DESPITE ITS GROWTH TARGETS AT THE ONSET OF 2017, THE LEASING SECTOR REALIZED A TRANSACTION VOLUME OF USD 6.2 BILLION, FLAT WITH THE 2016 FIGURE.

18.1%

INCREASE IN LEASING RECEIVABLES

LEASING RECEIVABLES WENT UP 18.10% TO TL 52 BILLION.

11.4%

RETURN ON EQUITY

THE SECTOR POSTED AN ROE OF 11.4% IN 2017.

The growth targets at the onset of 2017 proved to be elusive for the leasing sector due to the weak investment climate in our country. The overall sector realized a transaction volume of USD 6.2 billion, flat with the 2016 figure. The sector’s leasing receivables at year-end 2017 increased by 18.1% to TL 52 billion. While the NPL ratio of the sector went up by 3.9% as compared with 2016, the ratio of non-performing loans to the leasing portfolio was 5.55%.

The sector registered an RoE of 11.4% in 2017 although the overall business volume of the sector did not expand at a sufficient pace and ratio, and despite the pressure caused by intense competition that resulted from the general conjuncture.

Having intermediated investments worth USD 87.2 billion in its history of 32 years in Turkey, the leasing sector’s penetration rate, which shows the share the sector gets from investments, went up to 5.60% in September 2017 from 4.97% at year-end 2016.

When we look at the distribution of investments in the financial leasing sector, heavy duty and construction machinery take the first place with a share of 26.9%, while real estate, and other machinery and equipment take the second and third places with respective shares of 20.7% and 20.2%.

During the course of the year, incentives seeking to support economic activity led by the Credit Guarantee Fund (KGF) scheme restored the sector’s expectations for the future and increased its motivation.

While it is deemed likely that the competitive conditions in the sector will continue in a similar vein in 2018, economic and political environment in our country and cross-border events will be critical in setting the course of growth and investment climate. In 2018, the sector is anticipated to exhibit a moderate growth and register a transaction volume of USD 6.3 billion.