Latin America’s equipment leasing and asset finance industry shrank by 13% in overall portfolio value in 2011, according to The Alta Group, the leading global consulting firm focused on the equipment leasing and asset finance industry.
The Alta Group Latin American Region (LAR) has tracked the top companies and trends in Latin American leasing in its annual Alta LAR 100 report since 2004.
Rafael Castillo-Triana, CEO of Alta LAR, said the main reason that the Latin American leasing industry experienced a decline in overall portfolio value was due to Brazil’s performance. Brazil, home to nearly 45% of the region’s leasing market, suffered a 34% decrease in overall portfolio value.
“Brazil’s leasing portfolios were certainly the greatest disappointment in 2011,” Castillo-Triana wrote in the report. “Even though it is a country with a favorable legal framework for leasing and the best business friendly regulator
worldwide (the Central Bank of Brazil), the Brazilian leasing industry is falling victim to two challenges: the flawed business models of current equipment leasing and finance companies operating in the country; and an environment that impairs the ease of doing business, i.e. the so-called ‘custo Brazil’ (Brazil cost), which refers to the increased operational costs associated with doing business with Brazil.”
In contrast, several other Latin American countries enjoyed banner years. Overall leasing portfolio value increased by 57% in Colombia and by 40% in Argentina, for example.
The Alta LAR 100 report also:
- Reveals each country’s market share, numbers of leasing companies, overall portfolio valuation in 2011 versus 2010, volume, return on equity, and new originations.
- Ranks the Top 100 leasing companies in Latin America, comparing 2011 portfolio valuation versus 2010.
- Provides financial information on multinationals involved in Latin American leasing, noting significant trends.
A report summary can be downloaded at www.thealtagroup.com/lar100.
The full report will soon be available for sale in English and Spanish. For information, contact kforster@thealtagroup.com, +1 954 632 0922.