Published: September 21, 2015
Unity Trust Bank (“Unity” or “the Bank”), which brings a fresh approach to banking and an ethical alternative, announces its intention to seek up to £20 million of additional growth capital.
Unity is a profitable challenger bank with a social conscience. Founded in 1984, over 20,000 organisations currently bank with Unity. This year, the Bank has made a number of significant board changes with the appointment of a new Chairman, CEO and independent directors. Alongside new leadership, Unity is in a strong financial position and has the potential to deliver significant growth.
The market in which Unity operates is growing, with an increase in demand for financial assistance from businesses and organisations with more than just a financial purpose themselves. A survey conducted by Social Enterprise UK found that 48% of such enterprises sought to raise external finance in 2013, but 39% of social enterprises felt there was a lack of access to funding.*
Unity is well-placed to help meet this pent up demand. It will help meet this need by significantly expanding its service and lending, increasing its “double bottom line” of social good with sustainable returns in the process. To finance this expansion, the Bank plans to issue shares to raise additional capital. These will be marketed to shareholders and new investors over the next three months.
Chairman Alan Hughes said:
“I am very excited about the opportunities ahead for Unity. From the outset, Unity has been founded on ethical and social principles aligned with the aims of its customers. The pool of people who are growing organisations or businesses for charity, or for ‘profit with a conscience’ like Unity’s, continues to increase. Unity has the potential to support more of them. This additional investment can make our ambitions, and those of our customers, a reality. Investors will get good returns and know their money is being put to good use.”
* Social Enterprise UK: State of Social Enterprise Survey 2013, p.57.
