Retirement and Financial Planning
Financial planning solutions designed to maximise your assets and minimise your tax liability.
Group Strategy
Our strategic goals and objectives are based on our aspiration to be recognised as a distinctive specialist bank and asset manager.
This distinction is embodied in our entrepreneurial culture, which is balanced by a strong risk management discipline, client-centric approach and an ability to be nimble, flexible and innovative.
We do not seek to be all things to all people and aim to build well-defined, value-added businesses focused on serving the needs of select market niches where we can compete effectively.
Financial Objectives
Financial objectives have been readjusted for changing landscape.
Target in £ |
31 March 2017 |
31 March 2016 |
|
ROE |
12% - 16% over a rolling 5-year period |
12.5% |
11.5% |
Cost to income ratio |
< 65% |
66.3% |
66.4% |
Adjusted EPS* growth |
10% > UK RPI |
16.9% |
4.8% |
Dividend cover range |
1.7 - 3.5x |
2.1x |
2.0x |
Capital adequacy ratio range |
14% - 17% |
plc: 15.1% |
plc: 15.1% |
Tier 1 capital adequacy ratio |
11% |
plc: 10.7% |
plc: 10.7% |
* Adjusted EPS is before goodwill, acquired intangibles and non-operating items and after non-controlling interests and after deducting preference dividends.
Client-focused approach
- Clients are at the core of our business
- We strive to build business depth by deepening existing client relationships
- High level of service by being nimble, flexible and innovative.
Specialised strategy
- Serving select market niches as a focused provider of tailored structured solutions
- Enhancing our existing position in principal businesses and geographies through organic growth and select bolt-on acquisitions
Sustainable business
- Contributing to society, macro-economic stability and the environment
- Well established brand
- Managing and positioning the group for the long term
- Balancing operational risk with financial risk while creating value for shareholders
- Cost and risk conscious.
Strong culture
- Strong entrepreneurial culture that stimulates extraordinary performance
- Passionate and talented people who are empowered and committed
- Depth of leadership
- Strong risk awareness
- Material employee ownership.
Our Strategy
Our long-term strategy is to build a diversified portfolio of businesses and geographies to support clients through varying markets and economic cycles. Since inception we have expanded through a combination of organic growth and strategic acquisitions.
In order to create a meaningful and balanced portfolio we need proper foundations in place which gain traction over time.
Our long-term internationalisation strategy
- Follow our customer base
- Gain domestic competence and critical mass in our chosen geographies
- Facilitate cross-border transactions and flow.
We have a very deliberate and focused client strategy:
- to leverage our unique client profile
- to provide the best integrated solution supported by our comprehensive digital offering.
Growing Asset Management in all regions
- Focusing on delivery of competitive investment performance
- Grow in Advisor channel and continue to scale Multi-Asset and Global Equities
- Focus on our large markets, especially North America
Growing the Specialist Banking business
- Building and developing our client franchises across all areas
- Improving the ROE in the business
- Implementing the UK Private Banking strategy
Relevant internationalisation of Wealth & Investment
- Digitalisation channel and launch of Click & Invest
- Creating an international operating platform
Other
- Continue investing in technology and people to maintain digital client experience
- Improving the cost to income ratio by focusing on operational efficiencies
- Diversity across the group and transformation in South Africa
Our diversified and balanced business model supporting long-term strategy
Broadly defined, we operate across three areas of specialisation focused on well defined target clients:
We aim to maintain an appropriate balance between revenue earned from operational risk activities and revenue earned from financial risk activities.
This ensures that we are not over reliant on any one part of our businesses to sustain our activities and that we have a large recurring revenue base that enables us to navigate through varying cycles and supports our long-term strategy.
