Leaseurope has published the findings of its Q4 2024 Leaseurope Index, the 50/50 instalment of its quarterly survey.

The survey, which monitors key performance indicators (KPIs) from a sample of 19 European leasing companies, indicates mixed signals in the region’s leasing industry, with variations in key ratios and business volumes.

In the fourth quarter (Q4) of 2024, the overall weighted average ratios showed a positive trend compared with Q4 2023, except for an increase in the cost/income ratio.

The median ratios exhibited a broadly similar trend, accompanied by a decline in return on equity, according to the association of leasing companies.

However, for the full year figures, all the weighted average ratios showed a weakening trend in 2024.

The total volume of new leasing agreements reported by the surveyed companies increased by 7.3% in Q4 2024 compared with the same quarter the previous year.

Last year, new business volume grew by 8%, exceeding €123bn. In addition, the portfolio of active contracts rose by 4.3% in 2024 while risk-weighted assets experienced a growth of 9.5%.

Ayvens Group CEO Tim Albertsen said: “The economic outlook points to modest growth, but uncertainty remains a significant challenge for businesses. Equipment investment has slowed, largely due to high financing costs and a more cautious investment climate. Despite these headwinds, European lessors have continued to grow their new business volumes and portfolios.

“This demonstrates the importance of staying agile by offering tailored financing solutions, exploring opportunities in the used equipment market, and focusing on resilient sectors such as healthcare and renewables. Success in this environment means adapting quickly and staying closely aligned with our customers’ evolving needs.”

In Q4 2024, total operating income dropped by 1% compared with the same quarter in 2023.

Operating expenses saw a minimal increase of 0.1%, remaining nearly flat.

The weighted average cost-to-income ratio worsened, rising from 52.5% in Q4 2023 to 54.4% in Q4 2024.

This trend persisted across 2024, with operating expenses growing by 7.7% and income decreasing by 0.8%.

As a result, the average cost-to-income ratio deteriorated from 47.8% in 2023 to 49.9% in 2024.

The average annualised cost of risk increased from 0.18% in 2023 to 0.20% in 2024.

Similarly, the median cost of risk ratio rose from 0.20% in 2023 to 0.32% in 2024.

In Q4 2024, return on assets (RoA) and return on equity (RoE) remained largely unchanged compared to Q4 2023. However, both metrics saw a decline in 2024 relative to 2023.