rbs201111046k5.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 November 4, 2011
 
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
 
 
 
Quarter ended
 
30 September 2011
  
30 June 2011
  
30 September 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
5,371 
- 
5,371 
  
5,410 
(6)
5,404 
  
5,575 
9 
5,584 
Interest payable
(2,293)
(1)
(2,294)
  
(2,177)
- 
(2,177)
  
(2,171)
(2)
(2,173)
                       
Net interest income
3,078 
(1)
3,077 
  
3,233 
(6)
3,227 
  
3,404 
7 
3,411 
                       
Fees and commissions receivable
1,452 
- 
1,452 
  
1,700 
- 
1,700 
  
2,044 
(7)
2,037 
Fees and commissions payable
(304)
- 
(304)
  
(323)
- 
(323)
  
(611)
- 
(611)
Income from trading activities
547 
410 
957 
  
1,204 
(57)
1,147 
  
1,432 
(1,155)
277 
Gain on redemption of own debt
- 
1 
1 
  
- 
255 
255 
  
- 
- 
- 
Other operating income (excluding insurance premium income)
549 
1,835 
2,384 
  
863 
279 
1,142 
  
359 
(676)
(317)
Insurance net premium income
1,036 
- 
1,036 
  
1,090 
- 
1,090 
  
1,289 
- 
1,289 
                       
Non-interest income
3,280 
2,246 
5,526 
  
4,534 
477 
5,011 
  
4,513 
(1,838)
2,675 
                       
Total income
6,358 
2,245 
8,603 
  
7,767 
471 
8,238 
  
7,917 
(1,831)
6,086 
                       
Staff costs
(1,963)
(113)
(2,076)
  
(2,099)
(111)
(2,210)
  
(2,166)
(257)
(2,423)
Premises and equipment
(584)
(20)
(604)
  
(563)
(39)
(602)
  
(596)
(15)
(611)
Other administrative expenses
(858)
(104)
(962)
  
(834)
(918)
(1,752)
  
(869)
(45)
(914)
Depreciation and amortisation
(416)
(69)
(485)
  
(396)
(57)
(453)
  
(465)
(138)
(603)
                       
Operating expenses
(3,821)
(306)
(4,127)
  
(3,892)
(1,125)
(5,017)
  
(4,096)
(455)
(4,551)
                       
Profit before other operating charges
2,537 
1,939 
4,476 
  
3,875 
(654)
3,221 
  
3,821 
(2,286)
1,535 
Insurance net claims
(734)
- 
(734)
  
(793)
- 
(793)
  
(1,142)
- 
(1,142)
                       
Operating profit before impairment losses
1,803 
1,939 
3,742 
  
3,082 
(654)
2,428 
  
2,679 
(2,286)
393 
Impairment losses
(1,536)
(202)
(1,738)
  
(2,264)
(842)
(3,106)
  
(1,953)
- 
(1,953)
                       
Operating profit/(loss)
267 
1,737 
2,004 
  
818 
(1,496)
(678)
  
726 
(2,286)
(1,560)
 
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
30 September 2011
  
30 June 2011
  
30 September 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 profit/(loss)
267 
1,737 
2,004 
  
818 
(1,496)
(678)
  
726 
(2,286)
(1,560)
Fair value of own debt (1)
2,357 
(2,357)
- 
  
339 
(339)
- 
  
(858)
858 
- 
Asset Protection Scheme credit default swap - fair value changes (2)
(60)
60 
- 
  
(168)
168 
- 
  
(825)
825 
- 
Payment Protection Insurance costs
- 
- 
- 
  
(850)
850 
- 
  
- 
- 
- 
Sovereign debt impairment
(142)
142 
- 
  
(733)
733 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(69)
69 
- 
  
(56)
56 
- 
  
(123)
123 
- 
Integration and restructuring costs
(233)
233 
- 
  
(208)
208 
- 
  
(311)
311 
- 
Gain on redemption of own debt
1 
(1)
- 
  
255 
(255)
- 
  
- 
- 
- 
Strategic disposals
(49)
49 
- 
  
50 
(50)
- 
  
27 
(27)
- 
Bonus tax
(5)
5 
- 
  
(11)
11 
- 
  
(15)
15 
- 
RFS Holdings minority interest
(3)
3 
- 
  
(5)
5 
- 
  
(181)
181 
- 
Interest rate hedge adjustments on impaired available-for-sale
   Greek government bonds
(60)
60 
- 
  
(109)
109 
- 
  
- 
- 
- 
                       
Profit/(loss) before tax
2,004 
- 
2,004 
  
(678)
- 
(678)
  
(1,560)
- 
(1,560)
Tax (charge)/credit
(791)
- 
(791)
  
(222)
- 
(222)
  
295 
- 
295 
                       
Profit/(loss) from continuing operations
1,213 
- 
1,213 
  
(900)
- 
(900)
  
(1,265)
- 
(1,265)
Profit from discontinued operations, net of tax
6 
- 
6 
  
21 
- 
21 
  
18 
- 
18 
                       
Profit/(loss) for the period
1,219 
- 
1,219 
  
(879)
- 
(879)
  
(1,247)
- 
(1,247)
Non-controlling interests
7 
- 
7 
  
(18)
- 
(18)
  
101 
- 
101 
                       
Profit/(loss) attributable to ordinary and B shareholders
1,226 
- 
1,226 
  
(897)
- 
(897)
  
(1,146)
- 
(1,146)
 
Notes:
 
(1)
Reallocation of £470 million (Q2 2011 - £111 million; Q3 2010 - (£330) million) to income from trading activities and £1,887 million (Q2 2011 - £228 million; Q3 2010 - (£528) million) to other operating income.
(2)
Reallocation to income from trading activities.
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Nine months ended
 
30 September 2011
  
30 September 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Interest receivable
16,183 
(7)
16,176 
  
17,155 
9 
17,164 
Interest payable
(6,570)
(1)
(6,571)
  
(6,533)
(2)
(6,535)
               
Net interest income
9,613 
(8)
9,605 
  
10,622 
7 
10,629 
               
Fees and commissions receivable
4,794 
- 
4,794 
  
6,141 
- 
6,141 
Fees and commissions payable
(887)
- 
(887)
  
(1,762)
- 
(1,762)
Income from trading activities
3,241 
(302)
2,939 
  
5,159 
(1,006)
4,153 
Gain on redemption of own debt
- 
256 
256 
  
- 
553 
553 
Other operating income (excluding insurance premium income)
2,122 
1,795 
3,917 
  
1,187 
(711)
476 
Insurance net premium income
3,275 
- 
3,275 
  
3,856 
- 
3,856 
               
Non-interest income
12,545 
1,749 
14,294 
  
14,581 
(1,164)
13,417 
               
Total income
22,158 
1,741 
23,899 
  
25,203 
(1,157)
24,046 
               
Staff costs
(6,382)
(303)
(6,685)
  
(6,897)
(580)
(7,477)
Premises and equipment
(1,703)
(74)
(1,777)
  
(1,640)
(53)
(1,693)
Other administrative expenses
(2,557)
(1,078)
(3,635)
  
(2,778)
(169)
(2,947)
Depreciation and amortisation
(1,192)
(170)
(1,362)
  
(1,314)
(290)
(1,604)
               
Operating expenses
(11,834)
(1,625)
(13,459)
  
(12,629)
(1,092)
(13,721)
               
Profit before other operating charges
10,324 
116 
10,440 
  
12,574 
(2,249)
10,325 
Insurance net claims
(2,439)
- 
(2,439)
  
(3,601)
- 
(3,601)
               
Operating profit before impairment losses
7,885 
116 
8,001 
  
8,973 
(2,249)
6,724 
Impairment losses
(5,747)
(1,044)
(6,791)
  
(7,115)
- 
(7,115)
               
Operating profit/(loss)
2,138 
(928)
1,210 
  
1,858 
(2,249)
(391)
 
 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Nine months ended
 
30 September 2011
  
30 September 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Operating profit/(loss)
2,138 
(928)
1,210 
  
1,858 
(2,249)
(391)
Fair value of own debt (1)
2,216 
(2,216)
- 
  
(408)
408 
- 
Asset Protection Scheme credit default swap - fair value changes (2)
(697)
697 
- 
  
(825)
825 
- 
Payment Protection Insurance costs
(850)
850 
- 
  
- 
- 
- 
Sovereign debt impairment
(875)
875 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(169)
169 
- 
  
