BCR Leasing granted financing worth over €400 mln in 2007

Car leasing accounted for 70 percent of the loans, 20 percent for equipment and tools, and the remaining 10 percent for real estate, including leasing for building construction and commercial areas. The total value of contracts signed in 2007 exceeded half a billion euro. BCR Leasing IFN’s portfolio is made up of some 42 percent cars (including fleets), 27 percent commercial vehicles, 22 percent equipment and industrial tools, and 9 percent real estate leasing (compared to 1 percent last year).

“Higher sales of commercial vehicles and real estate leasing reflect both the market’s more dynamic areas and the fact that company sales structures are becoming more specialized to attract clients from growing industrial areas and segments,” according to a statement for Business Standard by sources from the company.

BCR Leasing was 52nd on Europe’s leasing market for vehicles and 31st for cars, based on total value of goods financed, 4 places higher year-on-year. Also, in terms of equipment leasing, BCR Leasing was 59th in Europe based on total value of goods financed, compared to 68th in 2006.

As concerns real estate leasing, the company held 47th place, 8 places higher than in 2006.

The Romanian leasing market, estimated in 2007 to be worth over €4.2 billion, is dominated by UniCredit Leasing Corporation, BCR Leasing and Porsche Leasing. The leasing business could reach €5 billion in 2008, and €6.5 bln in 2009, due to increasing buying power and a strong advance in construction, according to Marketing Manager of VB Leasing, Octav Dumitrescu.

Leasing subsidiaries of banks claimed a 64 percent market share in the first three quarters of 2007, while independent companies had a 26 percent market share, while the share of captive insurance companies (providing coverage at lower costs than the general insurance market) amounted to 10 percent.