BANKS
BNP Paribas Lease
Group
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BNP Paribas’ Equipment Solutions
division, which includes BNP Paribas Lease Group, has reported
strong results in the third quarter. The division saw revenues grow
by 6.6 percent year-on-year to €292 million, or by 12.7 percent
compared to the second quarter, which the lessor attributed to a
rebound in the prices of used vehicles, particularly in the UK.
Pre-tax income reached €55 million, significantly higher than the
€35 million achieved in the second quarter.
ING Lease
ING’s leasing and factoring division
saw pre-tax profit fall to €12 million in the third quarter, a 61
percent decrease compared with the €31 million reported for the
same period last year. The decrease, said ING, was attributable to
higher loan loss provisions, particularly in lease activities in
Germany and the UK. New business volumes also declined due to weak
economic conditions, the Dutch bank added.
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By GlobalDataDaimler FS
Daimler FS posted EBIT of €101 million
in the third quarter, down from the €173 million in the same period
last year. The German captive attributed the fall to higher
expenses for credit risks, as well as expenses incurred in
connection with the expansion of the direct banking business at
Mercedes-Benz Bank. Contract volumes also declined by 7 percent to
€58.7
billion between the end of 2008 and the end of the third quarter of
2009.
PACCAR FS
Significantly lower profits were
recorded at Paccar FS in Q3 2009. Pre-tax profit in the quarter
fell to $18.1 million (€12.3 million), down from $45.5 million in
Q3 2008; while revenues fell to $241.7 million, down from $322.8
million. Paccar senior vice-president Ron Armstrong attributed the
decline to lower finance margins and higher truck repossessions in
Europe.
Volvo FS
Portfolio delinquency, struggling
customers and credit provisioning continued to impact results for
Volvo’s captive arm, although the company said it is starting to
see “early signs of stabilisation”. Volvo FS’ new financing volume
was SEK6.3 billion (€613 million) in Q3, down from the SEK10.9
billion figure recorded in Q3 2008. Average penetration rate also
decreased, from 28 percent to 23 percent.
CEE REGION
Bulgaria
Leasing defaults in Bulgaria are
expected to soar in the final quarter of 2009 and the first quarter
of 2010, according to the Bulgarian Association for Leasing.
Defaults are expected to grow particularly in the construction
sector and related industries. According to recent BAL estimates,
around 20 percent of leasing contracts in the construction industry
are non-performing. In total, non-performing leasing contracts
nearly doubled to BGN688.3 million (€351.9 million) in the third
quarter, from BGN373.8 million in the second quarter.
Czech Republic
Czech leasing business in the year’s
first three quarters was down 56 percent year-on-year, the
country’s leasing association has announced. According to the CLFA,
business written between January and September amounted to €1.2
billion, down from €2.75 billion in 2008.
Hungary
Hungarian lessors saw new business fall
by 66 percent year-on-year in the third quarter, new
figures have shown. According to the Hungarian Association of
Leasing and Financing Companies, the value of new leases signed by
Hungarian companies fell to HUF123.5 billion (€444.7 million) in
Q3. The decline slowed from a 70 percent year-on-year decline in
Q2, however, and is expected to slow further for the rest of the
year and in 2010, association chairman Zoltan Hordos said.
