spotlight on Unity 2008

2

it’s all about people

2008 saw the Financial Services sector both at home andabroad suffer its greatest crisis for decades. With it came a significant loss of confidence in the banking system byorganisations and consumers alike. The year ended withBank of England base rates at 2%, subsequently falling toan all-time record low of just 0.5% in March 2009.

However, I am pleased to report that here at Unity we escapedmuch of this turmoil and contrary to the fate that befell manybanks, 2008 was another year of record growth. In thesetimes of financial uncertainty, customers want to be with abank that has no sub-prime lending or toxic debt, one thathasn’t needed government funds or seen its share priceplummet; but instead has provided what they always wantedfrom a bank – a safe, secure home for their deposits and acontinued source of borrowing, providing key financialsupport, consistently. Unity is that bank.

Of course that hasn’t happened by accident; in line with our shareholders’ vision, we have stuck to what we do best,banking based on values - banking as it should be. Interestingly,whilst this approach has always had a natural affinity with ourcustomers in the social and union movements, it is increasinglystriking a chord with our commercial customers. As themainstream banks have sought to sideline traditional bankingvalues and relationships, we have seen a stream of newcommercial customers knocking on our door. Attracted by ourvalues and approach, they see more than ever an alignmentbetween us and their own agenda.

We saw great growth in customer numbers during 2008 asmore and more organisations chose to be with a bank thathad values aligned to their own. Those new customersbrought new business and as a result, at the year end, wehad received £41 million of new deposits - a record for us.

Similarly, I was delighted that last year was a record periodfor lending growth as more organisations chose Unity as theirpartner to deliver key projects. Overall customer borrowinggrew by 56% to £117 million - another record for us.

But none of this growth could have been achieved without a continued and sustained investment in the business. Wehave invested and we will continue to invest in all areas ofthe bank where there is direct benefit to our customers.

We have invested in systems – in a new internet bankingplatform, in on-line bank statements and in back-officetechnology to make our systems smarter and enable us toprovide better information to our customers.

This investment in systems and technology has been matchedby an investment in our people. I am delighted that, onceagain, this has been recognised by the retention of ourInvestors In People accreditation, and by being named as“one to watch” under The Sunday Times Best Companies toWork For scheme.

I am a firm believer in providing opportunities to grow anddevelop our own excellent people through investment andtraining, enabling them to realise their potential. During 2008we grew our Social Economy team and, for the first time, wenow have development managers in place to cover the wholeof the UK and Northern Ireland.

We have also been growing our strategic partnerships withthird parties who help add true value to our customers. Wehave teamed up with Streamline to offer discounted rates onmerchant card services to those customers that take creditand debit card payments. Work is well underway to be ableto bring a market-leading prepaid card solution to ourcustomers and, in the case of credit unions, their customers.

So as I look back at 2008 and contemplate the challengesahead, I am comforted by the fact that our current position is no accident. It is borne out of our socially responsibleideals, the loyalty of our customers and shareholders, and the enthusiastic commitment of our staff. This is a potent,winning combination, which will ensure that Unity continuesto be the bank of choice for many years to come.

Kevin Turmore, Managing Director

3

banking as it should be

BEST marks for banking services

05 06 07 08 09

(Charity Finance Banking Survey 2005-2009)

4

service that’s tailored to our needs

“When we came to Unityin 2008, we were carefulto look at how the bankwas run. The fact thatUnity does not rely onborrowing from otherbanks means we knowthey offer a securehome for our money.”

Hilary De LyonChief Executive, RCGP

Royal College of General Practitioners

14 Princes Gate, Hyde Park, London SW7 1PU

Tel: 0845 456 4041

www.rcgp.org.uk

When the Royal College of General Practitioners (RCGP)wanted a bank that could support its local faculties, theorganisation turned to Unity Trust. “We looked at using a high street bank but Unity's service was better suited to a branch structure like ours,” says Hilary De Lyon, Chief Executive.

A professional membership organisation for GPs in the UK,the RCGP represents over 30,000 doctors in 30 branches -known as faculties - across the country. A system whichsaw each faculty organising its own separate bank accountsmade it hard for the RCGP to keep track of everything andmeant that local faculties didn’t always get the best deal.

