The number of Nordea Finance Latvia's new leasing transactions in the first half of the year shows stable growth, with an increase of 30 % in comparison with the first six months of 2014. The number of newly concluded car-leasing transactions within the total leasing market has increased by 7 %. Overall, the semi-annual market development is more positive than as previously forecast*.
The number of Nordea Finance Latvia's new leasing transactions during the first half of the year has increased by 30 % in comparison with the first half of last year, and has reached EUR 92.4 million. The number of Nordea Finance Latvia's new car leasing transactions has increased by 17 %, while leasing transactions concerning equipment and industrial machinery have increased by 34 %. In comparison the first half of last year, the Bank's finance portfolio has increased by 9 %, amounting to EUR 350 million.
“The overall leasing trends and sales results of Nordea Finance Latvia for the first six months of the year evidence positive trends within the Latvian economy. There is visibly growing interest for car leasing, and the volume of newly-issued limits for factoring is continuing to increase. These data show that the purchasing power of both individuals and companies is improving. We are also happy to see that Latvian producers and traders are improving their trade processes and are again interested in the debtor financing service 'factoring',” stresses Ivars Šmits, Chairman of the Board of Nordea Finance Latvia.
The volume of new factoring limits of Nordea Finance Latvia has increased by a factor of 1.3 in comparison with the first half of last year, amounting to EUR 11.7 million. According to the data published by the Automotive Association, in the first half of the year, Nordea Finance Latvia invariably maintained its leading position among car financing providers in Latvia, having financed 1,236 passenger cars and vans. Nordea Finance Latvia's largest car leasing transactions in the first six months of the year were with car rental companies.
In the area of equipment and industrial machinery, Nordea Finance Latvia's largest transactions in the first six months of the year were with passenger transport, freight transport and construction machinery rental companies, as well as in the field of agricultural machinery supported by the new European Union and national subsidies cycle.
The number of alienated and terminated transactions of Nordea Finance Latvia has remained low at 1 % of the total financed portfolio – the same as last year.
* According to the Automotive Association data published in July 2015