Return on average ordinary shareholders’ equity
Return on average tangible equity (excluding significant items and the bank levy)
Our medium-term target is to achieve a return on equity (RoE) of more than 10%. This target is modelled on a common equity tier 1 (CET1) ratio in the range of 12% to 13%.
Over the first nine months of 2016, the return on average ordinary shareholders’ equity was 4.4%. This was down compared to the prior year, primarily reflecting an adverse movement in significant items, including the loss on disposal of our operation in Brazil, fair value losses on our own debt and the cost of investments to deliver the strategic actions set out at the Investor Update.
Excluding significant items and the bank levy, return on average tangible equity was 8.8%.