CORPORATE bankers say they have recorded positive growth in the first half of 2011 with activity levels in the North East business community.
According to Lloyds Bank Corporate Markets in the North East, foreign exchange transactions have increased by 20% in the first half of 2011 compared to the same period last year.
It says many businesses have been engaging directly with the bank’s strategic cash management experts as they look to counterbalance domestic market conditions by trading overseas.
This trend reflects recent statistics highlighted in the North East Chamber of Commerce’s latest quarterly economic survey which showed that foreign markets continue to bolster economic recovery in the region as exporting leads the way over domestic sales.
A focus on the London 2012 Olympic and Paralympic Games among existing customers has also been evident during the first half of the year.
Customers have placed more than £40m into a special high-interest deposit account with enhanced rates that will mature on the date of the Olympic Games Opening Ceremony.
The team has also seen a growing appetite among the region’s larger businesses for strategic cash management products particularly related to risk.
Mike Mullaney, area director for Lloyds Bank Corporate Markets in the North East, said: “Our team’s activity levels bode well for the region overall and we are noticing that larger businesses in the North East are being more positive in their outlook.
“Many are realising the benefits of emerging overseas markets as well as opportunities that lie closer to home such as next year’s Olympic and Paralympic Games.
“Our success in the first half of the year is a reflection of our understanding of the market and dedicated delivery of great service and, crucially, listening to clients to ensure we get the results they are looking for.
“The success highlights an increased demand for debt as well as strategic cash management.”
And according to Lloyds Bank Corporate Markets, many of its customers are actively looking at growth opportunities, with merger and acquisitions activity likely to increase.
Mullaney added: “We are seeing more and more businesses approach us to talk about their needs and this is also reflected in our new banking relationships so far this year.
“Many of our new clients are taking a much more proactive, strategic approach to cash management to ensure they are maximising their deposits and our liability balances are up almost 40% on last year.
“The North East economy is showing signs of recovery, with some growth expected this year. Our experiences suggest that the region’s larger businesses have successfully strengthened their balance sheets and are ready to benefit once the economic climate brightens.”