(273)
273 
- 
Integration and restructuring costs
(586)
586 
- 
  
(733)
733 
- 
Gain on redemption of own debt
256 
(256)
- 
  
553 
(553)
- 
Strategic disposals
(22)
22 
- 
  
(331)
331 
- 
Bonus tax
(27)
27 
- 
  
(84)
84 
- 
RFS Holdings minority interest
(5)
5 
- 
  
(148)
148 
- 
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds
(169)
169 
- 
  
- 
- 
- 
               
Profit/(loss) before tax
1,210 
- 
1,210 
  
(391)
- 
(391)
Tax charge
(1,436)
- 
(1,436)
  
(637)
- 
(637)
               
Loss from continuing operations
(226)
- 
(226)
  
(1,028)
- 
(1,028)
Profit/(loss) from discontinued operations, net of tax
37 
- 
37 
  
(688)
- 
(688)
               
Loss for the period
(189)
- 
(189)
  
(1,716)
- 
(1,716)
Non-controlling interests
(10)
- 
(10)
  
703 
- 
703 
Preference share and other dividends
- 
- 
- 
  
(124)
- 
(124)
               
Loss attributable to ordinary and B shareholders
(199)
- 
(199)
  
(1,137)
- 
(1,137)
 
 
Notes:
 
(1)
Reallocation of £395 million (Q3 2010 - (£185) million) to income from trading activities and £1,821 million (Q3 2010 - (£223) 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. Due to the complex nature of the process required to separate the divesting branches and associated assets, and the desire to minimise customer disruption, the transaction is now expected to substantially complete in the fourth quarter of 2012, subject to regulatory approvals and other conditions.
 
The disposal of RBS Insurance, by way of public flotation or a trade sale, is targeted for the second half of 2012, subject to market conditions. External advisors were appointed during Q4 2010 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)
 
YTD 
Q3 2011 
FY 2010 
  
YTD 
Q3 2011 
FY 2010 
  
YTD 
Q3 2011 
FY 2010 
 
£m 
£m 
  
£m 
£m 
  
£m 
£m 
                 
RBS Insurance (1)
3,149 
4,369 
  
329 
(295)
  
329 
(295)
UK branch-based businesses (2)
695 
902 
  
365 
439 
  
226 
160 
                 
Total
3,844 
5,271 
  
694 
144 
  
555 
(135)
 
The table below shows the estimated risk-weighted assets, total assets and capital of the businesses identified for disposal.
 
 
 
RWAs
  
Total assets
  
Capital
 
30 September 
2011 
31 December 
2010 
  
30 September 
2011 
31 December 
2010 
  
30 September 
2011 
31 December 
2010 
 
£bn 
£bn 
  
£bn 
£bn 
  
£bn 
£bn 
                 
RBS Insurance (1)
n/m 
n/m 
  
12.8 
12.4 
  
4.3 
4.0 
UK branch-based businesses (2)
10.6 
13.2 
  
19.1 
19.9 
  
0.9 
1.2 
                 
Total
10.6 
13.2 
  
31.9 
32.3 
  
5.2 
5.2 
 
Notes:
 
(1)
As reported in the results for the period ended 30 September 2011 and Annual Results for the year ended 31 December 2010 and excluding non-core business. Estimated capital includes approximately £0.9 billion of goodwill.
(2)
Estimated notional equity based on 8.5% 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 
  
YTD 
Q3 2011 
FY 2010 
 
£m 
£m 
  
£m 
£m 
           
Income statement
          
Net interest income
222 
290 
  
512 
656 
Non-interest income
69 
114 
  
183 
246 
           
Total income
291 
404 
  
695 
902 
           
Direct expenses
          
  - staff
(57)
(63)
  
(120)
(176)
  - other
(70)
(50)
  
(120)
(144)
Indirect expenses
(55)
(35)
  
(90)
(143)
           
 
(182)
(148)
  
(330)
(463)
           
Operating profit before impairment losses
109 
256 
  
365 
439 
Impairment losses
(63)
(76)
  
(139)
(279)
           
Operating profit
46 
180 
  
226 
160 
           
Analysis of income by product
          
Loans and advances
98 
250 
  
348 
445 
Deposits
79 
117 
  
196 
261 
Mortgages
102 
- 
  
102 
120 
Other
12 
37 
  
49 
76 
           
Total income
291 
404 
  
695 
902 
           
Net interest margin
4.62% 
2.67% 
  
3.26% 
3.24% 
Employee numbers (full time equivalents rounded to the
  nearest hundred)
2,900 
1,500 
  
4,400 
4,400 
 
 
 
 
Division
  
Total
 
UK 
Retail 
UK 
Corporate 
Global 
Banking 
& Markets 
  
30 September 
2011 
31 December 
2010 
 
£bn 
£bn 
£bn 
  
£bn 
£bn 
             
Capital and balance sheet
            
Total third party assets
6.6 
12.4 
- 
  
19.0 
19.9 
Loans and advances to customers (gross)
6.9 
12.9 
- 
  
19.8 
20.7 
Customer deposits
8.9 
14.7 
- 
  
23.6 
24.0 
Derivative assets
- 
- 
0.6 
  
0.6 
n/a 
Derivative liabilities
- 
- 
0.1 
  
0.1 
n/a 
Risk elements in lending
0.5 
1.1 
- 
  
1.6 
1.7 
Loan:deposit ratio
78% 
88% 
- 
  
84% 
86% 
Risk-weighted assets
3.3 
7.3 
- 
  
10.6 
13.2 



Appendix 3

Additional risk management disclosures

 
Appendix 3 Additional risk management disclosures
 
Loans and advances to customers by industry and geography
The following tables analyse loans and advances to customers (excluding reverse repos and assets of disposal groups), by industry and geography (by location of office). Refer to Risk management: Credit risk for the Group summary.
 
 
 
 
30 September 2011
  
30 June 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
7,680 
83 
7,763 
  
5,945 
91 
6,036 
  
5,728 
173 
5,901 
Finance
29,754 
3,795 
33,549 
  
28,657 
3,734 
32,391 
  
27,995 
6,023 
34,018 
Residential mortgages
104,040 
1,497 
105,537 
  
103,689 
1,570 
105,259 
  
99,928 
1,665 
101,593 
Personal lending
21,930 
295 
22,225 
  
22,205 
358 
22,563 
  
23,035 
585 
23,620 
Property
36,106 
25,953 
62,059 
  
36,584 
27,182 
63,766 
  
34,970 
30,492 
65,462 
Construction
6,203 
2,245 
8,448 
  
6,839 
2,104 
8,943 
  
7,041 
2,310 
9,351 
Manufacturing
11,123 
867 
11,990 
  
10,155 
1,447 
11,602 
  
12,300 
1,510 
13,810 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
12,325 
1,553 
13,878 
  
12,255 
1,615 
13,870 
  
12,554 
1,853 
14,407 
  - transport and storage
8,835 
3,664 
12,499 
  
7,905 
3,844 
11,749 
  
8,105 
5,015 
13,120 
  - health, education and
    recreation
11,894 
742 
12,636 
  
12,678 
835 
13,513 
  
13,502 
1,039 
14,541 
  - hotels and restaurants
6,264 
684 
6,948 
  
6,399 
775 
7,174 
  
6,558 
808 
7,366 
  - utilities
3,788 
715 
4,503 
  
3,418 
908 
4,326 
  
3,101 
1,035 
4,136 
  - other
13,952 
2,154 
16,106 
  
13,555 
2,199 
15,754 
  
14,445 
1,991 
16,436 
Agriculture, forestry and
  fishing
2,963 
73 
3,036 
  
2,955 
55 
3,010 
  
2,872 
67 
2,939 
Finance leases and
  instalment credit
5,524 
6,925 
12,449 
  
5,578 
7,161 
12,739 
  
5,589 
7,785 
13,374 
Interest accruals
352 
1 
353 
  
365 
21 
386 
  
415 
98 
513 
                       
 
282,733 
51,246 
333,979 
  
279,182 
53,899 
333,081 
  
278,138 
62,449 
340,587 
                       
Europe
                      
Central and local government
209 
805 
1,014 
  
397 
862 
1,259 
  
365 
1,017 
1,382 
Finance
2,654 
644 
3,298 
  
2,642 
719 
3,361 
  
2,642 
1,019 
3,661 
Residential mortgages
19,109 
590 
19,699 
  
20,224 
640 
20,864 
  
19,473 
621 
20,094 
Personal lending
2,126 
526 
2,652 
  
2,234 
572 
2,806 
  
2,270 
600 
2,870 
Property
5,359 
12,255 
17,614 
  
5,483 
12,790 
18,273 
  
5,139 
12,636 
17,775 
Construction
1,279 
754 
2,033 
  
1,163 
864 
2,027 
  
1,014 
873 
1,887 
Manufacturing
4,807 
3,872 
8,679 
  
5,669 
4,253 
9,922 
  
5,853 
4,181 
10,034 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
3,559 
721 
4,280 
  
