Annual press conference 2016: Deutsche Leasing extends market leading position
Deutsche Leasing Group successfully closed its financial year 2015/16 with new business growth of around 5.4 per cent to EUR 8.7 billion (reporting date: 30 September). In key strategic segments, Deutsche Leasing grew faster than the market.
Alliance business with the savings banks was one of the strongest and most important revenue pillars at Deutsche Leasing, with growth of 8 per cent. ‘Last year, we reorganised our savings bank sales force with the aim of coordinating our marketing activities,’ says Kai Ostermann, Chairman of the Board of Deutsche Leasing. ‘This enables us to optimise the way we jointly address the investment needs of savings banks customers, corporate and commercial customers as well as business clients.’
The road vehicles segment generated year-on-year growth of 16 per cent in the reporting year. New fleet business rose by 12 per cent to EUR 736 million and the market share was able to be increased.
With EUR 1.4 billion of new business, up 6 per cent on the previous year, DAL Deutsche Anlagen-Leasing, which is responsible within the Deutsche Leasing Group for property leasing as well as energy and transport solutions, made a significant contribution to the positive performance. In this segment, which is dominated by large-scale transactions, energy and transport business increased by 65 per cent, whereas property leasing reported a decline of 34 per cent.
The international companies grew moderately and were slightly up on the previous year. ‘Taken as a whole, we were able to increase our new business in many countries and thereby make up for declines, especially in China and Brazil,’ explains Matthias Laukin, Management Board member and responsible for international business. The Group built on its position as a partner of the capital goods industry for vendor financing. In Germany, it significantly increased its new business volume in this area by 18 per cent.
Deutsche Factoring Bank is a key strategic pillar
The acquisition of a majority stake in Deutsche Factoring Bank and the pooling of factoring activities under the roof of Deutsche Leasing Group was a vital strategic milestone last year. By the company’s own account, integration is going to plan. For 2017, the plan is to keep increasing marketing activities in association with the savings banks, with the aim of boosting market share.
Bad Homburger Inkasso GmbH, an associate of the Deutsche Leasing Group, reported an increase of 18 per cent in customer numbers. Payments received came to approximately EUR 200 million in the year under review. BHI’s customer base now includes more than 700 customers – of which about half come from the Savings Banks Finance Group.
S-Kreditpartner also continued on its course of growth. From January to September 2016, it generated new business to the amount of EUR 1.9 billion and signed full cooperation agreements with an additional 20 savings banks. This brings the number of full cooperation agreements with savings banks to 140 in total. In addition to its branch business, S-Kreditpartner will be expanding its online business, S Kredit-per-Klick, in the upcoming financial year.
Financial year 2015/16
The environment remains challenging for the asset finance industry due to low interest rates, regulatory demands, pricing pressure and tough competition. ‘We still see substantial economic and geopolitical uncertainty and downside risk,’ says Ostermann. ‘Under these circumstances, we will weigh up growth and risks even more carefully against one other and keep an eye on costs.’
The main strategic decisions have been taken for the financial year 2016/17, he adds. ‘The reorganisation of the sales force for savings bank business will take effect in the financial year ahead, so we can continue to strengthen our partnership in that alliance and realise even more potential in small and medium-sized companies, also by accompanying international investments,’ says Ostermann. The potential of digitisation for business methods and processes will also be systematically examined to realise additional growth.
About Deutsche Leasing
Deutsche Leasing Group is the solutions-oriented asset-finance partner of small and medium-sized businesses in Germany. In this role, it offers a wide range of investment-related financing solutions (asset finance) and supplementary services (asset services). The company is a centre of excellence for German savings banks for leasing and other finance products and services for small and medium-sized companies, especially factoring. In its international business, Deutsche Leasing accompanies its German clients to the main European export markets, to China, the USA, Canada, and Brazil. Overall, Deutsche Leasing’s international network comprises 22 countries in addition to Germany.