Unity offers the RCGP a service that's tailored to theirneeds. Faculties get their own accounts but interest ispooled - earning them higher returns and making the

banking easier to administer. “Unity offers us the best ofboth worlds. Our faculties get the freedom to look after theirbanking while enjoying the benefits of banking with UnityTrust,” says Hilary.

Unity also helped to make transferring to a new bank easy.“The changeover went smoothly because the faculties areable to run their Unity account through the same local highstreet bank they used before,” explains Hilary. “Unity’scontact centre has also been extremely good - with someoneon the phone to help when we needed them.”

Moving banks doesn’t have to be a hassle - as the RCGPdiscovered. “I had dealt with Unity in my previous role at atrade union, so I was confident they would provide a goodservice,” says Hilary. “I haven’t been disappointed. In fact,we couldn’t have asked for more.”

5

Our Mission: achieve growth by being socially focused,customer centred, and commercially driven.

How this translates into practice Since we were established 25 years ago, we have sought toput social change, social benefit and community involvementat the heart of what we do.

In that time, we have created a sustainable, sociallyresponsible business. We use some of our profits to re-investin our business to help more organisations in the future. Theremaining profits are returned to our shareholders - tradesunions and the Co-operative Bank – who are both part of UKcivil society.

Being socially focused means that we have strict criteria ofwho we will and won’t deal with. We won’t deal with anyorganisation which:

� does not respect or value human rights

� discriminates on the basis of race, religion, or sexualorientation

� is undemocratic or intolerant of others’ views or whichuses intimidation or violence as a means to achievebusiness ends

� does not support the formal organisation of labour withinthe workplace

� is directly involved in the manufacture of arms or explosives

� is based overseas.

And, because we want to see a prosperous and vibrant UKeconomy, we will not outsource any of our operationalrequirements offshore.

We are committed to enabling social development andsupporting community involvement. We see the developmentof strategic partnerships with national umbrella organisationsand others active in our key sectors as making a sustainablecontribution to society.

As part of this, we are passionate about helping our customersachieve their goals in the development of communities and in the people that they support.

Where we come in is by making banking simple, straight-forward and easy to deal with. Where we can, we providefinancial and practical support for events, especially at a localand regional level.

What we mean by being

customer centred To us, being customer centred makes good business sense.Increasingly, we are seeing that the approach and tenets thatwe adopt as a business are paying dividends as customersseek a real alternative to the high street banks.

And we must be doing something right – for the last fiveyears we have been rated top for customer service by thereaders of Charity Finance magazine. And, most of all, themajority of new accounts that we open come to us by way ofpersonal recommendation.

During the past 25 years we’ve seen, and have adapted to,huge changes and challenges in the world of banking, tradeunions, the social economy and society at large.

But, through all of this change, we are proud that, 25 yearson, we’re still able to deliver innovative, socially responsiblebanking that puts social change, social benefit and communityinvolvement at the heart of what we do.

As we look forward, we are confident that our commitment toinnovation, customer care, social responsibility and to thevalues of our shareholders will contribute to our continuedsuccess and growth as the bank of choice for the trade unionand social economy movements.

why we’re different

6

it’s all about therelationships

“We’ve found Unity to be resourceful, responsible and communicative. Ourdevelopment manager makes my life really easy.”

Naana Otoo-OyorteyExecutive Director, FORWARD

FORWARD

Unit 4, 765-767 Harrow Road,

London NW10 5NY

Tel: 020 8960 4000

www.forwarduk.org.uk

When the Foundation for Women’s Health Research andDevelopment (FORWARD) was looking to move to a moresupportive bank, the charity turned to Unity Trust andenjoyed a personal service right from the start.

“Our development manager makes my life really easy,” saysNaana Otoo-Oyortey, FORWARD’s Executive Director. “He’sresourceful, prompt at getting back to us, and he evenhelped us with the paperwork to open the account. Unityhave been responsive to our feedback, which makes a bigdifference. We’ve got a good relationship.”

Naana explains why FORWARD came to Unity: “We werehaving difficulty getting good advice from our previous bank,and we wanted to get a better rate of interest on our money,”she says. “Unity were recommended to us by a colleague –their organisation had a very positive experience of bankingwith Unity. Happily, we have found the same.”