4,058 
767 
4,825 
  
4,126 
999 
5,125 
  - transport and storage
5,281 
1,093 
6,374 
  
5,330 
970 
6,300 
  
5,625 
1,369 
6,994 
  - health, education and
    recreation
1,334 
339 
1,673 
  
1,373 
445 
1,818 
  
1,442 
496 
1,938 
  - hotels and restaurants
1,029 
560 
1,589 
  
1,065 
597 
1,662 
  
1,055 
535 
1,590 
  - utilities
1,852 
598 
2,450 
  
1,536 
654 
2,190 
  
1,412 
623 
2,035 
  - other
3,554 
1,634 
5,188 
  
4,807 
1,850 
6,657 
  
3,877 
2,050 
5,927 
Agriculture, forestry and
  fishing
760 
62 
822 
  
789 
68 
857 
  
849 
68 
917 
Finance leases and
  instalment credit
259 
515 
774 
  
264 
620 
884 
  
370 
744 
1,114 
Interest accruals
105 
98 
203 
  
135 
98 
233 
  
143 
101 
244 
                       
 
53,276 
25,066 
78,342 
  
57,169 
26,769 
83,938 
  
55,655 
27,932 
83,587 


Appendix 3 Additional risk management disclosures (continued)
 
Loans and advances to customers by industry and geography (continued)
 
 
 
30 September 2011
  
30 June 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
164 
15 
179 
  
164 
15 
179 
  
263 
53 
316 
Finance
10,035 
368 
10,403 
  
9,820 
444 
10,264 
  
9,522 
587 
10,109 
Residential mortgages
20,285 
3,040 
23,325 
  
20,020 
3,093 
23,113 
  
20,548 
3,653 
24,201 
Personal lending
6,543 
1,986 
8,529 
  
6,315 
2,299 
8,614 
  
6,816 
2,704 
9,520 
Property
2,338 
1,549 
3,887 
  
2,228 
1,626 
3,854 
  
1,611 
3,318 
4,929 
Construction
443 
54 
497 
  
445 
68 
513 
  
442 
78 
520 
Manufacturing
6,545 
54 
6,599 
  
6,113 
64 
6,177 
  
5,459 
143 
5,602 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
4,851 
109 
4,960 
  
4,644 
144 
4,788 
  
4,264 
237 
4,501 
  - transport and storage
1,699 
985 
2,684 
  
1,725 
1,297 
3,022 
  
1,786 
1,408 
3,194 
  - health, education and
    recreation
2,572 
94 
2,666 
  
2,396 
107 
2,503 
  
2,380 
313 
2,693 
  - hotels and restaurants
532 
62 
594 
  
455 
71 
526 
  
486 
136 
622 
  - utilities
952 
27 
979 
  
960 
27 
987 
  
1,117 
53 
1,170 
  - other
4,447 
423 
4,870 
  
4,195 
425 
4,620 
  
4,042 
577 
4,619 
Agriculture, forestry and
  fishing
24 
- 
24 
  
25 
- 
25 
  
31 
- 
31 
Finance leases and
  instalment credit
2,531 
- 
2,531 
  
2,456 
- 
2,456 
  
2,315 
- 
2,315 
Interest accruals
172 
53 
225 
  
179 
57 
236 
  
183 
73 
256 
                       
 
64,133 
8,819 
72,952 
  
62,140 
9,737 
71,877 
  
61,265 
13,333 
74,598 
                       
RoW
                      
Central and local government
44 
604 
648 
  
68 
539 
607 
  
425 
428 
853 
Finance
5,651 
77 
5,728 
  
6,426 
141 
6,567 
  
6,751 
22 
6,773 
Residential mortgages
507 
192 
699 
  
467 
206 
673 
  
410 
203 
613 
Personal lending
1,553 
3 
1,556 
  
1,470 
- 
1,470 
  
1,460 
2 
1,462 
Property
269 
871 
1,140 
  
244 
1,264 
1,508 
  
735 
1,205 
1,940 
Construction
67 
9 
76 
  
78 
34 
112 
  
183 
91 
274 
Manufacturing
2,341 
440 
2,781 
  
2,131 
529 
2,660 
  
2,185 
686 
2,871 
Service industries and
  business activities
                      
  - retail, wholesale and repairs
1,472 
44 
1,516 
  
1,166 
72 
1,238 
  
1,030 
102 
1,132 
  - transport and storage
421 
267 
688 
  
283 
338 
621 
  
430 
403 
833 
  - health, education and
    recreation
424 
340 
764 
  
260 
160 
420 
  
132 
17 
149 
  - hotels and restaurants
16 
52 
68 
  
109 
9 
118 
  
90 
13 
103 
  - utilities
1,620 
385 
2,005 
  
1,573 
421 
1,994 
  
1,468 
399 
1,867 
  - other
2,791 
268 
3,059 
  
2,571 
492 
3,063 
  
2,100 
912 
3,012 
Agriculture, forestry and
  fishing
20 
- 
20 
  
22 
- 
22 
  
6 
- 
6 
Finance leases and
  instalment credit
90 
27 
117 
  
55 
139 
194 
  
47 
- 
47 
Interest accruals
32 
- 
32 
  
36 
- 
36 
  
90 
6 
96 
                       
 
17,318 
3,579 
20,897 
  
16,959 
4,344 
21,303 
  
17,542 
4,489 
22,031 
 


Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by industry 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 industry and geography (by location of office), for the Group, Core and Non-Core.
 
 
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 industry and geography (continued)
 
 
30 June 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 
% 
 
H1 
Impairment 
charge 
£m 
 
H1 
Amounts 
written-off 
£m 
                 
Group
                
Central and local government
8,081 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
53,264 
155 
133 
0.3 
86 
0.2 
- 
- 
              - other
52,583 
1,088 
677 
2.1 
62 
1.3 
15 
52 
Residential mortgages
149,909 
5,127 
1,284 
3.4 
25 
0.9 
670 
274 
Personal lending
35,453 
3,279 
2,628 
9.2 
80 
7.4 
303 
573 
Property
87,401 
21,953 
8,911 
25.1 
41 
10.2 
2,395 
415 
Construction
11,595 
1,757 
694 
15.2 
39 
6.0 
(73)
118 
Manufacturing
30,361 
1,274 
562 
4.2 
44 
1.9 
85 
30 
Service industries and
  business activities
                
  - retail, wholesale and repairs
24,721 
1,074 
536 
4.3 
50 
2.2 
80 
66 
  - transport and storage
21,692 
527 
148 
2.4 
28 
0.7 
49 
22 
  - health, education and
    recreation
18,254 
1,202 
413 
6.6 
34 
2.3 
146 
37 
  - hotels and restaurants
9,480 
1,611 
663 
17.0 
41 
7.0 
195 
43 
  - utilities
9,497 
89 
25 
0.9 
28 
0.3 
1 
- 
  - other
30,094 
2,173 
1,138 
7.2 
52 
3.8 
523 
205 
Agriculture, forestry and fishing
3,914 
152 
62 
3.9 
41 
1.6 
(27)
3 
Finance leases and instalment
  credit
16,273 
889 
531 
5.5 
60 
3.3 
68 
92 
Interest accruals
891 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
2,354 
- 
- 
- 
(295)
- 
                 
 
563,463 
42,350 
20,759 
7.5 
49 
3.7 
4,135 
1,930 
                 
of which:
                
UK
                
  - residential mortgages
105,259 
2,222 
407 
2.1 
18 
0.4 
124 
12 
  - personal lending
22,563 
2,927 
2,395 
13.0 
82 
10.6 
336 
461 
  - property
63,766 
8,227 
2,847 
12.9 
35 
4.5 
830 
162 
  - other
178,726 
5,735 
3,424 
3.2 
60 
1.9 
239 
439 
Europe
                
