Financial performance summary
Underlying profit before tax of $0.8 billion, down 84 per cent, reflecting challenging market conditions and strategic management actions
Underlying operating income of $15.4 billion, down 15 per cent:
o One-quarter of the decline resulted from lower exchange rates against the US dollar
o One-quarter resulted from business exits, disposals, and de-risking
o One-quarter related to lower commodity prices and mark-to-market valuations
o One-quarter related to lower levels of business activity
Underlying operating costs, excluding the bank levy and regulatory costs, of $9.0 billion, down 7 per cent
Underlying loan impairment of $4.0 billion, up 87 per cent:
o Around 40 per cent related to a number of exposures beyond our tightened risk tolerance
o The balance was mainly driven by falling commodity prices and deterioration in financial markets in India
Reported loss before tax of $1.5 billion after taking:
o Restructuring charges of $1.8 billion, within the $3 billion indicated in November 2015, covering redundancy costs, impairments and a goodwill write down
o A broadly capital neutral credit and funding valuation adjustment of $863 million in the fourth quarter
o A positive own credit adjustment of $495 million
o A gain on sale of businesses in the period of $218 million
o Goodwill impairment of $362 million related to Taiwan
Normalised basic earnings per share of (6.6) cents (2014: 138.9 cents)
Normalised return on ordinary shareholders' equity of (0.4) per cent (2014: 7.8 per cent)
The Board confirms its earlier decision not to declare a final dividend for 2015
