The results of the Q2 2012 Index show a continued deterioration across all indicators compared to the same quarter of the previous year, with the exception of operating costs which improved for the first time since the start of this data collection exercise. However, these negative results are not widespread and can be attributed to the significantly weaker performance of a small group of firms in the sample. 

Total new leasing volumes reported by the sample of firms increased in comparison to the previous quarter to €19 billion, although still not reaching the levels seen in 2011. With a few firms in the sample experiencing losses in the quarter, total pre-tax profit of all the companies decreased by 32.7% for Q2 2012 in comparison to Q2 2011 (see table 1). Although the average profitability ratio dropped from 36.7% in Q2 2011 to 26.1% in Q2 2012 (see table 3), when the handful of loss-making firms is excluded from the sample, the ratio actually held strong. This trend is also observable in the quartiles (see table 4), which show a median profitability ratio of 35.8% representing the ‘typical’ firm in the sample. Compared to the same period a year ago, both operating income and operating expenses decreased slightly, by 2.1% and 1.8% respectively. This is the first time that operating expenses have decreased since the inauguration of the Index in 2011. The result is an improvement of the average cost/income ratio in Q2 2012, as it falls from 53.0% in the beginning of the year to 46.0%, reaching the lower levels of the first part of 2011. 

Loan loss provision suffered its highest increase so far, rising by 52.6% in Q2 2012 compared to the same period a year ago. However, by excluding the previously mentioned loss-making firms, the increase falls to 25.8%, which is similar to the results for Q1 2012. The average annualised cost of risk increased in Q2 2012 to 0.8%, although still lower than the peak of 0.9% attained in Q4 2011. However, when the loss-making firms are excluded, cost of risk decreases to the lowest level seen so far in the survey of 0.5%. 

The results of the Q2 2012 Index show a continued deterioration across all indicators compared to the same quarter of the previous year, with the exception of operating costs which improved for the first time since the start of this data collection exercise. However, these negative results are not widespread and can be attributed to the significantly weaker performance of a small group of firms in the sample. 

Total new leasing volumes reported by the sample of firms increased in comparison to the previous quarter to €19 billion, although still not reaching the levels seen in 2011.With a few firms in the sample experiencing losses in the quarter, total pre-tax profit of all the companies decreased by 32.7% for Q2 2012 in comparison to Q2 2011 (see table 1). Although the average profitability ratio dropped from 36.7% in Q2 2011 to 26.1% in Q2 2012 (see table 3), when the handful of loss-making firms is excluded from the sample, the ratio actually held strong. This trend is also observable in the quartiles (see table 4), which show a median profitability ratio of 35.8% representing the ‘typical’ firm in the sample.

Compared to the same period a year ago, both operating income and operating expenses decreased slightly, by 2.1% and 1.8% respectively. This is the first time that operating expenses have decreased since the inauguration of the Index in 2011. The result is an improvement of the average cost/income ratio in Q2 2012, as it falls from 53.0% in the beginning of the year to 46.0%, reaching the lower levels of the first part of 2011.Loan loss provision suffered its highest increase so far, rising by 52.6% in Q2 2012 compared to the same period a year ago. However, by excluding the previously mentioned loss-making firms, the increase falls to 25.8%, which is similar to the results for Q1 2012. 

The average annualised cost of risk increased in Q2 2012 to 0.8%, although still lower than the peak of 0.9% attained in Q4 2011. However, when the loss-making firms are excluded, cost of risk decreases to the lowest level seen so far in the survey of 0.5%.