Then, after months of speculation, Lombard announced last month that LVM was being wound down and ALD Automotive would provide it with a white label product. The move is whittling down the number of contract hire companies that could be described as bank-owned.

Lewis said: “Our industry will always have a diverse portfolio of asset owners, whether they are banks, vehicle manufacturers or independent companies.

“Some banks’ balance sheets and expertise don’t lend themselves to directly managing and owning a fleet of vehicles, so they provide automated funding to the sector.

“Other banks can see the good return on capital at low risk that vehicle finance represents and would rather be directly involved
in the industry where they can add value.”

RBS still recognises the value the market can offer its shareholders; it’s just not interested in picking up the bill for running a leasing company.

Moon explained: “It effectively de-risks the banks’ balance sheet by passing on the operational risks to the contract hire professionals who understand RVs and maintenance, while retaining the client relationship at least from a banking perspective.”

Barclays Corporate, which has been quietly involved with around 60% of the independent fleet market, prefers that arm’s-length approach, but has announced its desire to play an even bigger role (Fleet News, February 2).

It has recently been involved in high profile deals with Ogilvie Fleet and Zenith, while the latter has also been involved with HSBC and Santander.

Lewis said: “We have six new funders either in the market or coming to it in the form of Investec, Macquarie, Clydesdale, Hitachi Capital, GMAC and Close Brothers.

“At the same time we have existing funders like Barclays and Lombard looking to expand.

“Together they should more than cover the funding that will eventually leave the market as Lloyds Banking Group reduces its exposure.”

Lex Autolease dominates the FN50 figures, sitting at the top of the table with a risk fleet in excess of 280,000 vehicles.

Alongside Arval and ALD Automotive, the three bank-owned businesses account for more than 200,000 vehicles equating to around 20% of the million-plus vehicles in the FN50.

LeasePlan, which operates as a bank in the Netherlands, is classed as a bank for FN50 purposes, as is Hitachi Capital Vehicle Solutions and GE Capital. When considered together with Lex Autolease, Arval ALD Automotive and Lombard’s business, they account for more than 700,000 cars and vans – 57% of the FN50 fleet.