Once a beacon for stability, the legal sector has suffered in recent years against the backdrop of a global recession, and a series of high-profile failures have left creditors out of pocket, marking a dip in lender confidence. Yorkshire Bank, however, has suggested that confidence is now returning to UK legal lenders.
The bank today announced that it has increased the number of law firms in its portfolio to 100 firms.
A spokesman for Yorkshire Bank said the lender is increasingly attracted to law firms. He said: “As the economy continues to recover, there are more opportunities for growth created in the sector.”
“Firms with growth ambitions are now in a better position to move forward with those plans – a clear sign that confidence is building within professional services. The bank remains focused on supporting these firms and investing in their growth ambitions.”
A recent analysis by an industry magazine, Legal Week, showed that the 50 largest UK firms had combined revenue of £14.4 billion in 2013-14, the highest on record and more than £2bn more than the equivalent figure at the height of the financial crisis in 2008.
However, whilst top firms may have emerged triumphant from the recession, smaller firms have only just begun the road to recovery.
Last year the head of professional services at Clydesdale and Yorkshire banks, Sue Carter, indicated that the bank was willing to lend to law firms on the proviso that they prove financial viability.
“You must be able to robustly measure performance, both in terms of financial and non-financial aspects,” she told the Gazette.
The bank’s recent decision heralds a period of further recovery for the legal sector.