18 th October 2016 AIB Supporting Business Customers AIB Group 2016 - - PowerPoint PPT Presentation

18th October 2016

AIB Supporting Business Customers

AIB Group 2016 H1 profit of €1bn To date we have repaid €6.5bn to the State €6.1bn in new lending approved across the Group

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AIB Supporting Business Customers

Business & Corporate lending up 12% in H1 2016 Over 650 SME credit applications approved every week in H1 2016 10% increase in SME new lending approvals in H1 2016 We approved 94% of all SME credit applications in H1 2016 SME new lending drawdowns are up 32% on H1 2015

AIB Sector-Led Strategy

Agri Sector

Second €500m Agri Fund 12 Agri Advisors

Exports

€200m Export Finance Fund 85 Export Champions

Property Sector

€350m New Residential Homes Development Fund Specialised Property Lending Unit

Hospitality Sector Transport & Logistics Sector Retail Sector Wholesale & Distribution Sector Food & Fisheries Sector Energy & Cleantech Sector

€100m Energy Efficiency Fund €200m Renewable Energy Fund

Entrepreneurship

Entrepreneurship Advisory Panel

Technology, Media & Telecoms Sector

Frontline Ventures partnership

Nonprofit & Professional Services Sector Healthcare Sector

€300m Healthcare Fund

Manufacturing Sector

Our role supporting you in your market and our mutual customers

Creating partnerships to drive local economic growth

I am available to you for support, advice, expertise, connections and referral where required My team are available to you, your team and your clients for all your business banking needs We can leverage the full suite of banking supports available to help you and your clients

I am your AIB contact

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,

including branches & lobbies

• 1 Business Centre
• SME Direct Team available from 8am-

9pm Mon-Fri and 9am-6pm Sat

• Mobile Sales Force - available to visit

customers at their business premises

• My Business Toolkit - offering market-

leading cloud-based business app

• Internet Banking and iBusiness

Banking (iBB)

• 10 Specialist Sector Teams
• Nationwide team of Agri Advisors
• 85 Export champions
• Range of Dedicated Sector Funds
• Series of Sector specific research

reports

AIB supporting financing solutions across the business life cycle

Expansion

• Existing Shareholders
• Development Capital

Funds

• Senior Debt
• Mezzanine Debt

Investors In

Growth & Established

• Existing Shareholders
• Enterprise Ireland
• Senior Debt
• Receivables Finance

In partnership with

Early

• Venture / Seed

Capital

• Enterprise Ireland

Equity Investment

• Equity Risk Capital

Concept

• Savings
• Friends & Family
• Grants
• Angels
• Incubators &

Accelerators

Late / Exit

• Capital Markets
• IPO
• Trade Sale

Current Accounts, Company Credit Cards, Deposits, Resources, Merchant Services & iBB Treasury, Trade Finance & Leasing, Loans & Working Capital Senior Debt, Invoice Finance, Loans, Invoice Discounting & Working Capital Development Capital, Private Equity, Mezzanine Finance Trade Sale, Flotation

BUSINESS GROWTH TIME

AIB Equity Financing

€75m Seed Capital Fund

• Largest bank providers of Seed Capital

Funding in Ireland

• AIB Seed Capital Fund – concentrates on

companies in seed and early stage of development across range of sectors

• AIB Start-Up Accelerator Fund – focuses
• n developing high-growth export-
• riented companies in emerging sectors

MML Growth Capital Fund

• €20m invested in €125m fund
• Invests in well-managed businesses

with clear growth and development prospects

Frontline Ventures

• €5m committed to €50m fund
• Looks to invest in early-stage

technology companies

Fountain Healthcare Fund

• €15m commitment to €103m fund
• Supports Irish companies in the

specialty pharmaceuticals, biotechnology, medial devices and diagnostics area.

Atlantic Bridge Fund

• €15m committed to a €138m fund
• Concentrates on technology

companies with global market scalability

Causeway Capital Fund

• €5m committed to €30.5m fund
• Invests in established Irish and UK

SMEs with ambitious management teams and strong growth prospects

ACT V Venture Capital Fund

• €15m committed to €64m fund
• Invests in founders and management

teams with the patience and perseverance to take an idea, create a Company and scale it to a unique market position

University Bridge Fund

• €5m committed to €60m fund
• Collaboration between TCD and UCD

with investment from AIB, Bank of Ireland, Enterprise Ireland and European Investment Fund

AIB launched a second €200m SBCI Loan Fund in December 2015 bringing the total SBCI funding available to €400m

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

Multi Purpose Loans Available*

• Working capital and investments
• Refinance of loans held with certain banks exiting the Irish market
• Agricultural investment loans

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

4.5% Per Annum Variable Rate

A very competitive interest rate which is 2% below the Standard Variable Business Loan rate

The main features are:

AIB Fund backed by Strategic Banking Corporation of Ireland

Warning: The cost of your repayments may increase.

Borrowers must demonstrate viability

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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.

Cash flow-focused lending

2.

Good credit decisions have to be informed by information

• n the current and future status of the business

3.

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Access to Credit

• Other Considerations
• Business owner sector experience
• Management background
• Timeliness/Reliability of information
• Financial track record (business and owner)
• Competitive position in the market
• Concentration risk
• 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)

How Banks consider a Credit Application from an SME

Step 2

Prepare your business plan

Four Steps When Applying For Credit

Step 4

Meet us to complete your application form – Your RM is your advocate

Step 1

Come and talk to us regularly about your business

Step 3

Be realistic, demonstrate your need, repayment capacity and ways to mitigate risk

Tip! - Have your business plan validated by a 3rd party.