Results from Leaseurope’s Q1/13 survey showed that total new leasing volumes reported by the sample of firms were under €15 billion, the lowest level of new business recorded since the start of this survey. Customers appear to be postponing investment spending decisions in the current climate of economic uncertainties.

The survey tracks key performance indicators of a sample of 17 European lessors on a quarterly basis. The Q1/13 index is the ninth edition of the survey.

Additional survey findings:

The weighted average ratios for Q1/13 have increased back to similar levels seen in the same quarter of the previous year and substantially improved compared to Q4/12.

The portfolio of outstanding contracts decreased (-1.2%) slightly whereas risk-weighted assets remained stable.

While total pre-tax profit of the sample companies decreased by -2.8% for Q1/13 in comparison to Q1/12, there was a significant improvement on Q4/12.

Similarly, although the average profitability ratio was down slightly from 35% in Q1/12 to 32% in Q1/13, the latest results represent a clear and significant increase over the Q4/12 figure of 16%. It is important to note that the quartile values of the profitability ratio are widely dispersed within the firm sample for the reporting period.

Compared to the same period a year ago, operating income increased substantially (5.1%), while operating expenses also increased but much less (1.2%). This resulted in a substantial improvement of the average cost/income ratio in Q1/13 to 45.3%, the lowest level seen since early 2011.

Loan loss provisions decreased in Q1/13 compared to Q4/12, although still at a higher level than the same period of the previous year. The average annualized cost of risk underwent an improvement in Q1 compared to the end of last year and reached 0.8% (0.9% in Q4/12).

RoA and RoE increased to similar levels seen in Q1/12, of 1.0% and Q1/13, respectively. Again, this is a big improvement on the figures seen in Q4/12 and throughout 2012 in general.

To access full survey results click here.