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Unity Trust plc
Unity Trust Bank plc was established on 1st May 1984 by the Trade Union and co-operative
Movements. The aim of the bank was to be based in the UK built on prudent, profitable lending solely
within the UK, developing expertise in becoming a specialist bank for trade unions, social enterprises,
charities and credit unions in order that the funds of trade unions and in particular members were
being put to the use that matched their ideals, aims and objectives of supporting those less well off
than themselves, through employment maintenance and job creation.
The predecessors unions to UNISON were all early day shareholders and customers of the bank and
have seen it grow ever since. UNISON General Secretary Dave Prentis is the President of the Bank
and a Board Director.
The Bank has grown over the years. As at 31st December 2011 (December 2012 are yet to be
published at the time of preparing report) the bank held customer account balances at £558 million
and loans to customers of £184 million. It can be seen from these figures that;
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Unity has a very strong liquidity position, and therefore does not need to borrow money from
the inter-bank markets or from any other organisations to fund its day to day activities. It is not
impacted by the difficulties that some banks have been facing from the lack of liquidity in this
market. It is also the reason that the bank has not had to purchase a credit rating from a third
party rating agency. Such ratings are required to facilitate inter-bank borrowing, and as Unity
does not borrow money from other banks, it does not require a credit rating.
Unity has never traded in sub-prime investments or the complex financial instruments that
have resulted in difficulties from many organisations. Indeed, this is outside of both our
corporate and social responsibility policies. As such we are unaffected by events in these
markets.
Unity shares are not traded on any exchange and we are not therefore affected by the actions
of speculators on various exchanges, or on market sentiment that has resulted in huge share
price movements.
Unity funds its banking business entirely from shareholder capital and customers' deposits.
Our shareholders - Trades Unions and the Co-operative Bank - are long term investors. Many
of our shareholders are also customers and the comfort and stability provided by owning and
controlling the bank means that we do not have a volatile deposit base. This is reflected by
the fact that many third sector organisations have chosen Unity as a socially responsible
bank, exercising good stewardship of their funds.
There are seven unions represented on the Board of Directors setting strategy for the bank
and monitoring the direction and output.
Unity is a bank specialising in the provision of banking services to trade unions, membership
organisations, charities, voluntary organisations, social enterprises and other not-for-profit
organisations. This business is less volatile than that undertaken by many UK banks and as
such has not been impacted to any material degree by some of the situations faced by other
banks.
Unity has a full banking license, is regulated by the Prudential Regulation Authority and the
Financial Conduct Authority and is a member of the British Bankers Association. Our
business is conducted according to regulatory codes and subject to due supervision.
The Financial Services Compensation Scheme is often mentioned at presentations. UNISON is not
eligible to be covered by this scheme, as the scheme is set to address problems of individual
investors and smaller businesses, well below the size of UNISON. This is applicable whichever bank
UNISON or its branches bank with.
Unity Trust Bank has a strong position on socially responsible and ethical investment. It looks to
invest in the UK, lending in disadvantaged areas/areas of regeneration, looking to help small
businesses, charities and voluntary organisations to develop their work of helping and aiding job
creation, the vulnerable and those in need.
Internally it supports local initiatives with staff being given time out of the business to participate in
local community activities. The Bank has investor in people status and pays a living wage. It does not
have a bonus scheme for executive directors, instead all staff share in a profit sharing scheme,
through an employee share ownership plan (ESOP).
The bank has won many awards for the customer services it offers. All the facilities outlined in the
UNISON Branch Finance Handbook are available from the bank, in particular internet banking and
online statements as well as pre-paid cash cards operated through the internet and direct deposit of
cheques to the bank. With these developments there is little need for high street banking (note that
unity trust does not have any branches on the high street) but if there is a particular need for a
UNISON branch to have a high street operation for encashment purposes only this but can be offered
via a third party if required.