NI Companies Resilient In Face Of Ongoing Challenges

EyeonProfit200

NI companies resilient in face of ongoing challenges

By Shaun McAnee, Managing Director of Corporate & Business Banking, Danske Bank

The annual Business Eye Profit 200 list of the most profitable companies in Northern Ireland provides an excellent barometer of how our best private sector businesses are performing. I have the privilege of introducing the feature again, and would like to use this opportunity to congratulate all of the companies featured on this list.

The figures are reflective, in many cases, of a year in which many businesses’ results were impacted by the Covid-19 pandemic, not to mention ongoing uncertainty over new postBrexit trading arrangements, global supply chain issues and rising costs.

We’ve been proactively helping many of our own customers to navigate these challenges and I’ve been heartened by the high number of business customers who have continued to actively pursue growth opportunities over the past year – including many names familiar to the Profit 200.

That appetite for growth amongst our customers has driven our own performance, with the bank reporting over £400m in lending approvals to businesses in the first half of this year. Trade finance, invoice finance, asset finance and currency management activity are all up significantly too.

The return of a more “business as usual” environment is also reflected in the number of companies switching banks – in fact, so far this year we’ve seen 50 medium and large business customers move to Danske, a marked increase in the level of re-banking activity compared to last year. We know they’re attracted by our appetite to lend, the quality of our relationship managers and local support teams, and the convenience of our digital channels.

In May, for example, we became the first bank in the UK to create a digital solution that lets business customers view all of their accounts and payments across multiple banks in one place. Through our online business banking platform, District, businesses can now get a full overview of their finances and gain a single point of entry to their accounts and transactions, including those of other banks. Customers have loved this new proposition because it makes life easier for them. And there is more to come, as we continue to invest in and develop our digital offering for businesses.

Sustainability may have seemed less important to some at the height of the pandemic, but recent extreme weather has reminded us that companies can no longer afford to ignore their climate impacts. We’re committed to helping customers become more sustainable, both through offering greener products and through the sharing of knowledge.

So far, 25 of our business customers have taken part in the Climate Action Programme, which Danske co-developed with Business in the Community NI to help firms take stock of their carbon impact and put plans into action to reduce them. All Danske’s relationship managers have also been through climate training with Business in the Community, enabling them to help our customers make more informed choices.

It’s incumbent on companies in all sectors to show they are being proactive on sustainability not only because it’s the right thing to do, but also because it’s something prospective employees increasingly prioritise. It’s a competitive job market for many of the sectors represented in the Profit 200 and we know that both recruitment and retention are a challenge for all businesses, with tech and other professional services reporting severe skills shortages.

The pandemic, the world of hybrid work, and the cost of living crisis have created new challenges for businesses and like many organisations, we’ve learned that we have to be able to change and adapt to be successful.

We’ve placed a high importance on leadership development, on connecting our people and improving wellbeing. And we’ve been working hard to make sure we’re a great place to work in which everyone feels that they belong, supporting our colleagues’ personal and professional development and creating different pathways into a career with Danske, such as Danske Futures, our degree-led apprenticeship programme.

Having been named an ‘outstanding’ place to work in the UK-wide Best Companies workplace engagement survey, we are continuously listening to our employees, and importantly, acting on that feedback.

While the economy has bounced back from the pandemic, the outlook for the UK remains very uncertain. We can’t ignore that there are many challenges still facing all local companies, among them, rising costs for energy and materials, wage pressures, the impact of inflation on the cost of living and consumer confidence, and supply chain disruption related to the war in Ukraine. The effects of some of these challenges are likely to be reflected in next year’s Profit 200 list.

It is in these times that businesses need a good financial partner, which has scale in the market and locally based relationship managers ready and available to provide expertise and advice.

Danske Bank will continue to play a key role in supporting the wider economy and we remain resolute in our commitment to work with our customers to navigate whatever challenges lie ahead.