REG - Royal Bk Scot.Grp. - Half Year Report - Part 2 <Origin Href="QuoteRef">RBS.L</Origin> - Part 4
05/08/2016 07:08
- Part 4: For the preceding part double click ID:nRSE3371Gc
1,150 18,321
Forbearance stock: arrears status 3,312 3,217 80 42 474 7,125 3,592 2,930 64 43 514 7,143
- Current 2,824 2,051 76 27 408 5,386 3,089 1,869 64 31 437 5,490
- 1-3 months in arrears 259 601 - 4 39 903 266 538 - 6 44 854
- >3 months in arrears 229 565 4 11 27 836 237 523 - 6 33 799
Provisions against forbearance population 22 609 1 1 6 639 29 585 - 1 7 622
Provisions 177 1,185 3 28 24 1,417 180 1,062 4 18 26 1,290
REIL 793 2,875 21 91 97 3,877 878 2,550 19 63 123 3,633
Other lending (1) 8,942 273 1,817 67 1,056 12,155 8,795 233 3,458 62 958 13,506
Provisions 896 52 27 1 119 1,095 1,028 48 22 1 129 1,228
REIL 943 53 50 9 125 1,180 1,028 49 53 5 140 1,275
Total lending 120,190 14,649 8,682 2,666 11,772 157,959 113,394 12,946 10,010 2,587 11,388 150,325
Mortgage LTV ratios (2)
- Total portfolio 56% 82% 56% 56% 53% 59% 56% 83% 54% 57% 54% 59%
- New business 69% 74% 58% 67% 69% 68% 69% 77% 57% 66% 68% 68%
- Buy-to-let 56% 90% 55% 48% 56% 59% 57% 95% 58% 51% 57% 60%
- Performing 56% 77% 55% 55% 53% 58% 56% 80% 54% 57% 54% 58%
- Non-performing 61% 103% 66% 97% 57% 86% 63% 106% 92% 96% 60% 83%
Notes:
(1) Other personal lending excludes loans guaranteed by a company and commercial real estate lending to personal customers.
(2) Weighted by current exposure gross of provisions.
*Not within the scope of Ernst & Young LLP's review report.
**Restated - refer to page 17 for further details.
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
Mortgage LTV distribution
50% 70% 80% 90% 100% 110% 130% Total with
LTV ratio value <=50% <=70% <=80% <=90% <=100% <=110% <=130% <=150% >150% LTVs Other Total
30 June 2016 £m £m £m £m £m £m £m £m £m £m £m £m
UK PBB
AQ1-AQ9 42,346 39,526 14,569 9,397 2,689 246 174 88 23 109,058 501 109,559
AQ10 541 676 219 131 64 24 11 6 4 1,676 13 1,689
42,887 40,202 14,788 9,528 2,753 270 185 94 27 110,734 514 111,248
of which: Buy-to-let 5,498 7,586 2,213 415 123 35 30 14 1 15,915 1 15,916
Ulster Bank RoI
AQ1-AQ9 2,671 2,474 1,490 1,345 1,138 1,068 1,706 345 43 12,280 - 12,280
AQ10 250 282 167 184 201 202 421 267 122 2,096 - 2,096
2,921 2,756 1,657 1,529 1,339 1,270 2,127 612 165 14,376 - 14,376
Private Banking
AQ1-AQ9 2,381 2,947 757 167 58 30 70 48 20 6,478 267 6,745
AQ10 21 51 16 8 9 3 1 2 1 112 8 120
2,402 2,998 773 175 67 33 71 50 21 6,590 275 6,865
RBS International
AQ1-AQ9 1,126 798 348 213 53 6 10 - 18 2,572 - 2,572
