Portuguese lessor Caixa Leasing and Factoring has consolidated
its activities within its banking parent, Grupo Caixa Geral de
Deposit.
This mimicks the trend evident in the more mature European
leasing markets of increasing cross-business activities with the
banking parent.
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The lessor, which is the third largest in Portugal in terms of
real-estate assets, and fourth largest in terms of equipment
assets, has had to restructure its commercial business while
centralising the back-office functions, financial services and
bad-debt services with the bank.
“We have restructured because the bank is our main net of
selling our products and most of the business is made through the
bank’s branches,” Jose Lourenco, director of Caixa Leasing and
Factoring, said.
However, Lourenco added that the company’s operational services
will remain separate from the bank and no formal decision about the
exact process of integration has been made as yet. “We will be like
a factory, instead,” Lourenco said.
Lourenco said the impact of Basel II requirements, which have
put pressure on tax and also the risk and costs of capital, have
influenced the lessor’s plans to utilise aspects of the larger,
more secure structure of a big bank.
“I think that’s the way a lot of leasing companies are thinking.
It has been very difficult to maintain the ratios and requirements
of Basel II if not related to the bank,” Lourenco said.
Caixa’s leasing and factoring activities also extend to personal
credit and consumer credit product services, but concentrate
predominantly on equipment leasing, which boasts a 12.9 per cent
market share.
Factoring comprises a 13 per cent share of its business and
vehicle leasing a 17 per cent share. Vehicles, trucks and
specialised equipment make up more than 50 per cent of Caixa
Leasing and Factoring’s portfolio.
While its leasing business grew 30 per cent last year, it
expects it to be half that figure in 2008. Lourenco attributed this
to an expected downturn in the Portuguese economy this
year.
As the only Portuguese leasing company represented in the
International Finance & Leasing Association (IFLA), Caixa
Leasing has aspirations to raise the profile of the Portuguese
leasing market and compete with the more developed European leasing
markets.
“We hear, via the ILFA network, that other countries do better
and are more advanced in leasing,” Lourenco said. “We need to learn
from other countries.”
Trailing its parent bank, Caixa Leasing and Factoring also has
plans to extend to overseas markets in Spain and Portugal’s old
colonies in Africa, including Mozambique.
