Alta Group: Latin American Leasing Industry Declines



Latin America’s equipment leasing and asset finance industry shrank by 13% in overall portfolio value in 2011, according to The Alta Group. 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.

Alta LAR will discuss report details at the X Latin American Leasing Conference November 8-9 in Miami. For information, contact Katrin Forster-Csvany at [email protected], +1 954 632 0922, visit www.thealtaconferencias.com.

For a report summary click here.

The full report will soon be available for sale in English and Spanish. For information, contact [email protected], +1 954 632 0922.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

No tags available

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com