Please click on the below links for Unity Trust Bank’s Report & Accounts 2022 and Pillar 3 disclosure:
Please click on the below links for Unity Trust Bank’s Report & Accounts 2021 and Pillar 3 disclosure:
2022 marked a period of significant progress for Unity. Profit before tax for the year more than doubled to £27.4m (2021: £11.1m), increasing the CET1 capital ratio to 18.3%. Unity believes in delivering impact, not simply maximising profits. The Bank has increased lending to socially minded organisations across the UK in 2022, to £836.6m (2021: £723.5m) enabling us to deliver greater positive impact.
As a socially responsible bank, Unity Trust Bank seeks to be transparent in all that we do – and matters of taxation are no different.
The results for the year, before taxation, amounted to a profit of 27.4m (2021: £11.1m). The Directors recommend a final dividend for 2021 of 5.50p per share to be paid in 2023 (2021: 3.85p per share).
The Bank participates in the Community Investment Tax Relief (CITR) scheme which encourages investment in disadvantaged communities by giving tax relief to companies who invest in Community Development Finance Institutions (CDFIs). Deductions from Corporation Tax totalling 752k (2021: 632k) were made regarding the CITR scheme. Expenditure on research and development (R&D) activities is recognised as an expense in the period in which it is incurred apart from capital expenditure which is spread across the life of the development. R&D relief is claimed for qualifying expenditure, relating to technology investment.
The following table shows a breakdown of the Bank’s tax contributions:
| £’000 | 2022 | 2021 |
| Corporation tax | 3,180 | 1,370 |
| VAT | 1,034 | 845 |
| Employment tax | ||
 Employer NIC |
949 | 740 |
| Total taxes paid | 5,173 | 2,955 |
| Employment taxes collected | ||
| Employee PAYE and NIC |
2,361 | 1,928 |
| Total tax contributions | 7,534 | 4,883 |
| All amounts in £’000 | 2022 | 2021 |
| Tax reconciliation | ||
| Profit for the period – Extended Entity | 27,352 | 11,053 |
| Consolidation adjustment1 | – | (41) |
| Profit for the period – Unity Trust Bank plc | 27,352 | 11,012 |
| Tax on profit at standard UK tax rate of 19% | 5,197 | 2,092 |
| Adjustments to tax charge in respect of prior periods | – | 12 |
| Expenses not deductible for tax purposes | 9 | 1 |
| Community Investment Relief Scheme2 | (752) | (632) |
| R&D expenditure3 | (68) | (40) |
| Share options4 | (28) | (28) |
| Impact of capital allowances in excess of depreciation | (2) | (41) |
| IFRS 9 transitional adjustment | (6) | (6) |
| Defined benefit pension adjustment5 | 26 | 24 |
| Banking surcharge6 | 159 | – |
| Current tax charge for the year | 4,535 | 1,382 |
| Current year deferred tax | (20) | 24 |
| Deferred tax adjustment in respect of previous periods | – | (5) |
| Effect of changes in tax rates on deferred tax | (6) | (18) |
| Total tax charge for the year | 4,509 | 1,382 |
1 Consolidation adjustment – The result and position of the Bank are presented on an extended entity basis as explained in note 1 to the 2021 Annual Report and Accounts.
2 The Bank participates in the Community Investment Tax Relief scheme which encourages investment in disadvantaged communities by giving tax relief to companies who invest in Community Development Finance Institutions.
3 Research and Development (R&D) tax relief supports companies that work on innovative projects in science and technology.
4 Share options – Deduction for the market value of SIP free and matching shares under Section 994 of CTA 2009.
5 Tax on amounts recognised in the income statement for the year in respect of the defined benefit pension scheme.
6 The bank corporation tax surcharge is an additional tax on banking profits calculated on the same basis as corporation tax. It was introduced in 2016 at a rate of 8% on profits over £25 million. The Government has confirmed in the Autumn Statement that, from 1 April 2023, the banking surcharge rate will be reduced from 8% to 3% and the allowance will be increased to £100m.
Our trading address is Four Brindley Place, Birmingham, B1 2JB.
Registered in England and Wales no. 1713124
The Bank has increased lending to socially minded organisations across the UK in 2022, to £836.6m (2021: £723.5m) enabling us to deliver greater positive impact. Profit before tax for the year more than doubled to £27.4m (2021: £11.1m). Unity ended the year with a Common Equity Tier 1 (CET1) ratio of 18.3% (2021: 17.7%) and a Liquidity Coverage Ratio (LCR) of 220%, both substantially in excess of regulatory requirements.
Record £27.4m (2021: £11.1m)
(2021: £723.2m)
(2021: 17.7% CET 1 ratio)
If you’re ready to switch your Business Current Account to Unity Trust Bank, we’ll make sure it happens like clockwork. It’s guaranteed to take 7 working days, it’s free, and it’s all taken care of by the Current Account Switch Service.
