BankBarclays巴克莱银行财务业绩报告

BarclaysPLC2016FinancialResults23February2017JesStaleyBarclaysGroupChiefExecutiveOfficerStrongevidenceofstrategicprogressin2016•BarclaysUK19.3%•BarclaysInternational8.0%9.4%CoreRoTE1StrongCorebusinessAfricasell-downFirststakesoldandseparationtermsagreedNon-CorerundownAcceleratedprogress,closingaheadofscheduleFocusedongeneratingattractiveandsustainableGroupreturnsGroupreturns1FY16RoTEsexcludingnotableitems|3|Barclays2016FinancialResults|23February2017AnnouncingNon-CoreclosuresixmonthsearlyatJune2017RWAs(£bn)1BusinessesSignificantdealsannouncedorpleted•IBofficesinninecountries•Indexbusiness3•Asiawealth•SouthernEuropeancards•Italyretail•Franceretail•EgyptRWAs(£bn)2Dec-14Dec-16187DerivativesDec-13Dec-14Dec-15Dec-16Jun-17Guidance•Acceleratedderivativerundownin20163112Securities&loansWillhereducedRWAsbyc.£85bninjustoverthreeyears•RestructuredESHLAportfolio1681Dec-13andDec-14RWAsareonapre-restatementbasis.Dec-15onwardareonapost-restatementbasisi.e.inclusiveofc.£8bnofRWAsaddedtoNon–CoreinQ116|2ExcludesOpriskandDTAsRWAsof£9bnasatDec-14and£5bnasatDec-16|3BarclaysRiskAnalyticsandIndexSolutions|4|Barclays2016FinancialResults|23February2017110Asat30June2017755432c.25Africasell-downontrackwithconsistentcapitalguidanceSeparationtermsagreed£765mphasedcontributionstoBAGLagreed11MajormilestoneinthesimplificationofBarclaysRegulatoryapprovalApprovalforfurthersell-downrequestedfromrelevantregulators2CapitalguidanceGuidanceof>75bpsCET1ratioaccretion231Subjecttoregulatoryapproval|2Assuming31December2016GBPZARFXrateof16.78andBAGLsharepriceof168.69.Aggregateeffectfollowingregulatorydeconsolidationandprojectedseparationcosts,including£765mphasedcontributionsandcontributiontoanewBlackEconomicEmpowermentscheme.ImplementationofBarclays’intentionsissubjectto,amongstotherthings,regulatoryapproval.Therealisationoftheseplansandtheirintendedbenefitsissubjecttosignificantexecutionrisks,includinginrelationtomarketfactors,andtherecanbenoassurancetheintendedbenefitswillbeachievedonanyproposedtimetableoratall|5|Barclays2016FinancialResults|23February2017StrongCorebusinessperformancein2016tangibleequityUKconsumerandbusinessbankdifferentiatedbyscale,dataanalyticsanddigitalDiversifiedtransatlanticwholesaleandconsumerbankAllfinancialmetricsareFY16excludingnotableitems.Deltasrepresenttheyear-on-yearchange|6|Barclays2016FinancialResults|23February2017Lowcost:ieratio53%CIBiegrowth+6%RobustNIM3.62%CC&Piegrowth+21%RoTE19.3%RoTE8.0%BarclaysUKBarclaysInternationalerageallocated£41.3bn£4.1bnRoTE9.4%1.8%Profitbeforetax£6.4bn4%Cost:ieratio61%1%Ie£22.0bn7%CoreBarclaysisamajorcontributortotheUKeconomyProvidedc.£70bnoflendingtoUKbusinessesProvidedc.£19bnofmortgagelendingtoc.90,000householdsInvolvedinc.160UKbankingdeals,withc.£250bnofvalueProcessedc.260bnofpaymentsforUKconsumersandbusinesses24mBarclaysUKcustomers&clientsLentc.