Leasing
Lease subsidiary De Lage Landen faced changed market conditions in 2008 that
forced it to be more selective in its acceptance of new financing applications.
Despite this, the loan portfolio increased by 13% to EUR 23.3 billion. The number
of lease cars in the portfolio rose by 6% to 211,000. In the Netherlands, De Lage
Landen was voted the most customer-focused provider of business finance.
Internationally, De Lage Landen won recognition through the'Vendor Lessor of
the Year Award'. Higher margins on new contracts reflected scarcity of funding
and higher risks. At EUR 235 million, net profit remains virtually unchanged
compared to 2007.
Strategy
www.delagelanden.com
Satisfactory growth in loan portfolio
Loan portfolio up 13% to EUR 23.3 billion
- Portfolio share of food agri grows to 20%
Net profit unchanged at EUR 235 million
- Efficiency ratio improved by 1.0 percentage point to 58.7%
- Impairment losses at 64 basis points; below long-term
average
- RAROC 22.3%
Strategy of Rabobank Group
Contribution to Group strategy
All-finance market leadership in the Netherlands
- To support Rabobank with lease and factoring products
- To grow market share in consumer credits
Global food agri bank
- To monitor and coach food agri related producers, vendors
and distributors of capital goods
- To grow portfolio share of food agri
De Lage Landen offers finance solutions world-wide for producers and distributors of capital assets.
De Lage Landen remains alert to opportunities for upscaling Athlon Car Lease, its international car
leasing business. De Lage Landen serves Rabobank clients with a broad package of lease and factoring
products. Rabobank Group's position in the Dutch market for consumer credits will be strengthened.
Rising risk prices and a more selective acceptance policy
The unrest in the financial markets affected all players in the lease market. In 2008, lower capital
availability caused the price of financing to go up. De Lage Landen on-charged the higher cost of
funding and the higher price of risk as part of its margins on new contracts. Portfolio growth levelled,
45
Report of the Executive Board
Share in Rabobank Group's
net profit for 2008
in
Leasing 9%
