Leasing
The economic climate caused losses in 2009 on sales of former leased cars
and an increase in bad debt costs at De Lage Landen, Rabobank Group's
leasing subsidiary. Net profit fell by 52% to EUR 112 million. Interest income
was up thanks to higher margins on new business. De Lage Landen
managed to keep costs under control so that operating expenses saw a
limited increase only. The loan portfolio increased by 3% to EUR 24.1
billion, with growth levelling off due to clients postponing expenditures.
Partly as a result of an acquisition by De Lage Landen in Italy, the lease
fleet operated by Athlon Car Lease, its international car leasing division,
grew by 2% to 216,000. De Lage Landen continued to integrate CSR into
its core business. As De Lage Landen reported sound financial results and
won a number of new clients in the first half of 2009 in spite of the difficult
market, it was awarded the European Vendor Partnership of the Year Award,
which was presented during the international Asset Finance Conference.
Strategy for De Lage Landen
www.delagelanden.com
Improved margins on new business, growth in lease portfolio levelling off
Loan portfolio up 3% to EUR 24.I billion
- Share of food and agri in portfolio up 4.6 percentage points to 24.3%
Net profit down 52% to EUR 112 million
- Efficiency ratio at 60.0%, a 1.3 percentage point deterioration
- Bad debt costs above long-term average at 132 basis points
- RAROC at 10.4%
Rabobank Group strategy
Contribution to group strategy
All-finance market leadership in the
Netherlands
- Supporting Rabobank in offering equipment leasing, car leasing and factoring products
- Increasing share in consumer loans market
International food and agri bank
- Tracking, and providing guidance and support to food and agri-related manufacturers,
vendors and distributors of capital goods
- Increasing the share of food and agri in the portfolio
De Lage Landen serves Rabobank clients with a broad package of lease and factoring products
and contributes to the strengthening of Rabobank Group's position in the Dutch market for
consumer loans. On a global scale, De Lage Landen offers finance solutions for producers and
distributors of capital assets.
Share in Rabobank Group's
net profit for 2009
Leasing 5%
38
Report 2009 Rabobank Group