The Alta Group

Alta Group LAR 100 Report for 2008: Latin American Leasing Industry Growing Despite Global Economy

FOR IMMEDIATE RELEASE

The Alta Group LAR 100 report ranks countries and companies; reveals standouts, trouble spots and decline of multinational presence

FORT LAUDERDALE, FL, Oct. 2, 2009 – The Alta Group’s fifth annual report on equipment leasing in Latin America, The Alta Group LAR 100 for 2008, shows the region’s leasing industry is expanding four times higher than its Gross Domestic Product (GDP) growth rate. Alta estimates that the industry in 2008, valued at US$ 71 billion in leased portfolios, grew 15.8% in US dollars and 16.7% in real terms when adjusted for exchange rate fluctuations.

The 2008 growth rate was strong but not as impressive as noted in previous reports. For example, the Latin American leasing industry expanded by 71% in 2007 and 46.5 % in 2006.

“The global economic crisis was the main driver that explains why the leasing industry did not grow as fast as in prior years. Notwithstanding, the leasing industry in Latin America managed to grow at a time when leasing industries in other parts of the world contracted. This shows the solid standing and great potential of the leasing industry in the region. Leasing companies in Latin America do not waste their efforts in subprime lending or speculative investments. They invest in capital goods, which is what makes economies grow,” said Rafael Castillo-Triana, Alta’s managing principal for Latin America.

Other key findings:

Peru experienced the strongest leasing growth (66.77%). Argentina’s growth also was notable and Brazil increased its regional market share to 63.9%.
The 20 fastest-growing leasing companies included (1) Credomatic de Guatemala, (2) BV Leasing Arrendamento Mercantil S/A of Brazil and (3) Arrendadora Financiera Inbursa, S.A. de C. V., SOFOM, E.R. of Mexico.
Alta’s ranking was headed again by Banco Itauleasing (antes Cia. Itauleasing de Arrendamento Mercantil) of Brazil.
The presence of multinational leasing companies “declined drastically” in 2008 after a decade-long increase in foreign investment.

Click here for the report in English or Spanish.

About Alta

The Alta Group, LLC, is a global consultancy serving equipment leasing and finance companies, investment professionals, manufacturers, banks, and government organizations. Alta supports clients in North America; Latin America; Europe, the Middle East and Africa; Australia; and China. For information, visit http://www.thealtagroup.com.