Treasury Services

Principality's Treasury team manages the Group's liquidity, wholesale funding and capital resources. Access to the wholesale markets allows the Group to smooth out variations in savings flows and moderates reliance on traditional sources of funding.

Funding

Wholesale funding is raised via the International Money Markets with maturities varying from overnight to fifteen years. Access to the markets is through a variety of instruments and programmes.
The current programmes are:

Short term

  • Time Deposits
  • Certificates of Deposit (CD)

Long term

Capital

Credit Ratings

The Group maintain credit ratings in line with all major financial institutions. The Group is rated by two of the main worldwide agencies, Moody’s Investor Services and Fitch Ratings. 
We keep both updated with our results and any other significant event. Our current ratings are as follows:

  Short Term Long Term Last Review
Fitch F2 BBB+ 26/05/2016
Moodys P-2 Baa3 28/06/2016

Liquidity

The liquidity is available to meet the cashflows of the Group. Surplus funds are invested in various maturity periods from overnight to ten years. Investments are made in a variety of instruments which are listed below:

Short term

  • Call Accounts
  • Cash Deposits
  • Certificates of Deposit
  • Treasury Bills

Long term

  • Gilts
  • Floating Rate Notes
  • Residential Mortgage Backed Securities
  • Supranational Bonds

Investment Enquiries

Investment rates can be offered on amounts over £500,000 for periods varying from one month up to five years. Each deal will be for a fixed maturity. 
Below are examples of the types of counterparties who invest with Treasury:

  • Local Authorities
  • Registered Charities
  • Housing Associations
  • Insurance Companies
  • Finance Institutions
  • Fund Managers

Treasury cannot accept money from an individual. If individual customers wish to open a savings account with the Society, please contact your local branch, our Customer Service Centre or apply online.

If you require any further information on how to invest with us please contact the Treasury Department either by email alltreasury@principality.co.uk or by telephone 02920 773447.

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