Page 8 - CCB_Annual Report_2022

8 Strategic Report
However, as the rest of this Annual Report
shows, notwithstanding the unpropitious
backdrop, the Bank’s performance has held
up well and it is continuing to make strides in
growing its business, with strong advances in
customer loans, deposits and profitability.
The key to the Bank’s continuing success in
difficult times is a forensic focus on its chosen
sectors of real estate lending and asset finance
for SMEs across the UK. Our strategy of going
to market through well managed relationships
with brokers and borrowers continues to
deliver good growth and robust returns. A key
component of servicing those relationships
is smart manual underwriting supported by
well-honed customer service and strong
credit risk management models and tools.
We have invested significant sums in both, the
benefits of which are explored further in the
following sections.
Our capital base remains strong as we
re-invest our significant trading profits, giving
us some of the strongest capital ratios in
the Specialist Bank sector. We believe that a
continuing strong capital base is a source of
competitive advantage and are seeing benefits
as a flight to quality takes place in the market.
Chair’s statement As noted above, the strong performance
reported in the following pages would not
have been possible without the commitment
Overview
and hard work of our excellent people. Led
Cambridge & Counties Bank celebrated by Donald Kerr and the senior executives,
its tenth anniversary in 2022, posting our team has moved on from the pandemic,
a record set of results despite many returning to more normal working routines,
worldwide headwinds. In 2012 the Bank whilst taking advantage of the best of the
rose, phoenix like, from the chaos following hybrid working model. I would like to pay
the 2007/8 financial crash, aiming to be a a particular tribute to all of the team and to
straightforward bank servicing small and thank them for their unstinting efforts during
medium sized enterprises by providing the last year.
tailored financing and a home for the cash
resources of smaller businesses and others. Future Strategy
That it is now a mature, profitable and robust The Bank remains committed to its strategy
provider of services to the SME sector, of servicing the SME market with manually
punching its weight as a Specialist Bank, is underwritten focused products in real estate
a testament to the foresight of its founders and asset finance. Our rolling three-year
and the skill, energy and commitment of its plan shows that continuing with this strategy
people over the last ten years.
will deliver sustainable profitable growth for
Our people’s energy and commitment has Cambridge & Counties.
seldom been tested more thoroughly than As part of this growth plan, we continue to
by the now familiar cocktail of geo-political improve the technology underpinning our
instability, economic setbacks as a result manual underwriting processes, further
of the Ukrainian War, and continuing developing our customers’ experience when
environmental concerns, from all of which dealing with the Bank by making access to
Cambridge & Counties is far from immune.
9
Celebrating record results in
our 10th anniversary year
our products easier, and by speeding up development. We will miss Simon’s wisdom
transactions. In doing so, we are mindful of and perspicacity and wish him well and every
the Financial Conduct Authority’s initiative success in the next phase of his career.
which makes much more explicit the duty
of financial institutions to ensure a good We are also sorry that Simon Lindley, our
outcome for their customers. This initiative Chief Development Officer, decided to
aligns closely with our own view of the retire at the end of the year. Simon brought
importance of looking after our customers’ to the Bank over thirty years’ experience in
interests as a natural part of an effective financial services business development and
and sustainable business model and we are property lending and played a major part
supportive of it. in building Cambridge & Counties’ market
position and commercial success. He was
An important element of the success of an integral part of the senior executive team
Cambridge & Counties from early days has and his measured, thoughtful and balanced
been a recognition of the importance of contribution to the team, combined with his
good environmental, social and governance sure touch in generating good business will
(ESG) standards and reporting. The Bank be much missed. We all thank Simon for his
achieved carbon neutral plus status in 2019, major contribution to the Bank’s success and
putting it at the forefront of the drive to a wish him a happy and fulfilling retirement.
sustainable future. As part of our continuing
commitment to be a responsible bank we Mike Peck has joined the Board as our new
are exploring membership of B Corp, a Audit Committee Chair. Mike was a senior
global initiative which helps companies audit partner at KPMG, working in the
to better understand and manage their financial sector with some of the UK’s major
environmental and social impact. More financial institutions as his clients. He brings
information on our sustainability work is a wealth of experience of banking in the
given in the relevant sections later in the UK and Middle East and is a very welcome
Annual Report. addition to the Board.
Conclusion
Our Senior Team
At the end of September Simon Moore Cambridge & Counties enters 2023 in good
retired as Chair after ten years’ service shape. A combination of a robust capital
as a non-executive director and Chair of base, good underlying systems, strong
the Bank. Simon joined the Board in 2012 relationships with brokers and customers,
and became Chair in 2016. He led the and deep knowledge of the SME market and
Board very effectively through a period its associated risks, means that we are well
of significant growth, making a huge positioned to capitalise on the opportunities
contribution to establishing the Bank as that exist in the market, notwithstanding
a significant player in the Specialist Bank continuing headwinds, which are likely to
sector, ensuring always that the Bank’s make this a tough year for the UK economy.
strategy was clearly defined and articulated, The remainder of the Annual Report explores
whilst developing its leadership team these themes, describing the Bank’s progress
and management structures, so that the through 2022 and our future plans.
required skills were in place to deliver the
strategy. Simon also ensured that the Board
demanded high values and standards of
behaviour across the organisation. The
Bank owes him a great debt of gratitude for
his contribution as Chair over the last six
years and, as his successor, I am extremely Patrick Newberry
fortunate to inherit a strong Board and Chair
executive team which is well equipped to 30 March 2023
lead the Bank through its next phase of