CAF Bank's loan book exceeds £100m

The bank says it had £92m worth of loans drawn from it and committed another £11.8m in its last financial year

CAF Bank has seen its portfolio of loans either drawn or committed exceed £100m for the first time, the bank’s latest accounts show.

In its accounts for the year to 30 April 2018, CAF Bank, which provides banking services for charities, said the value of the total loans drawn from it was £92m, compared with £72.5m the year before.

A further £11.8m worth of loans has been committed, the bank said, compared with 12.4m the previous year.

The accounts say that the bank has benefited from a "loyal base of charity deposit customers" that gave it a "strong and stable source of funds" to make loans to charities at competitive rates.

The bank had a profit of £4.5m before taxation, the accounts show, with £3.6m donated to its charitable parent, the Charities Aid Foundation

CAF received £3.8m from the bank the previous year, the accounts show.

But the accounts also say that CAF invested £11m in share capital in the bank to strengthen its capital position.

"We continue to be encouraged by the growth in lending and see steady demand from charities and social-purpose organisations for borrowing funds on competitive terms," the accounts say.

"Our market penetration is still relatively modest in the charity groups we support, but this offers plenty of scope for growth."

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