Charity Bank to reinvest 2022’s £2.7mn profit
Melanie May | 9 June 2023 | News
Charity Bank achieved a record financial result in 2022, with a profit of £2.7mn – and is reinvesting all of it to further its mission and extend its reach to underfunded charities and social enterprises.
According to its annual results, in 2022, 60% of Charity Bank’s lending was directed towards organisations operating in the most underfunded and underserved areas of the UK. The bank also supports initiatives combating climate change and assists organisations in reducing their carbon footprint.
It also disbursed a record £53.9mn in new loans last year, supporting UK charities and social enterprises. The bank expects to significantly increase the range and diversity of organisations supported in 2023, and will set specific targets for reaching ethnically diverse enterprises and other groups that have experienced exclusion from social investment.
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Ed Siegel, Chief Executive of Charity Bank said:
“Our strong financial performance will enable us to expand our lending activities, which will help us to make an even greater social impact. During the cost of living crisis we have remained a reliable source of support for charities and social enterprises. By providing loans, Charity Bank helps these organisations to improve their financial position, expand their services, and better serve their communities.”
Charity Bank’s 2023 borrower survey reveals the following findings:
- 71% of respondents reported an increased number of services
- 89% noted an improved quality of service or facilities
- 68% said their Charity Bank loan allowed their projects to go ahead
- 61% experienced a growth in income
- 40% reduced their operational costs
- 33% acknowledged that the bank’s support helped them stay afloat
- 21% reported direct environmental benefits from the projects supported with a Charity Bank loan, with an additional 21% experiencing indirect environmental benefits
Under Charity Bank’s revised strategy for 2023-2027, it will be focusing on organisations serving those with the greatest needs, targeting economically deprived communities, extending outreach to systematically underfunded groups, prioritising lending intentionally for complex housing needs, and building a “green lending” portfolio.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.