DUBLIN: lent €2.5 billion to small and medium-sized businesses in the first half of the year and approved almost nine out of 10 credit applications from the sector, new figures released by the financial institution show.
The credit approvals sum was 18 per cent higher than it was in the first half of 2014, while the rate at which loans were approved remained constant.
The €2.5 billion figure includes new and increased lending and does not include restructured debts or lending to larger corporates.
The bank received a total of more than 34,000 business banking credit applications in the period, an increase of about 8 per cent year on year and an increase of about 17 per cent on the 29,000 applications that were received in the final half of 2014.
Based on analysis of Central Bank data, the bank says that it continues to be the main provider of credit to smaller firms, accounting for more than 50 per cent of new non-property lending.
Improved confidence
The bank said it continued to see improved confidence in the economic environment, with increased demand for credit reflecting signs of growth in the agri-business, retail, hospitality, property and motor sectors.
“Business owners are regaining the confidence to commit to overdue capital expenditure and are also tentatively considering new opportunities, a trend which we expect to accelerate as we move into 2016,” said Bank of Ireland director of business banking Mark Cunningham.
Among the positive factors cited by the bank were a growth rate of 25 per cent in the passenger car market and a 56 per cent uplift in the market for light commercial vehicles.
