Ownership of United Trust Bank
Record-Breaking Year Despite Tough Times
United Trust Bank (UTB) had a great year in 2022. They made significantly more money than before, despite many people and businesses in the UK struggling.
Profits Up Big Time
UTB’s profits increased 35% last year to £60.2 million before taxes. This is excellent news for the bank.
Lending More Than Ever
One big reason for their success was that they lent more money than ever. UTB gave out £1.9 billion in new loans in 2022, a record for them.
Doing Well Even When Things Are Tough
The UK had some tricky times last year. Prices increased significantly, a phenomenon known as inflation. The Bank of England also made borrowing money more expensive. However, despite these issues, UTB performed well.
Inside the Numbers
Let’s look at some of the critical numbers from USB’s report:
More Money Coming In
The bank’s operating profit went up by 22%. They made £61.9 million this way. This happened because:
- They lent out more money
- They kept their interest rates steady
- They were careful about spending
Good News for Investors
UTB’s Return on Equity was 21.7%. This means the bank is using its money effectively to generate more revenue.
Growing and Improving
UTB didn’t just sit back and count their money. They worked hard to get better:
Going Digital
The bank invested in new computer systems. This helps them work more efficiently and effectively.
New Products
They made new kinds of loans and accounts for their customers.
More Workers
UTB hired additional staff to support the new business, resulting in a 17% increase in its staff size in 2022.
Winning Awards
Other people noticed how well UTB was doing. Last year, they won 21 awards, including one for being the best Specialist Lender.
Big Numbers for 2022
Here are some essential facts about UTB’s year:
- New loans: £1.9 billion
- Profit before tax: £60.2 million
- Total loans at year-end: £2.4 billion
- Total deposits at year-end: £2.2 billion
- Return on Equity: 21.7%
What does the Boss say?
Harley Kagan, the head of UTB, talked about the year. He said:
“It’s been a tough year for many people and businesses. 2023 might be hard, too. Prices are increasing, and the cost of heating homes and running businesses is higher. It’s also more expensive to borrow money. We know this is putting pressure on everyone’s wallets.”
He also said:
“Our workers have had to deal with a lot of changes. We’ve grown significantly, and the markets have expanded. But they’ve done a great job.”
Unity Trust Bank: Banking for Good
A Different Kind of Bank
Unity Trust Bank is not like other banks. They focus on helping groups that do good things. Let’s learn more about them.
Who do They Help?
Unity Trust Bank works with:
- Trade unions
- Charities
- Other groups that don’t try to make money
- Since 2015, they have also helped businesses that want to make money AND do good things
Where Are They?
The bank’s main office is in Birmingham. It’s located at Four Brindley Place.
How did they start?
Unity Trust Bank began in 1984. Initially, they could only accept deposits. In 1987, it became an entire bank.
Who Owns the Bank?
Trade unions had owned most of Unity Trust Bank for a long time, and the Co-operative Bank also owned a small part.
In 2015, things changed:
- Unity bought back some shares from The Co-operative Bank
- This made The Co-operative Bank’s part smaller
- New people and groups bought shares in Unity Trust Bank
Now, The Co-operative Bank no longer controls Unity Trust Bank.
What Makes Unity Trust Bank Special?
Unity Trust Bank is different from other banks in some critical ways:
Helping Others
Unity Trust Bank wanted to do good things for everyone when it started. They still think this way.
Being Responsible
The bank strives to lend money in ways that benefit people and don’t harm the environment.
Making Customers Happy
In 2015, Unity Trust Bank did well in a survey. Charities said they liked Unity Trust Bank better than other banks in 8 9 ways.
Paying Workers Well
In 2013, Unity Trust Bank became the first bank in Britain to commit to paying all its workers a wage sufficient for them to live on. This is called the Living Wage.
Changes in Recent Years
Unity Trust Bank has made some significant changes:
New Partners
Until 2015, The Co-operative Bank helped Unity Trust Bank with some of its banking work. Now, Unity Trust Bank works with NatWest for these things.
The Co-operative Bank Selling Its Part
In 2014, The Co-operative Bank experienced financial difficulties. They needed to sell things to get more money. One thing they sold was their part of Unity Trust Bank.
Looking to the Future
Both United Trust Bank and Unity Trust Bank had significant years in 2022. They’re both trying to do well and do good at the same time.
United Trust Bank
UTB made a lot of money but knew its customers might be struggling. So, it’s trying to help while doing well as a business.
Unity Trust Bank
Unity Trust Bank continues to focus on helping groups that do good things. They’re demonstrating that a bank can generate profits while also helping others.
Both banks are examples of how banks can do more than make money. Even when times are tough, they try to help people and businesses. As we enter 2023 and beyond, it will be interesting to see how these banks continue to grow and support their customers.
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