Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

Company Profiles

  • Barclays PLC
  • Funding Circle
  • HSBC Bank plc
  • Lloyds Banking Group
  • RBS Group
  • Santander UK plc
  • Shawbrook Bank

Market segmentation

  • Agriculture, hunting, forestry and fishing
  • Production
  • Mining & quarrying
  • Manufacturing
  • Electricity, gas and water supply
  • Construction
  • Non-financial services

“To continue to remain relevant in the current borrowing market, all lenders need to take a customer-centric approach, offering not only the products customers want, but also the services they demand. Banks will need to learn and be wary of the threat from challenger banks and other niche sources of competition - with crowdfunding and fintech providers moving into the lending arena.”
– Lewis Cone, Senior B2B Analyst

This report looks at the following areas:

  • Calls for greater regulation in the commercial lending sector
  • Increasing financial support to SMEs disrupted by market exits

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Net lending remained positive in 2018 and is likely to be positive in 2019
              • Figure 1: UK MFIs’ net loans to non-financial businesses, Q2 2018 - Q3 2019, (£ million, NSA)
            • Outstanding loan amounts remain on an upward trend
              • Figure 2: UK total loan amounts outstanding to MFIs from non-financial businesses, May - October 2019, (£ million, not seasonally adjusted)
            • First rise in four years for loan write-offs but another fall is likely in 2019
              • Figure 3: Write offs of loans to PNFCs from banks and building societies, 2014-19*, (£ million, not seasonally adjusted)
            • Gross lending expected to rise by an average of 3.2% per year to 2024
              • Figure 4: Forecast UK MFIs’ gross lending to non-financial businesses, 2020-24, (£ million, not seasonally adjusted)
            • Companies and brands
              • What we think
              • Issues and Insights

                • Calls for greater regulation in the commercial lending sector
                  • The facts
                    • The implications
                      • Increasing financial support to SMEs disrupted by market exits
                        • The facts
                          • The implications
                          • The Market – What You Need to Know

                            • Net lending remained positive in 2018 and is expected to be positive in 2019
                              • Outstanding loan amounts remain on an upward trend
                                • Gross lending expected to rise by an average of 3.2% per year to 2024
                                • Market Size

                                    • Net lending remained positive in 2018 and is expected to be positive in 2019
                                      • Figure 5: UK MFIs’ net loans to non-financial businesses, Q3 2017 – Q3 2019, by size of business, (£ million, not seasonally adjusted)
                                    • Outstanding loan amounts remain on an upward trend
                                        • Figure 6: UK total loan amounts outstanding to MFIs from non-financial businesses, November 2017 - October 2019, by size of business, (£ million, not seasonally adjusted)
                                        • Figure 7: M4 loan amounts outstanding from PNFCs, November 2017 - October 2019, (£ million, not seasonally adjusted)
                                    • Market Segmentation

                                        • Figure 8: UK total loan amounts outstanding to SMEs, October 2019, by industrial sector, (£ billion, not seasonally adjusted)
                                        • Figure 9: UK total loan amounts outstanding to large businesses, October 2019, by industrial sector, (£ billion, not seasonally adjusted)
                                    • Further Segmentation

                                        • Alternative finance
                                          • Peer-to-peer business lending
                                            • Assetz Capital has lent the most in the P2P business sector
                                                • Figure 10: P2P business lenders, cumulative lending, At 30 September 2019, (£ million)
                                              • Bridging finance
                                                  • Figure 11: UK bridging loans market value, in aggregated loan balances, 2015-19, (£ billion and % annual change)
                                                • Commercial property (real estate) finance
                                                  • Total outstanding debt rises to five-year high in 2018
                                                    • Figure 12: Aggregated value of outstanding debt in loan books secured on UK commercial property, 2014-18, (£ billion)
                                                  • New lending rose by 11% in 2018
                                                    • Figure 13: Gross value of annual loan originations, 2014-18, (£ billion)
                                                  • Market report data
                                                    • Non-banks continue to grow presence in new lending
                                                      • Figure 14: Gross value of loan originations, by allocation, 2017 and 2018, (% of total)
                                                    • SME finance
                                                      • SME funding gap
                                                        • Working capital and cash flow needs are still the main reasons for SMEs requiring funds
                                                          • Figure 15: SME lending, by reason, 2018, (%)
                                                        • Value of SME loan balances rebounds from five-year low in 2018
                                                          • Figure 16: Value of SME loans outstanding, by region, 2015-19*, (£ million)
                                                      • Market Forecast

                                                          • Gross lending expected to rise by an average of 3.2% per year to 2024
                                                              • Figure 17: Forecast UK MFIs’ gross lending to non-financial businesses, 2020-24, (£ million, not seasonally Adjusted)
                                                            • Loan write-offs anticipated to peak in 2021 before declining in the following two years
                                                              • Figure 18: Write offs of loans to PNFCs from banks and building societies, 2020-24, (£ million, not seasonally adjusted)
                                                          • The Impact of the Economy

                                                            • Annual GDP growth falls to six-year low in 2018 and continues to fall in 2019
                                                              • Figure 19: Annual GDP growth rate, 2015 – 2019*, (annual % Change)
                                                          • Market Trends

