The Croatian Leasing Market Grew for the First Time Since the Beginning of the Crisis

In the first half of this year, the Croatian leasing market grew for the first time since the onset of the global economic crisis, increasing by more than 32.5%, measured by the value of newly concluded contracts. During this period, OTP Leasing achieved a growth of 112.5%, as highlighted on Monday during a meeting between the management of the leasing company and journalists. According to the words of OTP Leasing’s CEO Renata Pondeljak, the Croatian leasing market halved in the first year of the crisis, followed by a further decline of about 30%. Thus, the market value fell from approximately 2 billion euros pre-crisis to 690 million euros last year, and the growth in the first half of this year marks the first positive trend since the crisis.

Pondeljak emphasizes that leasing is always closely linked to economic activity, especially in Croatia, where 80% of the market consists of leasing commercial vehicles, such as vans or trucks, which are used by entrepreneurs. Their increased economic activity has thus spilled over into the leasing market. According to data from the Croatian Financial Services Supervisory Agency (Hanfa), a total of 26,761 new leasing contracts were concluded in Croatia in the first six months of this year, which is 30.1% more than in the same period last year, with a total value of 3.4 billion kuna, or 32.5% higher.

During this period, OTP Leasing recorded a growth in newly concluded contracts of nearly 53%, reaching 1,958, and their value increased by as much as 112.5%, exceeding 385 million kuna.

As a result, OTP Leasing ranked fourth in the Croatian market, and the director of the sales sector at OTP Leasing, Ivan Buconjić, explains that this growth is partly due to the opening of two new branches – in Varaždin and Slavonski Brod, partly due to the acquisition of a large portion of the sales staff from VB Leasing, but also due to the fact that three major players – VB, Hypo, and Hypo Steiermark – have withdrawn from the market.

Buconjić particularly highlights the growth in the nautical business where OTP ranks second in the market, and together with the leading Erste Leasing, holds about 80% of the market.

Further growth at OTP Leasing is expected from a new strategic partnership with Magyar Suzuki Corporation, based on which they will finance the purchase of Suzuki vehicles in Croatia.

OTP Leasing is celebrating its tenth anniversary of operations in Croatia this year, and Pondeljak emphasized that during this period they have grown from seven to 70 employees, evolving from a practically start-up to the fourth leasing company in Croatia.