Allica Bank acquires AIB's SME lending book

Allica Bank has agreed to acquire AIB Group’s £600m SME lending book, following AIB’s exit from the UK SME market.

The transaction will see approximately 2,000 SME borrowers transfer to Allica Bank.

Post completion of the deal, Allica Bank is expected to have a combined total lending book of over £1bn.

It also brings forward the bank’s target date for reaching profitability to the middle of 2022.

The purchase will continue the lender’s development and expansion of its SME finance service and proposition, including the introduction of a new business rewards account early next year.

Since January, the lender has made numerous changes to its specialist lending offer, including upping the maximum loan size for its commercial mortgages to £3m and its maximum asset finance loan to £500,000, as well as expanding into Scotland.

Richard Davies, CEO at Allica Bank, said: “We are thrilled to be welcoming AIB’s SME lending customers to Allica Bank, following its decision to withdraw from the GB SME lending market.

“We’re working closely with AIB to ensure a smooth and seamless transition for the customers.

“Allica Bank is fast becoming the SME lender of choice, not least due to the investment we continue to make in developing both our direct relationship with SMEs and via our broker channel.

“This acquisition enables us to support and scale even more of Britain’s established SMEs and growth companies at a time when they are looking for more tailored support from their bank.

“As we said at our recent trading update, we’re laser focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK.”

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