AQ10 6 9 4 1 4 1 - - 2 27 - 27
1,132 807 352 214 57 7 10 - 20 2,599 - 2,599
W&G
AQ1-AQ9 4,507 3,765 1,231 780 174 9 1 - - 10,467 65 10,532
AQ10 74 79 18 10 2 - - - - 183 1 184
4,581 3,844 1,249 790 176 9 1 - - 10,650 66 10,716
31 December 2015**
UK PBB
AQ1-AQ9 38,430 38,645 14,372 7,985 2,646 255 174 90 18 102,615 251 102,866
AQ10 483 713 250 152 77 26 12 7 3 1,723 10 1,733
38,913 39,358 14,622 8,137 2,723 281 186 97 21 104,338 261 104,599
Of which: Buy-to-let 4,374 6,879 2,202 431 131 34 30 14 1 14,096 2 14,098
Ulster Bank RoI
AQ1-AQ9 2,276 2,075 1,222 1,155 1,004 964 1,633 410 49 10,788 - 10,788
AQ10 226 258 153 163 179 178 385 264 119 1,925 - 1,925
2,502 2,333 1,375 1,318 1,183 1,142 2,018 674 168 12,713 - 12,713
Private Banking
AQ1-AQ9 2,431 2,846 707 147 30 15 1 12 20 6,209 323 6,532
AQ10 3 1 3 1 9 1 1 - 1 20 - 20
2,434 2,847 710 148 39 16 2 12 21 6,229 323 6,552
RBS International
AQ1-AQ9 985 873 339 190 40 27 19 2 14 2,489 - 2,489
AQ10 5 11 2 3 5 1 3 1 5 36 - 36
990 884 341 193 45 28 22 3 19 2,525 - 2,525
W&G
AQ1-AQ9 4,113 3,738 1,216 648 174 11 1 - - 9,901 297 10,198
AQ10 71 100 27 18 8 1 - - - 225 7 232
4,184 3,838 1,243 666 182 12 1 - - 10,126 304 10,430
* Not within the scope of Ernst & Young LLP's review report.
**Restated - refer to page 17 for further details.
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
UK PBB
Key points
· Gross new mortgage lending amounted to £14.3 billion (excluding £0.4 billion additional lending to existing customers) in H1 2016. New buy-to-let lending was £2.4 billion (31 December 2015 - £3.8 billion). The concentration to buy-to-let lending increased from 13% to 14%. New lending to owner-occupiers during this period was £11.9 billion (31 December 2015 - £18.9 billion). The growth in mortgage lending in H1 2016 was consistent with UK PBB's growth strategy and risk appetite.
· The overall credit quality of new business has remained stable in H1 2016. Average LTV for new mortgage lending, weighted by value, was 69%, (31 December 2015 - 69%) and weighted by volume 68% (31 December 2015 - 68%). New buy to let lending had an average LTV weighted by value and volume of 63% (31 December 2015 - 64%). New lending to owner-occupiers had an average LTV weighted by value of 71% (31 December 2015 - 71%) and 69% weighted by volume (31 December 2015 - 69%)
· Of the total portfolio £28.2 billion related to properties in the south east of England, while £21.4 billion related to properties in Greater London.
The table below summarises UK mortgage exposure by region and LTV.
