Unity Trust Bank, a Birmingham-based financial institution, has recently marked a significant milestone—its 40th anniversary. Not only did the bank celebrate this occasion, but it also announced a strong performance in the first half of 2024, demonstrating its continued commitment to supporting communities across the UK.
A Record-Breaking First Half of 2024
Unity Trust Bank’s half-year results for 2024 reveal a remarkable increase in net lending, which grew to £1,032 million. This figure represents a solid growth from the £1,013 million reported in December 2023. This growth highlights the bank’s ongoing efforts to provide financial support where it is most needed.
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Supporting Communities in Need
One of the most notable aspects of Unity Trust Bank’s lending strategy is its focus on supporting communities that often struggle to access financial resources. Of the total loans provided, 40% were directed to organisations located in areas of high deprivation. These are regions where financial support can make a significant difference, helping to lift communities out of poverty and create opportunities for growth and development.
In addition to this, 57% of the loans supported disadvantaged or marginalised groups. This includes funding for projects and organisations that work directly with these groups, ensuring they have the resources needed to improve their quality of life. By focusing on these areas, Unity Trust Bank continues to uphold its mission of creating a positive social impact across the UK.
Furthermore, 59% of the bank’s loans were allocated to projects that deliver a tangible local impact. These projects range from community initiatives to infrastructure developments, all aimed at improving the lives of people in the areas they serve. This targeted approach not only benefits the individuals directly involved but also contributes to the overall economic and social well-being of the wider community.
Launching the Housing Association Decarbonisation Initiative
In addition to its impressive lending figures, Unity Trust Bank has also launched a new initiative aimed at addressing one of the most pressing issues of our time—climate change. The Housing Association Decarbonisation Initiative (HADI) is a new program that provides funding to housing associations across the UK, helping them improve the energy efficiency of affordable homes.
This initiative is particularly timely, as the UK continues to work towards its goal of reducing carbon emissions and transitioning to a more sustainable future. By supporting housing associations in their efforts to decarbonise, Unity Trust Bank is playing a crucial role in this transition, ensuring that affordable housing remains at the forefront of the country’s environmental agenda.
Strong Financial Performance
The bank’s strong performance is not limited to its lending activities. Unity Trust Bank also reported a 30% increase in profit before tax, which grew to £37.2 million compared to the previous six months. This significant growth in profitability is a clear indicator of the bank’s financial health and its ability to generate returns while staying true to its mission of social responsibility.
CEO Colin Fyfe expressed his satisfaction with the bank’s performance, stating, “This is an excellent half-year performance as we continue to focus on what’s important to us as a bank – serving our customers. We have delivered safe growth in our balance sheet, social impact across the UK, and established new service channels for our customers.”
Record High Deposits
Another highlight of Unity Trust Bank’s half-year results is the record level of deposits, which reached an impressive £1.7 billion. This influx of deposits has provided the bank with even more resources to support organisations that work to improve local communities. For customers, this means that their savings are not just safe but are also being used to make a positive difference in society.
Fyfe noted the importance of these deposits, saying, “This means that when customers put their savings with us, they know those deposits will only be used to create a better society.” This assurance is a key part of the bank’s appeal, particularly for customers who are looking to align their finances with their values.
Enhancing Customer Service
Unity Trust Bank has also made significant strides in improving its customer service, both through human interactions and digital platforms. The bank has expanded its UK-based call centre, ensuring that customers can easily reach knowledgeable and friendly staff when they need assistance. In addition, the bank has grown its nationwide team of experienced relationship managers, who are available to provide personalised support to customers across the country.
Furthermore, the bank has introduced several specialised roles designed to cater to the unique needs of specific sectors, such as charities, local councils, and trade unions. These roles ensure that the bank can offer tailored services that meet the distinct requirements of these important organisations.
Fyfe highlighted these improvements, stating, “We have improved our customer services offering from both a human and digital perspective. We have expanded our UK-based call centre and our nationwide team of experienced relationship managers and have introduced a number of specialised roles to support specific sectors.”
Looking Ahead: A Bright Future for Unity Trust Bank
As Unity Trust Bank celebrates its 40th year, its strong half-year results are a testament to its enduring commitment to social responsibility and community support. The bank’s focus on lending to high-deprivation areas, disadvantaged groups, and projects with local impact, along with its new Housing Association Decarbonisation Initiative, demonstrate its dedication to making a positive difference in society.
With record high deposits and a 30% increase in profit before tax, Unity Trust Bank is well-positioned to continue its mission of creating a better society through ethical banking practices. The improvements in customer service further enhance the bank’s ability to meet the needs of its customers, ensuring that they receive the support and guidance they need to achieve their financial goals.
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As the bank looks to the future, it remains committed to growing its impact and serving the communities that depend on it. With a strong foundation built over the past 40 years, Unity Trust Bank is poised to continue its success, driving positive change across the UK for many years to come.
