Element Financial sees U.S. market driving growth in 2015

Tue Dec 16, 2014 6:43pm EST
 
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TORONTO Dec 16 (Reuters) - Equipment finance company Element Financial Corp, which has enjoyed a meteoric rise since going public three years ago, said on Tuesday it expects 35 percent growth in new equipment loans and leases in 2015.

Toronto-based Element Financial, which provides financing for industrial, aerospace and automotive equipment leasing, expects to organically add about C$6.5 billion ($5.6 billion) of new equipment loans and leases during 2015, as compared to the roughly C$4.8 billion originated in 2012.

The firm expects roughly 75 percent of this new business to come from the United States, with the vast majority of the growth coming from its fleet management segment.

In the fleet management business, Element expects to originate some C$2.6 billion in new loans and leases in 2015 versus the roughly C$1.3 billion added in 2014.

Earlier this summer, Element agreed to acquire PHH Corp's auto fleet leasing business for about $1.4 billion in cash.

Element said it expects 2015 earnings of 99 Canadian cents a share. That is in-line with analyst expectations, according to Thomson Reuters I/B/E/S.

Separately, the firm also named two Canadian financial industry veterans, William Lovatt and Richard Venn to its board, effective immediately.

Lovatt is the chief financial officer of Great-West Lifeco Inc, while Venn served as CIBC's former head of investment banking.

It also announced that Phil Arthur and Stephens Lowden have retired from the company's board of directors.

($1 = 1.1626 Canadian dollars) (Reporting by Euan Rocha; editing by Andrew Hay)