The Polish leasing market is expected to grow by more than 15% during 2018, marking its sixth year of double-digit growth.
Equipment finance will be the main driver of the projected increase, along with auto finance for both cars and commercial vehicles, according to the Polish Leasing Association (Związek Polskiego Leasingu).
The expected expansion follows strong market performance in 2017, when new business grew 15.7% to PLN67.8 billion (US$19.8 billion).
Small to medium-sized businesses with a turnover of up to PLN20 million (US$5.8 million) account for 71% of the Polish leasing market.
In total, the active leasing portfolio of the whole market was valued at PLN119.3 billion (US$34.9 billion) last year, almost equivalent to the total value of bank loans.
Passenger and commercial vehicles up to and including 3.5 tonnes accounted for 45% of the leasing market by value.
More than one-quarter of the market was machinery, including IT and other equipment (27.2%), while heavy transport took 25.9% market share.
Real estate took 1.3% and financing of other assets 0.6%.
The biggest growth market for leasing was cars and commercial vehicles up to and including 3.5 tonnes, which was up 21.9% year-on-year to PLN30.5 billion (US$8.9 billion).
The total value of machinery and equipment financed by the leasing industry last year amounted to PLN18.5 billion (US$5.4 billion), a year-on-year rise of 20.4%.
There was also strong growth in agricultural machinery (45.4%), construction equipment (27.4%) and IT finance (21%).
The Polish Leasing Association identified three key priorities leading up to 2020, including the impact of digitalization, development of research projects and responding to the challenges of legislation, covering everything from taxation to fraud.
The expected leasing market growth for 2018 is 15.1%, which will be helped by ongoing EU investment.
The most likely areas for the strongest growth are equipment and auto finance, the association said.
Polish leasing market 2017
|Outstanding loans 2017 – PLN119.3 (US$34.9 billion)|
|New business 2017 – PLN67.8 billion (US$19.8 billion)|
|Market growth 2017 – 15.7%|
|Structure of market|
|Sector||Market Share||New business ’17 (bn)||New business ’16 (bn)|
|Cars and LCVs||45%||PLN30.5||PLN25.0|