Page 23 - 86395_CCB - 2024 Annual Report (web)

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Summary Balance Sheet £’000 2024 2023 Loans and liquid assets

Liquid assets 370,126 360,302 The Bank continued to grow its loans and
advances to customers in 2024 with total
Loans and advances to customers 1,204,444 1,083,278 gross and loans increasing by 11% to over
£1.2bn. The Bank’s balance sheet reflects
Derivative financial assets 149 ‑ growth in each of its Real Estate Finance,
Asset Finance and Classic Cars & Sports
Other assets and prepayments 7,016 7,142
Vehicle loan portfolios in 2024.
Total Assets 1,581,735 1,450,722 The Bank’s portfolio of £1,059m (2023:
£972m) commercial loans is secured
Customer deposits 1,271,824 1,155,224 on property, lending to experienced
commercial and residential property
Central Bank facilities 55,000 65,000 investors as well as to owner occupied
businesses to invest in their own
Derivative financial liabilities ‑ 652
commercial premises.
Other liabilities and accruals 9,277 10,317 The Bank is making good progress in
growing its Asset Finance business. The
Provisions 750 ‑ Asset Finance business provides finance
for businesses to acquire essential assets
Subordinated debt 4,800 4,751 such as equipment, plant, machinery,
or vehicles using hire purchase and
Shareholders’ funds 240,084 214,778
finance lease facilities. The Bank’s Asset
Total Liabilities and Equity 1,581,735 1,450,722 Finance customer exposures increased
by 14% from £83m to £95m during
2024. The Bank also provides finance for
Key Performance Metrics 2024 2023 the purchase of classic cars and sports
vehicles using hire purchase and finance
Gross new lending £376m £328m lease products which increased from £51m
Net interest margin 4.9% 5.4% to £72m.
The majority of the Bank’s Real Estate
Cost : income ratio 45% 37% loans continue to be base rate linked
although the Bank has continued to record
Cost of risk 42bps 67bps a growing proportion of 3 and 5 year fixed
rate loans. All the Bank’s Asset Finance and
Common Equity Tier 1 capital ratio 21.8% 22.7%
Classic Car & Sports Vehicle loans are set
Total capital ratio 24.6% 26.0% at a fixed rate.
The Bank holds a portfolio of highly
Liquidity Coverage Ratio 521% 718% liquid assets which are available and
accessible to meet cash outflows. The
Return On Capital Employed (ROCE) 12.2% 15.7% Bank’s liquid assets are held as cash
reserves at the Bank of England and
Definitions: bonds issued by supra‑national bodies
Gross new lending – new loans drawn down during such as the European Investment Bank
the period
Net interest margin – net interest income/average interest and the Asian Development Bank and
earning assets (at the start and end of the period) other well‑known European and UK
Cost : income ratio – total operating costs/total based banks.
operating income
Cost of risk – loan loss impairment charge/average gross The Bank monitors its liquidity daily
lending balance (at the start and end of the period) using a broad range of performance
Impairment coverage – impairment provisions/gross loans metrics. A key regulatory measure of
and advances to customers
Common equity tier 1 capital ratio – ordinary shares and liquidity adequacy is the LCR (Liquidity
reserves (common equity)/risk weighted assets (at the Coverage Ratio), which is designed to
reporting date)
Total capital ratio – all forms of capital (CET 1 and AT1)/ assess the short‑term resilience of the
risk weighted assets (at the reporting date) Bank’s liquidity risk profile. The Bank’s LCR
All capital ratios include IFRS9 transitional relief was 521% (2023: 718%) significantly higher
Liquidity Coverage Ratio – calculated by dividing a bank's
high‑quality liquid assets by its total net cash flows, over a than the regulatory requirement of 100%.
30‑day stress period. The LCR reduced during the year reflecting
Return On Capital Employed (ROCE) – Profit after tax/
average Total equity (Retained Earnings+ Fair value through an increasing proportion of the Bank’s
other comprehensive income reserve (FVOCI) +Ordinary HQLA being invested in Level 2 assets as
Shares+AT1 capital) (at the start and end of the period).
2023 previously reported 15.6% excluding FVOCI reserve. the Bank seeks to optimise its HQLA yield.