Agenda • CFLA Data Sources – What is available to members • How M&A activity has changed the Commercial Equipment Finance Landscape since 2013 • PayNet – New Performance Data – Commercial Equipment Finance • Equifax – Vehicle Finance Market • The Macro View – How the Canadian Economy is impacting our industry. • Questions
Canadian Distribution of Market Share 2013 In 2013 the Canadian Industry was relatively diverse but Banks dominated share!
Rapid Shift in Market Share 2013 - 2016 In 3 years market share held by foreign and independent lessors has been reduced by 50.3%
M&A Activity Since the Credit Crisis The founding of Element, sale of GE Capital Assets and acquisitions by deposit takers can all be traced back to the credit crisis.
The Elephants in the room – GE and Element
Suddenly Canadian Banks want Commercial Equipment Financing Assets Bank Lessor Acquisition Royal Bank of Canada MCAP Leasing, ABN Amro National Leasing Group, Maxium Financial, GE Canadian Western Bank Franchise Irwin Commercial Credit (Sold to Meridian Credit Scotia Bank Union 2016), TLS (Sold to Element) Toronto Dominion Bank Capital Underwriters Laurentian Bank CIT Canada BMO GE Transportation CIBC CIT Business Credit National Bank Sold Alter Moneta Position to Bear Stearns
The Other GE Effect – Massive Talent Distribution Monitor's Weekly Recap View this email in your brow ser Former GE Capital Exec Kelly Named Head of Wells Fargo Vendor Group Former GE Capital Top Performer Joins CapitalSource Hancock and Whitney Expand Equipment Financing Team Former GE Capital Exec Joins Hitachi Capital America as SVP/CCO CIT: 55% of Healthcare Executives Expect to Seek Financing Reuters: Major Regional Banks Prepare for Energy Loan Losses ELFA: YTD March New Business Volume Down 9% Wells Fargo CDF Announces Financing Extension with Briggs & Stratton Northpoint Commercial Finance Hires New Director of Business Development TCF Q1 Earnings 20.7% Higher; Equipment Finance Revenue up 28%
What happens next? Element – Recent statements are that they continue to look for acquisitions. Independents – Who will replace Maxium, NLG, RCAP, Irwin, etc.? Will we see more new entrants? Funding for Independents Plentiful – Sun Life, Versa (P&W), CWB (Moe Danis factor), Canada Life, TAO, etc. Deposit Taker Impact – Laurentian, Meridian, CWB well positioned and well capitalized. GE Talent Distribution – CLE, Laurentian, Wells Fargo, Dynamic, etc. A more detailed analysis of this topic will be published in the Journal of Equipment Lease Financing in the Fall of 2016.
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