Mortgage LTV distribution
50% 70% 80% 90% 100% 110% 130% Total with WA
LTV ratio value <=50% <=70% <=80% <=90% <=100% <=110% <=130% <=150% >150% LTVs LTV Other Total
30 June 2016 £m £m £m £m £m £m £m £m £m £m £m £m
South East 12,068 11,150 3,161 1,430 219 4 7 3 - 28,042 52% 112 28,154
Greater London 13,275 6,503 1,015 407 71 1 2 1 - 21,275 45% 124 21,399
Scotland 3,047 3,652 1,622 1,106 412 40 3 - - 9,882 59% 46 9,928
North West 2,775 3,795 1,681 1,287 282 12 3 2 - 9,837 60% 53 9,890
South West 3,110 3,795 1,564 929 174 5 4 4 - 9,585 57% 44 9,629
West Midlands 1,779 2,685 1,382 991 296 12 2 2 - 7,149 62% 37 7,186
Other 6,833 8,622 4,363 3,378 1,299 196 164 82 27 24,964 63% 98 25,062
Total 42,887 40,202 14,788 9,528 2,753 270 185 94 27 110,734 56% 514 111,248
31 December 2015**
South East 10,402 10,668 3,279 1,410 318 8 7 6 - 26,098 54% 45 26,143
Greater London 11,402 6,426 1,252 418 90 1 2 1 - 19,592 47% 68 19,660
Scotland 3,198 3,775 1,497 840 323 34 2 - - 9,669 58% 25 9,694
North West 2,475 3,548 1,662 1,162 476 47 5 - - 9,375 61% 31 9,406
South West 2,850 3,549 1,581 851 217 8 6 5 - 9,067 58% 23 9,090
West Midlands 1,728 2,601 1,301 737 324 17 2 3 - 6,713 61% 23 6,736
Other 6,858 8,791 4,050 2,719 975 166 162 82 21 23,824 62% 46 23,870
Total 38,913 39,358 14,622 8,137 2,723 281 186 97 21 104,338 56% 261 104,599
*Not within the scope of Ernst & Young LLP's review report.
**Restated - refer to page 17 for further details.
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
Key points
· Based on the Halifax House Price Index at March 2016, the portfolio average indexed LTV by volume was 50% (31 December 2015 - 50%) and 56% by weighted value of debt outstanding (31 December 2015 - 57%). (The £2.2 billion of Northern Ireland mortgages are indexed against the house price index published by the Office of National Statistics).
· Fixed interest rate products of varying time durations accounted for approximately 70% of the mortgage portfolio with 2% a combination of fixed and variable rates and the remainder variable rate.
· Approximately 13% of owner-occupied mortgages were on interest-only terms with a bullet repayment and 5% were on a combination of interest-only and capital and interest. 65% of the buy-to-let mortgages were on interest-only terms and 3% on a combination of interest only and capital and interest.
· The arrears rate (more than three payments in arrears, excluding repossessions and shortfalls after property sale) reduced from 0.83% at 31 December 2015 to 0.79% at the end of June 2016
· The flow of new forbearance was £269 million in H1 2016 compared with £285 million) in H1 2015. The value of mortgages subject to forbearance has decreased by 8% since 31 December 2015 to £3.32 billion (equivalent to 3.0% of the total mortgage book) as a result of improved market conditions and methodology changes.
· The impairment charge was £18 million in H1 2016, compared to a release of £4 million in H2 2015. On an annualised basis the H1 2016 impairment charge represents 0.03% of the mortgage portfolio. The charge for newly defaulting debt was stable period on period. The overall increase from the prior period was driven by updated model calibrations for provisions on the non-defaulted book, and reduced provision releases associated with lower house price inflation during the period.
· Other lending relates to credit cards (£3.7 billion), unsecured loans (£3.5 billion) and overdrafts (£1.7 billion). Credit quality of this portfolio remained stable during H1 2016 with an impairment charge of £21 million (H1 2015: £52 million).
*Not within the scope of Ernst & Young LLP's review report.
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
Ulster Bank RoI
Key points
· Although the total mortgage portfolio increased by £1.7 billion (13%) from £12.7 billion to £14.4 billion, this was the result of foreign exchange movements. Excluding the impact of exchange rate movements, the portfolio decreased by £0.1 billion (0.9%) from 31 December 2015.
· Market demand continued to grow, new business in H1 2016 was £363 million which was a 47% increase compared to H1 2015.
· The interest-rate product mix remained stable with approximately 66% of the mortgage portfolio on tracker-rate products (31 December 2015 - 67%), 21% on variable-rate products (31 December 2015 - 20%) and 13% on fixed rate (31 December 2015 - 13%).
· The decrease in portfolio average indexed LTV from 83% to 82% reflected positive house price index trends over the last six months.
