Performance Analysis of Leasing Companies: The Case of Bangladesh

In most developing countries, leasing is one of the few forms of medium-to long-term financing available to businesses for fixed assets. It provides all types specially MFIs (Micro Finance Institutions) with an opportunity to reach new borrowers and expand existing markets. This paper attempts to analyze the performance of leasing companies in Bangladesh. Here simple ratio and trend analysis has been done. The ratios and trend analysis show that profitability situation of leasing companies decrease over the year due to increase financial as well as other operating expenses. On the other hand lease contribution in revenue portion improving day by day which signifies the efficiency of managing the lease business properly. The study also covers the laws and regulation of leasing business in Bangladesh. The findings have important implications for the development of lease financing in Bangladesh.

Key words: Leasing, NBFI, MFIs, term lending, SME