Leasing market 2019

Estonian leasing market showed some recession last year as market players united and one also left from the market, so that turbulence reflected also the performance as well as the statistical outcome of the whole leasing industry.

In 2019 GDP growth was 3,5%. Our unemployment rate of 4,6% was one of the smallest compared the last five years. Inflation rate was 2,3%.

New leasing business carried out in 2019 by members of our Association was 1 164 million EUR, declined 6% compared to 2018.

Total lease portfolio of the members was 2,8 billion EUR, with a growth of 1,5%.

The main contract type according to the lease portfolio was finance lease (54%). Operating lease held 44% and other forms of contracts as much as 2%. These figures have been stable for many years.

When observing lease new sales by assets, then vehicle- and IT sectors were the only one´s growing; by 3% and 20%. But as the vehicle sector has 55% of the share of the new sales and IT sector 2%, then the significance of the vehicle financing is evident.

Estonian market is vehicle sector dominant. The 3% growth consists of: total of 35 659 vehicles were financed, 63% were new and 37% used cars. Out of the new vehicles 47% were financed as private use and 53% as company use. Out of the used cars the percentages were 63% and 37%.

Heavy vehicles sector decline was 16% , but the share from new sales remained on 18% as last year.

Machinery and equipment sector still has the second biggest share on new sales portfolio 24%, but there was also a decline of 14% last year. 

Other categories of new sales are of minor importance.

Analyzing equipment leasing in 2019 by type of customers show private sector and private entities decline of 8%, but it still holds the biggest share of the whole new sales portfolio by 70%.  Public sector was the only one not declining, but growing by 20%,  its share is 4% of the whole new sales. Agriculture, forestry, fishing sector was also declining by 20%, still having a share of 11%. Construction and industrial sector was in decline by 7%, having the share of 17% of new sales.

Primary contract terms show that 69% of the contracts were signed for 3-5 years.

Most of our members are also offering factoring. In 2019 total factoring turnover was 3,9 billion EUR. Residuals reached to 366 million EUR, declining by 4% 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 on 2018 it was 4,71% (source: WLY).

In 2018 The Association launched 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.

By 2019 also Latvian and Lithuanian Associations have joined NRAD, so we have PanBaltic Database, with given access also to Tax authorities and Police - Border Guard Office.

 

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.