Leaseurope’s latest quarterly index has shown a decline in new business volumes while profitability has been boosted across the 17 sample companies.
New business volumes were 16bn for the third quarter of 2013. This marked a drop of just 0.7% compared to the same quarter last year but was the third consecutive decline in quarterly new business.
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In addition, the portfolio of existing business declined in Q3 by 3.3% year-on-year to 226bn and dropped from 231bn in the second quarter.
The level of write-offs was up in the quarter with loan loss provisions rising 7.2% year-on-year to $429m.
However, the figures for average annualised cost of risk for the three months to 30 September was 0.75%, up from 0.68% in Q3 2012 and up from the "stable" average of 0.5% recorded over the last two years.
More positively, the Index reported a reduction in cost and an increase in profitability over the period. Profits rose 8.5% year-on-year to 558m and operating expenses fell by 0.4% to 900m.
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By GlobalDataReturn on assets (RoA) improved in the third quarter, up to 1.0% from 0.9% reported in Q3 2012, while the median RoA, which Leaseurope cited as a typical firm’s returns, was substantially better with a ratio of 1.3% in the third quarter.