· At 30 June 2016, 22% of total mortgage assets (£3.2 billion) were subject to a forbearance arrangement, an increase of 10% from 31 December 2015. Excluding the impact of exchange rate movements, the value of mortgage assets subject to a forbearance arrangement decreased by £109 million (4%). The majority (82%) of forbearance arrangements were less than 90 days in arrears.
· In H1 2016, 411 customers approached Ulster Bank RoI for the first time for forbearance assistance. This was a decrease of 73% compared to H1 2015.
· At 30 June 2016, 15% (£2.1 billion) of total mortgage assets were classified as AQ10 (31 December 2015 - 15%, £1.9 billion). Excluding the impact of exchange rate movements, the value of mortgage assets classified as AQ 10 decreased by £87 million (4%).
· There was an overall release of impairment provisions of £1 million for personal mortgages in H1 2016.
Private Banking
Key points
· The majority of the Private Banking personal lending portfolio relates to mortgage lending. On a like-for-like basis, the Private Banking mortgage portfolio increased by 5% during H1 2016.
· Gross new mortgage lending amounted to £1.5 billion in H1 2016. Lending to owner-occupiers during this period was £1.3 billion (31 December 2015 - £2.2 billion) and had an average LTV by weighted value of 57% (31 December 2015 - 54%). Buy-to-let lending was £0.2 billion (31 December 2015 - £0.2 billion) with an average LTV by weighted value of 56% (31 December 2015 - 64%).
· The number of customers with mortgages in forbearance at 30 June 2016 decreased from 46 to 40 compared to 30 June 2015. In value terms, however, the exposure increased from £49 million to £80 million - although this increase was primarily seen in the offshore business.
· A total of 97% (£78 million) of forbearance loans were subject to a long-term arrangement (capitalisations, term extensions, economic concessions) at 30 June 2016 (31 December 2015 - 79% or £39 million). Short-term forbearance comprised payment concessions, amortising payments of outstanding balances, payment holidays and temporary interest-only arrangements.
· The reduction in other personal lending was driven by the disposal of the international private banking business.
*Not within the scope of Ernst & Young LLP's review report.
Appendix 1 Capital and risk management
Key loan portfolios* (continued)
RBSI
Key points
· Gross new mortgage lending amounted to £206 million in H1 2016. Lending to owner-occupiers during this period was £127 million (2015 - £63 million) and had an average LTV by weighted value of 70% (2015 - 66%). Buy-to-let lending was £79 million (2015 - £32 million) with an average LTV by weighted value of 62% (2015 - 57%).
· The number of customers granted forbearance in H1 2016 decreased by 36% compared to H1 2015. A total of £15 million of forborne loans were subject to a long-term arrangement (term extensions) at 30 June 2016 (2015 - £13 million). Short term forbearance comprises covenant breaches, payment suspensions and reduced payments.
Williams & Glyn
Key points
· Gross new mortgage lending amounted to £1.1 billion in H1 2016. Lending to owner-occupiers during H1 2016 was £0.9 billion (2015 - £1.4 billion) and had an average LTV by weighted value of 71% (31 December 2015 - 70%). Buy-to-let lending was £0.2 billion (2015 - £0.3 billion) with an average LTV by weighted value of 62% (2015 - 64%).
· Fixed interest rate products of varying time durations accounted for approximately 63% (£6.8 billion) of the mortgage portfolio with 6% (£0.7 billion) a combination of fixed and variable rates and the remainder (£3.3 billion) variable rate.
· The flow of new forbearance was £35 million in H1 2016 compared £ 30 million in H1 2015. The value of mortgages subject to forbearance decreased by 8% in H1 2016 to £481 million (equivalent to 4% of the total mortgage portfolio) as a result of improved market conditions and methodology changes.
· Impairment trends were stable. The impairment charge for personal mortgages was £0.5 million in H1 2016 (H1 2015 - £0.6 million).
*Not within the scope of Ernst & Young LLP's review report.
