SGEF supported Czech and Slovak firms’ investments by CZK 11.5 billion in 2015

Press release

Prague, 8 March 2016 – New deals of Société Générale Equipment Finance in the Czech Republic and Slovakia totalled CZK 11.5 billion in 2015, up by 18.8% compared with 2014. The largest part of the financing was provided for transport equipment and industrial equipment. Demand for investment significantly increased in the construction industry where SGEF’s transactions rose by 71%. Growing demand for non-bank financing of investments could also be seen on the part of small and medium-sized enterprises, where SGEF registered an increase of 66% compared with 2014.

SGEF provided financing totalling CZK 9.5 billion to Czech firms in its strategic segments, retaining its 18% market share and the #2 position in the target market of corporate investment financing. CZK 4.3 billion (up by 22% yoy) went to transport equipment and CZK 3.3 billion (up by 12%) to industrial equipment. The recovery in the construction industry is confirmed by the results in the segment of construction machinery with its CZK 876 million financing (+71%).

Significant demand for non-bank financing also came from small businesses. “In cooperation with Komerční banka, we financed investments worth almost CZK 1 billion, which was 66% more than in 2014,” explains Reinhold Knödl, CEO, Société Générale Equipment Finance in the Czech Republic and Slovakia, adding: “We were also successful in approaching new clients; we acquired 523 new clients last year and they contributed as much as one quarter to the total volume of our new deals.”

Preferences for various forms of non-bank financing differ from sector to sector. In the construction and transport industries, the traditional financial lease has remained the most popular form. Business loans were the clear-cut choice for farmers and engineering companies thanks to subsidy programmes. Operating lease is the dominant product in high-tech.