A record year for Raiffeisen-Leasing International in 2007


Raiffeisen-Leasing International (RLI) – the holding company of the Raiffeisen Leasing network in Central and Eastern Europe (CEE), in which Raiffeisen International Bank-Holding AG holds a 75 per cent stake and Raiffeisen-Leasing, Austria, the balance, definitively became one of the most important regional players during the 2007 business year. RLI emulated its parent group Raiffeisen International by also posting record results in 2007. In comparison with 2006, the volume of new business increased by 54 per cent to EUR 2,995 million. With growth in new business of slightly more than EUR 1 billion, RLI was able to post the highest growth of all Western leasing companies active in the CEE region. Assets rose by 49 per cent to EUR 4,610 million. ""This development reflects the continuously increasing demand for leasing products in the region. We are very well positioned above all in those markets where there is still a substantial amount of catching-up to be done,”commented Peter Lennkh, the member of the Managing Board of Raiffeisen International responsible for leasing business.

With the commencement of operative business in Moldova a few months ago, RLI now operates 17 subsidiaries in 16 markets. The broadest market coverage of all leasing businesses active in the region was attained thanks to purely organic growth, i.e. without acquiring other companies. The company is the market leader in Albania, Belarus and Ukraine. In a further six markets, namely in Poland, Slovakia, Bosnia and Herzegovina, Serbia, Croatia and Bulgaria, the company is one of the top 3 leasing companies in the country. Moreover, it is the leading international leasing company in Russia.

Continued dynamic growth

RLI expects the largest prospects for growth in the near future to remain in Southeastern Europe and the CIS, based on strong GDP-growth and the fact that leasing is still not used as frequent as in other countries. Romania and Bulgaria’s EU accession has already heralded a considerable increase in the importance of leasing financing above all in these two countries. However, demand is also set to remain high in Central Europe, especially where sophisticated financing solutions are required in the real estate and renewal energy segments.

International Vendor Finance on the increase

Among the sales channels banking sales and vendor sales, International Vendor Finance has shown particularly encouraging growth. In International Vendor Finance, a leasing company and a vendor (which can be either a dealer or a producer) offer tailor-made products together. RLI's Managing Director Dieter Scheidl sees this sophisticated method of sales finance as beneficial for both sides:

""International Vendor Finance presents a typical win-win situation. The customer is happy to enjoy the financing of his purchase price, whilst the vendor is happy to receive the amount for payment straightaway."" RLI is able to considerably smooth the path for vendors to enter the market, thanks to its extensive market experience.

Prospects for 2008

The mission of Raiffeisen Leasing Sh.a. is to become a leader in the leasing market in Albania by offering a full range of leasing products, fully satisfying the customers needs and contributing in development of the Albanian economy through financing of new and contemporary technology, machinery and equipment.

“For the year 2008 Raiffeisen Leasing Sh.a, have already set ambitions and clear objectives. We are highly prepared to face our objectives and intensively working to achieve them. Our goal is to dominate the market with leasing products. In this context, we have already established strong relations with our local and international busines partners as well as with all the car dealer companies”, said Gent Sejko, the Managing Director of Raiffeisen Leasing in Albania.

The company is committed to reach significant growth in its lease portfolio through the lease of above-stated assets. Our target clients for the lease of passenger cars are private individuals and commercial entities, whilst our focus for the lease of heavy commercial vehicles, machinery and equipment will continue to be Corporate and SME entities, in addition to institutions, including central government entities. Intensive marketing and sales efforts through direct and indirect approaches, as well as the increase of leasing sales resources both in Tirana and the Raiffeisen Bank network in largest cities, will support the achievement of our objectives.