Bank marks 40 years of impact with increase in lending to areas of high deprivation
Unity Trust Bank has marked its 40th year by increasing its lending to areas of high deprivation, according to its latest financial results.
The West Midlands-headquartered bank supports organisations who create positive social impact across the UK.
In the bank’s 40th year, the West Midlands was the third largest English region for customer borrowing to deliver social impact.
Unity’s overall lending remained at over £1 billion with 50.5 per cent (2023: 45.3 per cent) committed to high deprivation areas, where it is needed most.
Customer balances rose to a record £1.7 billion (up 10 per cent from 2023) as more socially-minded organisations chose to place their deposits with Unity, so they could be used to improve the quality of life in local communities.
Unity strengthened its digital offering and customer-facing services with an 82 per cent increase in investment in its UK-based contact centre, nationwide network of relationship managers and supporting customers with sector specialisms in healthcare, social housing, trade unions, charities and local councils.
Pre-tax profit increased to £65.8 million (2023: £63.9m), resulting in a strong CET1 capital ratio of 24.1 per cent (2023: 19.7 per cent).
In 2024, Unity’s funding in the West Midlands helped to create or support 871 jobs.
Andy Bird (pictured), Midlands regional director at Unity Trust Bank, said: “As an ethical bank, we are committed to a ‘double bottom line’ of delivering positive social impact alongside commercial success.
“In 2024, we achieved a record year of funding, helping to support the vital work of socially-driven organisations that share our values and those key sectors making a real difference to communities across the UK.
“These results reflect Unity’s continued commitment to creating positive social impact through responsible finance. With over a third of all lending in the West Midlands going to areas of high deprivation, Unity’s funding is helping to deliver better outcomes for communities and individuals most in need.”
Each of Unity’s lending decisions is measured against the United Nations’ Sustainable Development Goals (SDGs) to ensure it is delivering impact.
In 2024, outcomes included creating or protecting 3,194 jobs and supporting 1,798 care beds; 1,806 day care spaces; 216 education spaces; and 1,109 affordable homes.
Aligned to its double bottom line, Unity set its net zero target for 2045 as part of its ‘Banking on Sustainability’ approach to supporting customers and communities to thrive in a low carbon economy.
After launching its Retrofit Transition Initiative (RTI) in 2023, which ringfenced finance for housing association customers to decarbonise their properties, Unity doubled its lending commitment to £50 million last year.
RTI supported 931 homes in decarbonisation work through retrofitting activities.
Of the total £137 million lending committed in 2024, 33 per cent went to organisations specifically supporting disadvantaged or marginalised groups as classified through the ‘ABCs of Enterprise Impact’.
Colin Fyfe, CEO of Unity Trust Bank, added: “As we reflect on another year of success, we’re proud to continue our 40-year heritage of delivering social good for communities and individuals most in need.
“The commitment to our founding mission is just as strong today and we look forward to driving forward future growth and positive impact through socially-responsible banking.”
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