2023 Key Highlights
statutory operating profit
£349m
before impairment losses
£3.6bn
gross new lending
17.9%
strong CET1 ratio
- Financial performance
- £349m statutory operating profit before impairment (2022: £286m).
- Gross new lending of £3.6bn, with a continued focus on lending at sustainable returns (2022: £2.9bn).
- Statutory net interest income of £583m, 5% higher than 2022.
- 39% Statutory cost income ratio, excluding impairments (2022: 46%).
- Transformation
- Completed refurbishment of NI branch network.
- Continued investment in and delivered enhanced propositions and digital journeys for customers across all product lines.
- Enhanced leadership programmes launched, focusing on digital progression, environmental responsibilities, and societal challenges.
- Extension of the Post Office (PO) partnership for a further five years, providing continued funding stability.
- Asset Quality & Capital
- £43m Net impairment charge (2022: £64m).
- Strong CET1 ratio of 17.9% (2022: 18.4%).
- Maintained non-performing exposure (NPE) ration of 2.1%.
- £250m dividend paid, optimising capital position.
- Supporting customers and communities
- Implemented the Financial Conduct Authority (FCA) new Consumer Duty regulation with the commitment to deliver good customer outcomes.
- Became a signatory to the UK Mortgage Charter, demonstrating our support for mortgage customers experiencing financial pressures.
- Launched ‘Thrive’, the Group’s Performance Development hub, ensuring a simple and consistent performance platform for all colleagues.
- Re-introduced variable pay for colleagues to attract and retain talent.