Market structure by leased asset type continues to be dominated by vehicles – 68% (from 63% in 2010), followed by equipment – 25% (from 21% in 2010) and real estate - 7% (16% in 2010). However, inside these broad categories, some positive evolutions can be noted.
The weight of heavy commercial vehicles grew from 23% to 29% of new business written in 2011 on vehicles, while new business on passenger cars decreased from 61% to 57%.
Under the equipment category there are three sectors that captured the leasing companies’ attention: agriculture jumps on the first place with 24% of the financing granted in 2011 (from 8% in 20120), while constructions stepped down to second place, with 19%, although in 2010 this sector positioned first with only 13% of granted financing. Electrical devices attracted 10%, climbing from 4% in 2010, due to the boom in the renewable energy in Romania.
Under real estate, the financing of industrial buildings has jumped from 17% in 2010 to 36% in 2011, driven by the need of the companies to access new financing sources, namely sale and leaseback, as well as the enhanced prudential regulations of the National Bank of Romania (NBR).
These evolutions indicate that leasing companies have oriented their policies to grant financing for the production sector rather than for the consumption one.
In terms of ownership structure, banks’ subsidiaries continue to lead the market with 67% of the new business written in 2011, followed by captive leasing companies (19%) and independent companies (14%).
Top 5 has not changed in 2011 as compared to 2010. As shown in the table, Unicredit Leasing continues to be the leader of the financial leasing market, although its turnover has gone down by 4%, compared to last year. The downwards trend is present for the other leasing companies in the top as well, even steeper than for the leader (i.e. two digits decrease).
However, smaller leasing companies, like BNP Paribas and ING Lease, achieved a two digits turnover growth in 2011, of 43% and 38% respectively.
We can finally conclude that the financial leasing market did not bring any surprises or spectacular evolutions in 2011 and we expect it to perform similarly in 2012.
Data source: Asociatia Societatilor Financiare – ALB Romania website www.alb-leasing.ro, NBR’s Report on financial stability