Leading positions in core markets, particularly U.K. retail and commercial banking. Good progress in refocusing and innovating the business model and addressing legacy risks. Sound funding and liquidity profiles. Returns and cost efficiency lag peers', but show improvement toward management's 2020 targets. Risk of weaker domestic economic conditions depending on the terms of the U.K.'s exit from the EU (Brexit). Exposure to political developments due to continued majority ownership by the U.K. government. The positive outlook reflects the expected gradual improvement of the group's risk profile, especially after the May 2018 settlement agreement with the U.S. Department of Justice (DoJ) on the legacy residential mortgage-backed securities (RMBS) litigation, which was the main risk we saw to RBSG's capital position. Although