FORWARD is an international organisation working withAfrican girls and women to advance and protect their sexualand reproductive health and human rights. The charityworks to eliminate female genital mutilation (FGM) – apractice which is illegal in the UK, and which has serioushealth and social consequences.

It’s estimated that around 24,000 girls under 15 in the UKmay be at risk of FGM, and that there could be as many as66,000 women in the UK who have already suffered FGM.The charity runs a poster campaign to highlight this practiceand provides training for education, health and socialservice professionals in the UK. These activities encouragewomen to come forward and seek help, as well as enablingFORWARD to spot and assist girls who may be at risk.

In order to focus on this work, the charity needs to know thatits banking is in good hands. “Our development manager isalways on hand and takes the time to understand our needs.”

Services to meet

your needs Whether you need day-to-day banking, loansor specialist financial services, we’re here tohelp, with a full range of services tailored tosuit your needs. Our ability to pool accountsand maximise interest and our triple authorityon-line banking are both designed specificallyfor your sector.

It is this proactive approach to banking that has seen us achieveCommended status for our charity account, awarded by industryexperts Business Moneyfacts.

Our service is delivered through a national team of developmentmanagers, with specific experience in your sector. As well ashelping with your banking needs, development managers canoffer help and advice and can often introduce you to localfunding bodies.

Top for customer service This level of personal service is never more than a phone callaway to our Birmingham-based call centre, where you’llcome straight through to a person, not a machine. So nowonder that this team has topped Charity Finance magazine’sratings for customer service in 2005, 2006, 2007, 2008and 2009. The same survey saw us come top of all the otherbanks for our customer communications in 2009.

At Unity, our relationship with our customers is something wetake very seriously. We’ve developed an accord that sets outthe rights and responsibilities of each of us, so you can besure you’ll be treated honestly, openly and fairly. That’s whywe were the first UK bank to abolish penalty charges.

We really are a bank of the sector, for the sector, deliveringbanking solutions tailored to your needs in a way that you’dwant to do business.

7

safety, security and service

For 25 years we have been a trusted partner of organisationsin the wider civil society – working with them to make areal difference to people’s lives and to the communitiesthey live in.

So it’s no surprise that today over 70% of our new businesscomes to us by customer recommendation. Bank with UnityTrust and you’ll enjoy personal service and flexible bankingthat’s in tune with your values.

Your money’s safe with us We recognise that your money has the power to help a lot ofpeople. So it’s important to keep it safe and secure. We holda full UK banking licence, are authorised and regulated bythe FSA, our deposits are covered by the Financial ServicesCompensation Scheme and we are members of the BritishBanking Association.

We pride ourselves on our large retail base and the fact thatwe do not rely on borrowing from the wholesale markets.

From this base we are able to invest in social economyorganisations, as long as those investments meet our strictethical and social responsibility policies. In 2008, we turnedaway £14 million worth of loans that didn’t meet thosepolicies. But, that is what you would want from a bank thatis still owned by its founding shareholders - trade unionsand the Co-operative Bank.

When it comes to meeting your banking needs, we aim tomake banking simple for you, so you can spend more timeon the things that matter. That’s why as a specialist bank foryour sector, you can bank with us in the same convenientway that you can with any high street bank, with addedbenefits that others don’t offer.

Unity’s Customer Service team, from top row, left to right: Karen, Sarah, Caroline, Claire, Remi, Justin, Lindsay, Steve, Carmel, Chris, Daryl, Michael, Matthew, Alan, Donna, Scott, Maggie, Heather, Carla, Rebekah, Emma, Louise, Ashleigh, Harvy.

8

we wanted to talkto a person, not a machine

“Unity had the best overall offering for our needs– experience in the charity sector, a wide range of services and competitive interestrates. They provide the personal service wecouldn’t get from a high street bank.”

Ruth NaftalinFinance Director, The Hansard Society

Hansard

40-43 Chancery Lane, London WC2A 1JA

Tel: 020 7438 1222

www.hansard-society.org.uk

The Hansard Society – Britain’s leading independent, non-partisan political education and research charity – came toUnity Trust when they wanted a personal, efficient servicefrom a bank that understood their needs.

