Leasing
Strong results thanks to higher margins and lower
bad debt costs
www.delagelanden.com
De Lage Landen can look back on a successful year despite the poor market.
Lower bad debt costs and higher interest income fuelled an increase in net profit
by EUR 103 million to EUR 304 million. Active portfolio management resulted in
higher volumes and better margins. What is more, the residual value gains of
several lease products showed recovery. The loan portfolio was up EUR 2.4 billion,
mounting to EUR 28.1 billion. The share of food and agri saw further increases in
accordance with the strategic plan; it stood at 27.4% (26.8%) of the portfolio.
Dutch loans made up 24.5% (25.3%) of lending. The acquisition of a consumer
loan portfolio from Achmea drove a 28% increase in consumer loans to EUR 1.3
billion. De Lage Landen was awarded the title of'Green Lessor of the Year'for
the second consecutive year. This award is a reflection of De Lage Landen's
sustainability policy, which endeavours to leave as small a climate footprint as
possible and make a positive impact on the local communities of the countries
in which it operates.
About De Lage Landen
De Lage Landen offers financing solutions on a global scale to businesses and consumers; its
principal labels are De Lage Landen, Athlon Car Lease, Freo and Fideaal. De Lage Landen is
market leader in the Dutch equipment lease segment. De Lage Landen helps Rabobank
achieve market leadership in the Netherlands by offering equipment leasing, car leasing and
factoring services, as well as consumer loans. On an international level, De Lage Landen seeks
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 offers an excellent platform for
synergies with other divisions of Rabobank Group.
Strategy
De Lage Landen's strategy is aimed at further optimising its portfolio. Options for how to
provide better support to existing customers are being explored within the Vendor Finance
division. The strategy centres on working in tandem with other Rabobank Group entities.
In the Netherlands, De Lage Landen has collaborated closely with the local Rabobanks for
many years. Teamwork is stepped up in an international context too, for instance in Poland
where De Lage Landen has a joint venture with Bank BGZ, and in China where Rabobank
International and De Lage Landen have entered into a partnership with the Agricultural Bank
of China. The OneDLL programme is meant to further intensify ties between the different
divisions of De Lage Landen.
Vendor Finance
De Lage Landen has two operating divisions, i.e. Vendor Finance and Finance Mobility
Solutions. Vendor Finance forges partnerships with suppliers of capital goods, for instance in
the form of joint ventures. This approach underlines De Lage Landen's ambition to build long
standing relations with customers. Food and agri makes up a substantial portion of the vendor
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Annual Report 2011 Rabobank Group
