Members of the Czech Leasing and Financial Association (CLFA) provided clients with Czech Koruna (CZK) 82.8bn (£2.9bn) in leasing, loans and factoring in the first half of this year, a 2.2% year-on-year increase.
The CLFA’s total receivables from ongoing leasing and loan contracts reached CZK 246.30bn at the conclusion of H1 2019.
“The first half of this year was marked by a significant drop in sales of new passenger cars, which are a key commodity for our member companies. The driving force behind the overall growth was the machinery and equipment financing category, which showed an increase of more than 11% year-on-year”, according to Jiří Matula, chairman of the Board of CLFA, which brings together 44 providers of leasing, business, consumer loans and factoring.
Of the total provided in leasing and loans, CZK 70.08bn was used to finance corporate investments and operations and CZK 12.72bn to finance household goods and services.
Business finance was up 4.8% year-on-year with a total trading volume of CZK 48.37bn, 23.9% of which was invested in operating leases.
In the first half of this year, the amount of funds provided by CLFA members in the framework of factoring increased by 1% to CZK 21.71bn. At the same time, the total value of receivables ceded to CLFA member firms grew by 2.5% to CZK 78.15bn.
The association recorded a year-on-year decrease of 5% in the area of household financing, to which member companies provided CZK 12.72bn through consumer loans or consumer leasing.
CLFA members provided CZK 34.94bn for road vehicles, 1.6% less than in the first half of last year. Of this, 15.79bn were intended for the purchase of 36,355 new passenger cars, and 28.3% of all new passenger cars first registered in the Czech Republic during the first six months of this year were financed through CLFA products.
Elsewhere in central Europe, the amount financed by the subsidiaries of the Hungarian Leasing Association in the first half of 2019 amounted to Hungarian Forint 375bn (£1.05bn), an increase of 14% year-on-year and the highest half year result since 2008.