The European passenger car and LCV leasing sector recorded its highest profitability level in five years in 2014, according to Leaseurope’s Annual Index Segment Survey.
The survey provides a breakdown of Leaseurope’s Quarterly Surveys, taken from a sample of 17 lessors in four separate sector segments; equipment, real estate, passenger cars and commercial vehicles.
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The median profitability, or pre-tax profit as a % of total income, of the passenger car and LCVs segment was 43% higher than the base rate (year 2010) in 2014; while in 2013 it stood at 17%.
The performance of this asset type, in regards to profitability, was stable throughout 2014, as there were not signification variations in quarterly data.
Cost/Income ratio, or the median of all companies’ operating expenses as a % of operating income, dropped from 49.2% in 2013 to 45.3% in 2014.
Passenger car and LCV leasing enjoyed relatively low cost of risk levels in 2014, while return on assets reached an all-time record of 1.9%. However this experienced a large degree of variation in the course of the year, with peaks in Q2 and Q4.
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