Unity Trust Bank’s annual lending tops £1bn

Unity Trust Bank has hailed a strong contribution from Scotland after annual lending exceeded £1 billion for the first time in its 40-year history.

The alternative finance provider, which helps organisations to deliver “positive social impact” around the UK, said nearly half of its financing across Scotland and north England went into areas of high deprivation. Overall lending increased by 21 per cent to £1.01bn in 2023, compared with the year before, while after-tax earnings jumped to £48.9 million, from £22.8m in 2022.

It said that by only using customer deposits to lend to organisations that deliver “quantifiable impact in local communities”, its financing in 2023 helped to support 1,458 care home spaces, 572 day care and education spaces and 7,143 jobs. Unity, which is headquartered in Birmingham, also provided affordable homes for 1,225 households while 452 properties benefited from retrofitting activities. Scottish lending in 2023 included six-figure funding for Lomond Pharmacy.

Colin Fyfe, chief executive of Unity Trust Bank, said: “Surpassing £1bn in lending for the first time is testament to the principles that Unity was founded on 40 years ago that a bank can deliver social purpose as well as sustainable commercial returns. Our 2023 objectives were achieved against a backdrop of turbulent economic conditions, and supporting our customers continues to be at the core of our strategy.

“The higher bank rate environment, alongside balance sheet growth, increased financial returns for Unity in 2023 and enabled us to continue to advance our purpose and our investment in customer services.”