New depositors flock to Charity Bank

Charity ISA boosts deposits for social lender

The number of new depositors with Charity Bank has doubled in 12 months, mid-year results from the social lender show.

The bank had 654 new depositors in the year to June, double the number in the same period the year before.

Deposits from its account holders, who number nearly 2,100, stood at £44.1m, with nearly £6m raised through the Charity ISA, launched in June 2008.

The value of the bank's loans was more than £31m, with £11.65m in loans agreed in the first half of 2009.

The bank believes the growth in deposits was caused by the banking crisis. Malcolm Hayday, its chief executive, said: "The bank's performance has held up during a tough six months. We're continuing to see money come in on one side of the deposit sheet and flow out again to support the sector.

"This puts us in a good position to make the most of the opportunities that are coming our way to grow the business. We expect to see this trend continue over the next six months."

Despite the growth, Charity Bank believes it won't break even until 2012, two years later than originally thought, because of the recession.

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