AIB, THE largest lender to SMEs, is targeting business customers of Bank of Scotland (Ireland), who are looking for a new bank following the decision of its UK parent company, Lloyds, to exit the Irish market.

AIB has begun a three-week advertising campaign focused on attracting SME customers of BoSI by the end of the year when the British bank closes to deposits, current accounts and new lending.

Denis O’Callaghan, AIB’s head of retail banking in Ireland, said the bank had the capacity to lend to new SME customers from BoSI and was willing to work with struggling new business customers.

“If a customer can demonstrate a path to viability then we are happy to talk to them,” he said.

The bank has agreed to lend €3 billion this year and again in 2011 under the Government’s recapitalisation deal, he said, and had provided some €1.1 billion in loans to SMEs in the first half of the year.

AIB has set up a dedicated phone line to deal with queries from BoSI SME customers and has increased services in its branches and 15 business centres to deal with switching BoSI customers.

Mr O’Callaghan said not all BoSI customers would look for working capital or overdrafts, but might need current account, cheque and cash facilities for businesses.

Some 12,000 business customers are affected by Lloyds’ decision to withdraw from Ireland.

AIB has €13 billion in loans to SMEs out of total loans of about €35 billion across the sector.