Financial results of leasing
Notes to financial results
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Lease portfolio by region
at year-end 2016
Europe 49%
America 44%
Asia/Pacific 7%
Results
Amounts in millions of euros
Net interest income
Net fee and commission income
Other income
Total income
Staff costs
Other administrative expenses
Depreciation
Total operating expenses
Gross result
Impairment losses on goodwill and
investments in associates
Loan impairment charges
Contribution to resolution fund and DGS
The total portfolio decreased by 2% to EUR 34.9 (35.7) billion.
DLL's loan portfolio (financial leases only) amounted to
EUR 31.8 (29.7) billion. DLL supports Rabobank's Banking for
Food and Banking for the Netherlands strategies by supporting
manufacturers, distributors and end-customers within the
Food Agriculture sector, both internationally and within
the Netherlands. In 2016, the Food Agriculture business
line of DLL grew to EUR 11.8 (11.1) billion and now represents
34% (31%) of the DLL portfolio. The leasing, factoring and
consumer finance portfolio in the Netherlands decreased to
EUR 5.9 (6.6) billion and now represents 17% (19%) of the DLL
portfolio. This decrease in the Netherlands market is due to the
aforementioned sale of Athlon Car Lease.
External recognition
DLL was honoured for its efforts, receiving the Vendor Finance
Provider award from Leasing Life, one of the top leasing
industry journals in Europe. The Vendor Finance Provider
award recognises an asset finance lessor that has worked in
conjunction with a manufacturer to provide tailored asset
finance at the point of sale. The jury explains: 'Through DLL's
high quality feedback in their endorsements from clients and
their unconditional focus on the vendor partnerships, DLL far
surpassed the competition within the Vendor Finance Provider
category, making them the winner.'
2016 2015 Change
1,086 1,094 -1%
90 57 58%
816 568 44%
1,992 1,719 16%
616 601 2%
285 277 3%
31 38 -18%
932 916 2%
1,060 803 32%
0 10 -100%
101 85 19%
11 9 22%
Bank tax and levy 11 10 10%
Operating profit before tax
937
689
36%
Income tax
197
191
3%
Net profit
740
498
49%
Loan impairment charges
(in basis points)
30
25
20%
Ratios
Cost/income ratio
exclusive regulatory levies
46.8%
53.3%
Cost/income ratio
inclusive regulatory levies
47.3%
54.4%
Balance sheet (in EUR billion)
31-12-2016
31-12-2015
Lease portfolio
34.9
35.7
-2%
Number of internal employees (in FTEs)
4,323
5,402
-20%
Number of external employees (in FTEs)
352
422
-17%
Total number of employees (in FTEs)
4,675
5,824
-20%
Income up 16%
Total income from the leasing segment rose to EUR 1,992 (1,719)
million in 2016. Net interest income was more or less stable
at EUR 1,086 (1,094) million. Net fee and commission income
increased to EUR 90 (57) million as a result of the higher
activity level. Other income mainly consisted of sales results
on end-of-lease assets and income from operational lease
contracts. In December, the sale of Athlon which resulted in
a book profit of EUR 251 million contributed largely to the
increase in other income. Consequently, other income rose to
EUR 816 (568) million.
44
Rabobank Annual Report 2016
