Finance & Leasing Association13 May 2016
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in March, compared with the same month last year, and by 8% in Q1 2016, compared with the same period in 2015.
IT equipment finance and commercial vehicle finance grew in March by 29% and 5% respectively, but plant and machinery finance fell by 2% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“March saw the asset finance market report its highest level of monthly new business on record. Growth was broad-based with the exception of a fall in new finance for plant and machinery. The slowdown in this sector reflects the apparent weakness of the industrial sector reported in the latest national statistics.”
| Mar 2016 |
% change on prev. year |
3 months to Mar 2016 |
% change on prev. year |
12 months to Mar 2016 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
3,419 |
+10 |
7,484 |
+8 |
29,665 |
+9 |
| Total excluding high value (£m) |
3,086 |
+5 |
7,053 |
+6 |
28,524 |
+9 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) |
609 |
-2 |
1,429 |
+1 |
5,826 |
+4 |
| Commercial vehicle finance (£m) |
774 |
+5 |
1,771 |
+9 |
7,024 |
+13 |
| IT equipment finance (£m) |
260 |
+29 |
482 |
0 |
2,250 |
+26 |
| Business equipment finance (£m) |
226 |
+11 |
550 |
+3 |
2,093 |
-6 |
| Car finance (£m) |
1,058 |
+6 |
2,224 |
+9 |
9,123 |
+10 |
| Aircraft, ships and rolling stock finance (£m) |
22 |
-84 |
83 |
-63 |
415 |
-8 |
|
By channel: |
||||||
| Direct finance (£m) |
1,476 |
+2 |
3,564 |
+9 |
14,389 |
+11 |
| Broker-introduced finance (£m) |
518 |
+11 |
1,274 |
+4 |
5,076 |
+7 |
| Sales finance (£m) |
1,092 |
+6 |
2,215 |
+4 |
9,060 |
+8 |
|
By product: |
||||||
| Finance leasing (£m) |
367 |
-2 |
841 |
-4 |
3,695 |
+1 |
| Operating leasing (£m) |
799 |
-1 |
1,696 |
+3 |
6,706 |
+8 |
| Lease/Hire purchase (£m) |
1,611 |
-1 |
3,728 |
+4 |
15,221 |
+10 |
| Other finance (£m) |
642 |
+119 |
1,218 |
+48 |
4,043 |
+20 |
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.
