UK Finance makes £15m loss following merger of six trade groups
UK Finance made a £15m loss following a merger of six financial services trade groups, its accounts revealed.
The trade association, which represents nearly 300 firms in the banking and financial services sector, received a membership income of £13.7m – and total income of £17.2m – but suffered the loss due to the costs of the merger.
Its highest paid director took home more than £350,000 in the six months to 31 December 2017.
Half-yearly accounts showed UK Finance made a loss of £9.5m in the first six months of the merger, on top of a £5.6m loss for the year to 30 June 2017.
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The organisation was created in July 2017 following a merger of six trade associations – the British Bankers' Association, the Asset Based Finance Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
In its accounts the directors said they were “satisfied” the company had sufficient liquidity to meet its obligations and remain a going concern.
UK Finance bought the assets of the six trade associations for £8.7m and the cost of the subsequent integration was funded by certain members pre-paying future membership subscriptions.
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The merger was suggested after an independent review in 2015 found that it could deliver efficiency savings of £32.6m over 25 years.
UK Finance said the eight members who pre-paid their future membership had waived the right to have 50 per cent of it paid back – generating £7.8m towards its 2018 accounts.