Charity Bank, the ethical bank that uses savings to make loans for good, today announced its annual results for the year ended December 2016.
Its results show that Charity Bank achieved record levels of lending to charities and social enterprises in 2016, for the second consecutive year.
In 2016, Charity Bank’s drawn loan book increased by 28% (or £19.0 million) to £87.2m. During the same period, Charity Bank continued to grow its pipeline of committed but undrawn loans from £17.2 million at the end of 2015 to £37.2 million at the end of 2016, an increase of 116%.
The growth of its loan book has resulted in a smaller loss of £1.3 million (2015: loss of £2.0m). The bank expects this trend to continue as it moves towards profitability.
During 2016 Charity Bank grew its share capital by £5.25 million due to investments by both Big Society Capital and Barrow Cadbury Trust. Its share capital has grown again in 2017, with Big Society Capital investing a further £2.5 million and committing in principle to invest an additional and final amount of £2.5 million on or before 1st December 2017.
Patrick Crawford, Chief Executive of Charity Bank, says: “In 2016 we lent £27.9 million, increasing the value of our drawn loan assets by 28%. As our loan book grows, so does our impact, with increasing numbers of people benefitting from improved facilities, additional services and new initiatives. Our loans have facilitated social impacts across a wide range of sectors, including arts, community, education, environment, faith, health, housing, regeneration, social care and sports.
“Our pipeline of approved loans remains strong and reflects the continuing confidence of the social sector in taking on new projects to address society’s needs. We expect that, unless the sector faces new shocks, the growth in our loan commitments and drawn loans in 2017 will continue to match the rising trend of the past two years.
“I thank the Board and all our staff members for their enthusiasm, hard work and dedication in serving our savers and supporting the extraordinary work of our borrowers, during a year of significant growth for Charity Bank.”
For further information please contact:
Mark Howland 01732 441973 or MarkHowland@charitybank.org