Total new leasing volumes in 2014 increased by 7.3% compared to the previous year, according to Leaseurope’s quarterly survey of 17 lessors in the European market.
New leasing volumes reported by the sample of firms increased to 69,071m (£49,444m) last year from 64,373m in 2013, a difference of 4.7bn.
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During this period, operating income rose by 5.4% to 7,739m and operating expenses grew by 2.4% at 3,630m.
According to the survey, pre-tax profit was up by 145.4% over the same period, reaching 2,373m.
The portfolio of outstanding contracts remained broadly stable, declining by 0.1% to 214,212m, while risk weighted assets decreased by a larger amount (7.4%).
Morten Guldhaug, Executive Vice President at DNB,said: "For the whole of 2014 Europe saw a rise in GDP of 1.4%, with the euro area experiencing slightly slower growth of 0.9%.This economic recovery is reflected in stronger financial performance for the leasing industry in 2014. In particular, the declining cost of risk and increasing RoA in Q4 2014 are both cause for optimism.
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By GlobalData"The European economy is expected to continue growing in 2015, with GDP growth rising to 1.7% on the back of a gradual increase in domestic demand. Leasing is ideally positioned to contribute to this recovery going forward through increased funding of the real economy."
Figures for Q4 2014
New leasing volumes in the last quarter of 2014 were up 3.4% on the same period in 2013, reaching 18,594m.
The sixteenth edition of the survey found that the portfolio of outstanding contracts was down by 0.1% year-on-year, while risk-weighted assets fell by 7.5%.
Over the last quarter of 2014 pre-tax profit was $460m for the 17 respondents compared to a negative profit recorded in the same period the previous year.
Operating income exhibited grew by 5.9% year-on-year, while operating expenses increased by a larger amount (6.1%). As a result average cost/income ratio marginally rose by 0.3% to 50.5%.
Loan loss provisions decreased in Q4 2014 compared to Q4 2013. According to Leaseurope this is due to the unusually high levels recorded in the last quarter of 2013.
