While UniCredit granted financing of almost EUR275 million, 40% of which for equipment, 51% for vehicles and 9% for real estate, Porsche funded the auto leasing market with around EUR114 million.
Auto leasing remained by far the most important segment of the industry, accounting for 70% of new contracts in 2012, while equipment leasing had a 26% share.
No. 3 on the market was Austria’s Impuls Leasing, which saw a fast growth despite coming to the market late, at the end of 2006. In 2012 the firm had a market share close to 7%, leaving behind the subsidiaries of the two largest banks on the market.
Next in the ranking of the largest companies in the sector were companies affiliated to banks, most of which have sought to balance their portfolios in the past few years by reducing the share of auto leasing.
BRD Sogelease is no. 4, closely behind Impuls Leasing, with a 6.8% market share. Almost 60% of the new financing of EUR92 million went to vehicles, while 40% went to equipment. The real estate segment had only a marginal presence.
Austrian firms dominate the ranking
A major rebound was recorded by BCR’s subsidiary, which after a few years of restructuring and cleaning up its portfolio, has resumed growth and is aiming for a 10% market share. In 2012 BCR Leasing granted new financing of slightly more than 6%– almost EUR57 million – to the auto segment and EUR25 million for acquisition of equipment. The company’s new strategy is based on using cross-selling opportunities with BCR bank, with clients being mainly selected from among the bank’s clients.
No. 6 was Austria’s Volksbank, with a market share close to 6%. Volksbank’s business is supported by auto leasing, which accounts for almost 83% of total financing. Overall funding amounts to EUR80 million and Volksbank stood out on the market through an aggressive price policy.
Also above the 5% mark is Austrian Raiffeisen Leasing, which last year had a 5.5% market share. Over 70% of the EUR75 million financing went to the auto segment, while the rest went to equipment, with the company avoiding the real estate sector.
The top seven companies on the market account for around 60% of the leasing market, which last year totaled EUR1.35 billion.
Given the strong position of auto leasing in the industry, next in the ranking are companies directly connected to the sales of two major brands – Merceces (Mercedes-Benz Leasing) and Renault (RCI Leasing). However, the market remains dominated by companies affiliated to banks, which last year accounted for more than 60% of financing.
The leasing market is losing a relevant player as ING Lease entered liquidation proceedings after the Dutch company decided last year to drop this business line on the Romanian market.
Equipment financing continues to be affected by the numerous insolvencies in the industry, while the auto segment is affected by frauds, but as companies have gained experience in the past few years and amid a tighter collaboration with the police, losses have been cut.
Similarly to banks, leasing companies have gathered significant portfolios of assets recovered from bad –paying clients, with the attempts to sell these assets putting pressure on the market of new assets.
(English version by Daniela Stoican)