Despite the economic downturn across the
continent and a tough fourth quarter, the European leasing industry
has seen improvement in 2011.
The final results for the quarterly Leaseurope
Index, which tracks a cross-section of European lessors, recorded
total new business value in 2011 up 4.6% on 2010 to €75.24bn.
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The latest report completes the first full
year of the index including a
static Q3 and a
slight drop in profit recorded in Q2.
However, the €19.29bn in total new business
recorded in the quarter was down 8.8% compared to the same period
in 2010, but up 1.39% from €19.03bn recorded in the previous three
months.
Pre-tax profit of companies in the sample
increased across the year by 21.2% to €2.55bn but was down for the
fourth quarter by 24.4% year-on-year to €359m, almost half of the
profit recorded in the third quarter 2011.
Across the year, operating income was up 4.4%
on 2010 while operating expenses was up 7.2%. Operating income in
Q4 was the lowest of all four quarters of 2011, and down 0.8%
year-on-year, at €2.02bn. At the same time, operating expenses for
the quarter were the highest of the year at €1.09bn and up 6.4% on
the same period in 2010.
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By GlobalDataThe average profitability ratio of the
reporting companies in 2011 was 29.9%, up on the 26.8% figure for
2010, far above the average of 14.4% for Q4, which was down
massively from the Q3 average of 33.9% and the Q1 high of 37%.
The cost of risk ratio, the average annual
loan loss provision as a percentage of the portfolio, was down from
0.87% in 2010 to 0.7% in 2011, but up to 0.99% for Q4 2011, up
41.27% from the Q3 and Q2 average, and up 6.45% on the figure for
the final quarter of 2010.
The index report attributes the downturn of
indicators to “worsening economic conditions towards the end of the
year”, citing Eurostat’s estimate that European GDP fell 0.3% in
the fourth quarter.
richard.brown@vrlfinancialnews.com
