Unsecured Loans to Business in the UK - Key Trends and Opportunities up to 2018

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1 Brochure More information from Unsecured Loans to Business in the UK - Key Trends and Opportunities up to 2018 Description: - This report provides market analysis, information and insights into the UK lending to business industry - It provides a breakdown of the different forms of lending to business in the UK - It analyses drivers and the outlook for the market - It provides information on the main banks in the UK market - It covers news and regulatory developments Summary The lending to business industry is beginning to stabilize following the recession. The lending to business industry in the UK has recorded little signs of growth since 2011, but has somewhat stabilized since the financial crisis. Net lending to non-financial businesses declined by GBP109.5 billion from 2008 to 2009, while lending to Private Non-Financial Corporations (PNFCs) declined by just under 35% (in terms of annual change) between the start of both 2008 and 2010, which emphasizes the impact of the crisis. The affordability of business loans has declined since 2009, when the Bank of England reduced interest rates to a record low of 0.5%. This has contributed to a sharp rise in repayments, as companies have been keen to pay off as much debt as possible before the rates rise - anticipated to be early The government has made several attempts to reinvigorate business lending over the last couple of years, however, its projects have all missed their targets. The flagship Funding for Lending scheme declined short of its GBP80 billion target by GBP20 billion in 2012, while Project Merlin was GBP1.1 billion shy. The rising of the emergency 0.5% bank rate is set to make attaining credit more expensive for banks and subsequently businesses. With banks already wary of lending to smaller businesses this may result in a decline in loan approvals, while businesses themselves are likely to be deterred by the prospect of more expensive loans. Commercial retail estate lending is the largest market within the lending to business industry and was one of the main drivers of the UK s 2008 financial crisis. Lending declined by just over GBP6.0 billion (in terms of net lending flows) from the beginning of 2007 to the end of 2009, falling considerably more than any other market. The industry is dominated by mainstream banks, with Royal Bank of Scotland, Lloyds, Barclay, HSBC and Santander controlling over 80% of the market. Regulations and high costs mean it is a difficult industry to enter, a situation that is unlikely to change in the immediate future. Scope - This report provides market analysis, information and insights into the UK lending to business industry - It provides a breakdown of the different forms of lending to business in the UK - It analyses drivers and the outlook for the market - It provides information on the main banks in the UK market - It covers News and regulatory developments Reasons To Buy - Gain an understanding of the UK lending to business industry Key Highlights The lending to business industry in the UK has recorded little signs of growth since 2011, but has somewhat stabilized since the financial crisis. The affordability of business loans has declined since 2009, when the Bank of England reduced interest rates to a record low of 0.5%. This has contributed to a sharp rise in repayments, as companies have been keen to pay off as much debt as possible before the rates rise - anticipated to be early Contents: 1 Executive Summary 2

2 2 Introduction What is this Report About? Definitions Methodology 9 3 Market Analysis Market Background Market Size Stock of lending New term lending Net lending Lending to business by sector Loans by type Overdrafts Syndicated lending Market drivers Interest rates Cash deposits Cost and Availability of Credit Market Outlook 41 4 Economic Backdrop Real GDP growth Labor Market Conditions Housing Market Disposable Income Interest Rates 49 5 Competitive Landscape Market Shares 50 6 Porter s Five Forces Analysis Bargaining Power of Suppliers: Medium Bargaining Power of Buyers: Low Barriers to Entry: Medium to High Intensity of Rivalry: Low to Medium Threat of Substitution: Low to Medium 52 7 Regulation and Policy Regulators Prudential Regulation Authority (PRA) Financial Conduct Authority (FCA) Monetary Policy Committee (MPC) Treasury Committee Competition and Markets Authority (CMA) Recent Changes Funding for lending scheme Quantitative easing Project Merlin British Business Bank Investment Program Banking Reform Act RBS SME Independent Review Budget announcement Queen s speech Lending To Business SWOT Analysis Upcoming Regulations Basel III 59 8 Deals 60 9 News UK Retail Banks Barclays PLC Company Overview Barclays PLC profile Barclays PLC main competitors Barclays PLC board of directors HSBC Bank PLC Company Overview HSBC Bank PLC profile HSBC Bank PLC main competitors HSBC Bank PLC board of directors 66

