Profit margins on the leasing market are witnessing year-on-year declines, however one solution for improvement would be to enter new market niches, believes Jean-Claude Boloux, the new general manager of BRD Sogelease.
Boloux (age 57) took over the management of the financial leasing company controlled by BRD-Groupe Societe Generale last month, after being in charge of operations at Societe Generale in Cyprus for four years.
"Profit margins on the leasing market are falling due to competition and because our financing costs are increasingly high, and this is not happening just to us, this is affecting the entire market. The solution is to look for new, unexplored market segments," explains Boloux.
He says 2008 will see BRD Sogelease develop financing for individuals employed in liberal professions, such as lawyers and doctors.
"I think there is also demand for financing in these fields, particularly in the medical sector, which is seeing significant development. I see advertisements for hospitals and private clinics everywhere. Abroad, this market segment is extremely appealing to financing companies," adds Boloux.
Another market segment where the company intends to increase its activity is the real estate segment. In fact, many players on the leasing market have turned their attention towards this segment, where the demand for financing is registering rapid growth.
"Next year, we will study the real estate market very carefully, but we will not enter the residential sector. Instead, we intend to tap into the market of office projects and commercial spaces. Given the speed at which the real estate market is growing, we also want to boost the volume of financing for the acquisition of construction equipment," says the new head of BRD Sogelease.
In 2006, BRD Sogelease was the sixth-largest player on the leasing market, and granted financing worth over 174 million euros.
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