Coutts has commited to spend at least £20 million a year to beef up the bank’s digital and wealth management offerings.
In the banks results, Coutts chief executive Peter Flavel said in an effort to strengthen the business going forward that over the next four years the bank would be ‘committed to investing in excess of £20 million per year for the next four years in the business, with a focus on our digital and wealth management propositions.’
The results also showed, Royal Bank of Scotland (RBS) saw its income from its private banking arm made up of Coutts and Adam & Company jump from £13 million to £657 million in 2016.
The profit for the two banks also saw an upswing, rising by 32% to £149 million over the course of last year.
The private banks’ assets under management (AUM) also increased, going up by £2 billion to £17.0 billion up 13% compared to 2015.
Flavel said: ‘I am particularly encouraged by the £2 billion of growth in assets under management, a clear sign our clients increasingly see us as more than a bank and are turning to us for long term, reliable and strong returns on their investments.’
The bank attributes a simplification of its business model as reason for the £7 million fall in operating expenses in 2016—bring the income ratio to 78%.
Flavel added: ‘2016 saw us achieve a number of important milestones. We welcomed over 1,700 new clients, around 20% of whom came from NatWest or Royal Bank of Scotland referrals, demonstrating the importance of this connectivity.’
Flavel highlighted the purchase of the firm’s London Strand office and the introduction of its multi-currency bank cards and CouttsID, as of particularly significant for the bank.