Annual market statistics published by the UK
and German leasing associations show that the recession has left
both markets in similar shape – albeit with different challenges to
face in recovery.
The UK and Germany have historically vied for
position as Europe’s chief leasing economy.
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Adjusted for inflation, British GDP contracted
by 4.9 percent during 2009, with Germany just behind at 5
percent.
In leasing terms, the UK saw new business in
asset and motor finance decline 25 percent to reach £36bn
(€43.4bn), while German lessors wrote €41.2bn in new business, 24.3
percent down year on year.
Leasing’s penetration of overall equipment
investment remained highest in the UK, with leasing making up 25
percent of all fixed capital investment excluding property
throughout 2009. Nevertheless, this was down from 28 percent the
previous year.
Germany’s equipment leasing penetration
figure, by contrast, fell only from 22.1 percent to 21.2
percent.
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By GlobalDataThe UK Finance and Leasing Association
(FLA) excludes commercial real estate from its annual business
total, while Germany includes it.
Leasing of commercial real estate in Germany
declined 47.2 percent to reach €1.9bn in 2009, with penetration of
real estate business dropping from 3.3 percent to 1.8 percent.
The German leasing association Bundesverband
Deutscher Leasing (BDL) said that the more severe drop could be
explained by “the fact that equipment is inherently more leasable”,
as well as the popularity recently gained by competing forms of
structured finance in the real estate sector.
fred.crawley@vrlfinancialnews.com
