bank-r-and-a

Overview Strategic report Corporate governance Risk management Financial statements Other information
Our strategy
As part of the overall Recapitalisation Plan announced last year (see page 13 for
a fuller description of the plan), the Bank has taken a number of actions to address
the challenges it faces starting with the LME which was completed in December 2013.
In parallel with the raising of additional capital announced on 24 March 2014, the focus
now turns to implementing the Bank’s strategy of becoming, over the next four to five
years, a smaller and efficient bank retaining Co-operative values and focused on Retail
and SME customers.
Overarching strategy
Leverage brand strength
and high levels of customer
satisfaction
Reduce overall risk profile
Liquidity, capital and
day-to-day business
Reduce risk weighted assets
Minimise impact
on capital
Act in accordance with Co-operative values and ethical principles
Doing the right thing by our customers
Core business strategy
Simplify and focus on Retail and SMEs
Enhance returns
Non-core business strategy
Actively manage to achieve the most appropriate value
for each portfolio or target for run down or exit
Taking into consideration liquidity and capital requirements
Key actions for the Core business
Key actions for the Non-core business
• Establish an effective and efficient operational and governance structure
• Manage reputational and conduct risk
• Data remediation
• Streamline Retail and SME product offering
• Deepen customer relationships
• Re-price to market/exit uneconomic products
• Business process simplification
• Re-engineering of IT platform
• Improved internet and mobile banking functionality leading to
increased self-service
• Leverage The Co-operative Group’s geographical footprint and
membership base
• Active management of assets
––
Single asset and portfolio sales
––
Optimisation of borrowers’ funding structures
––
Re-banking of Non-core customers
––
Run down closed businesses over the longer term
Efficient and profitable UK bank retaining
Co-operative values focused on Retail and SMEs
The Co-operative Bank plc Annual report and accounts 2013
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