European new business volumes rose 20.4% to 17.6bn in the second quarter, from 14.6bn in the first quarter of 2013, according to the latest Leaseurope Index.
The data, collated from 17 Leaseurope member firms, showed that while there was a big improvement on a poor first quarter, new business is still down 2.6% compared to the same period last year.
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Income was up 6.6% year-on-year at just over 2bn, and was also up 3.6% on the previous quarter.
However, costs, at 934m, were up 3.4% year-on-year and 4% on the first quarter, leading to an improved cost/income ratio of 45.6%, which was lower than levels throughout 2012.
The firms surveyed made 549m pre-tax profit, a 14.6% improvement year-on-year, but down 7.2% from the first quarter.
These figures meant the average profitability ratio grew from 25% in quarter two 2012 to 27% in the last quarter, although Leaseurope said there was a "large degree of variation" between companies.
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By GlobalDataLoan loss provisions were up to their highest level since the end of 2011, while the average annualised cost of risk was 0.9%, up slightly from 0.8% for the same quarter last year.
Average return on assets (RoA) was 0.9% and return on equity (RoE) was 108, improving from 0.8% and 101, respectively, from the second quarter of 2012.
The median RoA value, representing the ‘typical’ firm, was the largest since the survey began in 2011 at 1.4%.
Frank Stienstra, chief executive of survey participant ABN Amro Lease, said he was "very pleased" with the improvement in financial ratios, and it was "encouraging" to see profits and profitability increase "in spite of the pressure that has been put on portfolios."
He added: "After many years of economic uncertainty in Europe, the recovery of new business volumes during the last quarter could be a sign that clients may be willing to resume their investment activities.
"If we want to see a continued improvement in KPIs, the leasing industry needs to maintain its strong value proposition."
