Coutts facts for kids
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The Strand headquarters of Coutts in November 2022
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| Subsidiary; Private unlimited company | |
| Industry | Private banking and wealth management |
| Founded | May 1692 |
| Headquarters | 440 Strand London, WC2 United Kingdom |
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Key people
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| Products | Wealth management – accounts, investments, lending, deposits |
| Revenue |  £ 690 million (2019) |
| £ 220 million (2019) |
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| Total assets | £ 34.05 billion (2020) |
| Total equity | £ 1.375 billion (2020) |
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Number of employees
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1,560 (2018) |
| Parent | NatWest Holdings |
Coutts & Co. /ˈkuːts/ is a famous British bank based in London, England. It's known as a private bank and wealth manager. This means it helps wealthy people manage their money and investments.
Coutts was started way back in 1692. This makes it one of the oldest banks in the world! Today, it's part of the NatWest Group. In places like the Channel Islands and the Isle of Man, it operates under the name Coutts Crown Dependencies. In 2021, Coutts earned a special "B-Corp" status. This means it meets high standards for being good for people and the planet.
Contents
The Story of Coutts Bank
The bank began in 1692 with a young Scotsman named John Campbell. He was a goldsmith and banker. His shop was in the Strand area of London. Back then, shops used signs instead of numbers. Campbell's shop had a sign with "Three Crowns." Even today, the Coutts logo still features these three crowns. The bank's main office is still on the Strand.
When John Campbell died in 1712, his family took over the business. His son-in-law, George Middleton, became the main leader. The bank faced many challenges during this time. There were threats to the banking system and financial crashes. Things finally settled down around 1735.
John's son, George Campbell, also became a partner. After Middleton died in 1747, George became the only partner. The bank was then called the "Bankers of 59 Strand."
In 1755, John Campbell's granddaughter, Mary (called "Polly"), married a banker named James Coutts. Polly was George Campbell's niece. George quickly made James a partner. The bank became known as Campbell & Coutts. James took charge of the business. After Polly and George died in 1760, James became the sole partner. George left most of his money and the bank to James.
Thomas Coutts Takes the Lead
In 1761, James brought his brother Thomas Coutts into the business. The bank was then called James and Thomas Coutts.
James and Thomas didn't always agree. James eventually became interested in politics. He left the bank's daily operations to Thomas. James retired from the bank in 1775 due to poor health. The bank on the Strand then became known as Thomas Coutts & Co.
The bank grew a lot under Thomas's leadership. He brought in three partners to help. The bank's building on the Strand was rebuilt and made bigger. Its profits grew a lot between 1775 and 1821.
Thomas Coutts married twice. His first wife, Susannah Starkie, had three daughters. They were nicknamed "The Three Graces." These daughters married important people in British society. Thomas also had four sons who died when they were babies.
After Susannah died, Thomas remarried very quickly. He was 80 years old, and his new wife, Harriot Mellon, was 40 years younger. This caused a lot of talk! When Thomas died in 1822, the bank was renamed "Coutts & Co."
Harriot, Thomas's widow, inherited a lot of money and a big share of the bank. Even though she didn't get along with her stepdaughters, she wanted the bank to stay in the Coutts family. Harriot died in 1837. In her will, she left the Coutts fortune to Thomas's granddaughter, Angela Burdett. Angela was the daughter of Sophia Coutts.
Harriot's will had three rules for Angela:
- Angela's share of the bank had to be held in a special trust.
- The person who inherited the money had to take the name Coutts.
- The person could never marry a foreigner.
Angela Burdett-Coutts: A Generous Leader
When Angela Burdett-Coutts received her inheritance, she became the richest woman in Britain. She spent her life helping others. She gave away millions of pounds to many different causes. She supported churches and the arts. But most of her charity helped poor people.
She helped start sewing schools and provided boats for Irish fishermen. She also supported "ragged schools" for poor children in cities. Because of her kindness, Queen Victoria and the Prime Minister, Gladstone, wanted to honor her.
In 1871, she was given a special title: Baroness Burdett-Coutts. In 1880, the Baroness wanted to marry her young American secretary, William Ashmead-Bartlett. He was 37 years younger than her. Many people, including the bank partners and even Queen Victoria, were worried about this marriage. They thought he was only interested in her money.
One problem was Harriot's will, which said the heir could not marry a foreigner. Since Bartlett was American, Angela could lose her inheritance. Angela's younger sister, Clara, would then inherit. Angela managed to get Clara to give up her rights. However, Clara's son, Francis (Frank), wasn't happy and consulted lawyers.
Finally, Bartlett offered to break off the engagement because of all the pressure. But Angela was determined to marry him.
In February 1881, at age 67, Angela married Bartlett. This went against the terms of the will. The bank partners quickly told the public that Angela was not a partner in the bank and couldn't touch its main funds. A big argument started over the inheritance. Angela argued that Bartlett was only half American, so he wasn't fully a "foreigner." Clara then claimed the fortune, and the dispute continued.
Eventually, they reached a compromise. Most of the Coutts fortune would go to Clara and her children. However, Angela Burdett-Coutts kept two-fifths of the income until she died in 1906.
Clara Burdett, who had married James Money, changed her name to Clara Burdett Money-Coutts. Her son Francis's full name became Francis Burdett Thomas Nevill Money-Coutts. He was better known as Francis (or Frank) Coutts, a writer and poet.
Towards the end of the 1800s, there was a financial downturn. This led the bank to change from a partnership to an unlimited liability company in 1892. This change meant the bank itself was responsible for its debts, not just the individual partners.
