Leasing market 2018

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

In 2018 GDP growth was 3,6%. 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 2018 by members of our Association was 1 250 million EUR, growth of  4% compared to 2017.

Total lease portfolio of the members was 2,7 billion EUR, with a growth of 9%.

The main contract type according to the lease portfolio was finance lease (56%). Operating lease held 39% 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 35%, but its share of the whole new sales is only 1%.

Estonian market is vehicle sector dominant. Vehicle sector growth was 7%, as 33 650 vehicles were financed, 57% were new and 43% used cars. Out of the new vehicles 54% were financed as private use and 46% as company use. Out of the used cars the percentages were 73% and 27%. Vehicles are strongly holding the biggest share of the new sales portfolio with 50%.

Heavy vehicles sector growth was 7,5% 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 26% . There was a diminishing of 3,5% last year. 

Other categories of new sales are of minor importance.

Analyzing equipment leasing in 2018 by type of customers shows that private sector growth was 11,2%. Private sector holds the biggest share of the whole portfolio by 40%.  Public sector growth was the biggest (16%) , but its share is only 3% of the whole new sales. Agriculture, forestry, fishing sector was growing by 10%. Construction and industrial sector was in decline by 16%, having still the share of 17% of new sales.

Primary contract terms show that 71% of the contracts were signed for 3-5 years.

Most of our members are also offering factoring. In 2018 total factoring turnover was 3,6 billion EUR. Residuals reached to 380 million EUR, growing by 7% 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 2018 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 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.