Leasing
Recovery of earnings thanks to higher residual value gains
and improved margins
Lower bad debt costs, an increase in interest income and higher residual
value gains on second-hand cars caused net profit at De Lage Landen to
recover by 79% to EUR 201 million in 2010. Bad debt costs were down 32%
and stood at 90 basis points of average lending. Lending rose by 7% to
EUR 25.7 billion. The share of food and agri in the portfolio rose by 2.5
percentage points to 26.8%. At De Lage Landen, the reporting period was
characterised by active risk management and control, which was
facilitated by the tentative economic recovery. De Lage Landen received
the Green Lessor of the Year Award for funding green technology while
simultaneously limiting the environmental impact of its operations.
The efficiency ratio improved by 0.7 percentage points to 59.3% and
RAROC stood at 18.3%.
Strategy for De Lage Landen
www.delagelanden.com
De Lage Landen helps Rabobank achieve market leadership in the Netherlands by offering
leasing and factoring products as well as consumer loans. On a global level, De Lage Landen
endeavours to increase the share of food and agri in its leasing portfolio.
Boasting an extensive global vendor finance and car-leasing network, De Lage Landen
provides an excellent platform for synergies with other divisions of Rabobank Group, for
instance where globally operating corporate clients are concerned.
De Lage Landen: partnership in offering a group-wide customer proposition
De Lage Landen reviewed its strategy in 2010, culminating in the strategic plan 2011-2013
whose implementation was launched on 1 January 2011The plan is aimed at capitalising on
investments made in the global network, the product offering and the systems within the
existing business model.The outcome should be that:
Rabobank Group strategy Contribution to group strategy
All-finance market leader in the Netherlands
- Supporting Rabobank by aspiring to market leadership in equipment, vendor and car
leasing, and in factoring
- Increasing share of consumer loans market
International food and agri bank
- Offering asset-based finance solutions in support of Rabobank International's global
retail and wholesale activities
- Tracking, and providing guidance and support to food and agri-related manufacturers,
vendors and distributors of capital goods
- Broadening the share of food and agri in the portfolio
Share in Rabobank Group's
net profit for 2010
Leasing 7%
47
Leasing