£3.6bntoUKSMEsandsupportedaround100kstart-ups£1inevery£3wasspentthroughBarclaycardBarclaysintheUKreport–December2016.FY16figures|7|Barclays2016FinancialResults|23February2017StrongCorebusinessperformancein2016tangibleequityUKconsumerandbusinessbankdifferentiatedbyscale,dataanalyticsanddigitalDiversifiedtransatlanticwholesaleandconsumerbankAllfinancialmetricsareFY16excludingnotableitems.Deltasrepresenttheyear-on-yearchange|8|Barclays2016FinancialResults|23February2017Lowcost:ieratio53%CIBiegrowth+6%RobustNIM3.62%CC&Piegrowth+21%RoTE19.3%RoTE8.0%BarclaysUKBarclaysInternationalerageallocated£41.3bn£4.1bnRoTE9.4%1.8%Profitbeforetax£6.4bn4%Cost:ieratio61%1%Ie£22.0bn7%CoreOperationalandtechnologicalstrengthwillbeakeyadvantage9|Barclays2016FinancialResults|23February2017Drivingefficiencies,costsynergiesandscalability,deliveringhighqualityanalyticsandcontrols,aswellasexcellentcustomerexperienceSharedfunctions(e.g.Treasury,Risk,Finance)EnhancedcontrolsandriskmanagementCentralisedclientcontactcentres,andfraudcollectionsCentralisedglobalcybersecurityEnhancedInnovationanddataanalyticsSharedPlatformsWorld-classoperationalarchitectureTechnology&DataOperationsServicesProcurementandrealestateCards&InvestmentBarclaysUKWealth,PersonalBarclaycardEntrepreneursBankingConsumer&BusinessUK BankingBarclaysInternationalCorporate&Consumer,BankPaymentsDiversificationprovidesbalanceandstabilityc.50%iec.35%ieCurrency&GeographyCustomers&Clients£11.4bnie£10.5bnieProductspectrumCurrentaccountsWealth&InvestmentsPaymentsCorporatebankingCapitalmarketsMortgagesPersonalloansCreditcardsMerchantacquiringInvestmentbanking1BarclaysUKandConsumer,Cards&Payments,excludingnotableitems|10|Barclays2016FinancialResults|23February2017Consumerbusinesses1Corporate&InvestmentBankDrivingcostefficiencytowardsourtargetGroupcosts(£bn)119.5Groupcost:ieratiotarget<60%220132014201520162016Corecosts61%Corecost:ieratio31Totaloperatingexpenses,excludingconductandlitigation,andothernotableitems|2AfricaBankingtreatedasadiscontinuedoperation|3Excludingnotableitems|11|Barclays2016FinancialResults|23February201717.616.615.0•1%reductioninGroupincentiveawardsgrantedin2016•£0.4bnchargeduetochangesto2016pensationawards13.4Capitalpositionapproachingourend-stateEnd-stateexpectationManagementbufferExpectedregulatoryCET1levelDec-15CapitalratioaccretionProvisionsforPPIDiscretionaryactionsDec-16January2019expectation31FullyloadedCET1ratio.Definitionasfootnotedonslide31|2Subjectto,amongstotherimpacts,futurelegacyconductresolutioncosts|3Seeslide31forpositionof,andrelevantfootnotesrelatingto,Barclays’expectedcapitalrequirements|12|Barclays2016FinancialResults|23February2017c.180bps12.8%c.30bpsc.50bps1.5-2.0%12.4%11.4%100bpsimprovementinCET1ratio1in201610.8%12.3-12.8%Discretionaryactionsanddividends•Non-Corerestructuring•Preferenceshareredemptions•pensationadjustment•Realestaterestructuring•DividendspaidStrongcapitalaccretionin2016……andapproachingourend-stateCET1level2ApproachingtheendofBarclays’restructuring1Non-CorerundownClosingNon-Coresixmonthsearlyat30June20172Africasell-downOntrackwithsignificantmilestonereachedBuildingsharedarchitecture3Drivingoperationalreliability,scalabilityandefficiency4CapitalstrengthCapitalpositionapproachingend-statelevel5AttractivereturnsDiversebusinessmixwithstrongcorefranchises13|Barclays2016FinancialResults|23February2017TusharMorzariaBarclaysGroupFinanceDirectorOurstrategyisontrackwithencouragingprogressin2016CoreRoTEof9.4%,withBarclaysUKRoTEof19.3%andBarclaysInternationalRoTE8.0%1RobustCorereturnsCET1ratioof12.4%,with100bpsratioaccretionin2016and80bpsinQ416Strongcapitalgeneration£22bnreductioninRWAsin2016to£32bn,including£12bninQ416AcceleratedNon-CorerundownCorecost:ieratioof61%2.ExpecttoachieveaGroupcost:ieratioof<60%overtimeFocusoncostefficiency1FY16RoTEsexcludingnotableitems|2Excludingnotableitems|15|Barclays2016FinancialResults|23February2017FY16StatutoryGroupresults•Profitbeforetaxincreased182%to£3.2bn−£2.9bnreductioninnotableitemstoa£0.4bnloss−2016notableitemsincludeda£1.0bnprovisionforUKcustomerredress,£615mgainondisposalofBarclays’shareofVisaEuropeLimited,and£35mowncreditchargeIedecreased3%drivenbyincreasednegativeieinNon-Core−Coreieincreased6%includingtheFXbenefitfromaweakerGBPImpairmentincreased35%to£2.4bn,includingthemanagementreviewofimpairmentmodelling−LLRincreasedto53bpsCostsdecreased12%drivenbya£3.0bnreductioninlitigationandconduct−Cost:ieratioreducedto76%Othernetieof£0.5bnin2016wasdrivenbygainsonNon-CorebusinessdisposalsAttributableprofitof£1.6bndroveanimprovementinRoTEto3.6%andEPSof10.4pFinaldividendof2pdeclared−TotalFY16dividendof3pTNimprovedto290ppershare,drivenbyanincreaseinprofitsandfourablecurrencytranslationmovements•••••••1AttributableprofitinrespectoftheAfricaBankingdiscontinuedoperationisreportedattheGrouplevelonly|2Notableitemsarepresentedonslide35|16|Barclays2016FinancialResults|23February2017FY16performancemetricsYearended–December(£m)20162015%changeIeImpairment–Operatingexpenses–Banklevy–LitigationandconductTotaloperatingexpensesOthernetie/(expenses)21,451(2,373)(14,565)(410)(1,363)(16,338)49022,040(1,762)(13,723)(426)(4,387)(18,536)(596)(3%)(35%)(6%)4%69%12%Profitbeforetax(PBT)3,2301,146182%Taxcharge(993)(1,149)14%Profit/(loss)aftertax–continuingoperations2,237(3)Profitaftertax–discontinuedoperationNCI–continuingoperationsNCI–discontinuedoperationOtherequityholders591(346)(402)(457)626(6%)(348)1%(324)(24%)(345)(32%)Attributableprofit/(loss)11,623(394)PerformancemeasuresReturnoneragetangibleshareholders’equity(RoTE)Cost:ieratioLoanlossrate(LLR)Basicearningspershare3.6%(0.7%)84%42bps(1.9p)76%53bps10.4pDec-16Dec-15Tangiblenetassetvaluepershare(TN)Riskweightedassets(RWA)290p£365.6bn275p£358.4bnNotableitems(£m)Sumofnotableitems2(420)(3,330)FY16andQ4Corefinancialsexcludingnotableitems•Ieincreased7%to£22.0bn,withgrowthinBarclaysInternationalandstableieinBarclaysUK• Costsexcludinglitigationandconductof£13.4bnwereimpactedbyanadditionalchargerelatingto2016pensationawards,realestaterestructuringchargesandstructuralreformimplementationcosts•PBTincreased4%to£6.4bndrivenbypositivejaws,deliveringacost:ieratioof61%•RoTEwas9.4%ona£4.1bnhighereragetangibleequitybase17|Barclays2016FinancialResults|23February2017Yearended–December(£m)20162015%changeThreemonthsended(£m)Dec-16Dec-15%change5,3654,69114%(606)(522)(16%)(3,805)(3,330)(14%)(46)(75)39%(3,851)(3,405)(13%)164101,07277439%(282)(18)7907564%5905841%IeImpairment–Operatingexpenses(includingbanklevy)–LitigationandconductTotaloperatingexpensesOthernetie22,035(2,251)20,502(1,628)(12,532)(202)(12,734)517%(38%)(7%)42%(6%)(13,390)(117)(13,507)159Profitbeforetax(PBT)6,4366,1914%Taxcharge(1,962)(1,538)(28%)Profitaftertax–continuingoperations4,4724,653(4%)Attributableprofit3,7814,105(8%)Returnonerageallocatedtangibleequity(RoTE)erageallocatedtangibleequityCost:ieratioLoanlossrate(LLR)Basicearningspershare9.4%11.2%£37.2bn62%45bps24.9p5.8%6.3%£42.7bn£38.3bn72%73%61bps57bps3.7p3.6p£41.3bn61%58bps23.1pDec-16Dec-15Riskweightedassets(RWA)£333.5bn£304.1bnFY16performancemetricsGeneratingaconsistentlystrongCoreRoTEonanincreasingtangibleequitybaseQ414Q115Q215Q315Q415Q116Q216Q316Q416RoTERoTEexcludingUKbanklevyRoTEexcludingUKbanklevyandadditionalchargerelatingto2016pensationawardsQ414Q115Q215Q315Q415Q116Q216Q316Q41618|Barclays2016FinancialResults|23February201742.742.140.739.638.337.736.336.434.6Coreerageallocatedtangibleequityexcludingnotableitems(£bn)14.0%13.4%11.3%11.0%11.0%10.7%10.7%10.4%9.8%8.7%7.1%6.3%5.8%CorereturnonerageallocatedtangibleequityexcludingnotableitemsBarclaysUK:RobustRoTEof17.1%asPBTincreased7%••IncreasedPBTandpositivejawsdeliveredanimprovedRoTEof17.1%Iewasmaintainedat£1.8bnasbalancegrowthandliabilityrepricinginitiativesoffsetassetmarginpressionImpairmentimprovedto£180mprimarilyduetothenon-recurrenceofupdatestoimpairmentmodelmethodologiesinUKcardsinQ415−Underlyingimpairmentremainedstable,withimproveddelinquencyratesintheUKcardsportfolioandstabletrendsinmortgagesDeliveredacost:ieratioof58%astotalcostsdecreasedby1%reflectinglowerlitigationandconductandbanklevycharges−Costsexcludingtheseitemsincreasedasstrategicsingsweremorethanoffsetbystructuralreformimplementationcostsandinvestmentindigital−Aimingforacost:ieratioof<50%overtime••PersonalBanking• Strongdepositgrowthof£8.3bnyear-on-yearto£139.3bn.Repricingstrategiesdroveanincreaseinnetinterestie• Maintainedstrictpricingdisciplineandprudentunderwritingcriteria,whiledrivinggrowththroughdeeperengagementandenhancedcustomerjourneysBarclaycardConsumerUK•Steadygrowthinloansandadvances,up2%year-on-yearto£16.5bn•Stableunderlyingimpairmenttrends,reflectedinimproved30and90daydelinquencyratesof1.9%and0.9%(Dec-15:2.3%and1.2%)respectivelyWealth,Entrepreneurs&BusinessBanking• Ieincreased1%asstrongdepositgrowthof9%to£49.7bnwaspartiallyoffsetbydecliningfeeieduetoreducedtransactionalappetitefrominvestors19|Barclays2016FinancialResults|23February2017Keydrivers/highlightsQ416performancemetricsBusinessperformanceexcludingnotableitemsThreemonthsended(£m)Dec-16Dec-15%change–PersonalBanking–BarclaycardConsumerUK–Wealth,Entrepreneurs&BusinessBankingIeImpairment–Operatingexpenses–Banklevy–LitigationandconductTotaloperatingexpenses9345073871,828(180)(989)(48)(28)(1,065)9455053841,834(219)(920)(77)(75)(1,072)(1%)-1%-18%(8%)38%63%1%Profitbeforetax(PBT)5835447%Attributableprofit3593386%PerformancemeasuresexcludingnotableitemsReturnonerageallocatedtangibleequity(RoTE)erageallocatedtangibleequityCost:ieratioLoanlossrate(LLR)Netinterestmargin(NIM)17.1%14.8%£9.2bn58%51bps3.58%£8.6bn58%42bps3.56%Dec-16Dec-15LoansandadvancestocustomersCustomerdepositsRiskweightedassets(RWA)£166.4bn£189.0bn£67.5bn£166.1bn£176.8bn£69.5bnNotableitems(£m)Dec-16Dec-15–ProvisionsforUKcustomerredress-(1,391)BarclaysUK:ResilientNIMandprudentgrowthinbalancesStableie• BroadlystableNIMof3.56%inQ416,withNIImaintainedat£1.5bn−Growthinbalancesandliabilityrepricinginitiativesoffsetmortgagemarginpression• Non-interestieremainedflatat£326masimpactofEUinterchangefeeregulationwaspartiallyoffsetbyanincreaseincardvolumesGrowthinbalances•Consistentlystrongdepositgrowthdrivenbyfranchisestrength•Prudentgrowthinloansandadvancesreflectsaconservativeriskappetite,withfocusretainedonremortgageandlowerLTVsegments,andunsecuredloanstoexistingcustomers•LDRof88%(Dec-15:94%),reflectingstrongfundingpositionandprudentriskappetiteDec-14Dec-15Dec-16Dec-14Dec-15Dec-16Q115Q215Q315Q415Q116Q216Q316Q416FY1620|Barclays2016FinancialResults|23February20173.62%3.60%3.54%3.54%3.58%3.62%3.56%3.72%3.56%NIMsensitivityBoEbaserateFY17range0.25%350-360bpsNetInterestMargin(NIM)165.3166.1166.4189.0176.8168.3Loans&advancestocustomers(£bn)Customerdeposits(£bn)Ie(£m)–ThreemonthsendedDec-16Dec-15%changeNetinterestie(NII)–Netinterestmargin(NIM)Non-interestie1,5023.56%3261,5093.58%325--Totalie1,8281,834-BarclaysUK:Growththroughleadershipindigitalbanking£bn2.5users2.0in20161.51.00.50.0JanFebMarAprMayJunJulAugSepOctNovDechasacost:ieratiointhelow20s21|Barclays2016FinancialResults|23February2017DigitallyoriginatedandfulfilledunsecuredlendingOver£2bnunsecuredlendingoriginatedandfulfilleddigitally201620152014AnnualunsecuredlendingoriginatedandfulfilleddigitallySignificantgrowthindigitalbankingyear-on-yearBarclaysMobileBanking5.7mMobileBanking+21%Digital9.5mDigitallyactivecustomers+9%Digitallog-ins141mMonthlyeragein2016+24%Payments&transfers£23.1bnMonthlyeragein2016+22%Pingit£1.2bnPaymentsin2016+11%1.5mPeopleBarclayshashelpedsinceApril2013BarclaysInternational:EncouragingperformanceinCIBandstronggrowthinConsumer,Cards&Payments•Ieincreasedby21%to£3.6bnhighlightingthestrongmomentuminthebusinessandthebenefitofdiversificationacrossproductsandgeographies−StrongiegrowthacrossbothCIBandCC&Pof21%and22%respectively−IebenefittedfromtheappreciationofUSDandEURagainstGBP,withover50%ofieinUSDImpairmentincreased£123mdrivenbyCC&P,reflecting24%balancegrowth,someshiftinportfoliomixandtheimpactofFXmovements,whileBarclaycardUSdelinquencyratesincreasedCostswereimpactedbyanadditionalchargerelatingto2016pensationawards,structuralreformimplementationcostsandtheimpactofFX−Generatedpositivecost:iejawsexcludingtheadditionalchargerelatingto2016pensationawardsPBTwasimpactedbytheadditionalchargerelatingto2016pensationawards−Excludingthis,profitsincreaseddrivenbyencouragingCIBperformanceandgrowthinCC&P•••Q416iebyproduct(£m)Markets+31%1,061Consumer,Cards&Payments+22%1,1761,354Banking+14%1Marginshebeenrestatedtoincludeinterestearninglendingwithintheinvestmentbankingbusiness|22|Barclays2016FinancialResults|23February2017Q416performancemetricsBusinessperformanceexcludingnotableitemsThreemonthsended(£m)Dec-16Dec-15%change–Corporate&InvestmentBank(CIB)–Consumer,Cards&Payments(CC&P)2,5311,0612,09787121%22%Ie3,5922,96821%Impairment–Operatingexpenses–Banklevy–LitigationandconductTotaloperatingexpenses(426)(2,497)(284)(17)(2,798)(303)(2,007)(253)(6)(2,266)(41%)(24%)(12%)(23%)Profitbeforetax(PBT)373407(8%)Attributableprofit43210(80%)PerformancemeasuresexcludingnotableitemsReturnonerageallocatedtangibleequity(RoTE)erageallocatedtangibleequityCost:ieratioLoanlossrate(LLR)Netinterestmargin(NIM)11.0%£26.6bn78%78bps3.91%3.5%£24.9bn76%65bps3.79%Riskweightedassets(RWA)£212.7bn£194.8bnNotableitems(£m)–ProvisionsforongoinginvestigationsandlitigationincludingForeignExchange-(145)BarclaysInternational:Corporate&InvestmentBankIeincreasedemonstratingfranchisestrength•StrongestQ4ieperformanceinthreeyears,withimprovedperformanceinbothMarketsandBankingdeliveringa21%increaseinieto£2.5bn−IealsobenefittedfromtheappreciationoferageUSDagainstGBP,withover50%ofieinUSDImpairmentchargesof£90marosefromanumberofsinglenameexposuresCostswereimpactedbyadverseFXmovements,anadditionalchargerelatingto2016pensationawardsandstructuralreformimplementationcosts−Deliveredpositivecost:iejawsexcludingtheadditionalchargerelatingto2016pensationawardsPBTwasimpactedbytheadditionalchargerelatingto2016pensationawards.Excludingthis,PBTmorethandoubledRWAsincreased7%to£179bndrivenbyadverseFXmovements••••Marketsie+31%• Creditincreased34%,primarilydrivenbytheUSflowbusinesswhichbenefittedfromincreasedclientactivity•Macroincreased32%drivenbyastrongperformancesinrates• Equitiesincreased29%drivenbygainsincash,derivativesandfinancing,primarilyintheUSBankingie+14%•Bankingfeesincreased42%,primarilydrivenbyAdvisoryrecordingitshighestquartersinceQ1142−HighestquarterlyM&Afeeshareinovertwoyears3−#5fortotalbankingfeeproducts(Advisory,DCMandECM)inourbinedUSandUKhomemarketsinFY163• CorporatelendingandTransactionalbankingwereimpactedbysomemarginpression1IncludesOtherie|2Datapre-2014wasnotrestatedfollowingresegmentationinQ116|3Dealogicdata|23|Barclays2016FinancialResults|23February2017Keydrivers/highlightsQ416performancemetricsBusinessperformanceexcludingnotableitemsThreemonthsended(£m)Dec-16Dec-15%changeMarkets–Credit–Equities–MacroBanking–Bankingfees–Corporatelending–Transactionalbanking1,17689631%2614105051,3541953193821,18534%29%32%14%65045842%3034012,531(90)(2,287)312415(3%)(3%)21%(8%)(26%)Ie12,097ImpairmentTotaloperatingexpenses(83)(1,817)Profitbeforetax(PBT)155197(21%)PerformancemeasuresexcludingnotableitemsReturnonerageallocatedtangibleequity(RoTE)(1.2%)1.8%Riskweightedassets(RWA)£178.6bn£167.3bnBarclaysInternational:Consumer,Cards&PaymentsStrongieandbalancegrowth•PBTincreased4%,generatinganRoTEof13.2%•ContinuedgrowthacrossallkeybusinessesandtheappreciationoferageUSDandEURagainstGBPdrovea22%improvementinie• Impairmentincreasedby£117m,drivenby24%balancegrowthtogetherwithsomeshiftinportfoliomixandtheimpactofFXmovements,whileBarclaycardUS30and90daydelinquencyratesincreasedto2.6%(Dec-15:2.2%)and1.3%(Dec-15:1.1%)respectively•Costsincreased14%drivenbybusinessgrowthandtheimpactofFX−Deliveredpositivejawsandanimprovedcost:ieratioof48%BarclaycardUS•Loansandadvancestocustomersincreased37%to£21.6bn(includingtheimpactofFX)•Cardspendvalueof£16.2bninQ416,up35%vs.Q4151BarclaycardGermany•11%growthincustomerssinceQ415,to1.2m•28%growthinnetloansandadvancesto£3.0bn(includingtheimpactofFX)BarclaycardBusinessSolutions• Themerchantacquiringbusinessprocessedpaymentstothevalueof£60.6bninQ416,(erageof£659mperday),up13%onQ415• Continuedtowinandretainseveralkeycorporateclients,includingCentrica,TfL,GreggsandSainsbury’sPrivateBanking•Strongclientbalancegrowthof£5.5bn,including9%increaseindepositsDec-15Dec-16Dec-15Dec-16Q415Q4161Includesbalancetransfers|24|Barclays2016FinancialResults|23February201780.468.917%Totalcardspendandpaymentsprocessed(£bn)39.732.150.041.824%Keydrivers/highlightsCustomerdeposits(£bn)20%Loansandadvancestobanksandcustomers(£bn)Q416performancemetricsBusinessperformanceexcludingnotableitemsThreemonthsended(£m)Dec-16Dec-15%changeIeImpairmentTotaloperatingexpenses1,06187122%(336)(511)(219)(449)(53%)(14%)Profitbeforetax(PBT)2182104%PerformancemeasuresexcludingnotableitemsReturnonerageallocatedtangibleequity(RoTE)13.2%15.7%Non-Core:Acceleratedrundownthroughout2016•Lossbeforetaxincreasedto£788minthequarterprimarilyduetolowerothernetieandincreasednegativeie−Iereducedtoanexpenseof£419mdrivenbyincreasedderivativeexitcosts,lowerbusinessiefollowingsalesandtheterminationofinternalfundingandhedgingpositionsTotaloperatingexpensesincreasedto£468mduetothebanklevychargeinQ4andhigherrestructuringcosts,partiallyoffsetbylowerlitigationandconductcharges−RestructuringcostswereinlinewiththeFY16guidanceof£400mOthernetiereducedto£146mduetothenon-recurrenceoftheQ316gainonsaleoftheIndexbusiness2,partiallyoffsetbygainsonthesaleoftheAsiawealthandSouthernEuropeancardsbusinessesManagementactionsreducedRWAsbyc.£7bnreflectingreductionsinthederivativesportfolioandbusinessexits−Additio