Financial results of leasing
Notes to financial results of leasing
Results (in millions of euros)
Interest
2011
778
2010
658
Change
18%
Commission
76
83
-9%
Other results
465
440
6%
Total income
1,319
1,181
12%
Staff costs
455
416
9%
Other administrative expenses
269
244
10%
Depreciation and amortisation
50
40
25%
Total operating expenses
774
700
11%
Gross result
545
481
13%
Value adjustments
144
214
-33%
Operating profit before taxation
401
267
50%
Taxation
97
66
47%
Net profit
304
201
51%
Bad debt costs (in basis points)
58
90
-36%
Ratios
Efficiency ratio
58.7%
59.3%
RAROC
25.3%
18.3%
Balance sheet (in billions of euros)
31-Dec-11
31-Dec-10
Loan portfolio
28.1
25.7
9%
Capital requirements (in billions of euros)
Regulatory capital
1.3
1.2
8%
Economic capital
1.3
1.1
18%
Number of employees (in FTEs)
4,964
4,835
3%
Income up 12%
De Lage Landen saw its total income increase by 12%, rising to EUR 1,319 (1,181) million in
2011. Interest income was up 18% to EUR 778 (658) million thanks to active portfolio
management. De Lage Landen paid higher commissions to the local Rabobanks for new lease
referrals. As a result, commission income fell by 9% to EUR 76 (83) million. Increases in residual
value gains on lease products propelled a 6% rise in other results to EUR 465 (440) million.
Operating expenses up 11
De Lage Landen's total operating expenses rose by 11% in 2011, landing at EUR 774 (700)
million. Staff costs were up EUR 39 million, reaching EUR 455 (416) million, because of periodic
salary increases and a larger workforce on average. The headcount increased by 3% to 4,964
(4,835) FTEs. Other administrative expenses grew by 10% to EUR 269 (244) million and
depreciation and amortisation to EUR 50 (40) million due, in part, to the accelerated
amortisation of self-developed software.
Bad debt costs at 58 basis points
The quality of the portfolio improved thanks partly to strict risk management. This helped to
reduce De Lage Landen's value adjustments, which fell by 33% to EUR 144 (214) million,
corresponding to 58 (90) basis points of average lending. Bad debt costs are now 11 basis
points below the long-term average of 69 basis points.
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