Outlook for leasing
Bad debt costs at 43 basis points
Bad debt costs at the leasing segment fell by EUR 39 million to EUR 131 (170) million. In relation
to the average loan portfolio, bad debt costs amounted to 43 (59) basis points and were thus well
below the long-term average of68 basis points. The diversification of the lease portfolio across
countries and sectors in combination with the economic recovery and strict risk management
contributed to the lower level of bad debt costs.
Regulatory capital rises slightly
The regulatory capital or external capital requirement for DLL rose in 2014 to EUR 1.4 (1.3)
billion. The credit risk was more or less unchanged. The decline in credit risk as a result of the
introduction of the CRR (CRD IV) was offset by an increase in assets. Operational risk also
increased. The economic capital or internal capital requirement rose to EUR 1.5 (1.4) billion.
The strategy of DLL will not change in 2015: the emphasis will be on entering into long-term
partnerships in the industries where DLL can offer added value to its customers. As a result of
the trend from ownership to usage that DLL is seeing in various markets, DLL expects demand
for funding for actual usage to increase. DLL is studying the application of new technologies in
the solutions it offers and is thus keeping pace with social developments. Lor instance, DLL is
researching the possibilities for offering support for care at home in the field of healthcare.
In the food and agri sector, the focus is on how technology can help in feeding more people
with existing resources. DLL continues to invest in new and sustainable business models that
will benefit customers in the longer term. DLL will further strengthen its involvement with its
partners, because the organisation believes in mutual success through adding value in the form
of integrated financial solutions that assist customers to achieve their goals, prepare them for
the market of the future and allow their businesses to grow in a sustainable manner. In practical
terms, DLL expects to see modest growth in the lease portfolio in 2015 and a result in line with
that achieved in 2014.
Rock-solid bank: performance
