The owner of Clydesdale and Yorkshire Banks reported that its lending commitments had been achieved or increased in all UK regions against targets for 2017, ranging from £100m-400m.

Lending in the Midlands increased to over £141m, 41% above the bank's £100m commitment for 2017.

CYBG's SME business is focused on firms based across the UK's regions, with over 90% of SME lending taking place outside of London.

“I'm delighted we have more than matched the first year of our commitment to lend SMEs £6bn over three years, with well over £2bn distributed to them across the UK in 2017 alone,” said David Duffy, chief executive at CYBG (pictured above).

The lending increase comes despite of CYBG's quarterly SME Health Check Index recording the worst business health reading for the UK SME market since 2014.

Lack of confidence and reduced borrowing appetite from SMEs were key drivers behind the Index fall, with lending down 3.7% to £92.5bn in the year to the end of Q3 2017.

Recent research by CYBG also found that 22% of SMEs cited access to finance as a main barrier to scaling up their business.

“We all know SMEs feel it's more difficult to get access to finance these days and, in the current economic environment, small firms are long overdue a confidence boost,” added David.

“As the UK's leading SME challenger bank and a regional economic champion, I'm especially pleased we have met or surpassed all our regional commitments in the Midlands, North of England and Scotland.

“Through this programme, CYBG will continue to support the innovation, creativity and growth plans of the nation's small- and medium-sized enterprises.”