2016 Balance Sheet Press Conference: a solid result and a strengthened capital base
Economic result increases to EUR 137 million
New business reaches EUR 8.2 billion
Intragroup business and factoring are key growth areas
The economic result of the Deutsche Leasing Group increased to EUR 137 million in the financial year 2014/2015 (reporting date: 30 September), a growth rate of 7 per cent on the previous year (EUR 128 million). Leasing income resulting from leasing and hire-purchase business and from the sale of second-hand leasing assets rose from EUR 4,250 million to EUR 4,483 million in the same period and was thus almost 6 per cent higher than in the previous year. The net profit for the year increased by 3 per cent to approx. EUR 67 million. The net asset value rose to almost EUR 1.8 billion.
“We have realised this solid result despite the erosive effect of current interest rate levels and other burdens associated with one-off factors,” said Kai Ostermann, the Chief Executive Officer of the Deutsche Leasing Group, at the company’s balance sheet press conference in Frankfurt. “We have thus achieved our long-term target income level and guaranteed the implementation of necessary future investments and the equity trend which is required for our growth from an economic point of view.” This result entails a constant dividend for the company’s shareholders.
New business growth in all segments
With a volume of new business of EUR 8.2 billion, in the past financial year the Deutsche Leasing Group achieved growth of approx. 5 per cent on the previous year. New business in Germany with a volume of EUR 6.3 billion represents a growth rate of 3 per cent. With a new business volume of EUR 1.3 billion, the subsidiary DAL Deutsche Anlagen-Leasing – which handles real estate leasing as well as the energy and transport segments within the Deutsche Leasing Group – realised significant growth on the previous year (2013/2014: EUR 1.1 billion). The Group’s foreign subsidiaries contributed around EUR 1.9 billion and provided approx. 24 per cent of the Group’s new business.
Stable financing basis
Deutsche Leasing has a solid and diversified financing basis through the Sparkassen group’s member institutions (savings banks and federal state banks). Business development banks such as KfW and Landwirtschaftliche Rentenbank are gaining significance, and their share of total borrowed funds once again rose slightly.
Growth outlook for intragroup business
For the current financial year, Deutsche Leasing considers itself well-placed in all of its business segments. Intragroup business with the savings banks remains a key growth area for all of Deutsche Leasing’s products and services. The Commercial and Business Customers segment has realised dynamic growth of 40 per cent. Support for savings bank customers’ activities outside Germany and factoring business are further growth areas.
Satisfactory start to the financial year 2015/2016
All in all, Deutsche Leasing has got off to a good start in the new financial year 2015/2016. Its volume of new business is developing positively. Deutsche Leasing sees potential in all of its business segments, but continues to focus on its intragroup business with the savings banks.
About Deutsche Leasing
The Deutsche Leasing Group is a solution-oriented asset finance partner for German medium-sized companies. In this role, it offers a broad range of investment-related financing solutions (asset finance) as well as supplementary services (asset services). The company is the German savings banks’ centre of excellence for leasing as well as other SME-oriented financing products and services, such as factoring in particular. In its international business segment, Deutsche Leasing supports its German customers’ activities in their core European export markets, as well as in China, the USA, Canada and Brazil. All in all, Deutsche Leasing’s international network comprises 22 countries aside from Germany.