About how big banks are “survived” this year and what is expected in 2016, told representatives of the banks and leasing companies.
MOSCOW, 18 Dec. 2015 the outgoing year was difficult not only for Russian banks, but also for their leasing subsidiaries facing difficulties in business not only because of the fall of the economy, but also because of unexpected situations with the largest Russian private airline “Transaero”. How banks survived this year and what is expected in 2016, told representatives of the banks and leasing companies.
The results of the study RAEX (Expert RA), the leasing market for January-September 2015 decreased compared with the same period last year on a quarter, to 385 billion rubles. The reduction of leasing transactions and the growth of distressed assets has reduced the profitability of lessors that have led some companies to spend a significant optimization of costs, according to the study RAEX.
The decline in investment leasing companies in capital assets will continue in 2016, which will inevitably result in further contraction of the leasing market, experts say. By the end of 2015, according to their calculations, the volume of new business will decrease by 25%, in 2016 – by 10-15%.
Sberbank and VTB commended its leasing business, despite the fact that experienced certain losses in connection with the situation with “Transaero”. The state Corporation VEB leasing “a daughter” which — “VEB-Leasing” — has had on its balance the planes “Transaero” in the amount of 55 billion rubles, declined to comment.
Transaero airlines are unable to service the debt, constituting together with the leasing obligations of about 250 billion rubles. The airline operator certificate was revoked on October 26. Arbitration court of St.-Petersburg and Leningrad region on December 16 justified the statement of the savings Bank of bankruptcy “Transaero” and introduced a procedure of observation.
Sberbank has adjusted to the realities
Debt “Transaero” to Sberbank is 6 billion rubles, while debt does not include debt under Finance leases six aircraft, and this debt is fully redundant, said earlier the head of Bank Herman Gref. However, he has low chances to recover the debt “Transaero” to Sberbank.
General Director of JSC “Sberbank Leasing”, a subsidiary of Sberbank, Kirill Tsarev, speaking about the situation on losses with Transaero airlines, said that “the situation is not critical”. “Now, perhaps, too early to draw conclusions, it would be correct when it’s all over” — leads his comment at the conference “Leasing in Russia” press-service of the company.
“Leasing has once again shown that our market is important not the volume of new business, and structured portfolio system within the company and a more conservative risk assessment”, — said Tsarev.
The volume of new business of the leasing company Sberbank today is estimated to be worth over 40 billion rubles, according to leasing contracts – more than 75 billion rubles, and volume of the portfolio – more than 370 billion rubles, said the representative of “Sberbank Leasing”.
“For example, introduces Sberbank leasing “balloon” (leasing with deferred payment), when the monthly payments are minimal, and the principal amount payable at the end of the contract term, after two or three years. This last redemption, the payment may be up to 40% of the value of the property,” he said.
In 2016 “Sberbank-Leasing” intends to develop, mainly products for small business and medium business. The company introduced a range of Express products when you can get the equipment in leasing under the simplified scheme, said the representative of the company.
VTB “razrulili” situation
VTB, the second largest Russian Bank, has already fully formed the reserves of the company “Transaero”, so the debts the airline will not affect the business of “VTB Leasing” in 2016, said the press service of the Bank.
The company “VTB Leasing” agreed to implement 11 of aircrafts “Transaero” “Aeroflot” and one more participant of the aviation market, said the press service.
Leasing debt “Transaero” in front of “VTB Leasing” is 40 billion rubles ─ the airline operated at that time, 21 plane group. Financial debt of “Transaero” before VTB is 12 billion rubles, of which 9 billion rubles ─ under the state guarantees. Deputy Chairman financial Director VTB Herbert Moos on November 17 reported that the provisions for “Transaero” in the third quarter amounted to 16.4 billion rubles, including provisions on leasing debt.
Its leasing business in Russia, VTB evaluates prospectively. “The approval of the draft order banning the use on public tracks cars extended from 2016 life will positively affect both the safety of transportation and the leasing of cars”, — said the press service of the Bank.
In connection with the development of internal transport there is a demand for additional transport capacity in the country, which also positively will affect the leasing market. In addition, “reduction of leverage has spurred companies interested in trucks, cars and construction machinery, to apply to the lessors,” added VTB.
Raiffeisenbank collided with Transaero airlines
Leasing “daughter” Raiffeisen Bank, does not have in its portfolio of aircraft, “Transaero”, sees several positive trends in the market, however, the growth of the market too early, said managing Director of “Raiffeisen-Leasing” Galina Mayer.
“According to our estimates, for the first half of 2015, several sectors showed an increase in the share of each market in its segment. It is air transport, passenger cars, cargo and warehouse and packaging equipment, power equipment, equipment for utilities and pharmaceuticals,” lists it.
“The last three segments have significantly increased the volume of business compared with 2014, but their share in the total volume of new business minor, on the growth of the leasing market as such is not necessary,” stresses Mayer.
Due to the difficult situation in the Russian economy increased the demand for leaseback, she continues. “From the new trends it is possible to allocate the increased interest in leasing IT equipment for DPC, the demand for warehousing equipment and technology. It should be noted that also important is the quality of the lessee,” notes Mayer.
During the crisis the company became tougher approach to the selection of target sectors, says managing Director. At the end of 2014, it was decided to close the branch “Raiffeisen-Leasing” in Novosibirsk, Krasnodar, Ekaterinburg, she says.
“After a detailed analysis of our business model and our performance, we saw that, with the support of Raiffeisenbank branches in these cities, we can also efficiently serve customers through our offices in Moscow, St. Petersburg and Samara,” said Mayer.