DUBLIN: Northern Ireland’s banks are seeing a “significant increase” in demand for business loans as the economy picks up pace and companies press ahead with expansion plans.
First Trust says it has approved over £600m in loans to businesses in the province since August 2014.
At the same time it has seen loan drawdowns up 120% year on year.
It also revealed that its loan approval rate has been maintained at 95% between January and August this year.
Richard Ennis, director of business and corporate banking, said: “Last year has really seen our customers’ confidence and ambition increase.
“We noticed the upward trend in lending starting with our corporate clients, but it is now evident across our client base with many now in a position to expand.
“These latest lending figures and future pipeline show a strong desire among businesses, both large and small, to invest for the future and that is very encouraging as we seek to rebalance the wider economy.
“The demand we are seeing in recent months is noticeably more capital-driven, with customers seeking future growth loans as opposed to working capital for current cash needs – something which is in stark contrast to just a few years ago.”
Danske Bank has also experienced a surge in demand for business loans this past year, although it declined to release figures. Kevin Kingston, deputy chief executive, said: “We provided more new lending to business customers in the first half of 2015 than we did in the whole of 2014.
