The European leasing industry has seen
little loss or growth in the third quarter of 2011 compared to the
previous three months.
The latest Leaseurope Index, which tracks a
sample of European lessors on a quarterly basis, recorded
year-on-year growth in most areas but showed little movement from
Q2 2011 figures.
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The third Index to be published by the
trade body showed the pre-tax profit of companies in the sample had
decreased from €728m in the second quarter to €725m in the third
quarter, but rose by 26.9% compared to Q3 2010.
The total value of new business reported by
the 17 responding companies in Q3 2011 reached €19.44bn, growing by
13.2% compared to Q3 2010. However, this was a decline of 4.5%
compared to the €20.35bn in new business volumes attained in the
previous three months.
The average profitability ratio of the
reporting companies in Q3 2011 was 34.4%, a drop of just 0.1% from
the Q2 results, but an increase of 5.6% from the third quarter of
the year before.
The average annualised cost of risk ratio
increased by 0.1% from the Q2 figure of 0.63%, but is still
substantially lower than the level of 0.81% in Q3 2010.
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By GlobalDataJohn Howland-Jackson, global head of
leasing and factoring at ING, said insecurity in the EU had led to
little movement in profits for the leasing industry. He said: “It
is now well known that economic recovery in the EU is constrained
by a high degree of uncertainty.
“This is expected to act as a drag on
firms’ investment decisions, who may very well adopt a wait-and-see
attitude. It will be vital for European lessors to sustain cost
reduction efforts and drive demand for their products and
services.”
However, Howland-Jackson added that, as the
results show the trends in new business volumes and the leasing
portfolio continued on an upward path year-on-year, the Q3 results
are a positive sign for the leasing industry against a background
of economic uncertainty.
