bank-r-and-a

Overview Strategic report Corporate governance Risk management Financial statements Other information
Business model
Core
As at 31 December 2013, the Core Bank had 4.7m customers, of which 4.6m were Retail and 0.1m were SME customers, and operated through a network
of 294 branches, 22 business banking centres and 3 primary call centres, over 2,500 ATMs, the internet and digital channels.
Non-core
Managing these businesses to achieve the most appropriate asset value or targeting run down or exit.
How we make money
Business activity Balance sheet impact Income statement impact Principal Risks
We lend money to customers Loans create assets in our We earn interest income and may • Credit risk
balance sheet that will generate incur credit impairment charges • Market risk
future income
• Operational risk
• Liquidity and funding risk
• Conduct risk
We collect deposits
from customers
We source funding from
other banks and the
capital markets
We provide transactional
banking facilities
Deposits are a source of funding for
the Bank (liabilities) which often incur
interest expense
Wholesale funding is a liability
for the Bank on which we incur
interest expense
Minimal
We may pay interest on deposits
We pay interest on wholesale funding
We earn net fee and
commission revenue
• Liquidity and funding risk
• Market risk
• Operational risk
• Conduct risk
• Liquidity and funding risk
• Market risk
• Operational risk
• Operational risk
• Conduct risk
We invest in people in order
to execute our strategy
and deliver service to
our customers
We invest in our operations
(IT and infrastructure)
to deliver service to
our customers while
managing costs
Minimal Staff costs • Operational risk
• Conduct risk
• People risk
• Pension risk
Property, plant and equipment Other operating costs • Operational risk
• Strategic and business risk
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The Co-operative Bank plc Annual report and accounts 2013