Bank of Ireland has approved €1 billion in new and increased lending to Irish small and medium sized businesses in the first quarter of 2013, up 25% on the same time last year.
In a statement, the bank said this reflects an overall improvement in credit demand from viable SMEs and its own activities to grow its business banking operations.
Last year, Bank of Ireland approved a total of €3.6 billion in new and increasing lending to SME customers.
The bank noted strong demand for credit from the manufacturing, agriculture and hospitality sectors in the first three months of 2013.
But demand from the construction and property sectors continued to fall with applications decreasing from 2012 levels.
It also reported an increase in demand for working capital, including overdrafts, unit stocking and invoice financing lines.
''Bank of Ireland is on track to meet our lending targets for SMEs in 2013,'' commented Mark Cunningham, the bank's director of business banking.
''We have the strategic imperative, capabilities, capital and liquidity to increase our business in this key sector for us and the overall economy,'' he added.
