JSC «Uzbek Leasing International » in TOP-5 of the largest lessors of Uzbekistan in the first half of 2017 year

 

 

 

OVERVIEW OF THE UZBEKISTAN LEASING SERVICES SECTOR

 

RESULTS OF THE FIRST HALF-YEAR 2017

 

Uzbekistan Lessors’ Association

Tashkent, 2017

 

 

Analysis of the leasing market of the Republic of Uzbekistan was prepared based on the official data provided to the Uzbekistan Lessor’ Association by leasing companies and commercial banks. In preparing the Uzbekistan lessors’ ranking, we established that, according to the State Statistics Committee of the Republic of Uzbekistan, as of June 1, 2017, 126 financial institutions were registered engaged in the leasing activities, of which 79 organizations, including 24 commercial banks were engaged proactively.

 

Dynamics of the volume of new leasing transactions (billion UZS)

 

By the end of the June, 2017, the volume of new leasing transactions increased by 65.1% and amounted to UZS 710.9 billion, which is UZS 280.5 billion more than in the last year.

  

Major players at the leasing market, SLC “O'zagrolizing”, “Uzbek Leasing International A.O.” JSC and “O'zavtosanoat-Leasing” LLC have traditionally demonstrated high growth rate of the volume of new leasing transactions. Also, “Trast Leasing” LLC and FC “Taiba Leasing” LLC should be noted as the companies which most dynamically developed in the first half of 2017. The above-mentioned companies account for more than half of the new leasing transactions concluded (51.5%).

Dynamics of number of new leasing transactions

Shares of players at the leasing market

The growth trend of new leasing transaction is distributed among the players at the leasing market as follows:

	2013	2014	2015	2016	½ 2016	½ 2017
Leasing companies
- value of property, billion UZS	560.2	592.6	668.2	630.8	269.1	446.6
-share	69.6%	71.7%	78.5%	64.8%	62.5%	62.8%
Banks
- value of property, billion UZS	244.9	233.6	183.0	342.3	161.3	264.3
-share	30.4%	28.3%	21.5%	35.2%	37.5%	37.2%
Total	805.2	826.2	851.2	973.1	430.4	710.9

 

The same as in the previous years, by the end of June, 2017, the trend of the leasing market distribution between the lease providers remained unchanged, and about 63% of the leasing market belongs to the leasing companies. As for the commercial banks, compared to the results of six months of 2016, they have increased the volume of leasing services by UZS 103 billion. As a result, their share amounted to 37.2%.     

 

Top 5 leasing companies

##	Name of leasing company	Volume of leasing services provided for the period from January 1, 2017 to June 30, 2017 (bln. UZS)
1	SLC “O’zagrolizing”	251.2
2	“Uzbek Leasing International А.О.”JSC	41.6
3	LC “O’zavtosanoat-Leasing” LLC	40.4
4	LC “Trast Leasing”  LLC	17.9
5	FC “Taiba Leasing” LLC	14.6

 

 

Top 5 banks

 

##	Name of Bank	Volume of leasing services provided for the period from January 1, 2017 to June 30, 2017 (bln. UZS)
1	JSCB “Asaka Bank”	62.0
2	JSCB “Kapital Bank”	61.7
3	JSCB “Agro Bank”	34.2
4	JSCB “Ipoteka Bank”	20.9
5	JSCB “Ravnaq Bank”	20.4

  

Distribution of leasing transactions by types of fixed assets

½ 2017

Distribution of leasing transactions by the types of assets give an idea of ​​which objects of lease are of the most demand by the lessees and how actively the lessors work. Analyzing the dynamics of the leasing market, it should be noted the trend for diversification of transactions by sectors. For the first six months, 2017, the share of agricultural machinery was 35,9%, while the share of technological equipment was 35,4%.

This suggests that in recent years, the demand is growing for high-tech equipment for the modernization of industrial enterprises. It should also be noted that for the first half-year 2017, the share of agricultural machinery in the structure of property leased increased, compared to the same period of the previous year (from 27% to 35.9%). This is mainly due to the fact that during the period under review, SLC “O'zagrolizing” has traditionally provided the largest number of agricultural machinery for a total amount of UZS 251.1 billion, which is 2.2 times more than the objects provided by the Company for lease in the first half-year, 2016 (UZS 114.1 billion).

In terms of technological equipment, the followings are in demand at the market: construction machinery and equipment for the production of building materials – UZS 98.8 billion; equipment for textile and consumer goods production industry – UZS 40.4 billion and food production equipment – UZS 32.7 billion.

Among the lessors, JSCB “Kapital Bank” (UZS 34.9 billion) is the leader in terms of leased objects of technological equipment, followed by “Uzbek Leasing International A.O.” JSC (UZS 32.8 billion) and JSCB “Agro Bank” (UZS 31.9 billion).

The vehicles transferred to lease amounted to UZS 85.2 billion, which makes the 12% share of the market. Specialized company “O'zavtosanoat-Leasing” LLC has maintained its leadership in the motor vehicle leasing sector, having implemented 52 projects for the amount of UZS 30.7 billion. It should be noted that in keeping with the recent years’ trend, the share of real estate increased and amounted to 16.7%, which in terms of total value is UZS 119.3 billion. Asaka Bank leads the real estate leasing market (UZS 55.4 billion).

Distribution of transactions by regions

The leasing operations are distributed through the Republic evenly enough, except for the Tashkent city, which accounts for 35.2% of all new leasing transactions at the domestic market. According to the results of the first half-year, 2017, the Fergana Province (9.1%) and the Tashkent Province (8.0%) are the leaders. 

      

Prospects of leasing market development in Uzbekistan

Analysis of the leasing services market in the Republic of Uzbekistan for the first half-year, 2017, revealed the following trends:

1. Domestic leasing market has a huge growth potential;

2. Every year, competition among the lessors grows, which means the improvement of quality of leasing services provided.

 

Like in the previous years, one of the determining factors in the leasing sector development is the access of lessors to sources of financing. Leasing companies will face the need to work out the issue of attracting direct foreign loans and to cooperate with insurance companies to attract resources to finance leasing transactions. Insurance companies provide additional security to leasing companies to fulfill their credit obligations to the banks, using the security deposit to issue insurance policies for foreign export agencies in concluding the equipment and machinery supply contracts. This, in turn, gives an impetus to the increase in financing of leasing transactions in freely convertible currency.

 

In the near future, the leasing that allows for well-organized and secure relations between all participants of the financial and investment chain, the leasing that facilitates the upgrading of key industries and regional infrastructure, may become one of the most promising tools to ensure sustainable development of the innovative economy of the Republic of Uzbekistan.

The followings are the most promising areas for the leasing market growth in Uzbekistan:

• Textile industry;

• Services sector;

• Building materials production;

• Foodstuff production;

• Processing and storage of fruits and vegetables;

• Production of packaging;

• Medical equipment;

• Pharmaceuticals, production of medicines;

• Renewable energy and energy-saving projects

as well as proactive participation in the implementation of the State program of affordable housing construction in rural areas; State programs of each region development for the years 2017 - 2021, and the others.