The UK private bank reported a broadly stronger set of financial figures for 2022. This news service also caught up with CEO Peter Flavel to discuss some of the details.

Coutts said today that it has chalked up a 25 per cent year-on-year gain in operating profit for 2022, reaching £436 million ($520.6 million), while its return on equity stood at 24.5 per cent last year, rising 7.5 per cent. 

The results from the UK private bank also showed that deposits gained 5 per cent to £1.9 billion on a year ago; lending rose by 4 per cent to $19.2 billion. Net new money grew 5.6 per cent, at £2 billion

The bank’s CEO, Peter Flavel (pictured), said he was encouraged by the results, especially by how the firm’s digital channel was playing a significant role.

“Digital investment sales continued to grow through 2022 and represented 17 per cent of overall NNM [net new money], demonstrating a most pleasing performance given volatile investment market conditions and relative to the overall UK investment market,” he said in a statement. 

“We were encouraged to see responsible investing which saw £6.5 billion of AuM invested in funds that are on a net zero trajectory and are decarbonising at an average rate of 7 per cent per year. This is up 24 per cent on 2021, showing the increased awareness of our clients to the ongoing climate emergency and further evidencing our drive for balancing people, planet, and profit,” he said.

Markets affected assets under management and administration: AuMA stood at £33.4 billion at the end of 2022.

Productivity
Flavel, who talked directly to WealthBriefing about the results and the bank’s strategy, said investment in digital channels and IT had significantly boosted advisors’ productivity.

“Once someone has gone out on the road and seen clients, then immediately the meeting finishes, and advisors can file the notes they need. There’s no need for them to go back into an office and sit at a desk-top….that’s quite a big productivity improvement,” he said. “Advisors now have their office inside their iPads in the field.”

“We continue to have solid growth quarter-on-quarter, and continue to integrate banking, lending and investments. We are positive about the future; we are getting good client referrals also from the rest of the bank,” he continued. 

Flavel also talked about the bank’s sustainability credentials. The lender in 2021 acquired a coveted Certified B Corporation status, a title showing that it balances financial results while protecting the environment. 

“We are delighted to be a founding member of the ‘B Finance UK Coalition’ launched at COP26, which aims to reshape our sector and drive change through purpose. We set up this coalition together with 15 peer B Corps committed to talking to the CEOs of any finance company about the B Corp process.

“Some time ago, we took the decision not to develop a separate range of `Green’ funds; we have an ESG filter on all our funds. Clients are aware of that and that’s what they want. It really strikes home with people that a big part of their carbon footprint is in their pension and savings investments. They have to take hold of investment strategy they are undertaking,” Flavel told WealthBriefing.

Other details
In today’s statement, Flavel noted that in 2023 the bank witnessed the second tranche of fundraising through its UK Enterprise Fund (UKEF) in partnership with BGF, pushing the overall amount raised to £80 million. UKEF provides the bank’s client base with access to investment opportunities in privately-owned scale-up and early-stage businesses, as part of BGF’s nationwide platform. The money is invested into scale-up businesses based in the UK, providing long-term funding to support growth.

Flavel said 22 per cent of the first tranche has been used to back female-led businesses, above the industry standard of just 1 per cent.