The leasing industry across Europe is
increasing profitability significantly. That’s the finding of a new
survey by industry body Leaseurope.
The Leaseurope Index, which is based on a
quarterly survey of 17 companies in the European leasing and
automotive rental industry, builds on previous volume-based
research by focusing on value creation.
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Eoghan O’ Briain, adviser, Statistics and
Economic Affairs, Leaseurope, said the research is a way of meeting
industry demand for richer metrics, such as profitability and
operating income.
The Index shows profits up as much as 75.9
percent.
Pre-tax profit for the sample of reporting
companies increased to €2.24 billion (£2 billion) in 2010, a 75.9
percent increase compared to 2009, and this growth continued in Q1
2011 with profit increasing by 59.6 percent compared to Q1
2010.
The research also showed the average
profitability ratio of all companies surveyed has improved from
25.9 percent in Q1 2010 to 37.7 percent in Q1 2011.
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By GlobalDataO’ Briain commented: “From the research you
see companies’ profitability increasing because they are becoming
more efficient since their weighted average ratios, including
profitability, cost/income and cost of risk, are improving.”
Massimiliano Moi, CEO of UniCredit Leasing and
vice-chairman of Leaseurope, said the survey was a milestone in
terms of tracking indicators which are useful for
decision-makers.
“It is very encouraging that profitability is
increasing without requiring the substantial deployment of
additional capital – this has been achieved through higher
revenues, improved cost efficiency and prudent risk management,” he
said.
“I also believe this improved profitability
demonstrates that our clients are increasingly recognising the
value which our products provide”.
“These results show that the leasing industry
is becoming smarter.
“While there is always potential to improve
performance further, the industry is clearly well positioned to
deliver attractive and sustainable returns for shareholders”.
The association conducted the survey with
individual companies reporting their figures for each indicator to
Leaseurope, which aggregated the results on a confidential
basis.
grant.collinson@vrlfinancialnews.com
janet.duchenne@vrlfinancialnews.com