Appendix 1 Capital and risk management
Country risk
Country risk is the risk of loss occurring as a result of either a country event or unfavourable country operating
conditions. As country events may simultaneously affect all, or many, individual exposures related to a country, country
event risk is a concentration risk. Refer to Capital and risk management - Credit risk in the 2015 Annual Report and
Accounts for other types of concentration risk such as product, sector or single-name concentration and Country risk for
governance, monitoring, management and definitions.
Country exposures
Countries shown below are those which had ratings of A+ or below from Standard and Poor's, Moody's or Fitch at 30 June
2016, and in which current exposure to counterparties operating (or individuals residing) in them exceeded £1 billion.
Selected eurozone countries are also included. Figures shown are on a current exposure basis, net of provisions and after
risk transfer.
Personal Banks & Natural Retail &
other FI Sovereigns Property Resources Leisure Other Total
30 June 2016 £m £m £m £m £m £m £m £m
Southern Europe
Spain 77 112 8 790 494 152 318 1,951
Italy 25 500 71 111 170 16 142 1,035
Portugal 6 102 10 14 159 1 2 294
Cyprus 11 - - - - - 43 54
Greece 16 - - 6 - 2 8 32
Southern Europe total 135 714 89 921 823 171 513 3,366
Eurozone other
Germany 68 1,745 20,211 73 217 346 1,211 23,871
Ireland 15,064 582 2,339 987 511 1,008 2,243 22,734
Netherlands 29 2,168 5,650 344 141 194 964 9,490
France 68 2,312 3,340 434 506 209 1,111 7,980
Belgium 20 301 755 134 136 - 198 1,544
Luxembourg 11 474 30 339 6 29 133 1,022
Other 14 268 707 70 28 84 145 1,316
Eurozone 15,409 8,564 33,121 3,302 2,368 2,041 6,518 71,323
Japan 28 577 1,819 - - 1 336 2,761
India 12 149 776 13 140 3 237 1,330
Personal Banks & Natural Retail &
other FI Sovereigns Property Resources Leisure Other Total
31 December 2015** £m £m £m £m £m £m £m £m
Southern Europe
Spain 79 58 6 671 526 129 272 1,741
Italy 27 428 52 62 175 18 108 870
Portugal 6 87 10 26 139 1 63 332
Cyprus 12 - - - - - 38 50
Greece 15 1 - 8 - 2 9 35
Southern Europe total 139 574 68 767 840 150 490 3,028
Eurozone other
Germany 63 1,533 23,801 91 150 172 1,701 27,511
Ireland 13,440 433 1,624 756 437 921 1,788 19,399
Netherlands 30 1,966 4,176 451 94 127 1,137 7,981
France 76 2,309 2,402 357 447 200 1,306 7,097
Belgium 22 702 537 158 44 1 198 1,662
Luxembourg 6 625 21 346 32 28 119 1,177
Other 14 382 609 55 84 11 146 1,301
Eurozone 13,790 8,524 33,238 2,981 2,128 1,610 6,885 69,156
Japan 31 249 1,417 2 - 1 114 1,814
India 11 227 824 1 92 27 452 1,634
**Restated - refer to page 17 for further details.
Appendix 1 Capital and risk management
Country risk (continued)
Key points*
· Total eurozone exposure increased by £2.2 billion or 3% to £71.3 billion. Exposures to Spain, Italy, Ireland, the Netherlands and France increased while exposures to Portugal, Germany, Luxembourg and Belgium decreased. Increases were partly due to volatility in the currency markets as the euro and the US dollar both appreciated against sterling.
· Spain - exposure increased by £0.2 billion to £2.0 billion. This was largely the result of the appreciation of the euro against sterling. Excluding the impact of foreign exchange movements, exposure in Spain increased by £28 million.
· Italy - exposure increased by £0.2 billion to £1.0 billion. This was mostly due to the rise in the value of the euro against sterling. Excluding the impact of foreign exchange movements, exposure in Italy increased by £76 million. Around 9% of this is exposure to banks, of which the majority is collateralised derivatives.
