• From an asset perspective, agriculture, trucks and trailers, and medical imaging/electronic devices saw increases in new business volume, while construction, energy and printing saw decreases. The categories with the biggest increases in new business volume were state and local government; mining/oil and gas extraction; federal government; agriculture, forestry and fishing; and arts/entertainment/recreation.


• Pre-tax income and net income regained healthy margins. Though revenues decreased slightly in dollar terms by 0.5%, pre-tax income reached 29.2% of adjusted revenue and net income was 21% of adjusted revenues, levels last seen in 2007 and 2006.


• ROA and ROE were up. Financial measures such as return on average assets (ROA) returned to levels last seen in 2006, while return on average equity (ROE) showed a robust leap to 22.1%. Note that the average ROE reported by the survey between 2001 and 2009 never rose above 15%.
• Total headcount decreased moderately, by 3.3%.

• Delinquencies and full-year losses (charge-offs) declined, following overall economic trends hinting of economic recovery.


• There were continued signs of improved business conditions. In 2010, cost of funds continued to drop for the third year, and though pre-tax spreads declined in 2010 compared to 2009, they were stronger than spreads were between 2005 and 2008. While overall headcount decreased, employment did grow in the business development, credit approval and syndication areas, while positions in the account services area declined. Efforts in asset remarketing are also a focus, with sharp increases in staffing levels. 



About the Survey 


The SEFA is the broadest compendium of industry data, comprising a representative cross-section of equipment lease and loan origination by product, structure and origination. It provides a baseline and benchmark for companies operating in the equipment finance space through a voluntary survey of ELFA member companies.