Annual Review 2015

How we create value

The role of a financial institution is to support and promote economic, social and environmental progress leading to a better quality of life for people in society, while generating adequate returns for shareholders. This fits with our purpose to empower people to stay a step ahead in life and in business.

Banks play an important role as an intermediary, or go- between, in the financial system. They have three main functions:
  • banks are largely responsible for the payments system
  • they are where people can deposit their savings
  • and they issue loans to both people and companies

In addition, banks support the economy by taking on risks. Savings can sometimes be very short term, while loans are generally long term, and managing this mismatch is where banks create value. Banks absorb losses if some people or institutions are unable to repay their loans, which means that savers are generally not affected.

Managing and monitoring risks is at the heart of banking. We have strict policies in place at various levels to address both financial and non-financial risk, including social and environmental risk.

How we create value for society

As a global bank we bring more to society than just our financial value. Our value creation model shows in a simplified way how we create value for and with our stakeholders. Our value creation is explained in six key categories

The Annual Review 2015 continues with What matters most
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