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Balance sheet press conference, 2022: Deutsche Leasing achieves new business volume and earnings at pre-coronavirus level
The most important points of the conference call at a glance:
- New business up by approx. 8 per cent to EUR 9.9 billion - Economic result of EUR 175 million matches pre-coronavirus level - Strong net asset value growth to EUR 2.2 billion - New business in Russia frozen for time bein
In the financial year 2020/2021, the Deutsche Leasing Group achieved a volume of new business of EUR 9.9 billion and an economic result of EUR 175 million and thus matched its pre-coronavirus crisis level. Deutsche Leasing has therefore slightly expanded its market shares.
Its consolidated balance-sheet total has increased by 2.1 per cent to EUR 22.6 billion. With a figure of EUR 1.4 billion, equity including provisions under §§340 f and g of the German Commercial Code (Handelsgesetzbuch, HGB) exceeded the 2018/2019 pre-crisis level as well as the level in previous years. The distribution made to the savings banks as the Deutsche Leasing Group’s shareholders was more than doubled to EUR 28 million.
Besides the economic result, the second key leasing-specific indicator, the Group’s net asset value, amounted to EUR 2.2 billion and thus achieved significant growth year-on-year.
“Despite the challenging circumstances, in the financial year 2020/2021 we were able to reach our pre-coronavirus crisis level sooner than expected, return to our growth strategy in stronger shape and slightly expand our position in the asset finance and asset service market,” remarked Kai Ostermann, Chief Executive Officer of Deutsche Leasing, at the company’s balance sheet press conference.
Positive trend for subsidiaries and investments
With a new business volume of EUR 2.3 billion, DAL Deutsche Anlagen-Leasing was able to maintain the previous year’s high level. Our core real estate leasing business and the future market of renewable energy (mainly solar and wind farms) both contributed to the positive new business trend.
Deutsche Factoring Bank achieved factoring turnover of EUR 20.1 billion in 2021 (as at 31 December 2021). This represents an 18.8 per cent increase year-on-year. Business with new and existing customers in Germany and import factoring both contributed to this positive business trend.
S-Kreditpartner, a joint venture of Deutsche Leasing and Landesbank Berlin/Berliner Sparkasse, achieved a new business volume of EUR 4.3 billion in the past year. This was the second-highest volume of new business since its founding (2011). In 2021, its total assets exceeded the EUR 10 billion mark.
Market opportunities exploited and further progress in the area of megatrends
“We have exploited our market opportunities, made visible progress in the field of digitalisation and strategically defined sustainability as a key topic of the future,” says Ostermann by way of explanation for this success.
In our cooperation with the savings banks, we have expanded our range of digital services in the business and commercial customers segment. An online application handling process makes it possible to complete an S-Gewerbekredit loan transaction through the full range of contact options, both digitally and in person.
The Deutsche Leasing Group has entered into two important strategic partnerships in its international business: in future, asset finance business in the Scandinavian countries will be covered through the Norwegian market leader DNB. In Hungary, Deutsche Leasing has entered into a sales partnership with Erste Bank. Deutsche Leasing has strengthened its sales activities in Germany, Austria and Switzerland (the “DACH” region) by establishing its own branch office in Switzerland.
60 years of Deutsche Leasing: outlook for the financial year 2021/2022
In the current financial year, Deutsche Leasing will continue to invest in the company’s digitalisation, automation and IT modernisation. The reorganisation, modernisation and cost optimisation of its IT system is a cornerstone of this.
In terms of its strategic service and advisory focus, Deutsche Leasing is concentrating on assisting the SME sector with the process of decarbonisation. “With advisory services and financing products for sustainable investments – in renewable energy, power purchase agreements (PPA), energy-oriented construction management and electric mobility, including in the local public transport sector, Deutsche Leasing is set to exploit the megatrends of the next few years,” says Ostermann of the outlook for Deutsche Leasing. The Deutsche Leasing Group has got off to a good start in the new financial year 2021/2022. Thanks to a favourable risk situation, earnings are also better than in the previous year.
“It is impossible to make any reliable predictions for the second half of the year. Like the entire real economy, we are currently focusing on the Ukraine war, which primarily means indescribable human suffering, but will undoubtedly also have an economic impact,” says Deutsche Leasing’s Chief Executive Officer. Deutsche Leasing is not active in Ukraine.
In response to the war of aggression against Ukraine, since early March the Deutsche Leasing Group has frozen all new business in Russia for the time being and is safeguarding the viability of day-to-day business operations in the prevailing sanctions environment and in close consultation with its customers and partners. In the past financial year, Russian new business accounted for 1.3 per cent of the new business of the Deutsche Leasing Group.
The Deutsche Leasing Group is the leading solutions-oriented asset finance partner for German small and medium-sized enterprises and offers a broad range of investment-related financing solutions (asset finance) as well as supplementary services (asset services). Within Sparkassen-Finanzgruppe, as a central and international group partner Deutsche Leasing is the centre of excellence for leasing and factoring as well as other asset finance solutions and complementary services aimed at small and medium-sized companies both in Germany and abroad. In its international business segment, Deutsche Leasing supports its German customers’ activities in 23 countries, including their core European export markets, as well as in China, Russia, the USA, Canada and Brazil. For 60 years, Deutsche Leasing has been helping its small and medium-sized customers from industry, commerce, and both the service and public sectors to invest in innovation and transformation.
