The economic growth of 2005 was also experienced at the level of the leasing market, which registered a significant development, confirming the status of leasing as a complementary financial product to other banking products and accessible to a high number of economic agents. To this extent, one could claim that leasing became a medium-term financing source capable of supporting the development of different sectors of the national economy at competitive financing costs.
Founded in 2004, the Banking Leasing Association (BLA) members represent well-known banking 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, TBI Leasing. In April 2006 the Association opened itself to non banking financial services including consumer credit companies like Estima Finance and TBI Credit and changing its name into “Leasing and non-Banking Financial Services Association – ALB”. The Association is managed by the Board of Directors which is represented by 5 members: HVB Leasing, Finans International Leasing, Immorent Romania, Volksbank Leasing, UniCredit Leasing. By statutory rotation rule, the one year mandate of the Presidency goes for this year to HVB Leasing which is represented by general manager Septimiu Postelnicu, while the vice president chair goes to Finans International Leasing represented by general manager Kerem Sekizyarali.
The signed lease contracts total during the first half of year 2006 amounts to €810, 5 million, over 100% higher than the total at the end of June, 2005. The diversity of the financing granted to the sectors of the national economy is shown in the fact that 29% of the total financing was represented by industrial equipment, 6% by real estate and 65% by the transport sector.
Regarding the transport category, passenger cars have a share of 56%, heavy commercial vehicles 30% and light commercial vehicles 12% and 2% other categories.
Industrial equipment financing is dominated by the construction field (41%) followed by metal processing industry (11%) IT sector (11%), food industry (8%), oil industry (4%), and agricultural sector (2%) and by other sectors (23%): textile industry, furniture, medical equipment, printing industry, chemical equipment.
Out of the total of 6% of the real estate sector, the majority of financing is focused on industrial and commercial buildings (45%) while the rest of 53% is dedicated to residential sector and 3% to office buildings class A, B&C.
Corporate customers received most of the financing (86%), followed by retail (11%) and the public sector (3%). Reviewing the duration of the leasing contract, the dominant period is 3 to 4-year term (41%), followed by lease contracts on 2 to 3 years (24 %), 4 to 5 years (18%), 1 to 2 years (7%) and those with an over 5-years period (7%) or just one year (3%).
Regarding the total of the Romanian leasing market in Q2 2006, a study conducted by the Banking Leasing Association shows a total volume of financed assets worth €1, 37 billion. Bank affiliated leasing companies register the largest market share with 61.5% of the total, followed by captive companies with 24, 8% and the independent companies with 13. 7%. On the issue of the main financing categories, the vehicle sector is dominant, with 75. 9% of the total second comes the industrial equipment sector with 19. 4% and the real estate sector with 4. 7%. The growth rate, between Q2 2005 and Q2 2006, is over-passing 45. 59 %.
In dynamics, from 2005 first half to 2006 end of June, even if the most important segment of the leasing market is represented by the auto vehicles, its share is constantly decreasing from 88 % in 2003, to 85% in 2004, 82% in 2005 and arriving to 64% as of end of June, 2006. In the same time, we can observe an increase of the lease financing for the real estate sector, that reached a progressive level of 1.0 % in 2003, of 1.4% in 2004, of 2.4% in 2005 and 8% as of end of June, 2006. The industrial equipment had the same ascending evolution: from 11.1% in 2003, passing through 12.4% in 2004, reaching 15.1% in 2005 and 28% at the end of first half in 2006.
For the end of year 2006 ALB estimates a total amount of 1.6 billion Euro leased assets at the level of ALB members with a total of 2.5 billion at Romanian leasing market level.
Septimiu Postelnicu – President
Adriana Ahciarliu – Secretary General
