Garanti Leasing

Activities in 2008

In 2008, Garanti Leasing achieved a market share of 15.1% in transaction volume and 16.8% in number of contracts. With these market shares, Garanti Leasing maintained its leadership in the sector. Total transaction volume reached USD 799 million and 3,349 new service contracts were signed in 2008.

According to the independently audited IAS financial tables, Garanti Leasing increased its profit by 31% in 2008, to YTL 73.7 million. The Company had total assets worth YTL 2.3 billion at the end of 2008.

By the competitors' votes with the monthly business and finance magazine Capital, Garanti Leasing has been awarded, once more, as the "Best Leasing Company in Turkey" for the second consecutive year.

Garanti Leasing benefits from the advantage of having an extensive distribution channel, by utilizing branches of Garanti Bank as the main distribution channel. Garanti Leasing combines this competitive advantage with its solution oriented and customer centric approach. Additionally, via its own marketing network, Garanti Leasing leverages the advantage of an extensive delivery channel and serves customers at 20 different points. Regional offices were restructured in 2008, parallel to Garanti Bank's regional structuring efforts.

In 2008, Garanti Leasing remained the Turkish leasing company with the highest credibility in international markets. Garanti Leasing has the same ratings with its parent company, Garanti Bank. Despite the changes in several global institutions and sovereigns, the company's ratings were not changed during the last 1 year period, except Standard and Poors, which changed the outlook from Stable to Negative, parallel to its action on the sovereign level. Garanti Leasing is rated at BB (LTFC), BB+ (LTLC), AAA TUR (National) by Fitch Ratings and "BB-/Negative/B" by Standard and Poors.

The VAT regulation, which changed in the beginning of 2008, resulted in a contraction in the Leasing Sector. The global turmoil, originated abroad, has been the additional factor affecting the sector. In 2009, the leasing volume is expected to move in parallel to macroeconomic developments.

Future Plans

The new leasing law, which is expected to be approved the Counsel of Ministers in early 2009, will allow leasing companies in Turkey to offer new products such as operational leasing, sale-and-lease-back and software leasing. The sector is likely to gain significant momentum through these offerings.

Operational leasing is a financial tool that differs from financial leasing in that the leased equipment is returned to the leasing company when the contract expires. This product has a considerable share in total leasing volumes overseas and will, when launched in Turkey, present a new financing method and a fresh perspective on investment decisions by companies and, in particular, SMEs and commercial companies.