The latest data from the Polish Leasing Association indicates that leasing companies provided financing of PLN 79 billion during the first nine months of 2024, marking an increase of 10% from the same period in 2023. Leasing transactions overwhelmingly dominate the contracts signed by these companies, accumulating up to PLN 69.15 billion, a surge of 11.9%. Leasing loans amounted to PLN 9.84 billion, up 1.2%.
While the first two quarters saw a double-digit growth, it tapered to single-digit in the third quarter to reach 4%. The leasing sector is feeling the repercussions of the prevailing challenges in the transport industry, with the financing of heavy-duty vehicles witnessing a slowdown in the last four quarters. The financing for heavy transport vehicles fell by more than 15% year-on-year, touching PLN 13.5 billion over the first nine months of the year. Despite a difficult landscape, lessors are experiencing growth in light vehicles, which form a significant part of their portfolios, as well as in the machinery and equipment segment. The construction machinery sub-segment (up by 27% at PLN 3.9 billion), medical equipment (up by 25% at PLN 1.1 billion), and catering equipment (up by 22% to hit PLN 177 million) all witnessed significant growth. On the other hand, financing for the agricultural machinery niche, forming the bulk of the machinery and equipment sector, saw a slight dip of 1% to reach PLN 4.6 billion.
Here’s how the financing breaks down according to assets:
– Vehicles – PLN 56.9 billion (up 13%)
– Light vehicles – PLN 42.7 billion (up 26%)
– Heavy-duty vehicles – PLN 13.5 billion (down 15%)
– Machinery and equipment – PLN 19.2 billion (up 6%)
– Other movable property – PLN 2.4 billion (down 0.7%)
– Real estate – PLN 0.44 billion (down 20%)
In the asset financing structure, vehicles hold the lion’s share at 72.5%, followed by machinery and other equipment (24.5%). Remaining transactions, together with real estate, make up 3% of the total infrastructure.
The Polish Leasing Association presents a summary of the leasing sector’s performance every quarter, with the data stemming from member companies’ reports and collaborating organizations, thereby covering the entire Polish market.
In a comment on the results, Marcin Nieplowicz, the chief economist of the Echo Fundusz Leasingowy (EFL) and the Polish Leasing Association, stated that despite a strong first half of 2024, with an annual growth rate of 14.0%, the Q3 growth margin slowed to 4.4%. He attributed the deceleration to a lower momentum in financing of light vehicles (15.3% year-on-year in Q3) and the financing of heavy-duty vehicles (-25.8% year-on-year in Q3) due to a recession in the Eurozone’s industry. However, he remained optimistic about the situation improving in Q4 2024.
Source: https://managerplus.pl/zpl-prawie-80-mld-zl-udzielonego-finansowania-w-3-kwartalach-2024-r-70318
