Leasys, the joint venture equally owned by Stellantis and Crédit Agricole Personal Finance & Mobility, has reported profit before taxes of €173m ($188.57m) for the full year 2024, a 1% rise year-over-year (YoY).
The company’s adjusted net income stood at €112m, maintaining its level from 2023.
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Meanwhile, its gross operating margin, or net banking income, reached €388m, reflecting a 12% YoY growth.
Total earning assets experienced a significant surge, exceeding €10.2bn, marking a 36% growth compared to 2023, with the average outstanding reaching €8.6bn.
The margin on leasing activities rose to €230m, a 28% increase from 2023, while the margin on services grew by 46%, reaching €93m.
Leasys attributed its financial stability to the strong growth of its ‘organic’ margins, which helped mitigate the effects of a steep normalisation in the used vehicle market, a trend that has impacted the entire long-term rental sector.
On the commercial front, the company closed 2024 with more than 243,000 contract activations, marking an 87% YoY increase.
This growth was supported by a set of coordinated initiatives with Stellantis, particularly following the full consolidation of activities between Leasys and F2M Lease in April 2023.
The company saw significant performance in the light commercial vehicle segment, where contract intake tripled compared to 2023. Meanwhile, contracts for electrified vehicles increased by 50% YoY.
Penetration of Stellantis sales grew by nine percentage points in the B2B channel and by 21 percentage points in the long-term rental channel compared to 2023.
The growth of corporate customers, which increased by 32% from 2023, contributed to the managed fleet expanding to 906,000 units, a 4% increase, edging the company closer to its target of one million vehicles by 2026.
Despite market challenges, Leasys said it registered “strong” remarketing results, closing the year at €65m.
Leasys reported operating expenses nominally increasing to €168m but representing only 1.94% of average outstanding, a seven basis points decrease from 2023.
The group maintained fiscal discipline with a stable cost-to-income ratio of 51% year-on-year. Including the margin from used car sales, the cost-income ratio further decreased by eight basis points to 43%. The cost of risk remained under control at around 0.4% of average outstanding.
Leasys CEO Rolando D’Arco said: “2024 has been a year marked by consolidation and growth. Following the integration with Free2Move Lease and the acquisitions in Portugal and Luxembourg, both completed in 2023, this was Leasys’ first “full” year in its present setup.
Its resilience and flexibility in adapting to fluid market scenario, combined with a strong commitment to pursue innovation, digitalisation and sustainability allowed Leasys to close the year with very strong commercial and financial results.
Backed by Crédit Agricole, Leasys continued to diversify and optimise its external funding sources last year.
The company renewed and extended lines with third-party banks for a total of €2.3bn and expanded its Euro Medium Term Notes Programme from €5bn to €8bn.
These initiatives enabled Leasys to complete three public bond offerings for the first time in its history, raising a total of €2.7bn from debt capital markets operations.
Looking ahead to 2025, D’Arco added: “Leasys will continue implementing strategies designed to enhance its customer experience, while further strengthening its position as a leader in the Long Term Rental and sustainable mobility.”
