Notes to financial results of leasing
Income up 10%
Operating expenses up 3%
Bad debt costs at 53 basis points
Stability in regulatory capital
Outlook for leasing
De Lage Landen saw its total income increase by 10%, rising to EUR 1,457 (1,319) million in
2012. The lease portfolio grew thanks to the provision of a broader range of services to
existing customers. In addition, active portfolio management helped to grow interest income
by 22% to reach EUR 952 (778) million. Higher commission payments to the local Rabobanks
resulted in a 17% fall in commission to EUR 63 (76) million. Other income was down 5%,
dropping to EUR 442 (465) million, because of lower residual value gains on lease products.
De Lage Landen's total operating expenses landed at EUR 796 (774) million in the reporting
period. Staff costs were up EUR 71 million, rising to EUR 526 (455) million, due to an increase
in the number of temporary outside staff, a higher headcount and an increase in wage costs.
The headcount increased by 3% to 5,117 (4,964) FTEs. Other administrative expenses were high
in 2011 because of project costs incurred for self-developed software. As these costs were
lower in 2012, other administrative expenses fell by 17%, landing at EUR 223 (269) million.
At EUR 47 (50) million, depreciation and amortisation charges were more or less the same.
Value adjustments at De Lage Landen increased by 2% to EUR 147 (144) million in the year
under review. Thanks to the global spread of the operations, the increase was very limited.
Bad debt costs in basis points were down, landing at 53 (58) basis points of average lending,
well below the long-term average of 69 basis points.
At EUR 1.3 (1.3) billion, De Lage Landen's capital requirement was stable in 2012. The required
economic capital, i.e. the internal capital requirement, also remained unchanged at EUR 1.3
(1.3) billion.
De Lage Landen will continue its current strategy in 2013 by maintaining its focus on
investing in relationships with partners. The goal is to develop sustainable partnerships
that are profitable for both partners in the near as well as in the more distant future.
De Lage Landen plans to further streamline its existing portfolio and continue to broaden
its service offering to existing customers. 2012 saw the launch of the Action Project, which is
designed to bring about structural cost reductions.This project should create a more efficient
organisation in 2013.
67 Our specialist subsidiaries
