The leasing market will be further dominated by the members of the Leasing and Non-Banking Financial Services Association (ALB) in 2007 as well, considering that the Association estimates it will finance goods worth 3.2bn euros this year, namely 74% of the total.
The Association expects the market to grow by 32% this year, to 4.3bn euros, after having expanded by over 60% last year.
"During 2006, ALB members made payments to the general consolidated budget accounting for taxes and social security contributions worth 101 million euros, almost 18% more than in the previous year," stated ALB representatives.
The value of the subscribed capital of ALB members by December 31, 2006, in line with International Accounting Standards, stands at 80.8m euros, while equity capitals stand at 320m euros. Assets controlled by the leasing firms part of ALB at the end of last year totalled 2.86bn euros.
Starting April, the ALB chairman position was taken over by Kerem Sekizyarali, chairman of the board of Credit Europe Leasing IFN. The Turkish firm last year boasted one of the fastest growth rates on the market. It signed contracts worth 120m euros last year, up 160% compared with 2005. The position had been filled by Septimiu Postelnicu, general manager with Unicredit Corporation (created by the merger of Unicredit Corporation and HVB Leasing), the biggest leasing firm on the domestic market, with goods finance contracts worth around 400m euros in 2006.
The leasing market is still controlled by leasing firms owned by banks, which account for 75% of the total assets financed in 2006. The sector of independent firms accounts for 17.5%, while the segment of captive firms held by some car dealers and importers had a 7.5% share of the total.
At the end of last year, financial leasing clearly dominated the market, with 98% of total financed assets, compared with the only 2% of the operational leasing.
This might change this year amid the stepped-up activities of some domestic players such as Porsche Mobility, but also following the entrance of some internationally powerful firms on the segments of operational leasing and fleet management, such as LeasePlan.
The main trend, which the leasing market witnessed in 2006 and may witness this year, too, is real estate and equipment leasing gaining ground on car leasing.
Leasing continues to be the preferred financing alternative for corporate customers, which accounted for the largest share of the overall value of leasing contracts sealed last year (83%), followed by the retail segment (14%) and the public sector (3%).
In terms of contract duration, a third of contracts are sealed for a period of 3-4 years. Contracts signed for a 5-year period account for 11%, while contracts sealed for a period of 1-2 years account for 5%.
Leasing market
Will continue to be dominated by ALB members this year, too, with ALB estimating its members will finance goods worth 3.2bn euros this year, 74% of the total
ALB expects the market to rise by 32% this year, to 4.3bn euros, after rising by over 60% last year
Continues to be dominated by leasing firms belonging to banks, with a share of 75% in total assets financed in 2006
The share of real estate and equipment leasing increased last year
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