Allica Bank SME lending contributes £5.8bn to UK GDP in 2024: report

Core Insights - Allica Bank's lending to established SMEs in Britain contributed £5.8 billion ($7.6 billion) to GDP in 2024, with £2.2 billion direct, £1.8 billion indirect, and £1.8 billion induced contributions [1] - The bank's lending generated £1.4 billion in tax revenues and supported over 84,000 jobs, equating to one job for every 440 jobs in the country [1] Lending Growth and Impact - Since its inception five years ago, Allica Bank has issued over £3.5 billion in loans to SMEs, with more than £1.5 billion provided last year alone [2] - The bank's lending has supported nearly 10,000 jobs in the North West, 8,900 in the West Midlands, and 7,700 in the East Midlands [2] Employment and Regional Impact - The highest employment share impact from Allica Bank's lending was observed in Wales and the North East [3] - The bank's strategy combines technology with a dedicated relationship manager team, which is expected to double in size within the year [3] Strategic Goals and Market Penetration - Allica Bank aims to capture 10% of the established SME finance market by the end of 2028, facilitating an initial £1 billion in working capital finance for SMEs [4] - The CEO emphasized the importance of established SMEs as the backbone of the UK economy and the need for challenger banks to better serve them [4] Financial Performance - Allica Bank reported a 55.2% increase in profit after tax, reaching £29.8 million ($39.54 million) in 2024, compared to £19.2 million in 2023 [5] - Each £1 million in lending enables SMEs to contribute £2.4 million to UK GDP, create 35 jobs, and generate £600,000 in tax revenue [5]