Appendix 7 Our financial performance - segment reporting
Leasing
Leasing segment reaps rewards of ongoing economic growth
Rabobank's leasing arm DLL realised a strong performance in 2017. The leasing segment booked a
net profit of EUR 491 million, a decrease of EUR 166 million compared to last year.This is primarily
the result of the sale of Athlon Car Lease International B.V. at the end of 2016. In 2016, the mobility
solutions entity still contributed to the overall results of the leasing segment. If we exclude the
Athlon results from the 2016 figures, DLL's net interest income and operating profit before tax
increased in 2017 and staff costs increased only slightly.
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Continuous worldwide economic growth had a positive impact
on the results of DLL in 2017. Loan impairment charges remained
at a low level and were in line with 2016. At EUR 106 million or
36 basis points of the average portfolio, loan impairment charges
are well below the long-term average of 60 basis points.
In 2017, the lease portfolio increased to EUR 30.8 billion.
Fx fluctuations negatively impacted portfolio growth, pushing
balances down by approximately EUR 2 billion.The share of
Food Agri business in the lease portfolio remained stable and
totaled 38%.
As part of the long-term growth strategy to diversify the
funding base and liquidity risk, DLL closed its first securitisation
in the United States for approximately USD 500 million. This was
the first step in DLL's ambition to raise more structured funding.
DLL's profile
DLL is a global vendor finance company with more than
EUR 34 billion in assets. DLL provides asset-based financial
solutions in the Agriculture, Food, Healthcare, Clean technology,
Construction,Transportation, Industrial and Office technology
industries. DLL partners with equipment manufacturers, dealers
and distributors in more than 30 countries to support their
distribution channels and help grow their businesses. DLL
combines client focus with deep industry knowledge to deliver
sustainable solutions for the complete asset life cycle, including
commercial finance, retail finance and used equipment finance.
DLL is a wholly owned subsidiary of Rabobank. At 31 December
2017, DLL employed 4,637 FTEs (including external staff).
As implied by DLL's brand promise'See what counts', the global
vendor finance company believes in establishing genuine
partnerships built on personal trust, not just on numbers. DLL
looks beyond quick fixes to deliver sustainable solutions and
seeks to become an integral part of the overall business strategy
and financial plans of its partners. DLL strives to manage multi-
year relationships and develop a strategy that will help partners
grow their market share and profitability over the long term,
efficiently and sustainably.
DLL is fully dedicated to vendor finance. This means the company
provides asset-based financing programmes to manufacturers,
distributors, dealers and resellers at their respective points of
sale. The largest industry markets for vendor finance within DLL
are food and agriculture, followed by construction, transportation
industrial, and office technology. More information about DLL's
industry expertise can be found here.
Customer satisfaction and loyalty
DLL's vendor partners once again voiced their satisfaction with
DLL products and services, which can be seen in our Global Net
Promotor Score (NPS)® of +38, and is a marked improvements
from the +34 recorded in 2016. The vast majority of customers
surveyed indicated that they were'satisfied'or'very satisfied'
with DLL's products and services.
DLL's forward-looking approach
DLL is committed to providing comprehensive solutions that
help its vendor partners successfully navigate their challenging
markets. DLL believes three trends will likely alter the way
vendor partners do business and change their expectations of
financial solutions providers: servitisation, the Internet ofThings
(loT) and the circular economy.The company feels it is its
responsibility to dive into these new worlds, adapt its business
model where needed, and share knowledge with partners and
the industry to make sure it consolidates its value proposition.
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