The downward trend in the leasing industry in the Baltic states
continues as two companies report losses running into millions of
Euros.
Swedbank Lizings, part of Latvia’s Swedbank Group, was
29.99million lats (€42.67million) in the red after 2009 as losses
grew significantly from the year before, according to the company’s
financial report.
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In the report, its management states that 2009’s overall market
slump had a harmful impact on its leasing and factoring
portfolio.
Demand was weak and could not make up for the portfolio’s
amortisation, causing it to shrink by 444million lats.
Its factoring portfolio contracted 32%, while commercial
transport leasing fell 39%, car leasing by 35% and industrial
leasing 25%.
Management said the company did meet targets planned for 2009
despite overall market shrinkage and weakened demand for leasing
products.
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By GlobalDataIt still holds its leading position in all market segments,
taking 41% of the car leasing market, 29% of commercial transport
leasing, 36% of industrial equipment and 48% of factoring.
Factoring and inventory financing also fell 55% to 251 million
lats, but the company still managed to expand the market share of
its portfolio from 41% to 48% and aims to hold on to its leading
position throughout 2010.
Meanwhile, in Lithuania, Ukio Banko Lizingas, the leasing arm of
Ukio Bankas Group, reported audited net losses of
4.252million litas (€1.2million) for 2009.
The company’s losses are a reversal of net profits of 186,000
litas a year previously.
Its sales revenues were more than three times smaller,
year-on-year, dropping to 77.81million litas last year, according
to a 2009 report submitted to the Centre of Registers.
The number of new leasing contracts last year fell 54% to
64,200, and the amount of financing provided shrank by 63%, to
86.2million litas.
The company’s portfolio before provisions and write-downs
totalled 231.96million litas at the end of 2009, down 28%
year-on-year.
Claire Hack
