Page 12 - CCB_Full-Annual-Report-2021

12 Strategic Report 13

Contents
Contents

Strategy Whilst the Bank’s primary purpose is Our Purpose and
serving UK businesses, the impact of the
Despite the challenges the pandemic has current conflict in the Ukraine, increases Business Model
posed for our customers, communities Our people have been in global energy prices, and inflationary Strategic Report
and people, the Bank continues to offer a spiral will impact the UK economy and the
competitive and customer focused range pivotal to the success markets in which we operate. The higher Purpose statement
of straight-forward finance products. corporate leverage and Government Cambridge & Counties Bank is a UK Bank
The Board’s strategy is one of sustainable of 2021, embracing deficits could mean tighter fiscal policy that specialises in providing lending and
organic growth in our existing markets over the medium term following the deposit products for Small and Medium
without material uplift in risk. Our strategic new ways of working significant stimulus that accompanied Enterprises (SMEs).
objectives are:
and finding a positive the onset of Covid 19. Our conservatism Ownership
∞ to develop our lending products to in provisions and loss absorbing capacity
will continue to be assessed as part of the
meet climate change challenges and operating rhythm. Bank’s regular stress testing exercises. Established in June 2012, Cambridge &
help support our customers ensure their Expected interest rate rises could add Counties Bank has a stable and supportive Corporate Governance Statement
properties are energy efficient; ownership structure being jointly owned
upside to our income growth rate outlook.
Over the medium term as the coronavirus by Trinity Hall, a college of the University
∞ to continue to invest in our customer is likely to become less virulent, and the risk of Cambridge, and Cambridgeshire County
contact strategy and geographical of entrenched high inflation is mitigated Council as Administering Authority of
footprint to maintain our high customer through stabilisation of energy markets, the Cambridgeshire Local Government
service and satisfaction levels, and The Bank’s relationship model has been we look forward to the resolution of the Pension Fund.
access underserved markets; and fundamental in supporting our customers Ukrainian conflict.
and proving a dependable lender, providing The Bank is authorised by the Prudential
∞ use proven technology to support our a human interface to help navigate the The pandemic has accelerated the pace Regulation Authority, regulated by the
colleagues’ interactions with brokers pandemic challenges. The Bank has stayed of digitalisation and further investment Financial Conduct Authority and the
and customers. true to its commitment to put our customers will be key to boost UK productivity Prudential Regulation Authority, and is
and brokers at the centre of our purpose, growth, mitigating concerns of a double registered under the Financial Services
The investment made in support functions and this is reflected in our 95% customer dip recession. We are investing in straight Compensation Scheme. Independent Auditor’s Report
over the last 2-3 years has resulted in a solid satisfaction measure and growth in new through processing and accelerating digital
and stable platform upon which to grow the business volumes. We were delighted that capabilities; our development in credit risk
Bank to the next level. Cambridge & Counties Bank were again and credit grading models enables us to
nominated by our broker community in embed our USP in manual underwriting in
The Bank’s “people led – technology the NACFB 2021 Awards, and we value the risk assessment and pricing.
enabled” strategy has not changed, and our strength of the broker community support.
priority continues to focus on providing The Bank remains in great shape and with
excellent customer support and service Our people have been pivotal to the strong growth prospects. We are confident
levels across our market relevant proposition. success of 2021, embracing the new ways we can deliver our strategy, building on the
Through targeted investment in front line of working and finding a positive operating investment we have made over the past
systems and processes, we expect to be able rhythm despite the challenging backdrop. couple of years and the momentum we
to drive efficiencies and improved service We maintained market leading engagement have coming into 2022. Whilst significant Financial Statements
levels enabling revenue growth to exceed scores through the pandemic reflecting uncertainty persists, we also see significant
cost growth. This will not only improve cost the commitment of our colleagues and the opportunities emerging. We have the
efficiency in the short to medium term, but management team. These results would not right strategy, business model, people and
also ensure that the Bank is well placed have been possible without the incredible ambition to deliver on this potential.
to continue to grow in an increasingly efforts of every team in the Bank, and I
competitive environment over a longer would like to place my deep gratitude to
time horizon.. them all on record.
Donald Kerr
Supporting our customers and our people Outlook
Chief Executive Officer
Doing the right thing has always been at The Bank remains well capitalised, with 12 April 2022
the core of the Bank’s culture and how strong liquidity and an asset backed lending Notes to the Financial Statements
we operate, and this year’s performance portfolio. Our credit loss provision provides
reflects that alignment of the Bank’s a robust level of coverage across our loan
strategic aspirations, with our social and portfolio, enabling the Bank to face into
environmental contribution evidenced the continuing challenging economic
across the ESG agenda. environment from a position of strength.