The Czech leasing market and outlook for next yearsTracking electronization and digitization of...
Transcript of The Czech leasing market and outlook for next yearsTracking electronization and digitization of...
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The Czech leasing market and
outlook for next years
Libor Bosák, Chairman of the BoD
Czech Leasing and Finance Association
the Leasing Days Conference of Hungarian Leasing
Association
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Content
Czech Leasing and Finance Association Introduction
Short-term market trends
Long-term market trends
Mid-term outlook
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Libor Bosák
Working experience:
07/1994 – 10/1995 CFO, Corfin, leasing company, joint venture (CSOB one of shareholders)
11/1995 – 07/2004 BoD Vicechairman & CFO, CSOB Leasing Czech Republic
11/2004 – 11/2007 Country team member, CSOB Slovak Republic
10/2007 – 4/2009 BoD Chairman & CEO, CSOB Leasing Slovak Republic
Since 5/2009 BoD Chairman & CEO, CSOB Leasing Czech Republic
Chairman of BoD of Czech Leasing and Finance Association
(since 09/2015)
President of International Finance and Leasing
Association (2014- 2017)
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Czech Leasing and Finance Association Introduction
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Czech Leasing and Finance Association/CLFA – introduction,
history
CLFA 1991- 2017 The leasing product was introduced to the Czech market after its liberalization in the early 1990s
Association of Leasing Companies was established in 1991 as an interest group of leasing companies
in former Czechoslovakia
Following the split of Czechoslovakia in the end of 1992, Slovak leasing providers established their own
Association
Some providers of consumer credit and factoring became members of the Association in the following
years
From 1995 till 2010, the market gradually formed from initially up to 150 providers to the current no of
41 members
Since 2005 the Association has been operating under the name Czech Leasing and Finance
Association (CLFA)
Expert committees & Code of Ethics in place
Ownership structure – initially privately owned entities prevailed, the proportion of subsidiaries of banks
and multinational financial groups has grown and is dominating now
Membership in LEASEUROPE (B2B investment financing), since 2006, CLFA has been a member of
EUROFINAS (consumer financing), since 2010 has been a member of EUF (factoring)
Acceptance of new Consumer credit legislation in 12/2016 – the extension of the new members is
expected – licenced providers of consumer financing and the subsequent structural changes in CLFA
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Introduction of CLFA – current status
CLFA, October 2017
41 member companies
Dominant position of members of banking groups and multinational financial
corporations (98 % of CLFA production)
Product focus of member companies
Leasing and investment loans for business entities prevail 24 companies
Exclusively or predominantly operating lease cars 7 companies
Factoring companies 5 companies
Exclusively or predominantly consumer finance 4 companies
Consulting company 1 company
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Current issues
Legislative priorities Consumer credit (new legislation 12/2016), in the middle of licensing by ČNB, surveillance of
ČNB approach
GDPR implementation
Distribution in the insurance sector (IDD implementation), change of distribution model from
multi-level to single-level and fleets insurance
Tax and accounting priorities The possibility of creating tax deductible reserves from provided loans
Monitoring and implementation of IFRS 16
Product priorities Enforcement of the use of leasing and loans when drawing subsidies
Support of SMEs Financing – Expansion program in cooperation with ČMZRB
Tracking electronization and digitization of financial services, telematics and data ownership
in transport technology
Creation of register of leased assets in cooperation with CEBIA company
Code of excessive vehicle wear in cooperation with SGS and DEKRA
companies
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Short-term market trends
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Market development – Statistics of CLFA for 1HY / 2017
Financing of business investments (2.12 bln EUR)
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Financial leasing Operating lease Loans
101010
44,4%
21,2%
6,0%
2,2%
26,2%
1. osobní automobily, motocykly - 44,4 % 2. užitkové automobily - 6,0 %
3. ostatní těžká dopravní technika - 21,2 % 4. stroje a zařízení - 26,2 %
5. nemovitosti - 2,2 %
1
23
4
5
B2B investments financing by asset types in 1-6/2017 (leasing and loans)
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Market development – Statistics of CLFA for 1- 6/ 2017
Passenger vehicles,motorbikes 44,4 %
Other heavy transportation – 21,2 %
