With its 18% share of the target Czech market, SGEF’s financing significantly supported companies’ favourable investment mood. Last time that the company provided a higher volume of financing was in the ‘pre-crisis’ year 2008. “In December 2014, our new deals totalled CZK 1.7 billion. Over the almost 20 years of our operation in the Czech Republic and Slovakia, we have not registered such a volume of new deals in any other month,” Reinhold Knödl, CEO of Société Générale Equipment Finance in the Czech Republic and Slovakia, comments on the results.
SGEF achieved the most significant year-on-year growth in financing in the machines and equipment segment, by 35% to CZK 3.8 billion, thereby outperforming the market’s average growth by 19 percentage points and consolidating its number two position on the Czech market in this segment. Metal working and farming machines account for the largest share of this growth.
The volume of freight transport and buses financed by the company was in excess of CZK 3.5 billion, which constitutes a growth of 12% year-on-year. SGEF has thus confirmed its number three market position and is one of the top three leasing companies that represent more than one-half of the market.
Last year’s clear-cut trends include drawdown on EIB and PGRLF subsidies and, in turn, a growing popularity of credit financing. Loans account for 45% of the company’s portfolio. “We see another clearly discernible trend in clients’ requirements for improved quality and the range of extra services. We have therefore focused on developing our operating leases; last year, we generated a production of CZK 1.2 billion in this business, primarily in the segment of transport equipment and building machines,” Reinhold Knödl comments on another trend on the leasing market. Operating leases account for about 15% of SGEF’s new deals.