· Germany - exposure decreased by £3.6 billion to £23.9 billion. This was largely the result of a decrease in cash deposits with the central bank, driven by liquidity management. Excluding the impact of foreign exchange movements, exposure would have decreased by £7.3 billion.
· Ireland - exposure increased by £3.3 billion to £22.7 billion. The increase was largely the result of the appreciation of the euro, and, to a lesser extent, of liquidity management, and increased mortgage lending. Excluding the impact of foreign exchange movements, exposure would have increased by £0.7 billion.
· Netherlands - exposure increased by £1.5 billion to £9.5 billion, owing to the appreciation of the euro and to liquidity management. Excluding the impact of foreign exchange movements, exposure increased by £0.5 billion.
· Japan - exposure increased by £0.9 billion to £2.8 billion. Half of this increase was driven by a 24% decrease in the value of the sterling against yen and most of the remainder was attributable to liquidity management.
· India - exposure decreased by £0.3 billion to £1.3 billion, with reductions in lending both to corporates and to banks owing to RBS's UK-centred strategy.
· China - exposure decreased by £0.2 billion to £0.7 billion. The reductions were predominantly driven by a decrease in lending to banks.
*Not within the scope of Ernst & Young LLP's review report.
Appendix 1 Capital and risk management
Credit risk: balance sheet analysis
Loans and related credit metrics
The tables below analyse gross loans and advances (excluding reverse repos) and related credit metrics and; movements in
risk elements in lending (REIL) and impairment provisions by reportable segment. REIL comprises impaired loans and
accruing loans past due 90 days or more as to principal or interest. Impaired loans are all loans (including loans subject
to forbearance) which carries an impairment provision. For collectively-assessed loans, impairment loss provisions are not
allocated to individual loans and the entire portfolio is included in impaired loans. Accruing loans past due 90 days or
more comprise loans past due 90 days where no impairment loss is expected.
Credit metrics
Gross loans to REIL Provisions REIL as a % Provisions YTD
of gross Provisions as a % of Impairment YTD
loans to as a % gross loans losses/ Amounts
Banks Customers customers of REIL to customers (releases) written-off
30 June 2016 £m £m £m £m % % % £m £m
UK PBB 845 127,469 2,273 1,502 1.8 66 1.2 40 205
Ulster Bank RoI 2,664 21,421 4,329 2,474 20.2 57 11.5 (27) 860
Commercial Banking 1,000 100,236 2,150 994 2.1 46 1.0 104 306
Private Banking 103 11,829 93 39 0.8 42 0.3 2 1
RBS International 17 8,501 118 39 1.4 33 0.5 11 5
CIB 6,280 21,560 - 1 - nm - - -
Capital Resolution 9,130 21,076 2,406 1,122 11.4 47 5.3 266 125
W&G - 20,558 397 262 1.9 66 1.3 17 29
Central items & other 1,925 367 23 23 6.3 100 6.3 (1) 1
21,964 333,017 11,789 6,456 3.5 55 1.9 412 1,532
31 December 2015
UK PBB 965 121,552 2,682 1,847 2.2 69 1.5 (6) 695
Ulster Bank RoI 1,971 18,584 3,503 1,911 18.8 55 10.3 (142) 168
Commercial Banking 665 92,002 1,911 749 2.1 39 0.8 69 263
Private Banking 54 11,230 115 37 1.0 32 0.3 13 7
RBS International 6 7,401 92 31 1.2 34 0.4 - 32
CIB 5,696 16,076 - 1 - nm - (7) -
Capital Resolution 7,097 25,898 3,372 2,266 13.0 67 8.7 (794) 7,689
W&G - 20,291 461 275 2.3 60 1.4 15 110
Central items & other 2,550 2,077 21 22 1.0 105 1.1 (1) -
19,004 315,111 12,157 7,139 3.9 59 2.3 (853) 8,964
Key points
· Loans to banks increased by £3.0 billion, mainly reflecting higher derivative cash collateral in CIB (£0.6 billion) and Capital Resolution (£2.0 billion) - also refer to Derivatives.
