News Digest:

Asset-based lending commitments grew 3.4% during 2023, which was larger than the 3.1% growth recorded by banks but sharply lower than the 12.7% growth recorded by non-banks, as per a survey report released recently.

However, new client commitments declined by 5.6% for banks but grew sharply by 38% for non-banks while commitment runoffs were down 19.2% and rose by a whopping 65.7% respectively, according to the data released by Secured Finance Network. The report noted that while client deals were fewer in 2023 compared to a year ago, the deals were larger.

Takeaway:

Total outstandings fell by 7.8% for all lenders during 2023 with the rate for banks declining by 8.3% while non-banks saw a 6% increase. Utilization rates declined for both lender groups. The report also noted that revenues grew faster than expenses and the average return on assets declined for banks but rose for non-banks. Portfolio performance remained a soft spot in 2023 with a rise in non-accruals and gross write-offs for all lenders.

End Notes

Source: https://www.monitordaily.com/news-posts/asset-based-lending-commitments-grew-in-2023-with-fewer-new-clients-larger-deals/