The biggest share of new financing went into commercial and passenger vehicles, BRD said in its half-year earnings report.
Following growth in the first half, BRD Sogelease’s overall portfolio reached RON877 million, up 17.2% on the year. If the growth rate is maintained, BRD Sogelease is expected to end 2019 with new financing totaling RON690 million, compared with RON530 million in 2018.
The Romanian financial leasing market has been growing for the past five years. In 2018, it neared EUR2.5 billion, up 14% on the year, according to estimates by the association of financial companies ALB Romania.
The market is expected to grow by more than 10% in 2019 but players also point out risks such as workforce shortage, which is a generalized issue in the local economy and indirectly affects financial leasing companies as it affects the development of SMEs, their main customers.
Although it has been growing steadily for the past five years, the Romanian financial leasing market is at 50% compared with 2008, when the local economy was booming.