Growing Bigger
In 1904, the bank moved to its current main office at 440, The Strand. In 1914, Coutts took over another bank, Robarts, Lubbock & Co. This gave Coutts another office and access to a special banking system.
In 1919, Coutts joined with the National Provincial & Union Bank of England. But it kept its own name, Coutts & Co., and its own board of directors.
Throughout the 1900s, Coutts opened more branches. The first branch outside the main Strand office opened in London in 1921. More London branches followed. In 1961, Coutts opened its first branch outside London, in Eton.
In 1969, National Provincial Bank merged with Westminster Bank to form National Westminster Bank.
Coutts was quick to use new technology. In the late 1920s, it was one of the first banks to use machines for ledgers (records of money). In 1963, it was the first British bank to have a fully computerised accounting system.
Between 1974 and 1978, Coutts' Strand headquarters were rebuilt.
Coutts started to have offices in other countries in 1987, beginning in Geneva. The Coutts Group was formed in 1990. This helped the bank operate in more places around the world.
Coutts in the 21st Century
In 2000, the Royal Bank of Scotland Group bought NatWest. This was a very big deal in European banking. The RBS Group later became NatWest Group in 2020.
In 2003, Coutts Bank (Switzerland) bought another bank in Zurich. This bank was renamed Coutts & Co. Limited in 2011. In 2015, Coutts sold its international business to a Swiss bank called Union Bancaire Privée (UBP). This was part of Coutts' plan to focus more on its business in the United Kingdom.
In 2022, another bank called Adam and Company transferred its banking business to Coutts.
How Coutts is Run
The company's board is led by Lord Waldegrave of North Hill. The board also includes other directors who help guide the bank.
Where to Find Coutts
The bank's main office is at 440 Strand, London. Coutts has closed some of its London offices over the years. In 2022, it had offices in 17 cities across the UK. Before 2015, it also had international offices in places like Zurich, Geneva, Hong Kong, and Singapore.
Who Are Coutts' Clients?
For a long time, Coutts mainly served nobility (like dukes and duchesses) and wealthy landowners. But later, it started helping a wider range of clients. These include business owners, entertainers, sports stars, and even lottery winners. The British Royal Family are also well-known clients. Because of this, the bank was sometimes called "the Queen's bank."
Coutts has strict rules for who can become a client. It's not just about how much money you have. In 2001, you needed at least £500,000 in available funds. In 2022, potential clients are asked if they want to borrow £1 million or more, or if they have over £1 million for investment advice.
In 2023, a public figure named Nigel Farage had his accounts closed by Coutts. The bank later apologized for how it handled the situation. The CEO of NatWest Group, Dame Alison Rose, resigned after discussing Farage's accounts with a journalist. The CEO of Coutts, Peter Flavel, also stepped down. The bank announced it would review its process for closing accounts.
Design and Style
Coutts often works with British fashion designers for its credit and debit cards. In 2004, designer Ozwald Boateng created the design for the Coutts World Charge Card. In 2006, Stella McCartney designed the Coutts Visa debit card. This card had a special see-through Coutts logo that you could only see when held up to the light.
In 2013, Coutts replaced its purple 'World' charge card with the new 'Silk' Charge card. The silk design was inspired by old Chinese wallpaper. This wallpaper was given to Thomas Coutts in 1794 and still decorates the boardroom at the Strand headquarters.
Supporting Good Causes
Coutts says it supports groups and organizations that share its values.
In the early 1800s, Thomas Coutts became a shareholder of what is now the Royal Opera House. Coutts still supports the Royal Opera House today. It has also supported the Royal Court Theatre and the annual London Design Festival.
Important Rules and Fines
Coutts has faced fines for not following certain rules.
Following Money Rules
In 2012, Coutts was fined £8.75 million for not properly checking on some of its high-risk customers. These customers were people in important public roles, who need special checks to prevent money laundering (making illegally gained money seem legal). The Financial Services Authority (FSA) found that Coutts had "serious" problems in how it handled these accounts. This created a risk that the bank could have been handling money from illegal activities.
The FSA found that Coutts' checks on these customers were not strong enough. They also found that the bank wasn't monitoring these relationships properly. Coutts' bonus system for bankers encouraged them to open new accounts, which might have led to less careful checks. Coutts said there was no proof that money laundering actually happened because of their mistakes. They admitted their systems "weren't totally adequate" and said they had improved them.
Investment Advice
In 2011, the Financial Services Authority (FSA) fined Coutts £6.3 million. This was for giving poor advice about an investment fund called the American International Group (AIG) Enhanced Variable Rate Fund. This fund invested in riskier assets. Coutts customers had a lot of money in this fund when it ran into trouble in 2008.
The FSA said Coutts didn't train its advisors well enough about the risks of this product. They also said Coutts recommended the fund to some customers even if it was too risky for them. Many customers were advised to put too much of their money into this one fund. Coutts agreed to pay back customers who lost money because of these problems.
International Concerns
In 2021, a Malaysian fund called 1MDB sued Coutts & Co. for a large amount of money. They claimed the bank was negligent or helped in wrongdoing. Swiss authorities had previously found that a former Coutts banker didn't report suspicious transactions linked to 1MDB. In 2017, a Swiss watchdog also ordered Coutts & Co. to pay a fine for breaking money-laundering rules related to 1MDB.
See also
- Adam and Company
- Child & Co.
- Drummonds Bank
