leasing downturn
Hansa Lizings, a subsidiary of Hansabanka, part of the Scandinavian
financial corporation Swedbank, has seen consistent growth in
recent times. Although this has been far from spectacular, given
the fact that it has been around in Latvia doing leasing longer
than anyone else, and that leasing in Latvia has hit a downturn of
late, it is not doing badly at all.
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During Q1 2008 Hansa Lizing’s leasing and factoring portfolio
grew 20 per cent year-on-year to reach LVL (Latvian lats) 734m
(€1.04bn). Meanwhile, in 2007 it saw the size of its factoring and
leasing portfolios grow 43.8 per cent to reach LVL 750.4m
(€1.06bn). This compares with a 23 per cent growth year-on-year in
leasing across the whole of the Latvian market. However, this is
set against 57 per cent growth at Hansabanka, its parent, during
this period.
New leasing agreements – mainly in the car and commercial
vehicle sectors – in 2007 totalled LVL 505.7m (€719.5m). Car
leasing agreements specifically grew 23.5 per cent during this
period. Its factoring portfolio, meanwhile, grew 23.9 per cent in
2007 to reach LVL 89.3m (€127m).
Recent profits have not been reported by the company, but in
2006 they stood LVL at 7.3m (€10.3m), 23.7 per cent up on the
previous year.
Despite having a large host of competitors in a small market
(SEB Unilizings, Hipolizings, UnoCredit Leasing, Nordea Finance
Latvia, DnB Nord Lizings and Parex Lizings un Faktorings) it
continues to be Latvia’s number one lessor. It had a 38.6 per cent
market share at the end of 2007. However, Latvia remains a popular
market, although mainly with Scandinavian entities. In June SAC
Leasing, one of the largest privately owned leasing companies in
Denmark, established a subsidiary in Lithuania and is planning to
do the same in Latvia as well as Estonia.
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By GlobalDataIts top spot position is partly explained by the fact that it
was the first leasing company to set up in Latvia, in 1994, and
because it has largely focused on wheeled assets. Other companies
in the equipment finance sector suffered during a recent downturn
in this sector. Reportedly new equipment leasing transactions
dropped 26 per cent year-on-year during the first half of 2007.
There has been some drop-off in the commercial vehicle sector in
Latvia, too, caused largely by growing costs. The volume of new
business in this sector declined by 19 per cent year-on-year during
Q1 2008.
H1 portfolio size: LVL 758m (€34.1m)
Percentage difference since January 1 2008:
3.2% up
Brendan Malkin
