Charity Bank saw record lending & surplus in 2021
Melanie May | 9 June 2022 | News
Charity Bank’s latest annual results show it made its largest ever surplus of £0.9 million in 2021, and made £51 million available in new loans to charities and social enterprises – more than at any other point in its history. The surplus will be re-invested in support of its social mission.
In addition, its annual report shows, the bank was the most active intermediary of loans made by the Resilience and Recovery Loan Fund (RRLF) across 2020 and 2021, helping to secure nearly £12mn in loans and small grants to 27 organisations affected by the pandemic.
To support its future growth, Charity Bank also attracted over £5mn in new equity capital from new and existing shareholders including, Alternative Bank Schweiz, Bank Workers Charity, Barrow Cadbury Trust, Big Society Capital, Clothworkers Foundation, Garfield Weston Foundation, Samworth Foundation, and The Places Foundation. £4mn in equity investments was announced last October.
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Ed Siegel, CEO of Charity Bank said:
“Despite the ongoing pressures of the pandemic, we have been able to step up our support at a time the social sector has needed us. Our lending to UK charities and social enterprises facilitates positive social outcomes by our borrowers. With the help of a Charity Bank loan and support, our borrowers are able to improve their financial position, enhance the quality and reach of their services, and are left in a better position to deliver their mission.
“Our record results put us in a strong position to continue growing our lending activities, and therefore our social impact. It also enables us to expand our services and reach more organisations that wouldn’t otherwise be able to access loan finance on affordable terms. This work is already underway and includes strengthening our Social Lending Team to support our aim to lend more to smaller underserved charities and social enterprises, including organisations that are working with minoritised communities.”
Alongside its Annual Report, Charity Bank has published its 2021 Impact Report which breaks down and demonstrates how Charity Bank is helping to make a positive difference in society by supporting, strengthening, and furthering the work of social purpose organisations.
Key findings of the Impact Report include:
- 100% of respondents said their Charity Bank loan contributed toward their mission
- 70% said it financed activities that grant funders would not
- 89% said it improved the quality of their service or facilities
- 68% said it increased the likelihood of growth
- 70% said it improved financial planning
- 66% said their project would not have gone ahead without their Charity Bank loan
Charity Bank has recently launched two green loan offers for charities and social enterprises, and revised its vision statement to focus more on responding to climate change.
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.