European leasing volumes are at their lowest point for two years, according to the Leaseurope index for the first quarter of 2013, with sample firms reporting €14.6bn of new business.

The 17 European firms taking part in the survey reported €592m pre-tax profit, a drop of 2.8% compared to the same period last year, but an 84.4% rise compared to the last quarter of 2012. These results were reflected by a 32% profitability ratio for the first three months of 2013 compared to 35% and 16% respectively for the first and last quarters of 2012.

Both operating income and expenses increased in the first quarter of the year compared to the same period a year ago, with income up 5.1% to €1.9bn and expenses up 1.2% to €900m, meaning the average cost/income ratio of 45.3% was the lowest since early 2011.

Loan loss provisions were down at the start of 2013 compared to the preceding quarter, although up on the first three months of 2012, while the average annualised cost of risk went up from 0.9% in the last quarter of 2012 to 0.8%.

Return on assets in the first quarter of this year was 1%, a similar level to the same time last year, but an improvement on the last quarter of 2012, with similar trends for return on equity, which was reported as an index of 121 with 2010=100.

Jukka Salonen, chief executive of Nordea Finance, said the improvement in financial ratios was "encouraging."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He said: "The drop in new business volumes at the beginning of this year shows that the industry is still battling very poor European economic conditions, a situation which is not expected to improve in the short term. The fact that leasing companies have managed to maintain control of their KPIs going into 2013 despite low demand for investment speaks to the robustness of the industry."