                                                            • Business confidence at a decade-low in Q4 2019 with many continuing to delay financing plans
                                                              • Figure 20: Business confidence index, per half-year, Q2 2009 - Q4 2019, (index figure)
                                                            • Write-offs on loans to NFCs rise for first time in four years in 2018 but likely to fall in 2019
                                                              • Figure 21: Write offs of loans to PNFCs from banks and building societies, 2014-19*, (£ million, not seasonally adjusted)
                                                            • Credit availability and demand falls in 2019
                                                              • Figure 22: Availability of corporate credit to PNFCs in the last three months, Q4 2013 - Q3 2019, by business size, (net percentage balance)
                                                              • Figure 23: Demand for corporate credit by PNFCs in the last three months, Q4 2013 - Q3 2019, by business size, (net percentage balance)
                                                            • Commercial lending rates fall in 2019 following a rise in 2018
                                                                • Figure 24: Average interest rate for UK MFI new advances to PNFCs, at October in 2015-2019, (% not seasonally adjusted)
                                                            • Market Drivers

                                                              • Brexit impasse and the prospect of a no-deal’ outcome continues to affect borrowing plans
                                                                • Company insolvencies are likely to rise in 2019 leading to a further reduction in lending opportunities
                                                                    • Figure 25: Company insolvencies in England and Wales, 2014-18, (number)
                                                                  • Commercial property transactions fall in 2018 but reach two-year high in October 2019
                                                                    • Figure 26: Number of non-residential property transactions, 2014-18, (number, seasonally adjusted)
                                                                  • Business investment levels fall alongside stagnant profitability in the private sector
                                                                    • Figure 27: UK PNFCs net rate of return, Q2 2014 - Q2 2019, (% return)
                                                                    • Figure 28: UK total business investment, 2014-18, (chained volume measures and not seasonally-adjusted, £ billion)
                                                                  • Inward and domestic M&A deals rose significantly in 2018 as the relatively low pound and expected exit from the EU drove investor activity
                                                                    • Figure 29: Mergers and acquisitions of UK companies, 2014-18, (number of companies)
                                                                  • Government schemes
                                                                    • British Business Bank
                                                                      • Business Finance Support Finder
                                                                        • Enterprise Finance Guarantee
                                                                            • Figure 30: EFG lending, by number and value of loans offered and by number and value of loans drawn, 2009-19*, (units and £ million)
                                                                          • BoE Stress Test
                                                                          • Companies and Brands – What You Need to Know

                                                                            • New platforms launched for commercial brokers
                                                                              • Lloyds Bank becomes first bank to partner with a blockchain trade finance platform
                                                                              • Industry Structure

                                                                                • Industry development
                                                                                  • New platforms launched for commercial brokers
                                                                                    • The number of banks and building societies has marginally declined since 2017
                                                                                        • Figure 31: Number of banks and building societies operating in the UK, 2015-19
                                                                                    • Competitive Strategies

                                                                                      • Lenders pledge to support smaller businesses
                                                                                        • Knight Capital enters UK market to take advantage of post-Brexit opportunities with a focus on personalised services
                                                                                          • Lloyds Bank becomes first bank to partner with a blockchain trade finance platform
                                                                                          • Company Profiles

                                                                                            • Barclays PLC
                                                                                              • Recent company activity
                                                                                                • Financial information
                                                                                                  • Figure 32: Financial analysis of Barclays plc, 2014-18, (£ million)
                                                                                                • Funding Circle
                                                                                                  • Recent company activity
                                                                                                    • Financial information
                                                                                                      • Figure 33: Financial analysis of funding circle, 2014-18, (£ 000)
                                                                                                    • HSBC Bank plc
                                                                                                      • Recent company activity
                                                                                                        • Financial information
                                                                                                          • Figure 34: Financial analysis of HSBC bank, 2014-18, (£ million)
                                                                                                        • Lloyds Banking Group
                                                                                                          • Recent company activity
                                                                                                            • Financial information
                                                                                                              • Figure 35: Financial analysis of Lloyds Banking Group, 2014-18, (£ million)
                                                                                                            • RBS Group
                                                                                                              • Recent company activity
                                                                                                                • Financial information
                                                                                                                  • Figure 36: Financial analysis of RBS Group, 2014-18, (£ million)
                                                                                                                • Santander UK plc
                                                                                                                  • Recent company activity
                                                                                                                    • Financial information
                                                                                                                      • Figure 37: Financial analysis of Santander UK plc, 2014-18, (£ million)
                                                                                                                    • Shawbrook Bank
                                                                                                                      • Recent company activity
                                                                                                                        • Financial Information
                                                                                                                          • Figure 38: Financial analysis of Shawbrook Bank, 2014-18, (£ million)
                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                          • Abbreviations
                                                                                                                            • Methodology
                                                                                                                            • Further Sources and Contacts

                                                                                                                              • Trade Associations
                                                                                                                                • Trade Magazines
                                                                                                                                  • Trade Exhibitions

                                                                                                                                  This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                                                  • Market

                                                                                                                                    Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                                                  • Consumer

                                                                                                                                    Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                                                  • Brand/Company

                                                                                                                                    Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                                                  • Data

                                                                                                                                    Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                                                  Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                  Trusted by companies. Big and small.