Our strategy and financial model

Guided by our purpose, our strategy provides the direction to deliver excellent service to our customers and build on our successful product propositions to attract the next generation.

Strong execution of this strategy will enable us to build a thriving business with substantial growth prospects whilst balancing the needs of all our stakeholders. 

We are expanding our product range and building new distribution channels to reach more customers and offer additional functionality and flexibility, while investing in technology to enhance their journey with us.  

We operate with strong financial discipline to ensure our loans are affordable while delivering an appropriate financial return which balances the needs of all our stakeholders.

The most integral part of our financial model is that we must deliver a return on required equity (RORE) of between 15% and 20%. We believe that returns materially in excess of this range would result in us not balancing the needs of all of our stakeholders in delivering our purpose. 

Delivering the RORE target supports a progressive dividend payout ratio to shareholders of at least 40%, while investing in future growth and maintaining a strong balance sheet in line with our equity-to-receivables target.