Finance leases are fading away while operating leases are on the rise

Alta LAR 100 Report reveals industry size, changes and major players in Mexico, Colombia, Chile, Brazil, Argentina, Venezuela, Ecuador, Peru, Puerto Rico and other countries.

FORT LAUDERDALE, FL, August 23, 2017 – The equipment leasing and finance industry in Latin America grew an average 4.8% in 2016 in United States dollars, an outstanding performance given the region’s overall economy, notes the latest Alta LAR 100 report by The Alta Group Latin American Region (Alta LAR).  Report details and the most recent ranking of the 100 largest leasing companies in the region will be discussed at the Latin American Leasing Conference Nov. 9-10 in Miami. A free report summary is also available for download at the Alta website.

“We have surveyed close to 600 active lessors in the Latin American Region,” Alta LAR CEO Rafael Castillo-Triana wrote in the report. “About 95% of the whole leasing portfolio is concentrated in the 100 largest leasing companies with around US$ 55 billion. These 100 largest lessors experienced an annual growth of 11%, which is more than 2.5 times the average growth of the whole industry in the region.”

The International Monetary Fund estimates that the overall economic growth rate in Latin America grew just 1.1% in 2016, due to the declines in Brazil and Venezuela. Out of Brazil and Venezuela, the region had better than 2%  average growth.  All other countries have continued their average historic growth. In 2017 emerging market economies are rebounding and growth rates between 4% and 5% are expected. This means good expectations for the overall growth of the Latin American leasing industry this year, since leasing continues to be the main engine of economic growth in the region, Castillo-Triana says.

The Alta LAR 100 estimates leasing portfolio sizes and growth rates in Mexico, Colombia, Chile, Argentina, Peru, and negative growth in Brazil, Venezuela, Ecuador and Puerto Rico. It also identifies significant shifts in the main drivers of growth, key players and origin of multinationals, and reveals how regulations are impacting the industry. Several interesting features emerge in the report.

  • The fabulous growth of independent lessors, most of them large players that offer primarily operating leases.
  • The decline in finance leases, and in the portfolio size of bank-owned lessors.
  • The significance of real estate leasing in countries such as Colombia, Chile and Peru.
  • The success of stock initial public offerings (IPOs) by several independent lessors and the increasing participation of private equity funds in Latin American leasing company capital.
  • The shift in ownership of Latin American leasing companies, formerly dominated by US lessors but now controlled by European, Asian and Canadian investors joining dominant indigenous groups.

For more information about the Latin American Leasing Conference Nov. 9-10 in Miami on “Generating Sustained Profitability,” visit www.thealtaconferencias.com or contact kforster@thealtagroup.com. The conference will feature simultaneous English and Spanish translations, with leasing leaders from 15 nations expected to attend. The forum preceding the conference on Nov. 8 will focus on “how to deal with the new financial accounting standards that are shaping the leasing industry, and related developments in technology and regulations,” Castillo-Triana says. It will be conducted in Spanish.

Download a free copy of the Alta LAR 100 Report Summary by completing the registration form on this page. http://thealtagroup.com/lar-100-report-2017/