The volume of the financial leasing market in Ukraine amounted to UAH 9,131 million in the 3rd quarter of 2020. Such results were determined by the Association of Ukrainian Lessors on the basis of statistical data recently published by the National Bank of Ukraine.
This result indicates that the market grew by 62% compared to the previous year, and by 41% compared to the first quarter of this year. The growing dynamics indicates the resumption of business activity.
Following the results of three quarters, the volume of the financial leasing market amounted to UAH 21,184 million, which is 33% less than in the same period last year. The volume of financial leasing provided by banks in the reporting period amounted to UAH 3,763 million, which is 50% less than in the same period last year. The share of banks in the leasing market decreased to 18%.
The volume of financial leasing provided by leasing and financial companies amounted to UAH 17,521 million. This market segment, while continuing to play a key role in meeting the financial needs of businesses and individuals, decreased by only 28% over the period compared to the same period in 2019, and its market share increased to 82%. With this result, leasing and financial companies continue to outpace the forecasts that took place at the beginning of the pandemic.
The main factor that continues to affect the size of the leasing market is the impact of the crown virus on the economy. The suppression of Ukraine’s and the world’s economy caused by it has intensified the declining dynamics of recent years in terms of leasing services provided by banks. This effect persists in the reporting quarter.
At the same time, the dynamics of leasing services provided by leasing and financial companies has been growing for the last four years, and reached peak values in 2019, creating the effect of a high base of comparison. The high base of comparison combined with the economic downturn creates a negative trend for this part of the market for the second consecutive quarter.
At the end of the 3rd quarter of 2020, the portfolio of leasing agreements amounted to UAH 45,905 million. , which indicates its growth within 20%. The share of banks in the portfolio is 22%, the volume of the banks’ portfolio increased by 2%. The share of leasing and financial companies in the portfolio is 78%, the portfolio grew by about 26%.
In the segment of leasing and financial companies, the main players in the market are leasing companies, which concluded 85% of leasing agreements during the reporting period. The main sources of financing for leasing companies are bank loans (38%), advance payments (32%) and equity of leasing companies (25%). 76% of financial companies financed their activities through the issuance of securities.