The latest edition of the Leaseurope Index has
shown deterioration in six out of seven key performance indicators
during the second quarter of 2012 compared to the same period last
year.
On a positive note, average operating expenses
were down for the first time since Q1 2011, dropping 1.8% on this
time last year to €911m. However this was not enough to balance a
2.1% drop in operating income, to €1.9bn; which drove the average
cost/income ratio up by 0.4% to 46%, although that was still a
marked improvement on the 52.5% average for 2011.
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The survey includes two new indicators; return
on assets (RoA), which declined from 1.2% to 0.8%; and return on
equity (RoE), which declined from 20.7% to 14.6%.
Leaseurope says the negative nature of the
results, gathered from a survey of 17 European lessors, can be
attributed mainly to a small group of firms with “significantly
weaker” performance. When these firms are discounted, RoA appears
to have risen to 1.5% and RoE to 25.8%.
New business volumes were down to €19bn, from
€21bn in Q2 2011, and pre-tax profit decreased 32.7% to €480m.
Loan loss provision rose by 52.6% in Q2 2012
compared to the same period last year, and the average annualised
cost of risk increased to 0.8%. However, once the weak performers
are discounted, the Leaseurope Index presents the much more
promising figures of 25.8% and 0.5% respectively.
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By GlobalDataRonald Slaats, CEO of De Lage Landen
International, said: “Although Q2 2012 presented a number of
challenges for some peripheral European markets in particular, the
fundamentals of many leasing businesses remain robust. For
instance, the decrease in operating costs is a positive sign for
the industry during a period when income statements are under a lot
of pressure.”
