Private Banking: R. Raphael&Sons

May I take this opportunity to introduce myself as the new Chief Executive Officer of Raphaels Bank. My name is Miles Roberts and I was appointed as CEO in January 2009. I have worked for the Lenlyn Group since 2005, I was formerly Managing Director of Southern Finance Company Ltd and I have also been a main Lenlyn Board Director since 2006. During the last six months, there have been a number of other changes within the Bank’s personnel. June Cox resigned after many years of loyal service and to explore new opportunities. As a result of this, I am pleased to announce that Judith Beale was appointed to Head of Banking. Judith has worked for the Lenlyn Group for 10 years, most recently a Director of Merchant Trade Finance. Charlotte Hart (previously Power), has been appointed to Manager of Private Banking and has been with the Bank for 4 years. David Stewart who many of you will know became Finance Director of the Bank in January and David Bowen-Jones has been added to the Management Team as Compliance Manager. This restructure follows the Bank’s growth strategy as we take the Bank into the next 5 years.

Since our last Newsletter in 2008, there have been many changes within the financial sector and also Raphaels Bank. I am sure you will agree with me that we have experienced unprecedented times. The events that started with Northern Rock escalated into a global banking crisis resulting in two of our High Street Banks becoming nationalised and names such as Lehman Brothers and Merryll Lynch disappearing. Interest rates are at an historic low which obviously has repercussions for borrowers, savers and the entire Banking sector. Analysts predict this low interest rate environment to continue for the foreseeable future, however there are early signs of recovery.

I am pleased to say that Raphaels has ridden the financial storm and is well placed to continue its growth in the same controlled manner that has been demonstrated over the last five years. The Bank enjoys strong capital and liquidity positions helped by further capital injections of £2.5m from the shareholders over the past year. The Bank intends to continue to build on its traditional values, reputation and success and among the key developments; I would like to mention are the following:

Private Banking remains one of our core services and whilst the Bank remains cautious in its approach to new lending, we recognise the value of our longstanding customers to whom there is as always a willingness to offer support.

Card Services Division has expanded in a measured and controlled way through the identification of preferred partners, utilising our Mastercard, Visa and Link memberships. The prepaid card market is expanding and Raphaels is at the forefront of this fast growing market. Reflecting this, I am pleased to announce that Raphaels have been recognised for their innovation in this market sector with two industry awards in the UK and the USA.

ATM Division has machines which are strategically located in airports, rail stations, and shopping centres. The ATM estate has been developed to dispense Sterling, Euros and US Dollars in several of our more strategic sites and we have incorporated leading software capability to enable us to expand this niche market.

Commercial Foreign Exchange Division provides commercial currency transactions for businesses and private individuals with commitments overseas. Turnover in this competitive market place has continued to build and is now in its second successful year.

Raphael Finance Division is the Bank’s consumer asset finance operation and is performing well in the current climate providing HP loans to its customers for purchases of cars, equipment and other assets.

We have recently completed the sale of our French operation to a major international money transmission organisation. The sale concludes our activities in money transfer in France.

Whilst the Banking world is still licking its wounds from the events of the “credit crunch”, Raphaels moves into its next growth phase with quiet optimism. We ended the last fiscal year with a solid result and are looking to improve upon this performance through the development of niche market opportunities. We have learnt from our peers the pitfalls that are today’s Banking world, and I am pleased to advise that we have no commercial activities which may be considered of high risk or may cause concern for our customers.

In my new role and in an effort to learn more about your needs as a valued customer of the Bank, I have taken the opportunity to attach a brief customer survey to help us ensure the Bank’s products and service remain relevant to your requirements. All completed surveys will be entered into a draw for a case of fine wine!

I look forward to working with you and thank you for your continued support and loyalty.