According to statistics released just on the website of Natcomfin Services, the Ukrainian leasing market for the fifth consecutive year shows a trend towards growth in 2019 results
The value of leasing agreements concluded during 2019 compared to 2018 increased by 18% and amounted to UAH 26 245 million. Compared to 2017, it increased by 102%. During 2019, the portfolio of leasing companies increased by 15% to UAH 29,008 million. The portfolio growth compared to 2017 was 27%.
The stable positive dynamics of the leasing market in recent years is due to a number of favorable factors, including the stability of the national currency, the active entry of the Ukrainian producer into European markets, the liberalization of the economy, as well as the increase of financial literacy of the population and business. In particular, learning about the features of financial leasing as a financing tool allows small and medium-sized businesses to take advantage of its accessibility and the benefits of having a loan.
Another factor was the increased involvement of external financing by leasing companies. Thus, the amount of attracted bank loans amounted to about UAH 5.8 billion, which is about 30% of the total amount of financing. Compared to the previous year, the growth was 20%. In addition, the share of bonds issued by leasing companies is growing with attracted funds. In 2019, UAH 255 million was thus attracted. (in 2018 – UAH 148 million). In particular, this method of borrowing was used by Ilta, a member of the Ukrainian Association of Lessors. A new source of funding (which did not exist last year) was the attraction of funds from international financial institutions, which amounted to almost UAH 500 million. (about 2.5% of total funding).
According to the statistics of Natcomfin Services, the three largest leasing companies account for 56% of the portfolio and 59% of new business, and the top ten – already 80 and 83% of the market respectively.
During 2019, the most frequently leased items were financed by the following leasing items:
- Vehicles – UAH 16 450 mln. or 63% of the total amount of contracts.
- Agricultural machinery, machinery and equipment – UAH 6 701 mln. (25.5%).
- Buildings and structures – UAH 1 109 mln. or 4% of the total amount of contracts.
- Construction equipment and equipment – UAH 1 069 mln. or 4% of the total amount of contracts.
It should be noted that the share of the Association “Ukrainian Union of Lessors” in the overall leasing market is also growing, reaching 77% of the total volume of new business in Ukraine.