· Customer loans, excluding derivative cash collateral grew by £12.7 billion. Strong organic growth in UK PBB mortgages (£6.6 billion) and Commercial Banking mid and large corporate lending (£6.7 billion) was partially offset by Capital Resolution disposals and run-off - also refer to Key loan portfolios.
· REIL decreased by £0.4 billion to £11.8 billion and was 3.5% of customer loans. Impairment coverage on REIL is now 55% compared with 59% at year end, The lower coverage principally reflects Shipping REIL of £1,023 million with provisions of £445 million, coverage of 43% (31 December 2015 - £434 million, £181 million and 42%).
· Impairment provisions were lower at £6.5 billion. Significant write offs were seen in Ulster Bank RoI (£860 million, more than 50% of total £1.5 billion) but these were materially offset by the impact of the post EU Referendum depreciation of sterling (£0.2 billion).
· The impairment charge of £412 million includes £267 million (Q1 2016 - £228 million) in the Shipping portfolio in Capital Resolution, £97 million in the Commercial Banking Oil & Gas portfolio, principally a single name and £29 million in the Mining & Metals portfolio.
Appendix 1 Capital and risk management
Loans and related credit metrics (continued)
Ulster Central
UK Bank Commercial Private RBS Capital items
PBB RoI Banking Banking International CIB Resolution W&G & Other Total
REIL £m £m £m £m £m £m £m £m £m £m
At 1 January 2016 2,682 3,503 1,911 115 92 - 3,372 461 21 12,157
Inter segment transfers (191) 1,338 453 - - - (1,600) - - -
Currency translation and other adjustments 18 516 31 - 7 - 267 (31) 4 812
Additions 409 320 567 7 35 - 770 85 - 2,193
Transfers between REIL and potential problem loans (86) - 7 (23) 7 - - (13) - (108)
Transfer to performing book (145) (250) (96) - (5) - (4) (19) - (519)
Repayments and disposals (209) (238) (417) (5) (13) - (274) (57) (1) (1,214)
Amounts written-off (205) (860) (306) (1) (5) - (125) (29) (1) (1,532)
30 June 2016 2,273 4,329 2,150 93 118 - 2,406 397 23 11,789
Ulster Central
UK Bank Commercial Private RBS Capital items
PBB RoI Banking Banking International CIB Resolution W&G & Other Total
Provisions £m £m £m £m £m £m £m £m £m £m
At 1 January 2016 1,847 1,911 749 37 31 1 2,266 275 22 7,139
Inter segment transfers (173) 1,198 439 - - - (1,464) - - -
Currency translation and other adjustments - 260 2 2 2 - 169 - 3 438
Amounts written-off (205) (860) (306) (1) (5) - (125) (29) (1) (1,532)
Recoveries of amounts previously written-off 14 14 12 - - - 16 1 - 57
Charges/(releases) to income statement from continuing operations 40 (27) 104 2 11 - 266 17 (1) 412
Unwind of discount (21) (22) (6) (1) - - (6) (2) - (58)
30 June 2016 1,502 2,474 994 39 39 1 1,122 262 23 6,456
Appendix 1 Capital and risk management
Loans and related credit metrics: (continued)
The tables below show gross loans and advances to banks and customers (excluding reverse repos) and related credit metrics
by sector and geography based on the location of lending office.
