Gazprombank Leasing to maintain diversified portfolio, expects growth in share of heavy equipment in 2023

KRASNOYARSK. Feb 28 (Interfax) - Gazprombank Leasing expects its lease portfolio to grow in 2023, the company's CEO and vice president of parent Gazprombank , Maxim Kalinkin said in an interview with Interfax.

"We are counting on a positive dynamic. As for the structure of the portfolio, we don't expect a significant change, although diversification will remain an important component of the business. We're just forecasting that the share of construction and specialized equipment will increase given that Avtodor Leasing has become part of our group," Kalinkin said.

He said there is a huge need to update road and construction equipment in Russia, with more than 30,000 pieces equipment needed over three years.

Due to the heavy workload at domestic auto plants, "we will buy transport from China, among others," Kalinkin said. But China will not become the only supplier, he added. "For us it's important that this be serial, liquid equipment," he said.

Commenting on the results of 2022, he said Gazprombank Leasing significantly changed the structure of its lease portfolio amid the transformation of the Russian economy.

"Before, in 2018-2019, we essentially had only the railway segment, its share of the portfolio amounted to 80-84%. Today we're diversified and don't depend on a given assortment. Right now I would say our portfolio is fairly balanced. For example, the share of the largest segment, trucks and buses, is 27%, cars [account for] 18% and construction and road building equipment [makes up] 17%," Kalinkin said.

Previously the company also specialized in cars, but the situation later changed, he said.

"In 2022, the main demand was for trucks and specialized equipment, and we reoriented the business toward it. By the end of 2022, the truck segment's share of new business [value of assets financed for clients] grew from 19% to 33%, while cars shrank from 39% to 23%. The share of the construction and road building equipment segment also grew, from 15% to 23%," Kalinkin said.

Leasing of marine shipment has been hit hardest by sanctions, he said. "Our share of new business in the ship segment shrank from 10% to 0.3%, and in the overall portfolio [this segment contracted] from 13% to 7%. Sales fell for the most part due to the external factor. Before cargo shippers used international infrastructure, the services of foreign companies, but now this is impossible due to external political factors," Kalinkin said.

Sales of imported marine vessels in Russia have stopped, he said. "World leaders in the container shipping business left the country, and we didn't have our own containers as such," he said.

"Having received such a shock, we started financing the acquisition of containers from China by the fourth quarter of 2022. And here we faced the question of what to ship them on. But one must understand that construction of any vessel takes 1.5-2 years on average. Even if we start to build them now, we still won't have them next year," Kalinkin said.

He said that in 2021 Gazprombank Leasing gained good experience buying used vessels from Europe and Asia, but it was simpler to do this then than in 2022.