“We moved to Unity after becoming frustrated with theservice we got from our previous bank,” explains RuthNaftalin, the Society’s Finance Director. “Dealing with salarypayments used to be time-consuming and we wanted tospeak to bank staff, rather than automated lines and callcentres. With Unity, we know we’ll get a person on theother end of the phone.”

“When we researched what accounts were on offer, Unityhad the best range of services for our needs and paid

competitive interest rates. We like having a bank thatunderstands how our organisation operates, rather thanlumping us in with private sector companies.”

With Unity taking care of its day-to-day banking, the Societyis free to concentrate on its mission: to engage people inparliamentary democracy, encourage scrutiny of parliament’srole and provide a platform for discussion and debate.

To keep its numerous initiatives and pioneering programmesrunning smoothly, the charity receives project-based grantfunding – with an intern assigned to each project, workingalongside permanent staff. With an understanding of itsneeds, Unity offers the Society flexible banking designed tosuit organisations working in the social economy sector.

9

Customers say they bank with us for the following reasons:

Service delivery

Rated top for customer service in 2005, 2006, 2007,2008 and 2009 by the readers of Charity Finance magazine.

Safety and security

We have a full UK banking licence, are regulated by theFSA, subscribe to the Business Banking code, our depositorsare covered by the Financial Services Compensation Scheme,and our shares are not openly traded.

Understanding your needs

By listening to the needs of our customers, we havedeveloped our systems, procedures, accounts and loans to meet your specific needs.

Banking at your convenience

Whether you bank via the internet, over the phone, by post or at the Post Office, you are always in control. Our e-Payment service provides a convenient and cost effectiveway to make regular payments or receive subscriptions.

One-stop shop

Whether it’s day-to-day banking, loan finance or specialistfinancial services for your sector, we have the products tomeet your needs.

Tailored banking

As a specialist bank providing a full range of bankingservices for your sector we are able to tailior our productsto your needs, so you won’t find yourself ‘shoe-horned’into an inappropriate type of account.

Respected

Our reputation for excellence has been built over 25 years,which is why over 70% of all our new business comes to usby customer recommendation.

Value for money

We offer free current accounts for organisations with aturnover of less than £250,000, and offer flexible,competitive charges for larger organisations.

Social values, community spirit

We work in partnership with our customers in the socialeconomy sector, enabling them to make a real difference topeople’s lives and to the communities in which they live.

Social responsibility

We incorporate social responsibility into everything we do.Each year we turn away potential customers and lendingopportunities because they do not meet the high standardsour stakeholders require.

Mark HerbertLondon & South EastMob: 07711 412865mark.herbert@unity.co.uk

Gordon AllanScotlandMob: 07711 412889gordon.allan@unity.co.uk

Paul MartinHead of Social EconomyMob: 07774 153801paul.martin@unity.co.uk

Laurie BellTrade UnionsMob: 07711 412869laurie.bell@unity.co.uk

Yvonne BramallYorkshire & HumbersideMob: 07711 412873yvonne.bramall@unity.co.uk

Adam RuffinatoNorth West Mob: 07711 768131adam.ruffinato@unity.co.uk

Neil FormanCentral Development ManagerTel: 0845 155 3355neil.forman@unity.co.uk

Andrew JessonHead of Commercial Enterprises & Trade UnionsMob: 07711 412866andy.jesson@unity.co.uk

Nishil TannaCommercial Mob: 07918 677549nishil.tanna@unity.co.uk

Jason James Lending Mob: 07711 873533jason.james@unity.co.uk

Karen GormanNorth East & CumbriaMob: 07711 412879karen.gorman@unity.co.uk

Jerry BurrowsThird Party RelationshipsMob: 07711 412867jerry.burrows@unity.co.uk

Michael TisshawCommercial Mob: 07918 677548michael.tisshaw@unity.co.uk

Mark FergusonCentral & South MidlandsMob: 07918 677543mark.ferguson@unity.co.uk

Kevin MoranTrade UnionsMob: 07711 412868kevin.moran@unity.co.uk

Stuart GotobedCommercial Mob: 07801 090494stuart.gotobed@unity.co.uk

Sean TaylorLondon & East AngliaMob: 07711 412876sean.taylor@unity.co.uk

Andy TheobaldCommercial Mob: 07595 567299andy.theobald@unity.co.uk

Amanda BrobynNorthern IrelandMob: 07885 844090amanda.brobyn@unity.co.uk

Nigel Tyrrell National Charities ManagerMob: 07711 412877nigel.tyrrell@unity.co.uk

Jon FieldWales & South WestMob: 07885 843682jon.field@unity.co.uk

Nigel PriceLending Mob: 07711 412870nigel.price@unity.co.uk

Our people

Mark WiltonNorth & East MidlandsMob: 07711 412881mark.wilton@unity.co.uk

10

we found Unity’s personalservice echoes the feel of LVCS

Paul Addae-AndersonFinance Manager, LVSC

London Voluntary Service Council

356 Holloway Road, London N7 6PA

Tel: 020 7700 8107

www.lvsc.org.uk

“With Unity we get a truly personal service from our development manager. The e-Payments facilities allow us to settle invoices from suppliers easily, and we get a competitive rate of interest on our money.”

Banking with Unity Trust has brought peace of mind for the London Voluntary Service Council (LVSC). Followingsecurity worries with their previous bank, the organisation’smanagement wanted secure banking with easy access totheir money. With an internet banking service, facilities likee-Payments and a personal service, Unity was the ideal choice.

Paul Addae-Anderson, LVSC’s Finance Manager, commentson the benefits of Unity’s personal touch. “We really like thepeople on the Unity team,” he explains. “It’s great that we cansee our development manager regularly and we’re very happywith the relationship that’s grown over the last two years.”

The LVSC represents 200 community and voluntary sectororganisations in the London area – supporting their needs,driving the policy agenda and offering training and advice tomember organisations and other local networks. “LVSC’sknowledge and expertise in areas like employment andstaffing makes a real difference to charities, non-profit andcommunity groups,” says Paul.

Banking with Unity helps the Council make the most of itsmoney, explains Paul: “Some activities are supported byfunding, but the Council also generates a significant amountof the income it needs from running training events andoffering consultancy services. Unity’s competitive interestrates on credit balances help us make the most of thisincome. And their ethical approach to investment is anadded bonus.”

The Council is campaigning to make sure that the voluntaryand community sector doesn’t bear the brunt of any fundingcuts that could take place as belts are tightened across theboard. LVSC is working with key funders to find other waysto make the available money work harder.

“It’s at exactly this time that many people most need thehelp of the organisations we support,” says Paul. “Unity’sexperience in working with the voluntary sector fits wellwith our needs and helps us deliver vital support.”

11

what we stand for

Opening an account couldn’t be easier We’re here to make opening a new account or switching an existing account to us easy. We understand your needs and have ateam dedicated to taking the hassle out of the process - typically, with all the paperwork in place we can have your accountopen and active within ten days of receiving your completed application.

If there’s anything else you need to know, simply call your local development manager (details on page 9) or our Central

Management team on 0845 155 3355. They’ll be happy to help.

Mission and Vision� Mission – achieve growth by being socially focused,customer centred, and commercially driven.

� Vision – Unity will be the bank of choice for the TradeUnion and Social Economy movements.

Values� We are committed to enabling social development andsupporting community involvement.

� We treat customers fairly and are open, honest andtransparent in our dealings with them.

� We are customer centred.

� We focus on solutions and deliver on our promises.

� We behave with respect and integrity and value teamwork.

� We will look to deliver the goals of our shareholders.

Unity’s Executive Management team, from left to right: Ian Wardle, Mike Osborne,Heather Brown, John Brooks, Kevin Turmore, Ian Morrison.

BEST marks for banking services

05 06 07 08 09

(Charity Finance Banking Survey 2005-2009)

COMMENDEDBEST CHARITY

ACCOUNT PROVIDER

BusinessMoneyfacts®

The business finance bible

www.moneyfacts.co.ukUTB247April 2009

Unity Trust Bank plcNine Brindleyplace, Birmingham, B1 2HB

T: 0845 140 1000F: 0845 113 0003www.unity.co.uk

Unity Trust Bank is authorised and regulated by the Financial Services AuthorityRegistered in England and Wales no. 1713124

Registered office: Nine Brindleyplace, Birmingham, B1 2HB

Our thanks go to those customers featured in this brochure for allowing us to use their organisations as a case study. All other photos used are of Unity Trust Bank staff - thanks also to them.