Credit metrics
30 June 2016 REIL as a Provisions Provisions Impairment
Gross % of gross as a % as a % of losses/ Amounts
loans REIL Provisions loans of REIL gross loans (releases) written-off
£m £m £m % % % £m £m
Central and local government 6,668 1 1 - 100 - 2 1
Finance 38,342 60 57 0.2 95 0.1 (14) 8
Personal - mortgages (1) 147,115 3,881 1,097 2.6 28 0.7 19 22
- unsecured 14,373 1,216 1,007 8.5 83 7.0 35 189
Property 35,736 2,434 1,206 6.8 50 3.4 (47) 854
Construction 4,710 276 212 5.9 77 4.5 15 83
of which: CRE 27,695 2,479 1,264 9.0 51 4.6 (40) 840
Manufacturing 11,062 225 130 2.0 58 1.2 6 39
Finance leases (2) 11,828 98 77 0.8 79 0.7 2 6
Retail, wholesale and repairs 12,863 380 251 3.0 66 2.0 4 65
Transport and storage 8,965 1,136 513 12.7 45 5.7 265 58
Health, education and leisure 11,364 364 172 3.2 47 1.5 1 25
Hotels and restaurants 5,820 287 159 4.9 55 2.7 2 52
Utilities 4,322 128 83 3.0 65 1.9 15 4
Other 19,849 1,303 860 6.6 66 4.3 96 126
Latent - - 631 - - - 11 -
Total customers 333,017 11,789 6,456 3.5 55 1.9 412 1,532
Of which
UK
Personal - mortgages 131,212 1,001 158 0.8 16 0.1 22 18
- unsecured 13,942 1,139 934 8.2 82 6.7 33 184
Property and construction 38,822 2,100 846 5.4 40 2.2 (32) 413
Other 124,174 2,940 1,473 2.4 50 1.2 408 177
Latent - - 342 - - - 12 -
308,150 7,180 3,753 2.3 52 1.2 443 792
Of which
Europe
Personal - mortgages 15,864 2,876 936 18.1 33 5.9 (3) 4
- unsecured 364 54 50 14.8 93 13.7 3 5
Property and construction 1,562 590 560 37.8 95 35.9 - 501
Other 5,650 855 719 15.1 84 12.7 (70) 192
Latent - - 289 - - - (1) -
23,440 4,375 2,554 18.7 58 10.9 (71) 702
Banks 21,964 - - - - - - -
For the notes to this table refer to the following page.
Appendix 1 Capital and risk management
Loans and related credit metrics: Loans, REIL, provisions and impairments (continued)
Credit metrics
31 December 2015 REIL as a Provisions Provisions Impairment
Gross % of gross as a % as a % of losses/ Amounts
loans REIL Provisions loans of REIL gross loans (releases) written-off
£m £m £m % % % £m £m
Central and local government 6,707 1 1 - 100 - - -
Finance 31,981 87 61 0.3 70 0.2 (10) 165
Personal - mortgages (1) 137,601 3,637 1,006 2.6 28 0.7 (82) 171
- unsecured 16,654 1,331 1,151 8.0 86 6.9 122 513
Property 35,744 3,505 2,012 9.8 57 5.6 (557) 5,999
Construction 4,421 357 269 8.1 75 6.1 (14) 313
of which: CRE 27,630 3,560 2,054 12.9 58 7.4 (811) 6,151
Manufacturing 9,861 263 154 2.7 59 1.6 - 154
Finance leases (2) 11,443 107 79 0.9 74 0.7 (8) 37
Retail, wholesale and repairs 12,096 434 299 3.6 69 2.5 7 325
Transport and storage 8,909 563 258 6.3 46 2.9 115 370
Health, education and leisure 10,960 394 190 3.6 48 1.7 14 171
Hotels and restaurants 5,372 336 201 6.3 60 3.7 1 346
Utilities 3,463 131 63 3.8 48 1.8 8 27
Other 19,899 1,010 810 5.1 80 4.1 (37) 340
Latent - - 584 - - - (408) -
Total customers 315,111 12,156 7,138 3.9 59 2.3 (849) 8,931
- More to follow, for following part double click ID:nRSE3371GeRecent news on Natwest
See all newsREG - NatWest Group plc - Transaction in Own Shares
AnnouncementREG - NatWest Group plc - Transaction in Own Shares
AnnouncementREG - Natwest Markets PLC - Publication of Final Terms
AnnouncementREG - NatWest Group plc - Transaction in Own Shares
AnnouncementREG - NatWest Group plc - Holdings in Company - MFS
Announcement