Ukrainian Union of Lessors Q3 2018 results

PRESS RELEASE. Results of the third quarter of 2018 of the companies participating in the Association “Ukrainian Union of Lessors”

During 9 months of 2018:

+4.3 billion UAH in the volume of new business

Compared to the third quarter of 2017:

+1.5 bln UAH in the volume of new business

+4.6 billion UAH in the volume of the leasing portfolio

Companies-members of the the Association continue to increase the volume of new lease agreements compared to the same period of last year. In the 3rd Quarter of 2018, the volume of new business reached 3,803 million UAH. compared with 2,316 million in 3rd quarter of last year, the growth of the new business was + 64%.

At the same time, the volumes of new business contracts in Q3 2018 decreased by 13.4% compared with the previous quarter (Q2 2018).
According to the results of three quarters of 2018 (9 months), the volume of new business amounted 11,227 million UAH against  6,890 million UAH for this date a year earlier. Thus, the growth in the results of 9 months is 4,336 million UAH. or 63%.

For three quarters of 2018, leasing companies-members of the Association entered into deals by 15% more than in entire 2017.

The leaders in growth in the 3rd quarter of 2018 in absolute terms were:

  • ULF-Finance (+153.9 million UAH);
  • Autocredit Plus (+48 million UAH);
  • Land – Lease (+19.5 million UAH).

As for September 30 the total portfolio of leasing companies – members of the Ukrainian Union of Lessors amounts to UAH 15.186 billion (without fees for the use of leased assets), which suggests a growth growth by 15.9% (UAH 2.08 billion) compared to Q2 2018. In the same time, it`s 3.88 billion or by 34.3% since the end of 2017.

Leaders by lease portfolio growth:

  • OTP Leasing (+972 million UAH);
  • ULF-Finance (+479 million UAH);
  • Scania Credit Ukraine (+127 million UAH).

Leaders by dynamic of  lease portfolio growth (%):

  • Personal Ukrainian Leasing (PUL) – 1795% (which, in particular, is explained by a low base of comparison of previous periods).
  • ULF-Finance (+ 42.9%);
  • Kredobank (+ 23.7%).

Largest UUL members in terms of leasing portfolios are companies:

  • OTP-Leasing – UAH 6821 million UAH.
  • ULF – Finance – UAH 1596 million UAH.
  • Porsche Leasing -1376 million UAH.*

The share of the six largest companies – members of the Association in the total portfolio of the UUL members comprises around 80%.

Most of the leasing deals concluded during 3Q of 2018 included financing of motor transport and agricultural machinery.

Thereby, for the first 9 months of 2018, leasing companies – members of the association leased almost 7 thousand cars, LCV and trucks. The share of new passenger cars leased was 6.6% of all (60,291 cars) sold in the during 9 months 2018 in Ukraine. For trucks and LCV, this figure (leasing penetration) is 12.0%.

There is a significant difference in the penetration of leasing in the context of leading automotive brands. As follows, in the segment of passenger cars, the % of cars leased out in total sales of TOP 10 auto brands ranges from 1.4% to 12.6%. In the segment of trucks and LCV, six companies from Top-15 (by sales) reached level of 20% or more vehicles sold with leasing financing.

Of the 388 leased new tractors the Top-5 brands are: Belarus, New Holland, Case, John Deere та Massey Ferguson. Among the combines (harvesters), the leaders are: New Holland, John Deere and Claas. In total in the first half of the year were leased 996 items of agricultural equipment.

Important events of the 3rd Quarter of 2018.

On September 27, the Association “Ukrainian Union of Lessors” with the support of the USAID Financial Sector Transformation  Project held a round-table discussion on “Financial Leasing in Ukraine: Assessment of the Status and Prospects of Development by International Experts, Donors and the Regulator”. During the discussion of the presentation of the study “Leasing Industry in Ukraine: Trends and Recommendations for Growth“, the round table participants agreed that financial leasing in Ukraine has one of the highest growth rate in Europe, and this trend has prospects for growth, but the limited financing of the industry, the lack of modern favorable legislative framework and the absence of special tax incentives, low awareness of entrepreneurs about modern business financing instruments are the most significant obstacles to the development of leasing in Ukraine. The study was conducted by experts from the USAID Financial Sector Transformation Project and is the first detailed analytical review of the leasing services market in Ukraine, the main trends of the industry and the identification of the barrier for the development of the industry as a whole.

Event Announcement:

On November 28, the National Commission for the regulation of financial services markets and the Association “Ukrainian Union of Lessors”, with the support of the USAID / FST Project, conducts the First Regulatory Workshop devoted to innovations in the reporting procedures of lessors and other relevant leasing market development issues and its normative bases.

The main questions of the discussion:

– practical aspects of the application of the new Law of Ukraine “On Audit of Financial Reporting and Audit Activity”;

– Inspection and reporting by lessors;

– All-Ukrainian ranking of lessors;

– protection of the rights of consumers of financial services.

The event will be held November 28 at the Inveria Congress Hall, Kyiv, 49a Volodymyrska str.

The concept of All-Ukrainian Ranking of Lessors will be presented at the workshop, which will be introduced in 2019 on the initiative of USAID / FST and with the support of the Regulator. For the first time in our history, Ranking will allow increase transparency of leasing market, as well as contribute to the development of the European market and the attraction of investors.

For more detailed statistics, please contact the Association’s representatives at e-mail [email protected] or by calling (38) 044 529 4690.