure that it can serve our customers' needs globally. We believe, that despite current challenges to the sector, wholesale banking services can play a central role in supporting cross border trade and capital flows, financing requirements and risk management and we remain committed to this business.
 
Going forward the Group will comprise the following segments:
 
·
Retail and Commercial
 
-
UK Retail
 
-
UK Corporate
 
-
Wealth
 
-
US Retail and Commercial
 
-
Ulster Bank
 
-
International Banking
·
Markets
·
RBS Insurance
·
Group Centre
·
Core
·
Non-Core
 
Revised allocation of Group Treasury costs
The Group is also refining the way that Group Treasury costs are allocated. It is in the process of revising prior period information to reflect these changes and further details will be published ahead of the Group's Q1 2012 Interim Management Statement. 
 
 

 
 

 
 
Signatures


 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.







 
 
Date: 23 February 2012
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
Jan Cargill
Deputy Secretary