Leaseurope released its latest quarterly index report for Q1, which showed that all three key ratios (profitability, cost/income and cost of risk) have recovered after deteriorating in Q4/11, although the individual indicators for the Q1/12 have worsened slightly in relation to the same period last year(Q1/11).

Total new leasing volumes reported by the sample of firms was just under €16 billion, the lowest level of new business recorded since the start of this survey. This most likely reflects customers’ decisions to postpone investment spending decisions in light of current uncertainties.

The association said that while total pre-tax profit of the companies in the sample decreased by 9% for Q1/12 in comparison to Q1 2011, there was a significant improvement on Q4/11, with figures almost doubling. Similarly, although the average profitability ratio was down slightly from 37% in Q1/11 to 34% in Q1/12, the latest results represent a clear and significant increase over the Q4/11 figure of 14%. The average profitability ratio for the last quarter of 2011 was severely impacted by the very poor performance of a small number of companies within the sample but the situation has now stabilized in Q1 and individual results are more evenly spread.

To read the full Q1/12 report click here.