  - residential mortgages
20,864 
2,140 
654 
10.3 
31 
3.1 
337 
2 
  - personal lending
2,806 
216 
178 
7.7 
82 
6.3 
(80)
27 
  - property
18,273 
13,018 
5,826 
71.2 
45 
31.9 
1,570 
170 
  - other
50,711 
5,004 
3,106 
9.9 
62 
6.1 
637 
48 
US
                
  - residential mortgages
23,113 
740 
214 
3.2 
29 
0.9 
209 
260 
  - personal lending
8,614 
134 
53 
1.6 
40 
0.6 
47 
82 
  - property
3,854 
360 
97 
9.3 
27 
2.5 
(46)
63 
  - other
36,908 
610 
1,053 
1.7 
173 
2.9 
(82)
40 
RoW
                
  - residential mortgages
673 
25 
9 
3.7 
36 
1.3 
- 
- 
  - personal lending
1,470 
2 
2 
0.1 
100 
0.1 
- 
3 
  - property
1,508 
348 
141 
23.1 
41 
9.4 
41 
20 
  - other
24,355 
642 
353 
2.6 
55 
1.4 
(27)
141 
                 
 
563,463 
42,350 
20,759 
7.5 
49 
3.7 
4,135 
1,930 
 

Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by industry 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 industry 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 industry and geography (continued)
 
 
30 June 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 
% 
 
H1 
Impairment 
charge 
£m 
 
H1 
Amounts 
written-off 
£m 
                 
Core
                
Central and local government
6,574 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
52,619 
145 
132 
0.3 
91 
0.3 
- 
- 
              - other
47,545 
777 
531 
1.6 
68 
1.1 
130 
18 
Residential mortgages
144,400 
4,629 
1,000 
3.2 
22 
0.7 
422 
118 
Personal lending
32,224 
2,968 
2,380 
9.2 
80 
7.4 
320 
502 
Property
44,539 
3,749 
943 
8.4 
25 
2.1 
124 
59 
Construction
8,525 
812 
271 
9.5 
33 
3.2 
100 
84 
Manufacturing
24,068 
546 
259 
2.3 
47 
1.1 
21 
22 
Service industries and
  business activities
                
  - retail, wholesale and repairs
22,123 
667 
315 
3.0 
47 
1.4 
92 
48 
  - transport and storage
15,243 
247 
45 
1.6 
18 
0.3 
23 
19 
  - health, education and
    recreation
16,707 
576 
177 
3.4 
31 
1.1 
53 
14 
  - hotels and restaurants
8,028 
976 
345 
12.2 
35 
4.3 
112 
19 
  - utilities
7,487 
20 
- 
0.3 
- 
- 
(1)
- 
  - other
25,128 
1,070 
638 
4.3 
60 
2.5 
407 
72 
Agriculture, forestry and fishing
3,791 
81 
24 
2.1 
30 
0.6 
(29)
3 
Finance leases and instalment
  credit
8,353 
194 
124 
2.3 
64 
1.5 
20 
40 
Interest accruals
715 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
1,568 
- 
- 
- 
(132)
- 
                 
 
468,069 
17,457 
8,752 
3.7 
50 
1.9 
1,662 
1,018 
                 
of which:
                
UK
                
  - residential mortgages
103,689 
2,168 
397 
2.1 
18 
0.4 
119 
11 
  - personal lending
22,205 
2,723 
2,210 
12.3 
81 
10.0 
326 
458 
  - property
36,584 
2,747 
586 
7.5 
21 
1.6 
77 
 42 
  - other
153,718 
3,078 
1,814 
2.0 
59 
1.2 
231 
293 
Europe
                
  - residential mortgages
20,224 
1,956 
514 
9.7 
26 
2.5 
224 
2 
  - personal lending
2,234 
146 
125 
6.5 
86 
5.6 
(23)
12 
  - property
5,483 
826 
281 
15.1 
34 
5.1 
37 
- 
  - other
37,702 
2,576 
1,829 
6.8 
71 
4.9 
568 
15 
US
                
  - residential mortgages
20,020 
481 
80 
2.4 
17 
0.4 
79 
105 
  - personal lending
6,315 
97 
43 
1.5 
44 
0.7 
17 
29 
  - property
2,228 
127 
38 
5.7 
30 
1.7 
10 
17 
  - other
34,157 
304 
638 
0.9 
210 
1.9 
29 
28 
RoW
                
  - residential mortgages
467 
24 
9 
5.1 
38 
1.9 
- 
- 
  - personal lending
1,470 
2 
2 
0.1 
100 
0.1 
- 
3 
  - property
244 
49 
38 
20.1 
78 
15.6 
- 
- 
  - other
21,329 
153 
148 
0.7 
97 
0.7 
(32)
3 
                 
 
468,069 
17,457 
8,752 
3.7 
50 
1.9 
1,662 
1,018 
 

Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by industry 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 industry 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 industry and geography (continued)
 
 
30 June 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 
% 
 
H1 
Impairment 
charge 
£m 
H1 
Amounts 
written-off 
£m 
                 
Non-Core
                
Central and local government
1,507 
- 
- 
- 
- 
- 
- 
- 
Finance - banks
645 
10 
1 
1.6 
10 
0.2 
- 
- 
              - other
5,038 
311 
146 
6.2 
47 
2.9 
(115)
34 
Residential mortgages
5,509 
498 
284 
9.0 
57 
5.2 
248 
156 
Personal lending
3,229 
311 
248 
9.6 
80 
7.7 
(17)
71 
Property
42,862 
18,204 
7,968 
42.5 
44 
18.6 
2,271 
356 
Construction
3,070 
945 
423 
30.8 
45 
13.8 
(173)
34 
Manufacturing
6,293 
728 
303 
11.6 
42 
4.8 
64 
8 
Service industries and
  business activities
                
  - retail, wholesale and repairs
2,598 
407 
221 
15.7 
54 
8.5 
(12)
18 
  - transport and storage
6,449 
280 
103 
4.3 
37 
1.6 
26 
3 
  - health, education and
    recreation
1,547 
626 
236 
40.5 
38 
15.3 
93 
23 
  - hotels and restaurants
1,452 
635 
318 
43.7 
50 
21.9 
83 
24 
  - utilities
2,010 
69 
25 
3.4 
36 
1.2 
2 
- 
  - other
4,966 
1,103 
500 
22.2 
45 
10.1 
116 
133 
Agriculture, forestry and fishing
123 
71 
38 
57.7 
54 
30.9 
2 
- 
Finance leases and instalment
  credit
7,920 
695 
407 
8.8 
59 
5.1 
48 
52 
Interest accruals
176 
- 
- 
- 
- 
- 
- 
- 
Latent
- 
- 
786 
- 
- 
- 
(163)
- 
                 
 
95,394 
24,893 
12,007 
26.1 
48 
12.6 
2,473 
912 
                 
of which:
                
UK
                
  - residential mortgages
1,570 
54 
10 
3.4 
19 
0.6 
5 
1 
  - personal lending
358 
204 
185 
57.0 
91 
51.7 
10 
3 
  - property
27,182 
5,480 
2,261 
20.2 
41 
8.3 
753 
120 
  - other
25,008 
2,657 
1,610 
10.6 
61 
6.4 
8 
146 
Europe
                
  - residential mortgages
640 
184 
140 
28.8 
76 
21.9 
113 
- 
  - personal lending
572 
70 
53 
12.2 
76 
9.3 
(57)
15 
  - property
12,790 
12,192 
5,545 
95.3 
45 
43.4 
1,533 
170 
  - other
13,009 
2,428 
1,277 
18.7 
53 
9.8 
69 
33 
US
                
  - residential mortgages
3,093 
259 
134 
8.4 
52 
4.3 
130 
155 
  - personal lending
2,299 
37 
10 
1.6 
27 
0.4 
30 
53 
  - property
1,626 
233 
59 
14.3 
25 
3.6 
(56)
46 
  - other
2,751 
306 
415 
11.1 
136 
15.1 
(111)
12 
RoW
                
  - residential mortgages
206 
1 
- 
0.5 
- 
- 
- 
- 
  - personal lending
- 
- 
- 
- 
- 
- 
- 
- 
  - property
1,264 
299 
103 
23.7 
34 
8.1 
41 
20 
  - other
3,026 
489 
205 
16.2 
42 
6.8 
5 
138 
                 
 
95,394 
24,893 
12,007 
26.1 
48 
12.6 
2,473 
912 
 


Appendix 3 Additional risk management disclosures (continued)
 
Loans, REIL and impairments by industry 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)
 
Loans, REIL and impairments by division
The following tables analyse loans and advances to banks and customers (excluding reverse repos and assets of disposal groups) and related REIL, provisions, impairments, write-offs and coverage ratios by division.
 
