Charity Bank today announced its annual results for the year ended December 2017.
Its results show that Charity Bank achieved record levels of loan approvals, undrawn loan commitments and drawn loans in 2017 for the third consecutive year, with an average 25% year-on-year growth across the three years.
This rate of growth means that an increasing number of charities and social enterprises are benefiting from fair and affordable finance, provided by a bank specifically created to serve the social sector. This also means an increasing number of people are benefitting from improved facilities, additional services and new initiatives.
Charity Bank remain the only bank in the UK with the Social Enterprise Mark.And its status as a global "Best for the World" B Corporation shows that it continues to meet the highest standards of social and environmental performance, accountability and transparency, recognised in particular for its governance and positive impact on its customers.
In 2017 Charity Bank lent £34.1 million to organisations within the sector (2016: £27.9m; 2015: £24.7m), increasing the value of its drawn loan assets by 24% to £109.4 million. Its loans continued to facilitate social impacts across all sectors, including arts, community, education, environment, faith, health, housing, regeneration, social care and sports.
Its stock of undrawn loan commitments of £46.4m at the end of 2017 represents the source of future loan drawings.
The growth of its loan book and the maintenance of its sound quality, alongside the careful management of its deposit book and its surplus liquidity, have resulted in a smaller loss than in previous years of £0.6 million (2016: loss of £1.3m; 2015: loss of £2.0m). The bank expects this improvement in its performance to continue as it moves closer towards sustainable profitability.
Big Society Capital continued to provide backing to Charity Bank through investments in its share capital of £2.5 million in June 2017 and £2.5 million in November 2017. This completed the commitment Big Society Capital made in March 2014 to invest up to £14.5 million in ordinary shares of Charity Bank.
In 2017 Charity Bank also expanded its range of charity and business deposit accounts with the launch of its Ethical Easy Access Account for organisations seeking same-day access to their money. Charity Bank also introduced a new online account application system as it prepares to attract more depositors in 2018 and beyond.