# Unity Trust Bank achieves 20% growth in social economy sector business - Link: https://fundraising.co.uk/2006/04/24/unity-trust-bank-achieves-20-growth-social-economy-sector-business-927/ - Published: 2006-04-24T15:20:59+01:00 - Author: Howard Lake **[Unity Trust Bank ](http://www.unity.uk.com)has today announced significant growth in its business within the social economy sector. Deposits from customers in the sector, mainly Community Development Finance Initiatives (CDFIs), charities and credit unions, grew to £162 million in 2005 – an increase of 20%.** This is very much in line with the bank’s overall growth pattern. Unity’s Financial Statements for the year to 31 December 2005, show total retail deposits from all sectors for the year were up by £69 million (19.4%) to £427.7 million. The bank, established in 1984 by trades unions and the co-operative movement, also realised pre-tax profits in 2005 of £4.84 million, an increase of 17.3%. New loan and advance facilities drawn down in 2005 amounted to £13 million, an increase of 19.2% on the £10.9 million drawn down in 2004. And most of this new lending has been made in the social economy and corporate sectors. ## Advertisement Kevin Turmore, Managing Director said: I am pleased that Unity Trust Bank has been able to support such a wide range of social enterprises and charities throughout the UK with loans to fund their projects or development and banking services. Such organisations provide key community services, especially in under invested communities. And Unity sees its partnerships with these organisations, which might otherwise not be able to access mainstream banking and lending services, as central to its drive to carry out its business in a socially responsible way.” One such organisation benefiting from the unique way that Unity operates is Fair Finance. This is a CDFI set up to provide affordable loans and a safe alternative to loan sharks and exorbitant interest rates. It also provides an advice service to its customers and campaigns to stamp out unfair lending practices. Faisel Rahman, managing director of Fair Finance said: I did look at other banks and found that Unity is very positive and straightforward; they seemed to try and understand exactly what Fair Finance was trying to achieve and what its banking needs would be.” Lord Fyfe, Chairman of Unity Trust Bank said Unity continues to provide socially responsible banking services for its traditional customers, the trades unions movement and membership organisations. However, I am also particularly pleased with the continuing development of the bank’s activities in the social economy sector. This has been a key part of the bank’s business plan during 2005 and the growth achieved in this sector reflects the hard work and commitment of Unity’s board and personnel. It also demonstrates that Unity understands the banking and finance needs of the sector” **ENDS** **Notes to Editors** 1 Highlights Year ended – 31 December 2005 Consolidated profit before tax £4.839m Assets £466.2m Customer deposits £427.7m Customer loans and advances £98.2m Group Earnings per share 21.6p Dividends payable 7.5p Year ended – 31 December 2004 Consolidated profit before tax £4.125m Assets £396.5m Customer deposits £358.2m Customer loans and advances £88.1m Group Earnings per share 17.8p Dividends payable 7.5p 2 [Unity Trust Bank](http://www.unity.uk.com) was established in 1984 by trades unions and founders from the co-operative movement. Its strength lies in understanding and support of the key issues affecting customers throughout the trade union movement and ‘not-for-profit’ sector. 3 Unity is a socially responsible and innovative bank, committed to working in partnership with all its stakeholders, delivering high quality services and reinvesting in the wider community. 4 Unity has over 12,000 banking customers with a total of almost 20,000 accounts. Unity had lending of £4.8 million pounds in 2005 and took deposits of £37.0 million from the social economy sector (not-for-profit organisations) which, with the banks other activities, raised nearly £4.9 million in pre-tax profits. 5 Financial statements for the year ended 31 December 2005 are prepared in accordance with International Financial Reporting Standards (‘IFRSs’) as endorsed by the EU. Comparative figures for 2004 are also prepared under IFRSs but reflect transition exemptions on the move to reporting under IFRSs and therefore individual lines may not be strictly comparable. In particular, comparative figures do not reflect the impact of IAS 32 ‘Financial Instruments: Disclosure and Presentation’, IAS 39 ‘Financial Instruments: Recognition and Measurement’ and IFRS 4 ‘Insurance Contracts’ 6 [Fair Finance ](http://www.fairfinance.org.uk )is a Community Development Finance Institution based in Stepney, London. It was launched by the FSA and Treasury in April 4th, 2005 to tackle unfair and usurious lenders in East London often charging in excess of 500%. It recently celebrated its first birthday and revealed that it had saved exploited residents over £500,000 in interest payments in its first 12 months. Media Contacts: Stephanie Lennon at Unity Trust Bank 0121 616 4149 and Fiona at Fiona Fountain Associates 01892 544035 / 07887 997 220 _Issued by [Fiona Fountain Associates](http://www.fionafountain.co.uk), PR Consultants, on behalf of Unity Trust Bank, 9 Brindleyplace, Birmingham B1 2HB. This news release is issued in accordance with clause 1.2j of the British Codes of Advertising and Sales Promotion and therefore cannot be subject to a transaction of any kind_ * **[Unity Trust Bank achieves 20% growth in social economy sector business](https://fundraising.co.uk/2006/05/14/unity-trust-bank-achieves-20-growth-social-economy-sector-business/)**( 14 May 2006) * **[Brain injury charity uses Unity Trust Bank loan to expand](https://fundraising.co.uk/2007/03/15/brain-injury-charity-uses-unity-trust-bank-loan-expand/)**( 15 March 2007) * **[Unity Trust Bank loan helps film group qualify for matched funding](https://fundraising.co.uk/2007/07/04/unity-trust-bank-loan-helps-film-group-qualify-matched-funding/)**( 4 July 2007)