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Irish Examiner
15-05-2025
- Automotive
- Irish Examiner
Value of personal loans issued hits record high in 2024
Drawdowns of personal loans hit a record high of €2.5bn during last year, with the value of car loans increasing by 20% alone, new data from the Banking and Payments Federation, Ireland (BPFI) shows. Overall, the number of personal loans which were drawn down increased by 13% to 229,423 compared to 2023, while the combined value of these loans rose by 21.6%. In total, there were 66,207 car loans issued last year, worth €856m. The volume and value of car loans increased by 14.6% and 20.2% respectively. There were 60,322 home improvement loans drawn down last year — up 6.8% year-on-year — with the combined value increasing by 19.4%, to €754m. There were 102,894 loans for other purposes — including education, holidays and special occasions such as weddings — worth €840m, up by 16.0% and 25.1% respectively. In annual terms, green loan volumes jumped by 21.4% to 5,178, while the value of green loans rose by 25.5% to €120m. Green loans can include home energy efficiency upgrades as well as car loans to buy fully electric or plug-in hybrid cars. BPFI chief executive Brian Hayes said these figures come as the Central Bank reported there was more than €13bn in outstanding consumer credit at the end of March 2025, 'the highest level since February 2020'. 'Within that, consumer credit with terms of over one and up to five years increased to more than €10bn, the highest value since June 2010.' Read More Average Irish mortgage rate sixth highest in euro area despite recent fall
Irish Times
05-05-2025
- Business
- Irish Times
Irish manufacturers optimistic despite volatility
About nine out of 10 Irish factory owners are optimistic about their businesses this year as sales and orders hold up, new research shows. Bibby Financial Services' Small and medium-sized enterprise (SME) confidence tracker recently found that 92 per cent of Irish businesses surveyed plan to invest this year, despite ongoing volatility. That study also found that 87 per cent of manufacturers were confident about their prospects, despite concerns about costs and raw material supplies. Almost three-quarters of manufacturers say that sales have increased this year, while 21 per cent say that they have remained the same. READ MORE Two-thirds expect sales to continue growing over the next six months, while another 26 per cent predict that they will be steady. Just 8 per cent expect a slide in revenues. However, manufacturing continues to face challenges, the survey indicates. According to the finance firm, high costs are a key fear for 16 per cent of manufacturers, with energy bills a close second at 13 per cent while 11 per cent fear disruptions to supplies. About one in five owners are weighing possible acquisitions or mergers this year, and 16 per cent would consider selling their business to another entity. One-third are considering management buyouts or buy-ins, the survey indicates. Bibby's survey found increased interest in mergers and acquisitions among SMEs generally, with more than two thirds of these businesses weighing those options as a means of raising capital or boosting competitiveness. Its data indicate a shift towards management buyouts, where a company's management takes over the business from existing owners, or acquisitions. Companies considering different deals have to weigh the cost of borrowing against the benefits of using equity, which cuts risk but dilutes ownership, the report notes. On average, Irish businesses plan to invest €193,000 in the coming months, mostly on digital technology or artificial intelligence, the figures show. About one-third of companies are likely to make significant investments this year. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 Overall, the study shows that business confidence among Irish SMEs is high, with 88 per cent optimistic about their prospects for this year. However, Bibby's survey shows that many such businesses face challenges when it comes to raising finance. About four in 10 feel that banks do not offer enough funding for expansion, investment or day-to-day operations. Alternative lending is becoming increasingly important under those circumstances, says Bibby. Banking and Payments Federation figures show that nonbank lenders account for one third or new SME lending, worth around €4.5 billion. 'The trend is reflected in our current survey, which shows nonbank lenders (55 per cent) are now a more preferred source of external finance than high street banks (45 per cent) reflecting a shift away from traditional banks,' notes the report. Mark O'Rourke, Ireland managing director, Bibby Financial Services, said that Irish SMEs are adapting, 'capitalising on emerging market opportunities, and strategically positioning themselves for future expansion'. Bibby Financial Services specialises in aiding SMEs with funding, including cash flow, expansion or mergers and acquisitions.
