The leasing portfolio grew by 61% in 2020 – the Association of Lessors of Ukraine

The total value of the portfolio of members of the Association at the end of 2020 amounted to UAH 25.4 billion. It increased by 61% during the year, mainly due to organic growth and a third – due to an increase in the number of members.

According to the results of the year, OTP Leasing, ULF-Finance and Ukrgasbank are the top three companies. Their combined share was 59% of the portfolio of members of the organized market.

The volume of new business reached UAH 22.4 billion, which indicates an increase of 27% during the year (of which 16 percentage points also provided market growth). Thus, according to the results of 2020, the leasing industry has demonstrated its stability and in the event of a pandemic and economic downturn has managed to increase market size.

The 4th quarter of last year turned out to be very successful for the industry – the value of new transactions for this period amounted to UAH 6.9 billion and increased by 12% compared to the 3rd quarter, and by 50% compared to the same period last year. Therefore, the last quarter of last year was the most successful for the leasing industry and continued the trend of recovery and growth that began in the second half.

The market leaders in terms of new transactions were the same members of the Association – OTP Leasing, ULF-Finance and Ukrgasbank. Their combined share was 60% of the total new business.

The structure of leasing assets did not change significantly during the year. The key market segments remain wheeled vehicles with a share of 51% and agricultural machinery with a share of 28%. Instead, the percentage of railway equipment decreased to 8%, and special equipment and other equipment increased slightly (to 7% and 6%, respectively).

The results of the year allow us to conclude that the leasing market was one of the most stable segments of the non-banking market of Ukraine, which was able not only to restore its position after a significant decline in the spring and summer, but also to significantly increase volumes. And it also shows the growing interest and confidence in this financial instrument from the real sector of the economy.