United Trust Bank Limited

Background

United Trust Bank Limited (UTB) is a specialist bank established in 1955, headquartered in London, United Kingdom. The bank focuses on providing a range of secured funding facilities for individuals and businesses, as well as fixed and notice deposit accounts for individuals, businesses, and charities. UTB's mission is to build strong, lasting relationships with its customers and broker partners, aiming to grow sustainable and profitable businesses in underserved sectors of the finance market.

Key Strategic Focus

UTB's strategic focus encompasses several core objectives:

• Specialist Lending Solutions: Offering tailored financial products, including development finance, bridging finance, asset finance, and structured finance, to support SMEs, housebuilders, property investors, and mortgage borrowers.

• Deposit Products: Providing a variety of fixed and notice deposit accounts and ISAs to individuals, businesses, and charities.

• Digital Transformation: Investing in technology to enhance customer and broker experiences, exemplified by the launch of an online deposits portal and internet banking services.

• Geographical Expansion: Extending services beyond London, including the opening of a Manchester office to better serve brokers in the North.

Financials and Funding

UTB has demonstrated robust financial performance in recent years:

• 2024:

• Operating Income: £165 million

• Profit Before Tax: £86.4 million

• Return on Equity: 20.1%

• Gross New Lending: £1.9 billion

• Loan Book: £3.5 billion

• Total Funding: £3.5 billion

• 2023:

• Operating Income: £154.1 million

• Profit Before Tax: £82.7 million

• Return on Equity: 23.9%

• Gross New Lending: £1.8 billion

• Loan Book: £3.1 billion

• Total Funding: £3.1 billion

In December 2024, UTB announced an agreement for Warburg Pincus to acquire a minority equity interest in the bank, endorsing UTB's strategy and future prospects. Additionally, in February 2025, UTB issued £50 million in Additional Tier 1 capital to institutional investors, enhancing its capacity for growth and development.

Technological Platform and Innovation

UTB has invested significantly in technology to enhance its service offerings:

• Digital Banking Services: Launched an online deposits portal and internet banking services to improve customer accessibility and experience.

• Facial Recognition Technology: Implemented for mortgage customer identity verification, streamlining the application process.

• Core IT Platform: Introduced a new asset finance core IT platform to support business growth and operational efficiency.

Leadership Team

UTB's leadership comprises experienced professionals:

• Harley Kagan: Chief Executive Officer since 2021, previously Finance Director and Managing Director at UTB.

• Graham Davin: Deputy Chairman, former CEO, instrumental in the bank's growth and strategic direction.

• Mark Stokes: Chief Commercial Officer, joined in 2021, bringing extensive experience in commercial banking.

• James Masters: Chief Technology Officer, appointed in 2021, leading the bank's digital transformation initiatives.

• Alice Altemaire: Non-Executive Director, CEO of RCI Bank UK, rejoined the board in 2021.

Leadership Changes

In 2021, Graham Davin retired as CEO and became Deputy Chairman, with Harley Kagan succeeding him as CEO. Mark Stokes and James Masters joined as Chief Commercial Officer and Chief Technology Officer, respectively, in the same year. Alice Altemaire returned to the board as a Non-Executive Director in 2021.

Competitor Profile

Market Insights and Dynamics:

UTB operates in the UK's specialist banking sector, focusing on underserved markets such as SME lending, development finance, and specialist mortgages. The sector has seen growth due to increased demand for tailored financial solutions and the emergence of fintech innovations.

Competitor Analysis:

Key competitors include:

• Unity Trust Bank plc: Focuses on socially responsible banking, serving charities, social enterprises, and trade unions. In 2023, it reported total assets of £1.75 billion and an annual profit of £48.86 million.

• Secure Trust Bank: Offers a range of retail banking services, including savings accounts, mortgages, and personal loans. It has undergone strategic shifts, including the sale of its consumer lending business and acquisition of a BNPL startup.

• Together Personal Finance Limited: Specializes in consumer and corporate lending, with total assets of £1.38 billion as of 2023.

Strategic Collaborations and Partnerships

UTB has engaged in significant collaborations to bolster its market position:

• Warburg Pincus Investment: In December 2024, Warburg Pincus acquired a minority equity interest in UTB, endorsing the bank's strategic direction.

• Homes England Partnership: Launched a £250 million Housing Accelerator Fund in 2021 to support SME housebuilders.

• British Business Bank ENABLE Guarantee: Secured in 2017 to support lending to SMEs.

Operational Insights

UTB's strategic considerations include:

• Market Positioning: Focusing on underserved sectors such as SME lending and development finance to differentiate from larger, mainstream banks.

• Digital Transformation: Investing in technology to enhance customer experience and operational efficiency.

• Geographical Expansion: Opening new offices, such as the Manchester branch, to better serve regional markets.

Strategic Opportunities and Future Directions

UTB's strategic roadmap includes:

• Product Diversification: Expanding product offerings to meet evolving customer needs.

• Technological Innovation: Continuing investment in digital platforms to streamline processes and enhance service delivery.

• Sustainable Growth: Leveraging recent capital investments to support responsible and sustainable growth initiatives.

Contact Information

• Website: www.utbank.co.uk

• Social Media:

• LinkedIn: www.linkedin.com/company/united-trust-bank

• Twitter: twitter.com/utbank

• Facebook: www.facebook.com/UnitedTrustBank