3 10.3 Lloyds Banking Group PLC Company Overview Lloyds Banking Group PLC profile Lloyds Banking Group PLC main competitors Lloyds Banking Group PLC board of directors Santander UK PLC Company Overview Santander UK PLC profile Santander UK PLC main competitors Santander UK PLC board of directors The Royal Bank of Scotland Group Company Overview The Royal Bank of Scotland Group PLC profile The Royal Bank of Scotland Group PLC main competitors The Royal Bank of Scotland Group PLC board of directors Statistics Review Period: Forecast Period: Appendix Methodology Contact Timetric About Timetric Timetric s Services Disclaimer 76 List of Tables Table 1: Lending to Business Definitions 8 Table 2: UK Annual New Term Lending to Small Businesses Growth Rates Forecast 23 Table 3: UK Annual New Term Lending to Medium-sized Businesses Growth Rates Forecast 24 Table 4: UK Annual New Term Lending to Large Businesses Growth Rates Forecast 25 Table 5: The UK Lending to Business Market SWOT Analysis 59 Table 6: Barclays PLC, Key Facts 63 Table 7: Barclays PLC, Board of Directors 64 Table 8: HSBC Bank PLC, Key Facts 65 Table 9: HSBC Bank PLC, Board of Directors 66 Table 10: Lloyds Banking Group PLC, Key Facts 67 Table 11: Lloyds Banking Group PLC, Board of Directors 68 Table 12: Santander UK PLC, Key Facts 68 Table 13: Santander UK PLC, Board of Directors 69 Table 14: The Royal Bank of Scotland Group PLC, Key Facts 70 Table 15: The Royal Bank of Scotland PLC, Board of Directors 71 Table 16: The UK Lending to Business Market (GBP Billion), Table 17: The UK Lending to Business Market (GBP Billion), List of Figures Figure 1: Make up of UK Private Sector Businesses (Volume of Employees/GBP Billion), Figure 2: UK s Share of Enterprises in the Private Sector (%), Figure 3: UK SME Outstanding Loan Stock (GBP Million), Figure 4: UK SME Outstanding Loan Stock, Annualized Growth Rates (%), Figure 5: UK Outstanding Loans and Reverse Repos to Large Businesses From MFIs (GBP Million), Figure 6: New Lending to Small Businesses (GBP Million), Figure 7: UK New Lending to Small Businesses (GDP Million), Figure 8: UK New Lending to Medium Businesses (GDP Million), Figure 9: UK New lending to Large Business (GDP Million), Figure 10: UK Net lending to UK business (GBP Billion), Figure 11: UK Net Lending to UK Non-Financial Business (GBP Billion), Figure 12: UK SME Gross Lending and Repayments Per Working Day (GDP Million), Figure 13: UK Gross Lending and Repayments to SMEs (GBP Million), Figure 14: UK Quarterly Gross Lending and Repayments to SMEs (GDP Billion), Figure 15: UK Gross Lending and Repayments to Large Businesses (GBP Million), Figure 16: UK Quarterly Gross Lending and Repayments to Large Businesses (GBP Billion), Figure 17: UK Annual New Term Lending to Small Businesses Forecast 23 Figure 18: UK Annual New Term Lending to Medium-Sized Businesses Forecast 24 Figure 19: UK Annual New Term Lending to Large Businesses Forecast 25 Figure 20: UK Net Lending Flows to Business Sectors in the UK (GBP Billion),

4 Figure 21: UK Lending to Commercial Real Estate Small Businesses (GBP Million), Figure 22: UK Lending to Commercial Real Estate Medium Businesses (GBP Million), Figure 23: UK Growth in The Stock of Lending to The Real Estate Sector by UK MFIs (%), Figure 24: UK Value of Overdrafts Outstanding Small and Medium Businesses (GBP Million), Figure 25: UK Changes in Value of Overdrafts Outstanding to Small and Medium Businesses (GBP Million), Figure 26: UK Value of Overdrafts Outstanding, Large Businesses (GBP Million), Figure 27: UK Changes in Value of Overdrafts Outstanding to Large Businesses (GBP Million), Figure 28: UK Estimates of New Syndicated Lending Facilities Granted to UK Businesses (GBP Billion), Figure 29: UK Average Lending to Business Interest Rate (%), Figure 30: UK Bank of England Official Bank Rate (%), Figure 31: UK CPI Inflation Index (%), Figure 32: UK Cash Deposits Held by Small Businesses (GBP Million), Figure 33: UK Cash Deposits Held by Medium Businesses (GBP Million), Figure 34: UK Availability of Credit to Small Businesses (Percentage Points), Figure 35: UK Availability of Credit to Medium Businesses (Percentage Points), Figure 36: UK Availability of Credit to Large Businesses (Percentage Points), Figure 37: UK Real GDP Growth (%), Figure 38: UK Unemployment and Redundancy Rates (%), Figure 39: UK Average Weekly Earnings (GBP), Figure 40: UK Housing Construction Growth (%), Figure 41: UK Household Disposable Income (GBP), Figure 42: UK Average House Prices by Type of Buyer (GBP), Figure 43: UK Annual House Price-to-Earnings Ratio (%), Figure 44: UK Household Disposable Income (GBP), Figure 45: UK Bank of England Rate (%), Figure 46: UK Gross Lending to SMEs, Market Shares of The Five-Largest Business Lenders (%), Figure 47: UK Lending to Business Market Five Forces Analysis, Figure 48: UK Banking Regulatory Framework, Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.

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