The Polish Leasing Association announced that in 2020 leasing companies had provided PLN 70.1 billion (over EUR 15.5 billion) of total financing.
“The global slowdown is reflected in the results of Polish lessors. The dynamics of financing provided by the leasing industry in the first half of the year was -24% YOY, the cumulative data of the sector after the third quarter showed dynamics at the level of -15.5% YOY but the last three months of the year resulted in 4.8% of growth. Despite the good results achieved at the end of the year, cumulative results of 2020 were negative, at the level of -10.1% (YOY). A positive signal for enterprises is that The Polish Leasing Association` analysis estimates that in 2021 the leasing industry will make up for losses caused by the COVID-19 pandemic and return to the level of financing from before the crisis, which means a rebound in the market.” – said Paweł Pach, Chairman of the Executive Committee at the Polish Leasing Association.
STRUCTURE OF POLISH LEASING MARKET
The recipients of leasing services are mainly micro and small entrepreneurs, (customers with a turnover of up to EUR 5 mln), which constitute 73.5% of the customer structure of leasing companies. The largest group of customers (53.6%) are micro-entrepreneurs (customers with a turnover of up to EUR 1 mln), customers with a turnover of EUR 1 to 5million constitute 19.9% of the total, and entrepreneurs with a turnover of more than EUR 5 million have a 26% share in the structure of customers, while transactions concluded with individual customers account for 0.5% market share.
TRENDS IN GROUPS
In 2020, with the help of leasing and investment loans, businesses most often financed light vehicles (accounting for 47.5% in the leasing market structure), machinery, and other equipment (accounting for 29.1%). Lorries over 3.5 tons, tractors, semi-trailers, trailers, and buses were financed slightly less frequently (17.8% market share). Other assets such as IT equipment, planes, ships, rolling stock, and other vehicles account for a 4.4% market share, while real estate only 1.2%.
In 2021 the leasing market will recover from last year’s losses. The dynamics of the leasing industry in 2021 at the level of 11% will be in line with the forecasted increase in private investment and the economic development scenario in Poland. This year, the leasing industry may provide total financing worth more than PLN 77.8 billion (approx. more than EUR 17,1 billion).
Leasing companies expect a higher level of financing for most of the studied groups of fixed assets. An increase in financing is expected for light vehicles and the real estate sector. Positive forecasts are expected also for financing machinery and IT. On the other hand, negative forecasts are expected in the area of financing heavy transport.
Source: PLA Press Release from 15.02.2021