Since the 2008 financial crisis banks all over the world have had to work hard to restore customer confidence in not only their financial prowess but also their moral compass. Billy Bambrough looks at how charitable spending at the UK’s major banks has changed post-2008.
Lloyds, a bank that was hard-hit by the financial crisis, has been shown to be far and above the most charitable of all the UK banks.
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Lloyds has donated over 1% of its annual revenue since 2008, an increase on pre-crash charitable giving of 46 basis points.
By contrast, despite being relatively unaffected by the financial crisis, The Co-operative Bank (Co-op) donated 0.38% of its revenue during the period 2009 to 2011, toppling the lender from its pre-crash position as the most generous major UK bank. Prior to the crash, over the three year period covering fiscal years 2006 to 2008, the Co-op donated 0.98% of its revenue.
In a statement the bank told RBI: "The Co-operative places its importance on the impact of its donations and activities, and not simply the amount of money we donate."
"As a co-operative organisation, we were founded on helping to improve the lives of our members within their communities almost 150 years ago. We remain committed to these principles."
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By GlobalDataHSBC, Lloyds, Santander and National Australia Bank’s UK-based subsidiary, the Clydesdale, have all donated more of their annual revenue to good causes post the crash in 2008 compared with the period from 2006 to 2008.
Royal Bank of Scotland, Barclays, Nationwide and The Co-op have given less.
Clydesdale has increased its donations by 16 basis points since the financial crash from 0.06% (2006-2008) to 0.22% (2009-2011) of its annual revenue.
Although Clydesdale is donating considerably more to charity since the financial crash it remains the lowest in terms of percentage of revenue given.
In 2008 Clydesdale launched the Yorkshire and Clydesdale Bank Foundation. The Foundation provides funds to help registered charities, not-for-profit organisations, community and other voluntary organisations.
The Yorkshire and Clydesdale Bank Foundation ‘Spirit of the Community Awards’ will be launched in early 2013. These annual awards will replace the current donation programme which will remain in place until the end of 2012.
The charitable donations at Lloyds include support for financial capability, higher education, sports for young people and support to the Lloyds TSB Foundations and the Bank of Scotland Foundation.
Paul Turner, Lloyds Banking Group community and sustainable business director told RBI: "Lloyds Banking Group has a long legacy of giving – this was our long held ethos ahead of any banking crisis.
"Our view is very much that the financial industry as a whole needs to get back to serving customers and communities with simple, service led products that help them achieve their needs and this is our starting point for all that we undertake."
Turner added: "Our aim is to help Britain prosper."
Lloyds community investment programme Money for Life provides tutors and support workers with the skills they need to talk confidently about money management, and to help people to stay out of debt and save for the future. In addition Lloyds is the only bank listed as Platinum Company in Business in the Communities Corporate Responsibility Index
Spanish based Santander, the third largest bank in the UK in terms of deposits, has recently launched a new programme of support for the social enterprise sector – Social Enterprise Development Awards – helping established social businesses to grow and develop.
Sharon Squire, head of corporate social responsibility at Santander told RBI: "Santander is keen to give back to society, particularly in areas where our branches and banking centres are based, and our giving is focused on two core areas: Education and Enterprise.
"Santander has been focused on supporting customers during the financial crisis, both personal and small businesses. Our charity work has been a constant commitment and has not been directly impacted by the financial crisis."
This year Santander has created a new fund under the Santander Foundation which is specifically designed to support small, local charities with grants of up to £5,000 called Community Plus.
Squire explained: "At a time of public sector funding cuts this is helping the small charity sector in a practical way."
The figures RBI has used for this report are the direct charitable donations made by the bank, taken from annual, sustainability and financial reports. They are not necessarily inclusive of money raised by the bank through events or donations made by staff through volunteering.
