Adjusted income declined to a net expense of £121m (2012: income of £201m), predominately due to the non-recurrence of gains related to
hedges of employee share awards in Q112 of £235m and the residual net expense from treasury operations, including an adjustment to the
carrying amount of subordinated liabilities.
Operating expenses decreased £46m to £133m, mainly due to the non-recurrence of the £97m penalty arising from the industry wide investigation
into the setting of inter-bank offered rates recognised in H112, partially offset by costs to achieve Transform of £22m and regulatory investigation
and legal costs.
Adjusted loss before tax of £247m moved from a profit of £39m in 2012. Statutory loss before tax improved to £467m (2012: £4,313m) including
an own credit charge of £220m (2012: £4,579m), partially offset by the non-recurrence of the £227m gain on disposal of investment in BlackRock
Inc. in 2012.
Total assets decreased 35% to £27.3bn primarily reflecting a reduction of group liquidity pool assets and a reallocation to the businesses.
CRD III RWAs decreased £2.3bn to £3.0bn primarily driven by reallocation of liquidity pool assets to the businesses.