7 mar 22

Arval profit at €720m in “record” 2021

Arval turned a profit of €720.5 million in 2021, an increase of 52.8% over 2020. Two record figures, both the result of a surge in the second-hand market. The leasing company made just under €370 million by remarketing its used vehicles – another record.  

The BNP Paribas subsidiary’s full-year results follow the release of its preliminary activity results in earlier this year (see Fleet Europe article on 9 February) . The fuller picture on Arval’s activities in 2021 paints a picture of a year of records – as it has been for other large lessors as well, including LeasePlan and ALD.

Some key figures from Arval’s annual report:

  • Net profit increased from €471.4 million in 2020 to €720.5 million in 2021, up 52.8%.
  • Supply issues for new vehicles drove up prices for second-hand ones in 2021, helping Arval increase its net profit from remarketing from €158.7 million in 2020 to €369.7 million in 2021.
  • That’s an increase of 133%, versus an increase in volume of vehicles sold of just 12.6%, to 298.853 units – indicating the steep price increase per unit.  
  • But there’s more to Arval’s stellar results than its remarketing windfall. Even exluding used-vehicles sales, gross operating profit rose 12.5%. The profit from Arval’s lease contract margin rose by 15% to 720.5 million, while the lease service margin was €646 million, up 9.8%.
  • Overall, the cost/income ratio improved from 53.5% in 2020 to 46.5% in 2021, and the cost of risk decreased from €60.2 million to €34.2 million.
  • With around 400,000 of its vehicles connected, Arval is one of three leaders in Europe when it comes to vehicle connectivity.
  • As for electrification: by year’s end, Arval’s leased fleet included just under 205,000 EVs, up 80% over a year before. For 2025, the company has revised its EV target upwards to 700,000 EVs, or about 35% of its total leased fleet. 

While careful not to make predictions for 2022, Arval in its statement dit point to a few important developments with growth potential for the present calendar year, including its new car-sharing platform with Ridecell, and parent company BNP Paribas’ partnership with JLR. 

Want to get your fleet intelligence straight from the source? Join the global fleet community in Cascais, Portugal from 2 to 4 May for the 2022 Global Fleet Conference. Places available while they last! 

Image: Arval

Authored by: Frank Jacobs