Report
on the state of development of leasing,
non-bank credit and factoring markets in
the Czech Republic
in the 1st half of 2015
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Report on the state of development of leasing, non-bank credit and factoring markets in
the Czech Republic in the 1st half of 2015
Macro-economic Framework
(Growing demand for non-bank financial products)
In the first half of 2015, financial products were being offered in conditions of economic
growth started already at the end of 2013. Investments grew, household expenditures grew too. Under
these circumstances, the volume of non-bank financing on the year-on-year basis increased in the 1st
half of 2015.
Data on the development of the CR economy relevant for non-bank funding:
 GDP grew on the year-on-year basis (in 2014 by 2 %, in the 1st quarter of 2015 by 4 %, in the
2nd quarter of 2015 the increase continued, too)
 Industrial production grew on the year-on-year basis (in March by 6,3 %, in April by 4,3 %, in
May by 2 %)
 Growth of investments
 Retail sales grew on the year-on-year basis since the beginning of the year (in April by 6 %, in
May by 5,4 %)
 Inflation rate at the and of June reached 0,8 % (against 7,5 % at the and of 2014)
 Rate of unemployment reached 7,4 % in June
A certain part of the demand for funding investment and/or consumer projects was
accompanied by considerable risks and could not be accepted after applying prudent criteria of the
evaluation of the customer and of the funded commodity. There was a continued growth in the share of
credit financing in business of leasing companies.
Contribution of non-bank financial products to economic development
(A significant share in funding enterprises and households)
In the 1st half of 2015, the CLFA member companies provided the following through leasing,
factoring and/or loans to consumers and entrepreneurs:
 The total funded sum of CZK 76,53 billion (by 5,65 billion more than in the 1st half of 2014)
- of which: CZK 60,96 billion for funding investments and operation of business entities,
and CZK 15,57 billion for funding goods and services for households
 The share of loans for funding investments of entrepreneurial entities reached 51,3 % in the 1st half
of 2015
 Funding of road vehicles (mostly new) by CZK 34,36 billion
- of which: 20,66 billion for the acquisition of passenger cars including CZK 15,58 billion for
the acquisition 44.407 new passenger cars (the CLFA member companies have financed
39,2% of new passenger cars first registered in the CR in the 1st half of 2015)
 They also provided CZK 14,43 billion to finance machinery and equipment
 They concluded 417.935 new leasing and credit transactions
 At the end of 1st half of 2015, they managed 1.913.601 active lease and loan contracts
 Claims from running lease and credit transactions reached CZK 232,98 billion at the end of the 1st
half of 2015
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Development of Financing of Entrepreneurial Entities in the 1st half of 2015
1. Leasing of movable investment (machinery, equipment and vehicles)
(An apparent year-on-year increase associated a renewed increase of investments, investments
funding continues to shift to non-bank loans)
 A sum of purchase prices (excluding VAT) – CZK 23 billion (year-on-year increase in the top
fifteen companies by 17,55 %)
 Estimate of the whole market – CZK 23,71 billion
 Total amount financed (initial debt) – CZK 21,82 billion
 A year-on-year growing share of operating lease in the total lease of movable investments – it
reached 48,6 % (in the 1st half of 2014 – 41,9 %)
 A commodity focus of the leasing for entrepreneurs – leasing of road vehicles continued to
dominate:
- share of the leasing of passenger cars – 31,5 % (31,2 % in the 1st half of 2014)
- share of new cars in the total leasing of passenger cars – 88 %
- share of the leasing of lorries – 30,7 % (34,6 % in the 1st half of 2014)
- share of the leasing of machinery and equipment – 25,3 % (21,5 % in the 1st half of 2014)
 24.980 new contracts for leasing of machinery, equipment and vehicles for entrepreneurs were
entered into:
- of which there were 7.585 financial lease contracts
4.812 operating lease contracts
11.026 contracts on full-service leasing
and 1.557 contracts on short-term rental
 The number of new lease contracts to finance business investments increased by 17,6 % on the
year-on-year basis
 1.486 vehicles were put in the fleet management provided by CLFA members
 At the end of the 1st half of 2015, leasing of machinery, equipment and vehicles for entrepreneurs
was taking place on the basis of active 166.546 lease contracts, concluded by CLFA member
companies:
- of which there were 78.590 financial lease contracts
22.246 operating lease contracts
63.739 contracts on full-service leasing
and 1.971 contracts on short-term rental
 At the end of the 1st half of 2015 6.674 vehicles could be found in the fleet management
 Receivables from the contracts concluded for the leasing of movable assets for entrepreneurs
reached CZK 91.27 billion at the end of 1st half of 2015
2. Development of Credit and Instalment Sales for Entrepreneurs
(The use of these non-bank products continues to grow)
