Leasing, Factoring and Renting Results in the first half of 2019

24/09/2019

SPECIALISED FINANCING STIMULATES GROWTH OF THE PORTUGUESE ECONOMY

The first half of 2019 showed a sustainable growth in specialised financing products, which reflects the growth of the Portuguese economy, as shown by the results estimated by the Portuguese Leasing, Factoring and Renting Association (ALF).

The estimated values of Domestic Factoring reveal the development of the sector, registering a total turnover of around 8 billion euros (16.1 percent more than in the 1st half of 2018). Confirming (a service in which the factoring institution makes payments to its customer's suppliers, who may request its anticipation) continues to record high levels of demand, with an expansion of 10.3 per cent, equivalent to an estimated volume of more than six billion euros.

The international component of Factoring mirrors the positive performance of the economy, with emphasis on Import Factoring, which recorded an increase of 30.9 per cent in the 1st half of 2019, to around 122 million euros. Export Factoring totalled a production of 2.3 billion euros, however, registering a fall of 2.8 percent, due to the deceleration of exports that has been felt in the domestic market.

Overall, the Factoring sector showed an estimated growth of 11.1 percent compared to the same period of the previous year, with ALF member institutions taking 16.6 billion euros in invoices in the first six months of 2019.

ALF's projections show that there was also an increase in the Leasing sector. The Real Estate Finance Leasing registered investments worth 430 million euros, which is equivalent to an increase of 2.3 per cent compared to the same period last year and shows an above average of support to the economy compared to other means of financing. In turn, in Movable Assets Leasing, the values remained stable in relation to the first half of 2018, with a total of 1.09 billion euros, with Vehicle Leasing recording a production of 720 million euros, while Equipment Leasing was responsible for investments of 367 million euros.

ALF presents the final results of the Renting sector which recorded a total production of 14,682 new light vehicles, worth 300 million euros, equivalent to a decrease of 7.6 percent and 6.1 percent, respectively. This trend is aligned with the automotive sector in general.

However, the active fleet managed by Renting companies reached 115,478 vehicles, with a value of 1.8 billion euros, equivalent to a growth of 5.7 per cent and 9.5 per cent, respectively. The increase in the number of vehicles managed by Rentings corresponded to 6,277 additional vehicles.

For Alexandre Ferreira Santos, President of ALF, "these results are generally positive and portray the fact that the specialized financing sector is following the growth trend of the Portuguese economy and presenting itself as an essential support for the competitiveness of companies and the economy in general" adding that "there is a strong capacity to support investments in the green economy, such as electric vehicles and photovoltaic panels, which have been increasingly used".

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