InvestmentsFeb 18 2022

Coutts doubles net new flows as bank heeds ‘step change’

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Coutts doubles net new flows as bank heeds ‘step change’
REUTERS/Peter Nicholls

Coutts has reported an 11 per cent uptick last year in assets under management and administration, jumping from £32.1bn to £35.6bn.

The bank, which has a history dating back to 1692, said in an announcement today (February 18) it had welcomed a “step change” in net new money flows.

Adding £3bn to its balance sheet in 2021, Coutts' chief executive Peter Flavel dubbed this “a significant rise” (100 per cent) on the previous year, which saw half (£1.5bn) the amount of net new money brought into the bank.

Flavel said 2021 proved to be “a stand-out year”, both in terms of Coutts' financial results and its progress against its strategic priorities - which have focused on building a broader range of clients and using very modern investment methods.

We are looking forward into 2022 with confidence.Flavel

Coutts is the private banking arm of NatWest Group. Clients stretch across a high-net-worth asset management business, as well as NatWest’s affluent customer arm, which receives investment advice through a platform called ‘Premier’.

About six years ago, the bank ventured on a journey to consolidate these arms from both a technology and investment portfolio management perspective.

Today, the bank said some 2,114 new customers have been onboarded to NatWest’s private banking arm - an increase of around 29 per cent compared to 2020.

“During the year we were pleased to welcome more than 2,000 new clients to the bank, 23 per cent of which came from NatWest Group,” said Flavel. 

“Our continued focus on our client relationships and investment in digitisation saw satisfaction increase for the sixth consecutive year with NPS [net promoter score] at a record high.”

Customer deposits increased by £6.9bn, or 21.3 per cent, compared with 2020, finishing on £39.3bn. 

Operating profit was up by £142mn (68 per cent) to £350mn, which the bank said was in part down to the £1.8bn impact of the sale of Adam & Company’s investment management business.

In a concluding statement, Flavel said: “It is with great pride we deliver this robust set of results as we continue to deliver as a relationship private bank that is digitally enabled. 

“Our commitment to bring the best of the bank to our clients, offering brilliant banking, flexible lending, responsible investments, and financial education, shows in today’s pleasing results. 

“With a number of key innovations and announcements in the pipeline we are looking forward into 2022 with confidence.”

ruby.hinchliffe@ft.com