Unity Trust Bank leaves the Co-operative Bank fold

UNITY Trust Bank has separated itself from the Manchester-based Co-operative Bank after completing a share buy-back.

Unity, headquartered in Birmingham, is a specialist aiming to create community, social or environmental benefit.

It provides day-to-day banking and finance to groups including charities, social enterprise, trade unions, housing associations and councils.

It also markets itself as a challenger bank for the SME business sector. 

Unity said the move was the most significant in its 30-year history.


The buy-back unlocks an £8m growth strategy which will see the bank expand on its range of services.

It has also issued new Articles of Association that combine shares into one class in order to enshrine Unity’s social purpose.



Prior to the buy-back, The Co-operative Bank owned 26.7% of Unity through its subsidiary, Co-operative Commercial.

Unity has entered into an agreement whereby Co-operative Commercial has sold shares to Unity, to reduce its holding to 6.7%.

The value of the buy-back has not been disclosed.

In order to finance its expansion, Unity has completed an £8m fundraising which has generated fresh capital from existing and new shareholders.



Unity chairman Alan Hughes said: “The announcements represent the most significant changes to Unity since the bank was founded 30 years ago. 



“We are now an independent bank, with a new board, new leadership and the capacity to grow.”  

Currently, more than 20,000 organisations bank with Unity. In 2014 its lending helped to create and protect 3,423 jobs in the UK.