Financial results
Factoring: more prominent as Rabobank Group's factoring specialist
CSR in lending
Loan portfolio up 10% to EUR 20.7 billion
Income up 18%
The Freo label was launched at the end of August. The product features openness and
transparency. Clients no longer need to leave home for a loan because Freo operates fully via
the Internet.
The Crediam label focuses specifically on the sale of consumer credit to public servants.
The local Rabobanks offer factoring products to small and medium-sized enterprises,
with De Lage Landen supporting the local Rabobanks in the entire process. Within Rabobank
Group, De Lage Landen operates as the factoring specialist. For improved fulfilment of this
role, De Lage Landen started a reorganisation in 2006, which resulted in a new factoring
organisation early in 2007. Upgraded software enables local Rabobanks to process
applications independently and credit assessments are performed within 48 hours.
In 2007, De Lage Landen introduced a corporate social responsibility test in its lending
process, against which all applications from larger non-private clients must be tested.
Particular attention is paid to the development of the CSR policy for loans granted in Brazil.
The policy includes restrictions on lending to clients operating in the Amazon biome and the
state of Mato Grosso. CSR measures were 120drivers of cars leased from Athlon in order to
encourage public transport use. In addition, diesel vehicles have been equipped with
particulate filters. In order to reduce fuel consumption, maintenance costs and CO2
emissions, a 'new driving' promotion scheme for leased car drivers was developed.
In the year under review, De Lage Landen's loan portfolio grew by 10% to EUR 20.7 (18.9)
billion, despite the 11% depreciation of the US dollar, which caused the contribution from
the Americas to decline by 2 percentage points, to 39%.
The 18% increase in total income in 2007, to EUR 995 (842) million, was mainly due to the
growth of the item Other income, which includes the car leasing activities. The continued
growth of these activities was an important driver for the 49% growth in other income to
EUR 425 (286) million. Downward pressures on margins caused interest income to grow by
only 2% to EUR 518 (507) million. Commission income was 6% higher, at EUR 52 (49) million.
Loan portfolio
in billions of euros
22
Other
Consumer finance
Trucks trailers
Car leasing
Technology finance
Health care
Materials handling
construction equipment
Financial services
Office equipment
Food agri
Loan portfolio by region
at year-end 2007
Europe
60%
America
39%
Asia/Pacific
1%
2005 2006 2007
65
Report of the Executive Board
