Ayvens sets aside €93m for UK motor finance probe

Ayvens, the global leasing giant, has unveiled its financial results for the fiscal year 2024, highlighting a significant provision of €93 million related to the UK motor finance commissions scandal. Despite this considerable provision, Ayvens demonstrated a solid performance with pre-tax profits nearing €1 billion.

As of December 31, 2024, Ayvens made a provision of €93 million related to the UK motor finance commissions exposure following the Court of Appeal ruling in October 2024. This provision includes estimates for potential redress based on various scenarios using a range of assumptions and probabilities.

In a statement, Ayvens acknowledged, “There are currently significant uncertainties as to the nature, extent, and timing of any remediation action if required, and the ultimate financial impact could be materially higher or lower than the amount provided.”

Ayvens recorded pre-tax profits of €994.3 million for FY2024, a decrease from €1.218 billion in the previous year. Earning assets increased by 2.9% year-on-year to €53.6 billion as of December 31, 2024, driven primarily by the transition to electric vehicles (EVs). Ayvens’ total fleet amounted to 3.298 million as of December 31, 2024, reflecting a 3.4% year-on-year decrease due to a selective commercial approach to restore margins.

Fleet management contracts decreased by 5.0% compared to December 31, 2023, totalling 672,000 vehicles as of December 31, 2024. Full-service leasing contracts reached 2.626 million vehicles by the end of December 2024, a 3.0% year-on-year decrease on a like-for-like basis.

EV penetration reached 40% of new passenger car registrations in FY2024, an increase of 6 percentage points compared to FY2023. Ayvens’ BEV and PHEV penetration stood at 27% and 13%, respectively, in FY2024.

Tim Albertsen, CEO of Ayvens, commented on the results, stating, “2024 has been a satisfactory year both from an operational and financial perspective, in the context of an intense transformational journey and a long-awaited normalisation of used car markets.

“The integration of our entities and corporate functions has been delivered according to plan and in remarkable conditions, with no disruption impacting our clients in the countries where the merger and migration have occurred,” he added.

Looking ahead, Ayvens plans to resume fleet growth in 2025 by leveraging its close partnerships with car manufacturers and proactively monitoring the EV value chain to ensure adequate profitability and mitigate residual value risk.

The Group will continue executing its integration strategy, aiming to finalise IT and legal integrations in overlapping countries and implement local target operating models to achieve synergies and financial targets.

Avyens Group aims to maintain high regulatory and ESG standards, meeting stakeholder expectations as a major player in the low-carbon economy. Ayvens has been recognised for its efforts, receiving the Ecovadis Platinum rating, placing it in the top 1% of companies assessed in the past year.