Earnings Call Transcript

Thank you, very much [Ork]. Good morning, everyone and thanks for coming so many of you again to join us for the presentation results for the year into June 2013. For us the overwriting theme of the year is seeing the momentum of the results credit to sticking to our long term strategy. So that starts for us with the fact that we are now in the seventh year of the focus on customer satisfaction and I will go into a moment, we've seen that at record high in this period, but most importantly see those highs translate into momentum in terms of increase in products for customer growth and the balance sheet.

We've seen a productivity culture, enabling investment. So the long term focus on making the prices more efficient, making the whole group more efficient, enabling us to continue to invest. On that theme of high risk merchant account, what we've seen in this period is a couple of things.

Number one, the completion of the sixth year co-bank modernization program. So that team has now been dispended. The 1500 people working on that in fact doing other things that is now completed and we are now shifting our focus to leverage -- continuing to leverage that and innovating on the back of that core and finally the benefit of just sticking with a considerable bit of setting. So we came into considerable bit of settings.

You will see in the presentation that they have been further strengthened. So the customer focus, the productivity, the technology the conservatism, these are common themes and the results for the period show that they are continuing to produce good results.

In terms of the themes business by business, the retail banks 13% cash impact growth was a very, very strong result. One of the features of this result is ongoing strength in the top line and it starts with the retail bank. So income there up 8%, against that strong income growth, expense is very well managed 3% growth year-on-year.

You can see on the more negative side that 11% decrease in deposit income and you got to hear across multiple businesses for me and from David, no doubt for those of you speaking to group executives this common theme that as a result of ongoing deposit competition and the low rate environment, we got ongoing [pitch] on deposit income and you can see that in the retail bank.

Business and private bank net profit after tax down 2%. The standout feature here, first of all we did see strong balance sheet growth. So all those system growth and business lending can be quite high to major against any major system growth of 4% balance sheet growth in that Business Bank exceed system growth while credit quality has been maintained. Expenses were flat, so real focus on productivity in that business. Again you can see a lower net interest margin, again the story of a low interest rate environment and competition flowing through into deposits.

This is the latest in a series of announcements for SNAPCAM, after it was unveiled as a 'Hero' launch app by Stephen Elop for the new Nokia Lumia 1020, while it recently revealed its partnership with printing giant Xerox.

SNAPCAM is the disruptive photo app that allows users to create digital photo albums, which can then be shared, printed and delivered as physical albums.

Users can organise pictures into 'events' and share these with friends and family, who can add their own shots too. In a few clicks, these can be transformed into full colour, printed photo albums and delivered to many countries across the world.

The app integrates directly with third party photo sources, including Facebook. It also offers photo enhancement, offshore merchant account, edit, crop and add finishing touches to their photos before sending them to print.

The partnership will see SecureTrading processing payments from across the globe, with the service going live in 40 countries. On top of the payment gateway, SecureTrading will also provide a suite of bespoke counter-fraud services.

"Steve Hayward, CEO at SNAPCAM said: "By working with SecureTrading we have brought to life our 'thinking globally, acting locally' ethos and developed it beyond having an environmentally sensitive product. By being able to provide competitive, locally sensitive pricing in local currency to all our territories, we are helping to drive the physical photo revival globally."

Justin Fraser, head of sales and marketing said: "SNAPCAM is one of the few apps that has immediate global appeal. There's no doubt it is going to explode in popularity, and we're relishing the opportunity to support SNAPCAM and add value to the business throughout its growth."