Segment performance Central items 2016 compared with 2015 ● Central items not allocated represented a charge of £1,615 million in 2016, compared with a £903 million charge in 2015, and included restructuring costs of £1,482 million and litigation and conduct costs of £697 million. Restructuring costs included a £750 million provision in respect of the 17 February 2017 update on RBS’s remaining State Aid obligation regarding Williams & Glyn. Treasury funding costs were a charge of £94 million, compared with a gain of £169 million in 2015, and included a £510 million charge for volatile items under IFRS, due to reductions in long term interest rates, and a £349 million foreign exchange gain, principally associated with the weakening of sterling against the US dollar. In addition, there was a £126 million loss on redemption of own debt in 2016. These were partially offset by a VAT recovery of £227 million and a £246 million gain on the sale of the stake in VISA Europe. Q4 2016 compared with Q3 2016 ● Central items not allocated represented a charge of £161 million in the quarter, compared with a £545 million charge in Q3 2016, and included restructuring costs of £836 million and a net credit of £192 million for litigation and conduct costs. Q4 2016 Treasury funding costs were a gain of £465 million (compared with a charge of £177 million in Q3 2016) and included a £308 million IFRS volatility gain and a foreign exchange gain of £140 million. Partially offsetting this was a £77 million own credi t adjustment charge as spreads tightened. Q4 2016 compared with Q4 2015 ● Central items not allocated represented a charge of £161 million in the quarter, compared with a £264 million charge in Q4 2015, and included restructuring costs of £836 million and a net credit of £192 million for litigation and conduct costs. Q4 2016 Treasury funding costs were a gain of £465 million (compared with a gain of £193 million in Q4 2015) which included a £308 million IFRS volatility gain and a foreign exchange gain of £140 million. Partially offsetting this was a £77 million own credi t adjustments charge as spreads tightened. 47 RBS – Annual results 2016