Movement in interest rates together with an unfavourable actuarial policy valuation adjustment in the prior year has resulted in an improvement in investment experience.
It also tackles the regime's revised credit valuation adjustment framework, which adds significantly to the required computing power because of the number of sensitivities involved.
It also booked a 4.4 billion-pound non-cash mark-to-market valuation adjustment to its currency hedge book, reflecting sterling's slide, resulting in a 4 billion-pound net loss.
In principle, it includes the (separately itemised) increase in the value of output inventories held, with or without a valuation adjustment reflecting average prices during the accounting period.
Excluding market related net interest income adjustments, as well as net debit valuation adjustments, revenue would have been slightly higher at $21.8 billion than $21.7 billion recorded in the earlier period.
Compared to the second quarter of 2015, processing fees and other revenue increased, primarily due to favorable valuation adjustments and higher revenue associated with bank owned life insurance.
