The picture seems to be getting clearer for Barclays (BARC). Management announced its intention to close down its non-core operations by June this year, six months earlier than planned. It expects to incur a loss before tax of £1bn for this business during 2017, weighted towards the first half. But lurking in the background is the US Department of Justice's investigation into the banking group's sale of mortgage-backed securities as the global property market overheated between 2005 and 2007.
It was the non-core business that weighed on the banking group's income during 2016. This produced a loss of £1.1bn, from a £0.6bn profit in 2015. During the year the bank sold more of its non-core businesses including its southern European cards business and has also agreed the sale of its French retail operations. Non-core risk-weighted assets reduced by £22bn to £32bn.