 
 
Gross 
loans 
REIL 
Provisions 
REIL 
 as a % 
of gross 
 loans 
Provisions 
as a % 
of REIL 
YTD 
Impairment 
charge 
YTD 
Amounts 
written-off 
30 September 2011
£m 
£m 
£m 
% 
% 
£m 
£m 
               
UK Retail
110,520 
4,651 
2,661 
4.2 
57 
597 
658 
UK Corporate
110,047 
4,904 
1,961 
4.5 
40 
549 
498 
Wealth
19,363 
198 
71 
1.0 
36 
13 
8 
Global Transaction Services
23,252 
240 
201 
1.0 
84 
119 
66 
Ulster Bank
38,337 
5,556 
2,567 
14.5 
46 
1,057 
63 
US Retail & Commercial
49,663 
955 
469 
1.9 
49 
193 
267 
               
Retail & Commercial
351,182 
16,504 
7,930 
4.7 
48 
2,528 
1,560 
Global Banking & Markets
109,821 
1,641 
943 
1.5 
57 
(49)
51 
RBS Insurance and other
8,475 
- 
- 
- 
- 
- 
- 
               
Core
469,478 
18,145 
8,873 
3.9 
49 
2,479 
1,611 
Non-Core
89,419 
24,581 
11,850 
27.5 
48 
3,108 
1,409 
               
 
558,897 
42,726 
20,723 
7.6 
49 
5,587 
3,020 
               
30 June 2011
              
               
UK Retail
110,770 
4,622 
2,672 
4.2 
58 
402 
457 
UK Corporate
110,893 
4,761 
1,902 
4.3 
40 
322 
332 
Wealth
19,626 
185 
69 
0.9 
37 
8 
6 
Global Transaction Services
23,074 
309 
216 
1.3 
70 
74 
11 
Ulster Bank
39,450 
5,116 
2,401 
13.0 
47 
730 
21 
US Retail & Commercial
48,020 
929 
484 
1.9 
52 
139 
170 
               
Retail & Commercial
351,833 
15,922 
7,744 
4.5 
49 
1,675 
997 
Global Banking & Markets
112,310 
1,535 
1,008 
1.4 
66 
(13)
21 
RBS Insurance and other
3,926 
- 
- 
- 
- 
- 
- 
               
Core
468,069 
17,457 
8,752 
3.7 
50 
1,662 
1,018 
Non-Core
95,394 
24,893 
12,007 
26.1 
48 
2,473 
912 
               
 
563,463 
42,350 
20,759 
7.5 
49 
4,135 
1,930 
               
31 December 2010
              
               
UK Retail
108,813 
4,620 
2,741 
4.2 
59 
1,160 
1,135 
UK Corporate
111,744 
3,967 
1,732 
3.6 
44 
761 
349 
Wealth
18,350 
223 
66 
1.2 
30 
18 
9 
Global Transaction Services
17,484 
146 
147 
0.8 
101 
8 
49 
Ulster Bank
39,786 
3,619 
1,633 
9.1 
45 
1,161 
48 
US Retail & Commercial
48,661 
913 
505 
1.9 
55 
483 
547 
               
Retail & Commercial
344,838 
13,488 
6,824 
3.9 
51 
3,591 
2,137 
Global Banking & Markets
122,054 
1,719 
1,042 
1.4 
61 
146 
87 
RBS Insurance and other
2,741 
- 
- 
- 
- 
- 
- 
               
Core
469,633 
15,207 
7,866 
3.2 
52 
3,737 
2,224 
Non-Core
109,206 
23,391 
10,316 
21.4 
44 
5,407 
3,818 
               
 
578,839 
38,598 
18,182 
6.7 
47 
9,144 
6,042 


Appendix 3 Additional risk management disclosures (continued)
 
ABS by geography and measurement classification
 
 
 
US 
UK 
Other 
 Europe 
 
RoW 
Total 
HFT 
DFV 
 
AFS 
LAR 
30 September 2011
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
                   
Gross exposure
                  
RMBS: G10 government
29,011 
15 
6,141 
1 
35,168 
17,622 
- 
17,546 
- 
RMBS: covered bond
136 
206 
8,468 
- 
8,810 
- 
- 
8,810 
- 
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 
Other ABS
2,074 
1,688 
2,414 
1,150 
7,326 
1,907 
- 
3,078 
2,341 
                   
 
52,575 
9,727 
21,192 
1,678 
85,172 
32,941 
74 
46,448 
5,709 
                   
Carrying value
                  
RMBS: G10 government
29,759 
15 
5,790 
1 
35,565 
17,948 
- 
17,617 
- 
RMBS: covered bond
139 
214 
7,504 
- 
7,857 
- 
- 
7,857 
- 
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 
Other ABS
1,743 
824 
2,263 
1,114 
5,944 
992 
- 
2,716 
2,236 
                   
 
43,060 
7,348 
18,627 
1,627 
70,662 
24,123 
1 
41,091 
5,447 
                   
Net exposure
                  
RMBS: G10 government
29,759 
15 
5,790 
1 
35,565 
17,948 
- 
17,617 
- 
RMBS: covered bond
139 
214 
7,504 
- 
7,857 
- 
- 
7,857 
- 
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 
Other ABS
1,449 
717 
2,265 
959 
5,390 
548 
- 
2,717 
2,125 
                   
 
36,172 
7,215 
18,305 
1,448 
63,140 
21,604 
1 
36,213 
5,322 

 
Appendix 3 Additional risk management disclosures (continued)
 
ABS by geography and measurement classification (continued)
 
 
 
US 
UK 
Other 
 Europe 
 
RoW 
Total 
HFT 
DFV 
 
AFS 
LAR 
31 December 2010
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
                   
Gross exposure
                  
RMBS: G10 government
24,207 
16 
6,422 
- 
30,645 
13,840 
- 
16,805 
- 
RMBS: covered bond
138 
208 
8,525 
- 
8,871 
- 
- 
8,871 
- 
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 
Other ABS
3,104 
1,144 
2,871 
1,705 
8,824 
1,533 
- 
4,523 
2,768 
                   
 
52,554 
8,938 
21,411 
2,172 
85,075 
30,164 
121 
48,425 
6,365 
                   
Carrying value
                  
RMBS: G10 government
24,390 
16 
5,958 
- 
30,364 
13,765 
- 
16,599 
- 
RMBS: covered bond
142 
208 
7,522 
- 
7,872 
- 
- 
7,872 
- 
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 
Other ABS
2,780 
945 
2,615 
1,667 
8,007 
1,259 
- 
4,089 
2,659 
                   
 
42,063 
7,892 
18,765 
2,105 
70,825 
21,988 
119 
42,515 
6,203 
                   
Net exposure
                  
RMBS: G10 government
24,390 
16 
5,958 
- 
30,364 
13,765 
- 
16,599 
- 
RMBS: covered bond
142 
208 
7,522 
- 
7,872 
- 
- 
7,872 
- 
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 
Other ABS
2,293 
748 
2,609 
1,659 
7,309 
690 
- 
4,081 
2,538 
                   
 
34,013 
7,609 
18,221 
2,066 
61,909 
18,863 
11 
37,015 
6,020 
 
 
 
Appendix 4

Asset Protection Scheme
 
Appendix 4 Asset Protection Scheme
 
Covered assets roll forward
The table below shows the movement in covered assets.
 
 
Covered 
 amount
 
£bn 
   
At 31 December 2010
194.7 
Disposals
(2.9)
Maturities, amortisation and early repayments
(24.3)
Effect of foreign currency movements and other adjustments
0.2 
   
At 30 June 2011
167.7 
Disposals
(1.2)
Maturities, amortisation and early repayments
(8.9)
Effect of foreign currency movements and other adjustments
(1.8)
   
At 30 September 2011
155.8 
 
Key points
 
·
The covered amount has reduced by £126 billion since the Scheme inception (December 2008) from £282 billion to £156 billion and by £39 billion in the nine months ended 30 September 2011.
   
