Founded in 2004, the Banking Leasing Association (ALB) represents members of well-known banking and financial groups on the Romanian and European markets: Afin Romania, Alpha Leasing, BRD Sogelease, BT Leasing Transilvania, EFG Eurobank Leasing, Finans Int’l Leasing, HVB Leasing, Immorent Romania, ING Lease, Italo-Romena Leasing, Motoractive Leasing, Piraeus Leasing, Raiffeisen Leasing, UniCredit Leasing, Volksbank Leasing. The total signed lease contracts during the previous year counted 36127 contracts and amounts to €1039 million, over 43% higher than the total at the end of 2004 (€726 million). The diversity of the financing granted to the sectors of the national economy is shown in the fact that 23% of the total financing was represented by industrial equipment, 4% by real estate and 73% by the transport sector.
Regarding the transport category, passenger cars have a share of 54%, heavy commercial vehicles 30% and light commercial vehicles 14%.
Industrial equipment financing is dominated by the construction field (24%) followed by metal processing industry (14%) and by other sectors (62%): food industry, textile industry, IT, furniture, medical equipment, printing industry, chemical and agricultural equipment.
Out of the total of 4% of the real estate sector, the majority of financing is focused on industrial and commercial buildings (77%) while the rest of 23% is dedicated to residential sector.
Corporate customers received most of the financing (87%), followed by retail (12%) and the public sector (1%). Reviewing the duration of the leasing contract, the dominant period is 3 to 4-year term (37%), followed by lease contracts on 2 to 3 years (32 %), 4 to 5 years (10%), 1 to 2 years (9%) and those with an over 5-years period (8%) or just one year (4%).
During 2005, ALB member companies paid taxes and social contributions to the general consolidated budget amounting to € 74.4 million, almost 55% more compared to the total of the previous year (€ 48.2 million). In addition, the paid-in capital of ALB members, in 2005, according to IAS, totals more than € 38 million, 73% more compared to the total of the previous year (€ 21.9 million).
Regarding the total of the Romanian leasing market in 2005, a study conducted by the Banking Leasing Association shows a total volume of financed assets worth €2.015 billion. Bank affiliated leasing companies register the largest market share with 55% of the total, followed by captive companies with 30% and the independent companies with 15 %. On the issue of the main financing categories, the vehicle sector is dominant, with 82% of the total, second comes the industrial equipment sector with 15.6% and the real estate sector with 2.4%. The growth rate, between 2004(€1.384 billion) and 2005(€2.015 billion), is 45,59 %.
For the end of year 2006 ALB estimates a total amount of 1.4 billion Euro leased assets at the level of ALB members with a total of 2.3 billion at Romanian leasing market level, meaning 15 % growth rate. Analysing the trend of vehicle importation and sales, it is not difficult to assume that, in structure, the lease financing, on one hand will decrease, concerning the passenger cars segment, but on the other hand will increase, concerning the equipment and real estate segments. ALB considers that year 2006 has the opportunity, by the implementation of OG28/2006, to come out with the realistic figures of the leasing market due to standardization of the reporting to NBR, as well as to the authorization process of the lessors with the Central Bank. ALB members do also hope that the Romanian Parliament will issue the final text of Law amending OG51/1997, as it has been agreed last year, but with respect to the new OG28/2006. Fiscal Code, it is also a text of law that has to come out this year with the agreed amendments related to the definition of operational and financial leasing, as well as to the fiscal treatment (deductibility) of the risk provisions imposed by OG28/2006.