 They were provided by 23 CLFA member companies
 Total loans – CZK 23,54 billion
 Year-on-year increase in the volume of loans to entrepreneurs by 27 % in the leading fifteen
companies
 Commodity focus:
- share of loans for passenger cars – 35,3 % (39,4 % in the 1st half of 2014)
- share of loans for trucks – 11,5 % (12,2 % in the 1st half of 2014)
- share of loans for machines and equipment – 38,6 % (32,4 % in the 1st half of 2014)
 The total of 34.453 loans was granted, of them 109 loans for the acquisition of property
 The number of loans granted increased by 6,4 % on the year-on-year basis
 An average loan granted – CZK 683.386
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The number of active loans at the end of 1st half of 2015 – 196.065
Receivables from loans at the end of 1st half of 2015 – CZK 75,33 billion
3. Factoring
(interannual decline in use of factoring)
 In the 1st half of 2015, total receivables for CZK 73,39 billion were assigned to the members of
the Association of Factoring Companies of the CR (AFS CR) (of which the amount CZK 68,15
billion is attributable to factoring companies which are also members of the CLFA)
 As to AFS CR member companies, the above represents the year-on-year decline by 6,7 %
 Product focus:
- recourse factoring – 62,7 % (year-on-year decline of share by 0,2 %)
- non-recourse factoring – 37,3 %
 Direction of factoring:
- domestic factoring – 67,8 % (year-on-year decline of share by 1,4 %)
- export factoring – 29 % (year-on-year increase of share by 1,6 %)
- import factoring – 3,2 % (year-on-year decline of share by 0,2 %)
 Amount of funds provided by AFS CR members to clients reached CZK 17.09 billion at the end
of the 1st quarter of 2015 (decline in comparison with the situation at the end of 1st quarter of
2014 by CZK 0,21 billion), of which CZK 15.03 billion was attributable to the members of the
CLFA
Development of Non-bank Market of Consumer Credit in the 1st half of 2015
1. Consumer Credit
(year-on-year growth in the volume and a decline in number of loans granted)
 They were provided by 17 members companies of the CLFA (including a number of leasing
companies that offer them in addition to leasing products)
 In CLFA´s statistics, only results of Cetelem, Inc. in the 1st quarter of 2015 are included – since
1st June of 2015 this company operates as a branch of the foreign bank BNP Paribas Personal
Finance
 Total loans provided for the personal use amounted to CZK 14,46 billion, which represents in the
absence of results of Cetelem, Inc. in 2nd quarter of 2015 year-on-year increase by 4,5 %
 Volume and share of products:
- personal loans – CZK 4,48 billion – 33,5 %
- revolving loans – CZK 4,73 billion – 32,7 %
- point of sale funding – CZK 4,88 billion – 33,8 %
year-on-year increase in the share of personal loans (by 0,6 %) and in the share of point of sale
funding (by 2,5 %), year-on-year decline in the share of revolving loans (by 3,1 %)
 Volume of credit to finance cars year-on-year increased by 8,8 % to CZK 4,21 billion, their
number increased by 874 to 25.946 loans on the year-on-year basis
 A total of 352.708 contracts on consumer loans were concluded (which represents in the absence
of results of Cetelem, Inc. in 2nd quarter of 2015 year-on-year decline by 8,2 %)
- 135.747 personal loans (of which there were 3 personal loans for the purchase of
property)
82.548 revolving loans
- 134.413 credit and instalment contracts within the point of sale funding
 Number of active loan contracts at the end of the 1st half of 2015 – 1.533.278
 Volume of receivables from active loan contracts at the end of 1st half of 2015 – CZK 55,99
billion
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2. Consumer leasing
(year-on-year growth in both the volume and the number of new contracts )
 Sum of purchase prices of movable assets (excluding VAT) put to consumer leasing in the 1st
half of 2015 – CZK 1,12 billion
 The volume of consumer leasing including short-term rental the year-on-year increased by 23,1%
 Total amount financed (initial debt) – CZK 1,12 billion
 Share of financing leases in the overall consumer leasing of movable assets – 3,3 %, share of
operating leasing – 68,7 %, share of short-term rental – 14,4 %
 Commodity focus – still completely dominated by leasing of road vehicles:
- share of the consumer leasing and short-term rental of passenger cars – 99.8 %
- share of new cars in total consumer leasing and short-term rental of passenger cars – 99,4%
 4.307 new consumer lease contracts and short-term rental by 1.001 more than in the 1st half of
2014:
- of which there were 77 financial lease contracts
2.834 operating lease contracts
511 contracts of full service leasing
and 885 contracts on short-term rental
 At the end of 1st half of 2015, consumer leases were taking place on the basis of active 10.897
lease contracts concluded by CLFA member companies:
- of which there were 3.304 financial lease contracts
4.978 operating lease contracts
1.285 contracts of full service leasing
and 1.330 contracts on short-term rental
 Receivables from lease contracts concluded with consumers reached CZK 1,28 billion at the end
of 1st half of 2015
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