31.01.2025
LEASEUROPE INDEX LATEST RESULTS: Q3 2024
Brussels, 31 January 2025 – The Leaseurope Index is a unique survey that tracks key performance indicators of a sample of 19 European lessors on a quarterly basis. This Q3 2024 is the fifty-fourth edition of the survey.
The Q3 2024 Index results highlight weak growth in the European leasing market. Most of the weighted average ratios declined compared to the same period in 2023, except for the cost/income ratio, which showed improvement. This pattern was also reflected in the median ratios.
New leasing volumes held steady at €27 billion, while the outstanding portfolio saw a 3.5% increase. Meanwhile, total risk-weighted assets (RWAs) grew at a sharper rate of 7.5%.
Profit & profitability
Pre-tax profit dropped by 19.4%, while operating income declined by 1.9% compared to the same period in 2023. Consequently, the weighted average profitability ratio fell significantly from 43.1% in Q3 2023 to 33.3% in Q3 2024. The median profitability ratio, which provides a clearer picture by minimizing the impact of outliers, followed a similar downward trend, decreasing from 49.6% to 39.8%, signalling a notable decline.
Income, expenses & cost/income
In Q3 2024, operating expenses declined by 2.7%. However, since operating income saw a smaller decrease, the weighted average cost/income ratio improved slightly, reaching 48.8%, compared to 49.8% in Q3 2023. Similarly, after excluding outlier effects, the median cost/income ratio showed a development, decreasing from 48.5% to 47.4% over the same period.
Loan loss provision & cost of risk
In Q3 2024, loan loss provisions experienced a significant increase by 85.7% compared to the same period in 2023. As a result, the average annualized cost of risk slightly weakened, rising to 0.31% from 0.17% in Q3 2023. The median cost of risk also reflected this trend, reaching 0.22% in Q3 2024.
RoA & RoE indicators
In Q3 2024, the weighted average Return on Assets (RoA) and Return on Equity (RoE) declined compared to the same period in 2023. The median ratios followed the same downward trend, indicating a broader weakening in profitability.