Asset Finance


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Asset finance up 6% in first half of 2016

5 August 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 2% in June, compared with the same month last year, and by 6% in the first half of 2016 overall.

Commercial vehicle finance and business equipment finance new business grew in June by 11% and 46% respectively, but plant and machinery finance new business fell by 3% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The asset finance market returned a strong performance in the first half of 2016 particularly given the slowdown in business investment. Our latest figures show that the annual new business total surpassed £30 billion for the first time since 2009.”

Jun

2016

% change on prev. year

3 months to Jun 2016

% change on prev. year

12 months to Jun 2016

% change on prev. year

Total FLA asset finance (£m)

2,752

+2

7,710

+4

30,007

+7

Total excluding high value (£m)

2,706

+3

7,622

+5

28,937

+7

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

535

-3

1,454

-3

5,777

+1

Commercial vehicle finance (£m)

657

+11

1,853

+11

7,211

+13

IT equipment finance (£m)

221

-11

547

+2

2,300

+17

Business equipment finance (£m)

258

+46

631

+25

2,219

+3

Car finance (£m)

858

+3

2,490

-1

9,100

+3

Aircraft, ships and rolling stock finance (£m)

15

+141

106

+78

461

+3

 

By channel:

Direct finance (£m)

1,364

+5

3,956

+6

14,607

+7

Broker-introduced finance (£m)

495

+11

1,401

+15

5,286

+10

Sales finance (£m)

846

-5

2,264

-1

9,044

+5

 

By product:

Finance leasing (£m)

326

-3

909

+17

3,844

+7

Operating leasing (£m)

619

+7

1,780

+11

6,888

+9

Lease/Hire purchase (£m)

1,439

+2

4,088

+2

15,311

+5

Other finance (£m)

366

-3

933

-8

3,963

+7

Note to editors:

  1. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector.  FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.