• Loan book grows by more than a quarter in 2015 (26%) to £67.8 million
• Loans of £40 million approved in the first six months of 2016; more than the whole of any previous year
• Ready to respond to social sector loan needs following the EU Referendum
Charity Bank, the ethical bank that uses savings to make loans to charities and social enterprises, today (4th July 2016) announced its annual results for the year ended December 2015. These showed a 26% increase in the size of its loan book from £53.6 million in 2014 to £67.8 million.
The bank has made a strong start to the current financial year with £40 million of new loans approved for the first six months of 2016, as against £34 million for the whole of 2015. This increase is due to renewed borrower confidence after a challenging period for the social sector caused by the changes to welfare and social housing announced in the Budget in July, followed by the implementation of the Etherington Report on fundraising published in September and the changes in the Comprehensive Spending Review in November.
In line with the Board’s expectations, operating losses increased to £2.1 million as the bank increased its capacity to serve a growing community of savers and borrowers. The conversion of the bank’s financial reporting framework from UK Generally Accepted Accounting Practice (UK GAAP) to International Financial Reporting Standards (IFRS) also had an impact*.
“In 2015 we grew our loan book by more than a quarter as we responded to the funding needs of charities and social enterprises. Our growth has continued with a record £40 million of new loans approved in the first six months of 2016; this is more than we have approved in the whole of any previous year.”George Blunden, Chairman of Charity Bank
In 2015 The Mercers’ Charitable Foundation invested £1 million, increasing its shareholding in Charity Bank to £1.2 million, and Barrow Cadbury Trust gave additional backing through a £250,000 investment in the first week of January 2016.
Blunden says: “These investments provide a strong endorsement of what we do and express confidence in our future. Following these injections of capital we now have the opportunity to build on our track record of effective and responsible lending in the social sector. We have begun to offer larger loans to larger organisations, while continuing to provide loans to smaller charities and social enterprises in the way we have always done.”
Patrick Crawford, Chief Executive of Charity Bank, says: “Our pipeline of approved loans has never been as strong and reflects the confidence in the social sector. Following the vote to leave the EU in the referendum of 23rd June, we are ready to respond to both existing and new loan needs. We are here to help charities and social enterprises adapt, take advantage of new opportunities and create a better world.”
"We are here to help charities and social enterprises adapt, take advantage of new opportunities and create a better world.”Patrick Crawford, Chief Executive of Charity Bank