The volume and growth rate of new business of Russian lessors in 2020 (preliminary data). Source: Expert RA
The Russian leasing market, despite strong recovery rates in the second half of the year, failed to reach the 2019 growth figures. According to preliminary data from the Expert rating agency (https://www.raexpert.ru/researches/leasing/2020_pre/), the volume of new business of leasing companies last year amounted to 1.4 trillion rubles (against 1.5 trillion rubles in 2019) …
The amount of leasing agreements at the end of 2020 showed a negative trend of 13% and amounted to RUB 2.0 billion, mainly due to a reduction in long-term corporate transactions. Despite the decline in business growth and the amount of leasing contracts, the total volume of the leasing portfolio at the end of last year still grew by 6.5% and amounted to 5.2 trillion rubles. However, the increase in the volume of the leasing portfolio was largely due to the growth in the volume of restructuring.
Large lessors lost the most in growth: a decrease in the volume of new business of TOP-3 leasing companies (GTLK, Sberbank- and VTB-Leasing) led to a decrease in their market share in 2020 to 31% against 36% a year earlier. Intuitively, the largest leasing companies account for a significant share of railway, aviation and other large leasing categories, which were hit hardest this year. In general, 42% of respondents showed negative growth rates of new business.
In order to draw more specific conclusions about the state of the leasing market and its subsectors, a more detailed sample is needed, which the agency will present in March. In particular, on the markets of car leasing and leasing for SMEs in which the issuers of high-level education work. However, on the whole, the trend set in the third quarter is indirectly observed at the end of the year. Small leasing companies did not become the main reason for the decline in market growth, and judging by the emerging reports of issuers-lessors, we can say that small segments of the leasing market showed stability in the past year.
Author: Ilya Grigoriev