According to ELA - October Shows A Significant Upturn In Originations Starting Fourth Quarter 2005

Wednesday, November 30, 2005

ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 30, 2005--The Equipment Leasing Association (ELA) today released the Monthly Leasing Index (MLI), which surveys approximately 20 major equipment leasing companies on a monthly basis. The key metrics highlighted in the October MLI indicate a significant upturn in originations to begin the fourth quarter. New business volume increased from September's $5.06 billion to $6.59 billion, representing a 30.2 percent increase. This is the highest reported amount of new business volume for any month this year and the second month in a row that has happened. However, this increase can be attributed to one respondent more than doubling its new business volume from the previous month.

"The outlook for the fourth quarter is very solid," according to Ralph Petta, Vice President of Industry Services for the ELA. "Strong new business originations coupled with solid portfolio quality point to a healthy leasing and finance business. Hopefully, these metrics hold throughout the quarter," he said.

Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged from September, coming in at 97.8 percent. However, this remains below March's high of 98.46 percent. Credit approval ratios increased very slightly to 82.7 percent compared with 82.0 percent in September. Average charge-offs, however, decreased slightly, coming in at 0.57 percent, down from September's 0.69 percent. The total number of employees decreased slightly to 8,962 compared to 9,001 in September.

The MLI is issued on the 30th of every month(1) and provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

Because the same companies participate in the study each month, the MLI provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI are posted on the ELA website and in Equipment Leasing Today magazine.

Charts and graphs are available for reprint to members of the accredited media. The illustrations reflect the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/IndustryData/ or contact Dean Frutiger at (703) 516-8380.