·
The Group continues to take advantage of market conditions and execute sales from a number of its portfolios.
 
Credit impairments and write-downs
The table below analyses the credit impairment provision (adjusted for write-offs) and adjustments to par value (including available-for-sale reserves) relating to the covered assets.
 
 
 
30 September 
2011 
30 June 
2011 
31 December 
2010 
 
£m 
£m 
£m 
       
Loans and advances
20,407 
19,777 
18,033 
Debt securities
11,079 
10,785 
11,747 
Derivatives
3,023 
2,125 
2,043 
       
 
34,509 
32,687 
31,823 
       
By division:
      
UK Retail
3,202 
3,124 
2,964 
UK Corporate
2,102 
1,838 
1,382 
Ulster Bank
1,231 
1,190 
804 
       
Retail & Commercial
6,535 
6,152 
5,150 
Global Banking & Markets
1,526 
1,420 
1,496 
       
Core
8,061 
7,572 
6,646 
Non-Core
26,448 
25,115 
25,177 
       
 
34,509 
32,687 
31,823 
 
Key point
 
·
Cumulative credit impairments and write-downs increased by £1.8 billion in the quarter to £34.5 billion.


Appendix 4 Asset Protection Scheme (continued)
 
First loss utilisation
Definitions of triggered amounts and other related aspects are set out in the Group's 2010 Annual Report and Accounts and the Group's Interim Results 2011. The table below shows the first loss utilisation under the original and modified rules (as described in the Group's Interim Results 2011).
 
 
 
Original Scheme rules
  
Modified
Scheme rules
  
 
Gross loss 
amount 
Cash 
recoveries 
to date 
  
Net triggered 
 loss 
Total 
net triggered 
amount 
30 September 2011
£m 
£m 
  
£m 
£m 
           
UK Retail
3,980 
(693)
  
- 
3,287 
UK Corporate
1,963 
(672)
  
1,022 
2,313 
Ulster Bank
2,209 
(260)
  
- 
1,949 
           
Retail & Commercial
8,152 
(1,625)
  
1,022 
7,549 
Global Banking & Markets
- 
- 
  
982 
982 
           
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 
           
30 June 2011
          
           
UK Retail
3,895 
(608)
  
- 
3,287 
UK Corporate
1,914 
(622)
  
806 
2,098 
Ulster Bank
1,918 
(202)
  
- 
1,716 
           
Retail & Commercial
7,727 
(1,432)
  
806 
7,101 
Global Banking & Markets
- 
- 
  
962 
962 
           
Core
7,727 
(1,432)
  
1,768 
8,063 
Non-Core
14,676 
(2,190)
  
7,753 
20,239 
           
 
22,403 
(3,622)
  
9,521 
28,302 
           
Loss credits
        
1,632 
           
         
29,934 
           
31 December 2010
          
           
UK Retail
3,675 
(455)
  
- 
3,220 
UK Corporate
1,690 
(427)
  
597 
1,860 
Ulster Bank
1,500 
(160)
  
- 
1,340 
           
Retail & Commercial
6,865 
(1,042)
  
597 
6,420 
Global Banking & Markets
- 
- 
  
962 
962 
           
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 

 
Appendix 4 Asset Protection Scheme (continued)
 
First loss utilisation (continued)
 
Key points
 
·
The cumulative first loss is £30.8 billion. However, the Group does not expect to claim under the Scheme, which has a first loss of £60 billion.
   
·
In Q3 2011 the Group received loss credits of £0.2 billion in relation to disposals.
   
·
The Group now expects an average recovery rate of approximately 40% across all portfolios, reflecting a slight deterioration in credit metrics, including impairments.   
 
Risk-weighted assets
The table below analyses by division, risk-weighted assets (RWAs) covered by APS.
 
 
 
30 September 
2011 
30 June 
2011 
31 December 
2010 
 
£bn 
£bn 
£bn 
       
UK Retail
9.9 
10.7 
12.4 
UK Corporate
16.9 
19.3 
22.9 
Ulster Bank
6.7 
7.6 
7.9 
       
Retail & Commercial
33.5 
37.6 
43.2 
Global Banking & Markets
10.4 
10.3 
11.5 
       
Core
43.9 
47.9 
54.7 
Non-Core
44.7 
47.3 
50.9 
       
APS RWAs
88.6 
95.2 
105.6 
 
Key point
 
·
The decrease of £6.6 billion in RWAs covered by the Scheme reflects pool movements, assets moving into default and changes in risk parameters.
 
Glossary of terms
 
Alt-A (Alternative A-paper) are mortgage loans with a higher credit quality than sub-prime loans but with features that disqualify the borrower from a traditional prime loan. Alt-A lending characteristics include limited documentation; high loan-to-value ratio; secured on non-owner occupied properties; and debt-to-income ratio above normal limits.
 
Arrears are the aggregate of contractual payments due on a debt that have not been met by the borrower. A loan or other financial asset is said to be 'in arrears' when payments have not been made.
 
Asset-backed commercial paper (ABCP) - a form of asset-backed security generally issued by a commercial paper conduit.
 
Asset-backed securities (ABS) are securities that represent interests in specific portfolios of assets. They are issued by a special purpose entity following a securitisation. The underlying portfolios commonly comprise residential or commercial mortgages but can include any class of asset that yields predictable cash flows. Payments on the securities depend primarily on the cash flows generated by the assets in the underlying pool and other rights designed to assure timely payment, such as guarantees or other credit enhancements. Collateralised bond obligations, collateralised debt obligations, collateralised loan obligations, commercial mortgage backed securities and residential mortgage backed securities are all types of ABS.
 
Asset Protection Scheme credit default swap - in 2009, the Group became party to the Asset Protection Scheme under which it purchased credit protection over a portfolio of specified assets and exposures (covered assets) from Her Majesty's Treasury acting on behalf of the UK Government.  The contract is accounted for as a derivative financial instrument.  It is recognised at fair value and included in Derivatives on the balance sheet.  Changes in its fair value are recognised in profit or loss within Income from trading activities.
 
Assets under management are assets managed by the Group on behalf of clients.
 
Certificate of deposit (CD)- CDs are bearer negotiable instruments acknowledging the receipt of a fixed term deposit at a specified interest rate. 
 
Collateralised bond obligations (CBOs) are asset-backed securities for which the underlying asset portfolios are bonds, some of which may be sub-investment grade.
 
Collateralised debt obligations (CDOs) are asset-backed securities for which the underlying asset portfolios are debt obligations: either bonds (collateralised bond obligations) or loans (collateralised loan obligations) or both. The credit exposure underlying synthetic CDOs derives from credit default swaps. The CDOs issued by an individual vehicle are usually divided in different tranches: senior tranches (rated AAA), mezzanine tranches (AA to BB), and equity tranches (unrated). Losses are borne first by the equity securities, next by the junior securities, and finally by the senior securities; junior tranches offer higher coupons (interest payments) to compensate for their increased risk.
 
Collateralised loan obligations (CLOs) are asset-backed securities for which the underlying asset portfolios are loans, often leveraged loans.

Glossary of terms (continued)
 
Collectively assessed loan impairment provisions - impairment loss provisions in respect of impaired loans, such as credit cards or personal loans, that are below individual assessment thresholds. Such provisions are established on a portfolio basis, taking account of the level of arrears, security, past loss experience, credit scores and defaults based on portfolio trends.
 
Commercial mortgage backed securities (CMBS) are asset-backed securities for which the underlying asset portfolios are loans secured on commercial real estate.
 
Commercial paper (CP) comprises unsecured obligations issued by a corporate or a bank directly or secured obligations (asset-backed CP), often issued through a commercial paper conduit, to fund working capital. Maturities typically range from 2 to 270 days. However, the depth and reliability of some CP markets means that issuers can repeatedly roll over CP issuance and effectively achieve longer term funding. Commercial paper is issued in a wide range of denominations and can be either discounted or interest-bearing.
 
Commercial real estate - freehold and leasehold properties used for business activities. Commercial real estate includes office buildings, industrial property, medical centres, hotels, retail stores, shopping centres, agricultural land and buildings, warehouses, garages etc.
 
Contractual maturity is the date in the terms of a financial instrument on which the last payment or receipt under the contract is due for settlement.
 
Core Tier 1 capital - called-up share capital and eligible reserves plus equity non-controlling interests, less intangible assets and other regulatory deductions.
 
Core Tier 1 capital ratio - core Tier 1 capital as a percentage of risk-weighted assets.
 
Cost:income ratio - operating expenses as a percentage of total income.
 
Covered mortgage bonds are debt securities backed by a portfolio of mortgages that is segregated from the issuer's other assets solely for the benefit of the holders of the covered bonds
 
Credit default swap (CDS) is a contract where the protection seller receives premium or interest-related payments in return for contracting to make payments to the protection buyer upon a defined credit event in relation to a reference financial asset or portfolio of financial assets. Credit events usually include bankruptcy, payment default and rating downgrades.
 
Credit derivative product company (CDPC) is a special purpose entity that sells credit protection under credit default swaps or certain approved forms of insurance policies. Sometimes they can also buy credit protection. CDPCs are similar to monoline insurers. However, unlike monoline insurers, they are not regulated as insurers.
 
Glossary of terms (continued)
 
Credit derivatives are contractual agreements that provide protection against a credit event on one or more reference entities or financial assets. The nature of a credit event is established by the protection buyer and protection seller at the inception of a transaction, and such events include bankruptcy, insolvency or failure to meet payment obligations when due. The buyer of the credit derivative pays a periodic fee in return for a payment by the protection seller upon the occurrence, if any, of a credit event. Credit derivatives include credit default swaps, total return swaps and credit swap options.
 
Credit risk assets - loans and advances (including overdraft facilities), instalment credit, finance lease receivables and other traded instruments across all customer types.
 
Credit risk spread - is the difference between the coupon on a debt instrument and the benchmark or the risk-free interest rate for the instrument's maturity structure. It is the premium over the risk-free rate required by the market for the credit quality of an individual debt instrument.
 
Credit valuation adjustments - are adjustments to the fair values of derivative assets to reflect the creditworthiness of the counterparty.
 
Currency swap - an arrangement in which two parties exchange specific principal amounts of different currencies at inception and subsequently interest payments on the principal amounts. Often, one party will pay a fixed interest rate, while the other will pay a floating rate (though there are also fixed-fixed and floating-floating arrangements). At the maturity of the swap, the principal amounts are usually re-exchanged.
 
Customer accounts - comprise money deposited with the Group by counterparties other than banks and classified as liabilities. They include demand, savings and time deposits; securities sold under repurchase agreements; and other short-term deposits. Deposits received from banks are classified as deposits by banks.
 
Debt restructuring - see Renegotiated loans.
 
Debt securities are transferable instruments creating or acknowledging indebtedness. They include debentures, bonds, certificates of deposit, notes and commercial paper. The holder of a debt security is typically entitled to the payment of principal and interest, together with other contractual rights under the terms of the issue, such as the right to receive certain information. Debt securities are generally issued for a fixed term and redeemable by the issuer at the end of that term. Debt securities can be secured or unsecured.
 
Debt securities in issuecomprise unsubordinated debt securities issued by the Group. They include commercial paper, certificates of deposit, bonds and medium-term notes.
 
Deferred tax asset - income taxes recoverable in future periods as a result of deductible temporary differences - temporary differences between the accounting and tax base of an asset or liability that will result in tax deductible amounts in future periods - and the carry-forward of tax losses and unused tax credits.

Glossary of terms (continued)
 
Deferred tax liability - income taxes payable in future periods as a result of taxable temporary differences (temporary differences between the accounting and tax base of an asset or liability that will result in taxable amounts in future periods).
 
Defined benefit obligation - the present value of expected future payments required to settle the obligations of a defined benefit plan resulting from employee service.
 
Defined benefit plan - pension or other post-retirement benefit plan other than a defined contribution plan.
 
Delinquency - a debt or other financial obligation is considered delinquent when one or more contractual payments are overdue. Delinquency is usually defined in terms of days past due. Delinquent and in arrears are synonymous.
 
Deposits by banks - comprise money deposited with the Group by banks and recorded as liabilities. They include money-market deposits, securities sold under repurchase agreements, federal funds purchased and other short term deposits. Deposits received from customers are recorded as customer accounts.
 
Derivative - a contract or agreement whose value changes with movements in an underlying index such as interest rates, foreign exchange rates, share prices or indices and which requires no initial investment or an initial investment that is smaller than would be required for other types of contracts with a similar response to market factors. The principal types of derivatives are: swaps, forwards, futures and options.
 
Discontinued operation - is a component of the Group that either has been disposed of or is classified as held for sale. A discontinued operation is either: a separate major line of business or geographical area of operations or part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or a subsidiary acquired exclusively with a view to resale.
 
Exposure at default (EAD) - an estimate of the expected level of utilisation of a credit facility at the time of a borrower's default. The EAD may be higher than the current utilisation (e.g. in the case where further drawings may be made under a revolving credit facility prior to default) but will not typically exceed the total facility limit.
 
Fannie Mae (Federal National Mortgage Association) - is a US Government Sponsored Enterprise. It buys mortgages, principally issued by banks, on the secondary market, pools them, and sells them as residential mortgage-backed securities to investors on the open market. Its obligations are not explicitly guaranteed by the full faith and credit of the US Government.
 
Federal Agencies - US federal agencies are independent bodies established by the US Government for specific purposes such as the management of natural resources, financial oversight or national security. A number of agencies, including Ginnie Mae, issue or guarantee publicly traded debt securities.
 
Federal Home Loan Mortgage Corporation - see Freddie Mac.
 
Federal National Mortgage Association - see Fannie Mae.

Glossary of terms (continued)
 
First/second lien - a lien is a charge such as a mortgage held by one party, over property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. The holder of a first lien takes precedence over all other encumbrances on that property i.e. second and subsequent liens.
 
Forbearance - is the term generally applied to an agreement, principally in relation to secured loans with retail customers experiencing temporary financial difficulty, to a payment moratorium, to reduced repayments or to roll up arrears. Forbearance loans are a subset of Renegotiated loans.
 
Freddie Mac (Federal Home Loan Mortgage Corporation) - is a US Government Sponsored Enterprise. It buys mortgages, principally issued by thrifts, on the secondary market, pools them, and sells them as residential mortgage-backed securities to investors on the open market. Its obligations are not explicitly guaranteed by the full faith and credit of the US Government.
 
G10 - the Group of Ten comprises the eleven industrial countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States) that have agreed to participate in the IMF's General Arrangements to Borrow.
 
Government Sponsored Enterprises (GSEs) - are a group of financial services corporations created by the US Congress. Their function is to improve the efficiency of capital markets and to overcome statutory and other market imperfections which otherwise prevent funds from moving easily from suppliers of funds to areas of high loan demand. They include Fannie Mae and Freddie Mac.
 
Gross yield - is the interest rate earned on average interest-earning assets i.e. interest income divided by average interest-earning assets.
 
Guaranteed mortgages - are mortgages that are guaranteed by a government or government agency. In the US, government loan guarantee programmes are offered by the Federal Housing Administration, the Department of Veterans Affairs and the Department of Agriculture's Rural Housing Service. In the Netherlands, the Gemeentegarantie programme is run partly by the central government and partly by the municipalities.
 
Home equity loan - is a type of loan in which the borrower uses the equity in their home as collateral. A home equity loan creates a charge against the borrower's house.
 
Impaired loans - comprise all loans for which an impairment provision has been established; for collectively assessed loans, impairment loss provisions are not allocated to individual loans and the entire portfolio is included in impaired loans.
 
Impairment allowance - see Loan impairment provisions.
 
Impairment losses - for impaired financial assets measured at amortised cost, impairment losses - the difference between carrying value and the present value of estimated future cash flows discounted at the asset's original effective interest rate - are recognised in profit or loss and the carrying amount of the financial asset reduced by establishing a provision (allowance). For impaired available-for-sale financial assets, the cumulative loss that had been recognised directly in equity is removed from equity and recognised in profit or loss as an impairment loss.
 
Glossary of terms (continued)
 
Individually assessed loan impairment provisions - impairment loss provisions for individually significant impaired loans assessed on a case-by-case basis, taking into account the financial condition of the counterparty and any guarantor and the realisable value of any collateral held.
 
