18 th October 2016
AIB Supporting Business Customers AIB Group 2016 H1 profit of € 1bn Over 650 SME credit applications approved every week in H1 2016 € 6.1bn in new lending approved AIB Supporting 10% increase in SME new lending across the Group approvals in H1 2016 Business Business & Corporate lending We approved 94% of all SME credit Customers up 12% in H1 2016 applications in H1 2016 To date we have repaid € 6.5bn SME new lending drawdowns are up to the State 32% on H1 2015 2
AIB Sector-Led Strategy Energy & Property Sector Food & Cleantech Sector Fisheries € 350m New Residential € 100m Energy Efficiency Homes Development Retail Sector Sector Fund Fund € 200m Renewable Energy Specialised Property Fund Lending Unit Manufacturing Sector Technology, Wholesale & Media & Agri Sector Nonprofit & Distribution Telecoms Sector Professional Second € 500m Agri Sector Fund Services Sector Frontline Ventures 12 Agri Advisors partnership Entrepreneurship Entrepreneurship Exports Advisory Panel Healthcare Transport & € 200m Export Finance Fund Hospitality Logistics Sector 85 Export Champions Sector Sector € 300m Healthcare Fund
Our role supporting you in your market and our mutual customers Creating partnerships to drive local economic growth I am your AIB contact I am available to you for We can leverage the full support, advice, suite of banking supports expertise, connections available to help you and and referral where your clients My team are available to required you, your team and your clients for all your business banking needs
Our role supporting you in your market and our mutual customers Locations in your market Digital support in your market Business/Sectoral expertise available • 19 Local Market branch structure, • SME Direct Team available from 8am- • 10 Specialist Sector Teams including branches & lobbies 9pm Mon-Fri and 9am-6pm Sat • Nationwide team of Agri Advisors • 1 Business Centre • Mobile Sales Force - available to visit • 85 Export champions customers at their business premises • Range of Dedicated Sector Funds • My Business Toolkit - offering market- • Series of Sector specific research leading cloud-based business app reports • Internet Banking and iBusiness Banking (iBB)
AIB supporting financing solutions across the business life cycle Growth & Established Late / Exit Concept Early Expansion • • • • • Savings Venture / Seed Existing Shareholders Existing Shareholders Capital Markets • • • • Friends & Family Capital Enterprise Ireland Development Capital IPO • • • • Grants Enterprise Ireland Senior Debt Funds Trade Sale • • • Receivables Finance Angels Equity Investment Senior Debt • • • Incubators & Equity Risk Capital Mezzanine Debt Accelerators In partnership Investors In with BUSINESS GROWTH Trade Sale, Flotation Development Capital, Private Equity, Mezzanine Finance Senior Debt, Invoice Finance, Loans, Invoice Discounting & Working Capital Treasury, Trade Finance & Leasing, Loans & Working Capital Current Accounts, Company Credit Cards, Deposits, Resources, Merchant Services & iBB TIME
AIB Equity Financing € 75m Seed Capital Fund • Fountain Healthcare Fund Largest bank providers of Seed Capital Frontline Ventures MML Growth Capital Fund Funding in Ireland • € 15m commitment to € 103m fund • AIB Seed Capital Fund – concentrates on • • € 20m invested in € 125m fund € 5m committed to € 50m fund • companies in seed and early stage of Supports Irish companies in the • Invests in well-managed businesses • Looks to invest in early-stage development across range of sectors specialty pharmaceuticals, with clear growth and development technology companies • biotechnology, medial devices and AIB Start-Up Accelerator Fund – focuses prospects diagnostics area . on developing high-growth export- oriented companies in emerging sectors ACT V Venture Capital Fund University Bridge Fund Causeway Capital Fund Atlantic Bridge Fund • € 15m committed to € 64m fund • € 5m committed to € 60m fund • € 5m committed to € 30.5m fund • € 15m committed to a € 138m fund • Invests in founders and management • Collaboration between TCD and UCD • Invests in established Irish and UK • Concentrates on technology teams with the patience and with investment from AIB, Bank of SMEs with ambitious management companies with global market perseverance to take an idea, create Ireland, Enterprise Ireland and teams and strong growth prospects scalability a Company and scale it to a unique European Investment Fund market position
AIB Fund backed by Strategic Banking Corporation of Ireland AIB launched a second € 200m SBCI Loan Fund in December 2015 bringing the total SBCI funding available to € 400m The main features are: 4.5% Per Annum Variable Rate A very competitive interest rate which is 2% below the Standard Variable Business Loan rate Loans of up to € 5m for between 2 and 10 years Loan amounts of up to € 5m are available over terms from 2 years up to a maximum of 10 years Multi Purpose Loans Available* • Working capital and investments • Refinance of loans held with certain banks exiting the Irish market • Agricultural investment loans Warning: The cost of your repayments may increase. A typical € 25,000 five year variable interest rate loan will have 60 monthly repayments of € 465.98, APR (Annual Percentage Rate) 4.50%. If the APR does not vary during the term of the loan the total cost of credit of this loan i.e. total amount repayable less the amount of the loan, would be € 2958.80. *Available to most SMEs and Farmers subject to certain exclusions. Go to www.aib.ie/sbci for the full list of exclusions. The support of the Governments SBCI Fund has state aid implications
Access to Credit At the simplest level the business has to demonstrate how it will repay the new facility sought AIB has sufficient capital to meet all SME credit demands 1. 2. Cash flow-focused lending Good credit decisions have to be informed by information 3. on the current and future status of the business Borrowers must demonstrate viability 4. 9
How Banks consider a Credit Application from an SME Other Considerations o Business owner sector experience o Management background o Timeliness/Reliability of information o Financial track record (business and owner) o Competitive position in the market o Concentration risk o Control over all aspects of the business (e.g. raw materials) Most banks will stress the application and scenarios to allow for unknown events (market and internal)
Four Steps When Applying For Credit Step 1 Come and talk to us regularly about your business Step 2 Tip! - Have your business Prepare your business plan plan validated by a 3rd party. Step 3 Be realistic, demonstrate your need, repayment capacity and ways to mitigate risk Step 4 Meet us to complete your application form – Your RM is your advocate
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