Our purpose


 

Helping Britain Prosper

We do this by creating a more sustainable and inclusive future for people and business, shaping finance as a force for good.

Our strategy


 

Our strategy is focused on supporting the needs of our customers, colleagues and communities, whilst delivering sustainable returns and creating value for our shareholders.


Our strategy

We have three strategic priorities which will enable us to deliver our vision of being the UK customer-focused digital leader and integrated financial services provider, capitalising on new opportunities, at scale.

  • Section heading: Focus

    Strengthen cost and capital efficiency 

    As we invest to grow and diversify our revenue, it is essential to maintain our disciplined cost management approach.

    We will also look to further improve capital efficiency as we maintain our strong balance sheet with a disciplined risk approach, pursuing growth in capital-lite, fee generating businesses and generating capital.

    How this is Helping Britain Prosper

    Deploying our funds in a way which is sustainable in the long term, helping customers and clients become more resilient, supporting customers, colleagues and communities through challenging times, minimising our carbon footprint and reducing our sustainability related risks all help us achieve a disciplined approach to cost and capital management and strengthen our balance sheet.

    Progress in 2023

    • 8.8m customers signed up to Your Credit Score.
    • c.600,000 businesses supported with customer resilience resources.
    • 3 new NZBA targets launched in 2024 to mitigate assessed climate risks.

  • Section heading:

    Maximise the potential of people, technology and data

    Delivering this strategy requires the Group to accelerate the pace at which it uses digital technologies and data to support customers. We seek to emulate our success in building the largest UK Retail digital bank on a larger scale across the Group.

    How this is Helping Britain Prosper

    We are building an inclusive and diverse organisation representative of modern-day Britain, so that we can deliver for the communities in which we operate. Embedding sustainability in all that we do and improving the ways we use digital technology and our data enables us to drive better outcomes for our customers and provide the targeted support when it’s needed.

    Progress in 2023

    • We continued to progressively transform or improve our technology stack, with more than 10% of our legacy technology applications decommissioned since 2021.
    • 2,500+ new hires in technology and data roles and a senior leadership development programme centred around the organisational shifts we need in order to successfully execute our strategy.
    • 12.4% representation of colleagues with disabilities in senior manager roles.
Section heading: Grow

Drive revenue growth and diversification

Growth is a core focus of our strategy. Around two thirds of our £3 billion strategic investment over 2022 to 2024 is aligned to growing and diversifying revenue. We have prioritised opportunities across each of our businesses to ensure we generate value in the near term as well as creating new revenue streams which deliver over the longer term.

How this is Helping Britain Prosper

Our aim is to create profitable solutions which will help improve access to quality housing across the country, drive regional development, increase financial resilience of people and businesses, and navigate the UK’s transition to a more sustainable future, by capitalising on sustainable and inclusive financing and investment opportunities.

Progress in 2023

  • £29bn of sustainable finance lending from 2022 to 2023.
  • £2.7bn of funding supported to social housing sector and £12bn+ funding to first time buyers in 2023.
  • 3.9m savings accounts opened in 2023.

 

Higher, more sustainable, returns and capital generation

Our strategic outcomes create value for our stakeholders and enhance the Group’s financial performance.

13%
return on tangible equity

£0.7bn
additional revenues from strategic initiatives

£9.3bn
operating costs

175bps
capital generation


See our latest annual report to read about our strategy in more depth. 
 

Annual report

How we're Helping Britain Prosper

 These are some of the ways that we're delivering on our purpose of Helping Britain Prosper.

Our impact

Sustainably managing the value we create for all our stakeholders ensures that we can reshape financial services and help Britain prosper for generations to come.

Customers

£12bn+
of funding to first time buyers in 2023.

Colleagues

40.1%
of our senior manager roles were held by women in 2033.

Communities

£24.7m
donated to our independent Foundations in 2023.

Shareholders

£3.8bn
returned to shareholders for 2023.

Customers

£12bn+
of funding to first time buyers in 2023.

£15.8bn

of sustainable finance provided for corporate and institutional customers since 2022.

Colleagues

40.1%
of our senior manager roles were held by women in 2033.

c85%

of colleagues are shareholders of the Group.

Communities

£24.7m
donated to our independent Foundations in 2023.

£2.7bn

of funding supported to the social housing sector in 2023.

Shareholders

£3.8bn
returned to shareholders for 2023.

>2.76p

ordinary dividend per share price.

£15.8bn

of sustainable finance provided for corporate and institutional customers since 2022.

c85%

of colleagues are shareholders of the Group.

£2.7bn

of funding supported to the social housing sector in 2023.

>2.76p

ordinary dividend per share price.


See our latest annual report to find out more about how we're Helping Britain Prosper. 
 

Annual report

 

Helping Britain Prosper: CEO update

Video | 2 mins

Watch Charlie's message, as he reflects on supporting our stakeholders in 2023 and beyond.

Watch video Video opens in new tab

Related content

Championing social housing

Enabling people to find safe and sustainable homes is central to our purpose.

Social housing

Strategy downloads

Download our Group codes and policies, reports, presentations and strategy documents back to 2010. 

Downloads

Group overview

We're a leading UK-based financial services group. We provide a wide range of banking and financial services, focused primarily on retail and commercial customers.

About us