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Our strategy has five key elements to create value

Our
Strategy

Using our asset class management strategy we concentrate on the markets where we believe we have real expertise and where we can generate superior returns.

Key Performance Indicators

Our Key Performance Indicators help us to measure our progress against each element of our strategy.



Selective asset growth

Our strategy enables us to sharpen our focus on our core markets to enhance our depth of nowledge and experience. By concentrating our attention on markets where we have expertise, we will continue to develop our customer relationships through purposeful and dedicated relationship management.

Growth in Loans and Advances to Customers (%)

Growth in Loans and Advances to Customers (%)

*After sell down reflects the growth in advances retained on our balance sheet (i.e. after we have sold a proportion of our lending to another organisation).


Controlled credit risk

Our rate of asset growth and associated impairment experience is determined by the balance between the credit risks we take and the returns we achieve.

Impaired loans as a % of closing advances

Impaired loans as a % of closing advances

Cost leadership

Cost discipline for Corporate means driving value for money from all expenditure by understanding fully why we incur costs and how they support our stated objectives.

Cost:income ratio

Cost:income ratio

Excluding the impact of Lex, which became a wholly owned subsidiary from 31 May 2006, our cost:income ratio in 2006 would have fallen to 28.3%.


£1,663m

Underlying profit before tax up 17%


 

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Our strateg has five key elements to create value