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:
- 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.