In the first half of the year, Santander Leasing in Poland financed investments at the level of 3 347 million PLN (approx. 733 803 EUR), registering impressive increases in the dynamics of financing of practically every category in the vehicle segment (almost +72% y/y) and machinery and equipment (over +23% y/y).
„COVID -19 was the main challenge of the previous year for everyone, and its effects in the first half of the year in terms of investments were significantly slowed down. It was influenced, among others, by the assistance solutions we implement or the funds offered in the last year under the so-called anti-crisis shields for entrepreneurs who, after the recession, have been developing since the beginning of this year and thus show a greater propensity to invest. When it comes to the results of the leasing industry in the first half of 2021, I must admit that, compared to the entire market, we performed sensationally, noting an impressive dynamics of financing in all categories. Our results were influenced by close cooperation with partners as part of factory financing programs, as well as with Santander Bank Polska in the field of joint customer service, as well as flexible solutions offered to customers and business partners” – said Mariusz Włodarczyk, Managing Director at Santander Leasing.
Passenger and delivery vehicles up to 3.5 tons
According to the Polish Leasing Association data, in the first half of 2021 the leasing industry financed light vehicles with a total value of 17.7 billion PLN (approx. 3.8 billion EUR), which was a result of 29% higher than the year before. Both types of vehicles, i.e. passenger and delivery vehicles up to 3.5 tons, recorded high dynamics (31.1% y/y and 18.4% y/y, respectively). Santander Leasing fared much better compared to the market, recording an increase in investment in the entire vehicle segment by almost 72 percent. y/y. The company also achieved impressive double-digit increases in the value of financing both in the category of light vehicles (almost +47% y/y) and trucks (+92% y/y) including trucks up to 3.5t (almost +55% y/y) and the financing, and trucks over 3.5t (+ 200% y/y).
Machines and equipment
As indicated by the Polish Leasing Association, in the segment of machinery and equipment, the leasing market recorded a dynamics of 21.8% y/y, and the value of PLN 11.3 billion (approx. 2.5 billion EUR). In the case of Santander Leasing, the financing dynamics of the entire segment was over 23% y/y. The key factors for this result were investments in the sector of construction machinery (+ 42% y/y), agricultural machinery (almost + 5% y/y), printing machines (+ 16% y/y), machinery for the production of plastics (+91%) and metalworking machinery and equipment (+44% y/y).
Data from the economy inspire optimism
As Santander Bank Polska analysts indicate, after the weaker first three months of this year and relatively good second quarter, in the second half of 2021 we can expect a stronger recovery of the economy and the industry. The available data from the Central Statistical Office show that industrial production in June increased by over 18% year on year, which compared to the previous month gives 4% growth.
Construction production increased by 4.4% in June. The situation is also optimistic when it comes to retail sales, with an increase of 8.6% y/y in June. It is also worth noting that consumer sentiment improved in July, the current indicator increased to 13.5 points from 14.8 points in June. Additionally, according to the Central Statistical Office, average employment in the enterprise sector increased by 21 thousand in June full-time jobs (+ 2.8% y/y).
„For the leasing market, which for years has been closely related to the sentiment of entrepreneurs in terms of propensity to develop and implement investments, the published results of the Polish economy for June provide the basis for building optimistic scenarios. Leasing is developing steadily, supporting the investments of Polish entrepreneurs from practically every branch of the economy, and our Leasing Index research shows that corporate investments will drive further increases in individual market segments. This is confirmed by the indications of 18 % of companies that do not use leasing yet, but they are considering it in the future”, sums up Mariusz Włodarczyk.
Source: Santander Leasing’s press release from July 29, 2021