| FSE is the Group's retail banking arm in Great Britain and Ireland. Following the recent restructure, FSE now includes all European-based consumer, business and Agribusiness banking, and back-office functions. HIGHLIGHTS |  |  | Net profit* increased 13% to $850 million, due to solid income growth and management of credit quality | | | Almost 40,000 Clydesdale and Yorkshire Bank customers have signed up for internet banking since it was launched in November 2001 | | | Telephone-based relationship management was launched in Great Britain for small business accounts | | | National Irish Bank successfully converted banking systems to the European single currency in the Republic of Ireland | | | The Managing People Better project was launched to improve leadership skills at all levels | | |
*Excludes the after tax impact of significant items |
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Financial Services Europe (FSE) aims to develop life-long relationships with customers by providing a range of tailored financial products and services. FSE delivered another solid performance during the year, contributing 24%* of the Group's overall result (pre-goodwill). FSE was formed in 2001 as part of the Positioning for Growth program, and is led by a locally based Executive General Manager. This brings critical decision-making closer to the marketplace and provides greater autonomy for the region. Building relationships
A strong focus on relationship management, credit quality and successful marketing of products, such as Rapid Repay in Great Britain and Instant Access savings accounts in Ireland, have helped boost our performance. Retail deposits grew by 6%. Asset quality remains strong and recent reviews of the loan book show adequate provisioning is in place. The financial services industry is becoming more competitive. To keep pace with the market, retain existing customers and attract new ones, we are making changes to our products, marketing and distribution channels. Greater access
Clydesdale and Yorkshire Bank customers have recognised the convenience of telephone and internet banking, with almost 40,000 customers signing up for online banking since November 2001. Network investment
To further enhance the customer experience, we are significantly investing in the branch network to ensure that we continue to match products and delivery channels to customer needs. High-performance culture
We are committed to improving the way we identify and reward high achievers among our staff; reducing bureaucratic processes; and empowering our frontline staff to meet changing customer needs. In the year ahead, our focus will be on meeting three key objectives: | Seeking excellence in customer service
This means matching staffing levels to customer needs; providing the right training; more competitive product pricing; improved call centre service; faster speed to market of new products; and the introduction of customer service advisers. |  | | Working as one team
Working closely with Wealth Management and Wholesale, staff in retail and business will be able to guide their customers to the appropriate specialist product. | | | Rewarding our staff and improving performance
The Group's new Performance Management Framework will help identify, recognise and reward staff performance. It will enable all staff to have a clear understanding of what is expected of them during the coming year. | | 
