Ayvens, a prominent vehicle leasing player in Europe, has announced its financial results for Q1 2024.
The company’s leasing contract and services margins surged to €706.6 million, marking a 30.6% increase compared to the same period last year. This growth was primarily attributed to the consolidation of LeasePlan and a notable 16% rise compared to the previous quarter.
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Stabilising underlying margins, coupled with the realisation of synergies with LeasePlan and limited non-recurring items, contributed to this performance.
Ayvens was established following ALD’s acquisition of LeasePlan for £4.1 billion (€4.8 billion) by a consortium led by TDR Capital in May 2023.
In Q1 2024, Ayvens reported a stable used car sales (UCS) result per unit at €1,661, excluding the impacts of reduction in depreciation costs and Purchase Price Allocation (PPA), when compared to Q4 2023. However, including these impacts, the UCS result per unit stood at €626.
Cost management efforts were evident, with the cost-to-income ratio improving to 67.7% from 68.4% in the previous quarter. Additionally, the cost of risk increased to 25 bps from 19 bps in Q4 2023, reflecting Ayvens’ proactive risk management strategies.
Net income (group share) witnessed a remarkable surge, reaching €187.8 million, up from €28.2 million in Q4 2023. This significant increase can be attributed to the company’s focus on minimising non-recurring items and optimising operational efficiency.
Ayvens reported a Return on Tangible Equity (ROTE) of 9.6%, underscoring its profitability and prudent financial management practices. Earnings per share stood at €0.20.
Earning assets experienced growth of 12.5% compared to the end of March 2023, driven by the sharp increase in vehicle value. The Common Equity Tier 1 (CET1) ratio stood at 12.3% as of the end of March 2024, indicating Ayvens’ capital position and ability to support its operations.