International Accounting Standards Board (IASB) - is the independent standard-setting body of the IFRS Foundation. Its members are responsible for the development and publication of International Financial Reporting Standards (IFRSs) and for approving Interpretations of IFRSs as developed by the IFRS Interpretations Committee (IFRIC).
 
Interest spread - is the difference between the gross yield and the interest rate paid on average interest-bearing liabilities.
 
Investment grade - generally represents a risk profile similar to a rating of BBB-/Baa3 or better, as defined by independent rating agencies.
 
Latent loss provisions - loan impairment provisions held against impairments in the performing loan portfolio that have been incurred as a result of events occurring before the balance sheet date but which have not been identified as impaired at the balance sheet date. The Group has developed methodologies to estimate latent loss provisions that reflect historical loss experience (adjusted for current economic and credit conditions) and the period between an impairment occurring and a loan being identified and reported as impaired.
 
Loan impairment provisions - are established to recognise incurred impairment losses on a portfolio of loans classified as loans and receivables and carried at amortised cost. It has three components: individually assessed loan impairment provisions, collectively assessed loan impairment provisions and latent loss provisions.
 
Loan-to-value ratio - the amount of a secured loan as a percentage of the appraised value of the security e.g. the outstanding amount of a mortgage loan as a percentage of the property's value.
 
Loss given default (LGD) - the economic loss that may occur in the event of default i.e. the actual loss - that part of the exposure that is not expected to be recovered - plus any costs of recovery.
 
Master netting agreement - is an agreement between two counterparties that have multiple derivative contracts with each other that provides for the net settlement of all contracts through a single payment, in a single currency, in the event of default on, or termination of, any one contract.
 
Medium term notes (MTNs) - are debt securities usually with a maturity of five to ten years, but the term may be less than one year or as long as 50 years. They can be issued on a fixed or floating coupon basis or with an exotic coupon; with a fixed maturity date (non-callable) or with embedded call or put options or early repayment triggers. MTNs are most generally issued as senior, unsecured debt.
 
Monoline insurers - are entities that specialise in providing credit protection against the notional and interest cash flows due to the holders of debt instruments in the event of default. This protection is typically in the form of derivatives such as credit default swaps.
 
 
 
Glossary of terms (continued)
 
Mortgage-backed securities (MBS) - are asset-backed securities for which the underlying asset portfolios are loans secured on property. See Residential mortgage backed securities and Commercial mortgage backed securities.
 
Net interest income - is the difference between interest receivable on financial assets classified as loans and receivables or available-for-sale and interest payable on financial liabilities carried at amortised cost.
 
Net interest margin - is net interest income as a percentage of average interest-earning assets.
 
Net principal exposure - is the carrying value of a financial asset after taking account of credit protection purchased but excluding the effect of any counterparty credit valuation adjustment to that protection.
 
Non-conforming mortgages - mortgage loans that do not meet the requirements for sale to US Government agencies or US Government sponsored enterprises. These requirements include limits on loan-to-value ratios, loan terms, loan amounts, borrower creditworthiness and other requirements.
 
Option - an option is a contract that gives the holder the right but not the obligation to buy (or sell) a specified amount of the underlying physical or financial commodity, at a specific price, at an agreed date or over an agreed period. Options can be exchange-traded or traded over-the-counter.
 
Past due - a financial asset such as a loan is past due when the counterparty has failed to make a payment when contractually due.
 
Potential problem loans - are loans other than impaired loans, accruing loans which are contractually overdue 90 days or more as to principal or interest and troubled debt restructurings where known information about possible credit problems of the borrower causes management to have serious doubts about the borrower's ability to meet the loan's repayment terms.
 
Prime - prime mortgage loans generally have low default risk and are made to borrowers with good credit records and a monthly income that is at least three to four times greater than their monthly housing expense (mortgage payments plus taxes and other debt payments). These borrowers provide full documentation and generally have reliable payment histories.
 
Probability of default (PD) - the likelihood that a customer will fail to make full and timely repayment of credit obligations over a one year time horizon.
 
Renegotiated loans - loans are generally renegotiated either as part of the ongoing banking relationship with a creditworthy customer or in response to a borrower's financial difficulties. In the latter case, renegotiation encompasses not only revisions to the terms of a loan such as a maturity extension, a payment moratorium, a concessionary rate of interest but also the restructuring of all or part of the exposure including debt forgiveness or a debt for equity swap. Loans renegotiated as part of the ongoing banking relationship with a creditworthy customer, are treated as new loans.
 
Repurchase agreement (Repo) - see Sale and repurchase agreements.
 
 
Glossary of terms (continued)
 
Residential mortgage backed securities (RMBS) - are asset-backed securities for which the underlying asset portfolios are residential mortgages.
 
Retail loans - are loans made to individuals rather than institutions. The loans may be for car purchases, home purchases, medical care, home repair, holidays and other consumer uses.
 
Reverse repurchase agreement (Reverse repo) - see Sale and repurchase agreements.
 
Risk asset ratio (RAR) - total regulatory capital as a percentage of risk-weighted assets.
 
Risk elements in lending (REIL) - comprise impaired loans, accruing loans which are contractually overdue 90 days or more as to principal or interest and troubled debt restructurings.
 
Risk-weighted assets - assets adjusted for their associated risks using weightings established in accordance with the Basel Capital Accord as implemented by the FSA. Certain assets are not weighted but deducted from capital.
 
Sale and repurchase agreements - in a sale and repurchase agreement one party, the seller, sells a financial asset to another party, the buyer, at the same time the seller agrees to reacquire, and the buyer to resell, the asset at a later date. From the seller's perspective such agreements are repurchase agreements (repos) and from the buyer's reverse repurchase agreements (reverse repos).
 
Securitisation - is a process by which assets or cash flows are transformed into transferable securities. The underlying assets or cash flows are transferred by the originator or an intermediary, typically an investment bank, to a special purpose entity which issues securities to investors. Asset securitisations involve issuing debt securities (asset-backed securities) that are backed by the cash flows of income-generating assets (ranging from credit card receivables to residential mortgage loans). Liability securitisations typically involve issuing bonds that assume the risk of a potential insurance liability (ranging from a catastrophic natural event to an unexpected claims level on a certain product type).
 
Special purpose entity (SPE) - is an entity created by a sponsor, typically a major bank, finance company, investment bank or insurance company. An SPE can take the form of a corporation, trust, partnership, corporation or a limited liability company. Its operations are typically limited for example in a securitisation to the acquisition and financing of specific assets or liabilities.
 
Structured credit portfolio (SCP) - the SCP is a portfolio of certain of the Group's illiquid assets - principally CDO super senior positions, negative basis trades and monoline exposures - held within Non-Core division.
 
Structured notes - are securities that pay a return linked to the value or level of a specified asset or index. Structured notes can be linked to equities, interest rates, funds, commodities and foreign currency.

Glossary of terms (continued)
 
Subordinated liabilities - are liabilities which, in the event of insolvency or liquidation of the issuer, are subordinated to the claims of depositors and other creditors of the issuer.
 
Sub-prime - sub-prime mortgage loans are designed for customers with one or more high risk characteristics, such as: unreliable or poor payment histories; loan-to-value ratio of greater than 80%; high debt-to-income ratio; the loan is not secured on the borrower's primary residence; or a history of delinquencies or late payments on the loan.
 
Super senior CDO - is the most senior class of instrument issued by a CDO vehicle. They benefit from the subordination of all other instruments, including AAA rated securities, issued by the CDO vehicle.
 
Tangible Net Asset Value (TNAV) - Owners' equity attributable to ordinary and B shareholders less intangible assets, divided by number of ordinary and B shares in issue.
 
Tier 1 capital - core Tier 1 capital plus other Tier 1 securities in issue, less material holdings in financial companies.
 
Tier 1 capital ratio - Tier 1 capital as a percentage of risk-weighted assets.
 
Tier 2 capital - qualifying subordinated debt and other Tier 2 securities in issue, eligible collective impairment allowances, unrealised available-for-sale equity gains and revaluation reserves less certain regulatory deductions.
 
US Federal Agencies - see Federal Agencies
 
Value-at-risk (VaR) - is a technique that produces estimates of the potential change in the market value of a portfolio over a specified time horizon at given confidence levels.
 
Write down - a reduction in the carrying value of an asset to record a decline in its fair value or value in use.
 
 

 
 
 

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: 4 November 2011
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
Jan Cargill
Deputy Secretary