GENERAL ASSESSMENT


FINANCIAL LEASING SECTOR




Shrinking in demand further deepening due to economic and political uncertainties has had its reflections in financial leasing sector in the form of fluctuations and fall in transaction volume.

Transaction volume of the sector was recorded as 6.4 billion USD with a decline of 17% as regards the past year.

Throughout 2015, fluctuations in global economy, uncertainties in national economy, rapid devaluation of TL, and regional geopolitical sensitivity have negatively affected the investment climate, and transaction volume of financial leasing sector was recorded as 6.4 billion USD with a decline of 17% as regards the past year.

In distribution of transaction volume by commodity groups, real properties accounted for 28%, machinery and equipment group for 24%, and heavy equipments and construction machinery for 21%. Popularization of sell and lease back product enabling the commercial enterprises to create funds over their existing assets was rather effective in this high share reached by real properties. The penetration rate showing the share in total investments of the financial leasing sector, which has so far mediated in investments of 75 billion dollars in total in its past of 30 years in Turkey, has declined from 6.9% in 2014 to 5.8% in third quarter of 2015.

The year 2015 was a productive year for profitability of the sector. In spite of profitability suppressed as a result of harsh competition in the market, the return on equity of the sector was 12.4% under the effects of the fall in the provisions for non-performing debts. The financial leasing sector currently has a material growth potential, and its performance is closely related to and dependent upon economic stability and growth. With its penetration rate declining in spite of tax incentives provided to it, the financial leasing sector is expected to record a transaction volume of 6.5 billion USD in 2016, under the expectation that its transaction volume will also be depressed as a result of depression in investment appetite and limited growth expected in our country.