Leasing
Highlights
Financial Results Notes to the Financial Results
-
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
DLL had a strong year with a net profit of EUR 399 million and a portfolio growth of 9%.
DLL's Food Agri portfolio equals almost EUR 13 billion, representing 38% of DLL's total portfolio. The growth of the Food Agri
portfolio was most notable in Europe and Australia.
Income tax increased by EUR 165 million as the 2017 results were heavily impacted by the U.S. tax reform, resulting in a significant one-
off benefit.
Results
in millions of euros
12-31-2018
12-31-2017
Change
Net interest income
986
1,008
-2%
Net fee and commission income
106
75
41%
Other results
274
207
32%
Total income
1,366
1,290
6%
Staff costs
487
487
0%
Other administrative expenses
224
208
8%
Depreciation
27
28
-4%
Total operating expenses
738
723
2%
Gross result
628
567
11%
Impairment charges on financial assets
105
106
-1%
Regulatory levies
25
22
14%
Operating profit before tax
498
439
13%
Income tax
99
(66)
Net profit
399
505
-21%
Impairment charges on financial assets (in
basis points)
34
36
Ratios
Cost/income ratio including regulatory
levies
55.9%
57.8%
Underlying cost/income ratio including
regulatory levies
55.3%
57.8%
Balance Sheet (in billions of euros)
Lease portfolio
33.5
30.8
9%
Number of internal employees (in FTEs)
4,610
4,302
7%
Number of external employees (in FTEs)
416
335
24%
Total number of employees (in FTEs)
5,026
4,637
8%
Development of Underlying Operating Profit Before Tax
in millions of euros 12-31-2018 12-31-2017
Income 1,366 1,290
Operating expenses 738 723
Adjustments to expenses Restructuring 7 (1)
Underlying expenses 731 724
Impairment charges on financial
assets 105 106
Regulatory levies 25 22
Operating profit before tax 498 439
Total adjustments 7 -1
Underlying profit before tax 505 438
Income Increased by 6%
Total income from the Leasing segment increased by 6% to
EUR 1,366 (2017:1,290) million in 2018. Net interest income
decreased by 2% to EUR 986 (2017:1,008) million, as the result of
somewhat lower margins on new business compared to 2017.
Net fee and commission income increased to EUR 106 (2017:
75) million, caused by higher fee income for syndicated leases as
well as a negative one-off adjustment in 2017. Other results
mainly consist of income from operational leases as well as
results from sales of end-of-lease assets and increased to EUR 274
(2017:207) million. This improvement can be attributed to the
release of a provision for foreign activities of DLL that was taken
late 2017.
Operating Expenses Up by 2%
Total operating expenses in the Leasing segment increased to
EUR 738 (2017: 723) million. Despite the higher number of
employees, staff costs remained stable at EUR 487 (2017:
487) million, which can be partly explained by the lower costs
related to the pension accrual guarantee given to the pension
fund. Staff levels in the Leasing segment showed an increase of
8% to 5,026 FTEs on December 31, 2018. Other administrative
expenses increased to EUR 224 (2017:208) million in line with the
Annual Report 2018 - Appendices
92