HBOSplc

Our Strategy

Our strategy in Treasury supports the growth of the Group’s business and includes:

Funding and liquidity

Managing the Group’s funding and liquidity position to ensure that the Group has sufficient financial resources to meet its obligations as they fall due and to do so without excessive cost to the Group. Treasury’s core objectives in this area include producing the Group’s funding plan which seeks to optimise the funding mix and the relative cost of funds.

Providing financial services to the Group and its customers

Treasury provides financial services to the Group and its customers. Treasury’s principal role is not direct client acquisition but to maximise cross-selling opportunities to clients acquired by other divisions. We continue to invest in technology, particularly in relation to internet banking solutions and increased automation between the divisions and Treasury. Treasury’s overseas locations support the international growth plans in other divisions.

Trading

All of the Group’s market risk trading activity is conducted by Treasury, within the risk appetite set by Group. Treasury’s aim is to continue to grow income on the back of business flows whilst maintaining a limited proprietary trading function, managed within modest risk limits and a cautious approach to investments.

Our strategy in Asset Management includes:

Providing superior investment solutions

Investment performance is at the heart of Asset Management. We will strive to continue to provide superior investment solutions to our customers by focusing on those products where we have a proven record of exceptional performance. We will continue to consolidate our position in the market place by further improvement and innovation and grow our key product lines.

Creating a quality investment brand

With exceptional customer service and offering superior investment solutions, we want to be one of the leading investment brands in the asset management market. We are considered a key player in the market and in order to maintain our competitive advantage, we will continue to improve and innovate whilst also investing in front office infrastructure and the recruitment, retention and training of high quality staff.

Profitably grow revenues to create shareholder value

We will continue to grow and develop our sales and trading capability and improve investment performance continuing to invest when appropriate whilst maintaining a strong cost discipline.