Negatives

Slowing revenue growth and increasing costs.

Profits in the next few years likely to suffer due to slowing housing market, reduction in trading in derivatives, fewer opportunities for creating new products, etc.

Fierce competition in personal banking and lending from building societies and smaller banks like Abbey National.

Vulnerable to recessions. But about 49% of costs comprise performance related (36%), new investments (9%) and contractor costs (4%) that can be reduced when income reduces.

Risk of major acquisition or other major decision going wrong.

Increasing contribution of Barcap to profits but higher risk.

Enron litigation – how much will the unprovided charge be?

Integration of Woolwich was badly managed.