Monday, June 22, 2009

Top Five Bank Leasing Companies - 2009

The 2009 list of the top 100 equipment leasing companies was just published and there are not a lot of surprises.

New business volume was down approximately $12.5 billion due to softening demand and tighter underwriting criterion. GE Capital took the biggest dollar hit with its new business volume down $24.5 billion. No other leasing company was even close to taking as large a dollar volume decrease.

Portfolio quality took another body blow following up on its poor prior year performance. Over 60% of the respondents reported that delinquency rates, credit loss provisions and net charge-offs were higher. Lower net charge-offs were reported by only 9% of the survey respondents.

So who were the top five U.S. bank affiliate leasing companies based upon new business volume?
  • CIT Group - was an independent until the financial bailout and generated almost $13 billion of new volume, down 23%
  • Bank of America - at $10.9 billion, an increase of 6%
  • Wells Fargo - at $9.8 billion, a 19% increase
  • Key Equipment Finance - at $4.5 billion, a 29% decrease
  • US Bank - at $4.0 billion, a 4% increase
From the tone of the publication, the current year is expected to be even tougher. Lessees beware!

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Tags : equipment leasing , leasing , equipment financing , Equipment Leasing and Finance Association

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