Accounts of the company revealed that a loss amounting to £15 million was reported by UK Finance after the merger of six financial services trade groups.
The trade association represents almost 300 companies that are included in the banking and financial services sector. It received a membership income amounting to £13.7 million – and a total income of approximately £17.2 million – however, it suffered the loss because of the costs that were attributed to the said merger.
The highest paid director of the said association took home more than £350,000 in the six months to the 31st of December 2017.
Half-yearly accounts revealed that UK Finance made a loss amounting to £9.5 million in the first six months of the merger, in addition to the £5.6 million loss for the year that it reported for the period ending on the 30th of June 2017.
The organisation was established in July 2017 after a merger of six trade associations – the Asset Based Finance Association, the British Bankers’ Association, Financial Fraud Action UK, the Council of Mortgage Lenders, the UK Cards Association, and Payments UK.
In its accounts, the directors said that they were “satisfied” that the firm had sufficient liquidity in order to meet its obligations and continue to be a going concern.
UK Finance acquired the assets of the six trade associations in a deal that was worth £8.7 million and the cost of the subsequent integration was backed by certain members pre-paying future membership subscriptions.
The said merger was suggested after an independent review way back in 2015 discovered that it would be able to deliver efficiency savings amounting to £32.6 million over a period of 25 years.
UK Finance said that the eight members who pre-paid their future membership had already waived the right to have 50 percent of the amounts paid back – generating £7.8 million towards its 2018 accounts.