Commenting Grenville Turner, Chief Executive, said: “IF set out to break the mould, using new technology to help deliver innovative products at highly competitive prices. We have led the way in transforming the mortgage market with offset banking and have met our promise to break-even at the end of 2003.
"We have proven that you can build a strong, profitable banking business by championing innovative, flexible products that pay consistently competitive rates - an approach that is proving increasingly popular with consumers.”
In a very competitive market, the bank has yet again delivered strong business growth.
At year ended 31 December, Intelligent Finance had assets of £15.5bn. These figures confirm Intelligent Finance as potentially the largest UK direct bank in balance terms_.
IF now UK’s 12th largest mortgage lender
In the year to December 2003, the bank increased its customer mortgage and loan balances by £3.1bn, up 25%.
If viewed as an independent lender the bank would now be the 12th largest mortgage lender in the UK. In just three years, it now has bigger mortgage balances than every building society in the UK apart from Nationwide.
The bank is not resting on its laurels and following the launch of two new standalone mortgage products mortgage applications soared by 21% in the first two weeks following launch.
Consistently competitive rates wins IF savings business
Customer deposits with the bank have increased by £900 million over the course of the year, up 27%.
The bank has reaped the benefit of maintaining consistently competitive rates on its savings accounts. Indeed, the rate paid on its direct access savings today is 0.45% higher than when base rates were last at 4%.
Customer Accounts
Intelligent Finance now has 820,000 customer accounts open, up 35%.
Overall
Offset banking continues to demonstrate its appeal with the ratio of products held per customer standing at 2.2 well ahead of the industry average.
IF’s reputation for product and service excellence continues to be recognised with awards
including Centralised Lender of the Year (What Mortgage), Best Provider of Flexible Mortgages (Mortgage Introducer), Mortgage Provider of the Year (Financial Adviser) and Best Flexible Lender (Moneywise).
IF Achievements
It was the first UK bank to launch with a full range of retail banking products from day one.
It was the first UK full service telephone and internet bank – providing both channels right across its product range without differential charges depending on how the customer chose to bank.
It allows customers to offset more borrowings and savings products for interest calculation purposes than any other bank.
The bank's campaign to improve current account switching, including the naming and shaming of the Big 4 for feet dragging has seen substantial improvements made to the account switching process.
Its consistent highlighting of the substantial costs to borrowers of early repayment penalties on personal loans has been reflected in proposed changes to the UK’s consumer credit laws.
