· Reported profit before tax ('PBT'), which included adverse credit spread movements of US$2.6bn on the fair value of our own debt, was US$4.3bn. We continue to reap the benefit of investment in faster-growing markets, with PBT increasing by 21% in Hong Kong, 24% in Rest of Asia-Pacific and 11% in Latin America over 1Q11.
· Underlying PBT for 1Q12 was up 25% compared with 1Q11 to US$6.8bn. The main factors driving this improvement were increased revenues in Global Banking and Markets, Commercial Banking and Retail Banking and Wealth Management, the latter from faster-growing regions.
· Underlying cost efficiency improved from 58.7% to 55.5%, driven by increased revenues.
· We have made good progress on all areas of strategy, including sustainable cost savings, and have announced 11 transactions to dispose of or close businesses since the start of 2012. FTEs have fallen by 14,000 since Q1 2011 and 3,500 since the end of last year.
· Core tier 1 capital ratio was 10.4% at 31 March 2012.