Real estate – 2,2 %
Utility vehicles 6,0 %
Machinery and equipment 26,2 %
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Market development – Statistics of CLFA of 2016
Ranking of CLFA member companies according to the new volumes of financial and
operating leasing and business loans (mil. EUR)
01. ČSOB Leasing, a.s. 663,14 KBC
02. Volkswagen Financial Services, s.r.o. 494,88 Volkswagen
03. UniCredit Leasing CZ, a.s. 494,23 UniCredit
04. SG Equipment Finance Czech Republic, s.r.o. 408,90 Société Générale
05. Mercedes-Benz Financial Services Česká republika, s.r.o. 338,62 Mercedes
06. Raiffeisen-Leasing, s.r.o. 340,54 Raiffeisen Bank
07. MONETA Leasing, s.r.o. 147,03 Moneta (former GE)
08. LeasePlan Česká republika, s.r.o. 139,78 LeasePlan
09. S Autoleasing, a.s. 123,94 Erste Bank Group
10. Deutsche Leasing ČR, spol. s r.o. 120,30 Deutsche Leasing
11. ALD Automotive s.r.o. 119,60 Société Générale
12. ARVAL CZ s.r.o. 119,03 BNP Paribas
13. Erste Leasing a.s. 104,88 Erste Bank Group
14. UNILEASING, a.s. 78,20 Privately owned
15. Oberbank Leasing spol. s r.o. 76,26 Oberbank AG
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Long-term market trends
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Development of the Czech leasing market – long-term trends
5,1
4,6
2,6 2,72,9
2,7 2,8
3,2
3,94,2
4,4
0
1
2
3
4
5
6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(odhad)
financov ání inv estic (leasing a úv ěry pro podnikatele)
Product development from the begining of recession (bln. EUR)
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Financing of investments (leasing and loans for business)
14
2,95
1,27
0,58
2,98
1,18
0,08
0
0,5
1
1,5
2
2,5
3
2007 Forecast 2017
financování silničních dopravních prostředků
financování strojů a zařízení
financování nemovitostí
B2B investments financing asset type breakdown (bln. EUR)
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Development of the Czech leasing market – long-term trends
Financing of transport vehicles
Financing of machinery nad equipment
Real estate financing
151515
18,9%
76,1%
63,9%
46,1% 47,5%
37,5%29,3% 28,5% 28,9%
22,7% 21,5%
46,1%44,7%
49,4%48,6%49,2%46,2%
40,7%
13,0%
20,4%
37,0% 36,0%
35,0%33,8%
27,9%
22,5%22,3%24,5%21,8%
16,5%16,9%
15,7%
10,9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(odhad)
Financial leasing Loans Operating lease
CLFA – B2B investment financing products
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Development of the Czech leasing market – long-term trends
161616
Děkuji za pozornost
Comparison with European trends
B2B Investment financing in the Czech Republic and in Europe (statistics of Leaseurope)
-42,3%
12,4%11,2%
6,3%9,1%
7,7%6,5%
-32,3%
-5,1%
-1,0%
-0,9%
-8,7%
6,3%
9,0%
20,3%
1,6%
14,9%
-4,7%
3,2%
14,8%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Evropa ČR
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Development of the Czech leasing market – long-term trends
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2,0%
-4,1%
2,2% 1,7%
-1,0% -0,9%0,2%
4,3%
2,3%
4,5%
6,1%
2,5%
-9,8%
6,1%
7,4%
-6,9%
3,7%
14,3%
21,9%
7,7%
4,7%3,8%
3,6%
2,3%
1,8% 2,3%
0,7%
1,9%
1,9%3,3%
3,7%
2,0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(odhad)
HDP Objem financovaných investic ČLFA Podíl investic ČLFA/HDP
The development of CLFA's financed investments compared to GDP development
-43,5%
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Development of the Czech leasing market – long-term trends
Y/Y % CLFA production
development
The share of CLFA´s
investments on GDPGDP
growth
Mid-term outlook
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Drivers of Leasing financing / Outlook 2017 - 2019
ČNB Forecast 2017-2019
The CNB forecast predicts positive macroeconomic development in 2017 - 2019,
which is linked to growth in production and sales and to need for investment
The prediction of interest rates growth negatively affects the profitability of the sector
unless it is included in margins (bottom reached in the mid of 2017)
The impact of the expected appreciation of the CZK / EUR exchange rate on the
leasing segment is ambiguous
r
Another risk for the leasing sector is increasing regulation (Consumer credit, IDD, GDPR, IFRS 16
etc.) and the associated increased implementation costs (IT, PerEx, distribution channels etc.)
Key macroeconomic indicators 2017 2018 2019
Gross domestic product (bln CZK) 4 573 4 719 4 864
Gross domestic product (%, y-o-y) 3,6 3,2 3,1
Consumer Price Index (%, y-o-y) 2.4 2.0 1.9
Average monthly wage nominal (%, y-o-y) 6.1 6.2 4.6
Unemployment rate (% average) 3.1 2.8 2.7
3M PRIBOR (% average) 0.5 0.7 2.0
Ex. Rate XII.15 XII.16 I.17 II.17 III.17 IV.17 V.17 VI.17 VII.17 VIII.17 IX.17 XII.17 XII.18
CZK/EUR 27,03 27,02 27,02 27,02 27,03 26,92 26,42 26,20 26,08 26,105 25,98 25,50? 25,00?
CNB interventions 6th April 2017 Exit from the Exchange Rate Commitment
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