Leasing
Strategy and target
Core activities De Lage Landen
De Lage Landen again performed well last year,
with growth in both income and portfolio value.
Thanks to its stable growth in the past years,
De Lage Landen is now one of the biggest
leasing businesses in Europe and the United
States of America.
Market and clients
Growth in the lease portfolio
Europe
41 Rabobank Group Annual Report 2005
The lease industry recovered in 2005. While the United States lease market
showed limited growth, recovery in Europe was strong and the market
in Asia also improved. The increases in short-term interest rates in the
United States and fierce competition resulted in tightening margins in
this region.
De Lage Landen's portfolio grew by 19% in 2005 to EUR 15.4 (12.9) billion,
aided by the stronger US dollar. Adjusted for the dollar effect, growth
would have been 10%, which still far exceeds the growth in the global
lease market.
Due to the expansion in recent years in North and South America,
combined with a stronger US dollar, the lease portfolio in this region is
now for the first time fractionally larger than in Europe. Of the lease
portfolio, North and South America now account for 49%, Europe for
49% and Asia, Australia and New Zealand for 2%.
Internationally, De Lage Landen focuses on the sectors food agri,
health care, office equipment, IT, telecommunication, materials handling
construction equipment, trucks trailers and bank outsourcing.
The food agri and materials handling construction equipment
sectors in particular showed significant growth.
In the Netherlands, the company offers a wide range of lease and trade
financing products, including equipment lease, car and commercial
vehicle leases, ICT lease and trade financing.
In Europe, the lease portfolio grew by 7% to EUR 7.5 (7.0) billion in the
year under review. In terms of global sales volumes, De Lage Landen is
third in Europe.
De Lage Landen already operates in Poland and opportunities for
expansion in Central and Eastern Europe will be reviewed this year.
The strongest growth in the portfolio was in car lease, materials handling
construction equipment, food agri and healthcare. De Lage Landen
already has a prominent position in healthcare in the United States.
Last year, this activity was started in Europe as well. The portfolio in this
sector showed strong growth. A number of large transactions were
concluded with the National Health Service in the United Kingdom.
In the year under review, the collaboration in Europe with Komatsu was
expanded. Komatsu is among the world's largest producers and suppliers
of heavy equipment e.g. for civil engineering and earthmoving purposes.
New clients with which a vendor programme has been started include
Mitsubishi Caterpillar Forklift Europe and Nucletron. Since the acquisition
of Telia Finans in 2004, the Scandinavian activities have shown healthy
growth.
Offering financing solutions worldwide aimed Annual growth in operating profit
at enhancing vendor sales (manufacturers or before taxation of 10 to 15%
distributors) via structured international colla
boration and/or on the basis of partnerships.
