The Russian leasing market is shrinking due to a fall in the corporate segment

In Q3, the corporate leasing segment failed to recover, which led to a 5% drop in the entire market over the first nine months. However, retail leasing shows a fast positive trend against the backdrop of the implementation of deferred demand. Market participants expect the trend to continue, corporate leasing will continue to stagnate, while retail leasing will continue to grow.

Leasing companies in Q3 began to recover their business volumes after the crisis in Q2. The value of leased items transferred to clients, excluding VAT, decreased by only 5% in nine months, to RUB 980 billion, while in the first half of the year the decline was 22%. This is evidenced by the research "Expert RA". The total leasing portfolio, that is, the amount owed by lessees to the lessor on current transactions, even increased by 6%, to RUB 5.1 trillion.

The main support to the market was provided by the retail segment, the new business in which grew by 13%, to RUB 708 billion. The corporate segment fell by a third, to RUB 272 billion. In particular, a decrease in the volume of transactions with real estate by 92% led to its decrease, the Expert RA notes. In addition, the leasing of railway equipment for the three quarters fell by a quarter, aviation - by 30%.

Two of the three largest leasing companies, largely focused on the corporate segment, reduced their leasing portfolio in the first nine months. Thus, the volume of new business of Sberbank Leasing decreased by 40%, to RUB 100.3 billion, and the one of VTB Leasing decreased by 16%, to RUB 79.1 billion.

Significant growth in the retail segment was ensured by the implementation of deferred demand.

Here, the main driver was car leasing, which grew by 9% in three quarters compared to last year. Another factor was the purchase of cars in anticipation of a further increase in prices due to changes in the exchange rate, said Nikolay Sevastyanov, general director of Sovcombank Leasing.



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