Raiffeisen Leasing Achieved 22 Percent Higher Contract Value

Raiffeisen Leasing d.o.o. (RL) achieved leasing contracts with a total value of 800 million kuna in the first six months of this year, representing a growth of 22 percent compared to the same period a year earlier. During the same period, Raiffeisen Leasing reported that the volume of RL’s active portfolio increased by 22 percent, exceeding 2 billion kuna by the end of the first half of the year.

In the first six months, RL achieved 62 percent of the total value of last year’s leasing contracts. The largest increase in the value of newly contracted deals was recorded in the real estate leasing segment, nearly quadrupling from 65 million kuna, the value of real estate leasing contracts in the first six months of last year, to as much as 245 million kuna in the first half of 2007. This is precisely the reason for the increase in the share of real estate leasing from eight percent of the total value of all leasing contracts at the end of 2006 to as much as 31 percent at the end of June this year.

The largest individual contract was for a shopping center in Zadar, and in the overall business, financial leasing accounts for 60 percent while operational leasing accounts for 40 percent. The profit after taxation for the first six months of this year amounted to 20.9 million kuna, which is 15 percent higher compared to the same period in 2006. RL covers all significant branches of the economy and is considered one of the leading leasing companies in the Croatian market with evident growth in business.

In leasing, financing of vehicles (both personal and commercial) still holds the largest share, with RL’s goal being to enhance the quality of financing services for individual clients, as well as for fleet customers to whom an all-inclusive option is offered. Significant progress has been made in real estate financing, which RL will focus on more intensively in the future. Financing of equipment is gaining increasing importance and market share, where RL holds the first position in the Croatian leasing market. The interest of entrepreneurs in financing the acquisition of equipment and machinery is also growing, encompassing all segments of the economy. The most prevalent financing includes construction, printing, and bakery equipment, as well as machinery for processing wood, metal, plastic, and similar materials. Additionally, the trend of growth is noted in medical and dental equipment.