Leasing market 2017

Estonian leasing market has fully recovered from the last recession and has grown steadily over the last years.

In 2017 GDP growth was 4,9%. Our unemployment rate of 5,8% was one of the smallest compared the last five years. Inflation rate was 3,4%.

New leasing business carried out in 2017 by members of our Association was 1 200 million EUR, growth of 10% compared to 2016.

Total lease portfolio of the members was 2,5 billion EUR, with a growth of 10%.

The main contract type according to the lease portfolio was finance lease (55%). Operating lease held 40% and other forms of contracts as much as 5%. These figures have been stable for many years.

When observing lease new sales by assets, then Big Ticket lease growth was the biggest with 92%, but it´s share of the whole new sales is only 1%.

Estonian market is vehicle sector dominant. Vehicle sector growth was 16%, as 33 050 vehicles were financed, 56% were new and 44% used cars. Out of the new vehicles 53% were financed as private use and 47% as company use. Out of the used cars the percentages were 70% and 30%. Vehicles are strongly holding the biggest share of the new sales portfolio with 49%.

Heavy vehicles sector growth was 6,4% and the share from new sales remained on 20% as last year.

Machinery and equipment sector has the second biggest share on new sales portfolio 28% . The growth in 2017 was unexpectedly small, only 3,3%.

Other categories of new sales are of minor importance.

Analyzing equipment leasing in 2017 by type of customers shows clearly, that in the construction and industry sector had the biggest growth by 12,4% and private sector by 8,2%. Private sector still holds the biggest share of the whole portfolio by 37%.
Agriculture, forestry, fishing sector was declining by 3,4% and public sector showed as much decline as 12%. The latter sectors investments are greatly influenced by EU investments support programs.

Primary contract terms show that 66% of the contracts were signed for 3-5 years.

Most of our members are also offering factoring. In 2017 total factoring turnover was 2,9 billion EUR. Residuals reached to 378 million EUR, growing by 17% compared to last year.

Lease financing still plays significant part in Estonian economy. According to the valuation of the Association and World Leasing Yearbook the annual leasing volume of Estonia, as a percentage of GDP has been world highest for more than last ten years (source: WLY as of 4,97% in 2016).

In 2017 The Association launched an online interactive training course for the partners of our members. As of today most of our partners are certified according to the demands of EU AML&CTF requirements : take a look at the DEMO!

In 2017 we started also Non Registered Assets Database (NRAD) to prevent double financing and to discover fraud. So all assets financed by our members that are not registered on any other Estonian register are inserted to that database. We have had first results and we must admit, that it was worth implementing.

 

Estonian Leasing Market online information:

To view online information click the link below:

To see leasing information find " Leasing sector statistics"

http://www.eestipank.info/pub/en/dokumendid/statistika/tabelid/

Data of the previous month is available on 20th of the current month.