10 February 2016
- Bank of Ireland approved £795m in new lending to Northern Ireland business in 2015
- 26% increase year on year in new lending approvals for 2015
- Solid growth across all sizes and majority of business sectors
Bank of Ireland today revealed it approved £795m in new lending to Northern Ireland businesses in 2015, representing an increase of 26% on the previous year.
Commenting on the uplift in demand, Ian Sheppard, Regional Director of Business & Corporate Banking Northern Ireland, Bank of Ireland UK said the increase in activity had come from all sizes of business and from the majority of business sectors.
He said: “We welcome the increased activity and are delighted with the growth in lending approvals. We are particularly pleased to see the increase in demand for term loans as it shows the growing confidence of local businesses as they invest and plan for their long term future. Export focussed businesses were foremost in this space. We can cite numerous examples of local businesses we are supporting with their global trade ambitions including IFS Global Logistics who already export to more than 50 countries and have plans to do more and, the award-winning AJ Power, who continue to increase their international reach.
“With 4% growth in Northern Ireland export sales in 2015*the growth potential of the export market remains and we continue to support all our customers entering new markets and trading globally.
“The agri sector is an important growth sector for Bank of Ireland and lending approvals were up 25% on 2014 figures. Despite challenges in the dairy sector, increased demand was driven by opportunities in both farming and agri food businesses.
“There is evidence of a continued recovery in the local housing market, with funding approvals for residential development doubling year on year representing more than 600 new units planned for 2016 – and we expect demand to continue to grow in the year ahead. We are pleased to have supported significant investment deals such as Omagh Showgrounds Retail Park and Obel a flagship building on Belfast’s skyline.
“On balance the outlook for 2016 is a positive one. Momentum is evident with challenges and opportunities in key areas such as scalability, investment in innovation and exporting capability, including development of skills and confidence for entry into new markets.
“There are a number of indicators pointing to continued growth with increased confidence in the market, increased levels of business activity and increased business investment and as Northern Ireland’s Enterprise Bank we will continue to do all we can to support customers as they take these opportunities to grow their business.”
*Exports for October 2014 to September 2015 increased by 4% on same period one year ago and 5.8% compared to two years ago. Source: HMRC
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