Reports
Operating Profit Jumps At Coutts; Net New Assets Grow
The UK-based bank produced a broadly stronger set of financial results for last year.
Coutts, the private
banking arm of UK-listed NatWest, today reported a 68 per cent
year-on-year surge in operating profit to £350 million ($477
million) for 2021, and an 11 per cent rise in assets under
management and administration to £35.6 billion from the end of
2020.
The organisation logged £3 billion of net new money, double the
amount from a year before. Of all sales, digital channels now
account for 26 per cent of net new money, it said in a
statement.
More than 2,000 clients were taken on board in 2021, a rise of 29
per cent from a year before.
“2021 proved to be a stand-out year, both in terms of our
financial results and our progress against our strategic
priorities; particularly Coutts’ role as the asset management
centre of excellence for the group,” Peter Flavel, chief
executive at Coutts, said. “Lending grew strongly as well by 8
per cent, driven by strong mortgage flows evidencing our
expertise in flexible prime and super prime lending.”
The jump in operating profit was supported by last year’s sale of
the Adam Investment Management business and impairment releases
while return on equity rose to 17 per cent from 10 per cent last
year he said.
Flavel also referred to the bank’s environmental
credentials.
“We reduced the carbon intensity of our funds by 38 per cent by
the end of 2021, exceeding our target reduction of 25 per cent.
Reducing the carbon impact of our investments remains a high
priority and in February this year, we redesigned NatWest Group’s
Personal Portfolio funds, making them among the first net-zero
funds to be offered to UK retail investors. We also approved £225
million of Green Mortgages in 2021, leading to recognition from
the Green Finance Institute,” he said.
In July 2021, Coutts became the largest private bank and wealth
manager in the UK to become a B Corp, he noted – such status
shows that it balances profit with purpose in
decision-making. Since then, Coutts has become a founding member
of the ‘B Finance UK Coalition’ which was launched at COP26,
supported B Lab UK’s Boardroom 2030 initiative as well as helping
some of its entrepreneur clients on their own B Corp
journeys.
