AIB sees 18% rise in SME loan applications

AIB has seen an 18% year-on-year increase in loan applications from SMEs during the first half of 2015.

In a brief update on its lending levels to small and medium-sized enterprises and the farming community, the bank said the first six months of the year saw a “significant increase” in SME activity, with funds availed of rising by 48% on the same period last year.

“There is a general upward momentum building as the economy recovers,” said Ken Burke, head of business banking at AIB.

“As the economy continues to recover, investment by SMEs in their businesses is critical for continued growth and AIB is committed to providing support for small and medium businesses and farmers. It is encouraging to see the range and scale of businesses that have been approved for funding, particularly the 3,500 businesses through the SBCI-backed fund,” he added.

Following the launch of the AIB €200m loan fund, supported by the Strategic Banking Corporation of Ireland this March, AIB is seeing strong demand from businesses and farmers. To date, the bank has approved over €150m in business credit to more than 3,500 customers under the fund.

This increase in demand for credit has been seen across a range of sectors, with the hospitality sector seeing strong growth driven by rising tourism numbers.

Retailers are also investing in their businesses on the back of improved consumer sentiment, according to AIB. Agriculture is still evidencing good demand, with technology, manufacturing, healthcare, and energy sectors showing strong growth this year, the bank added.