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Balance sheet press conference, 2020: Deutsche Leasing Group outperforms the market
Balance sheet press conference, 2020: Deutsche Leasing Group outperforms the market
The most important points of the conference call at a glance:
- New business growth exceeds 12 per cent - Net asset value increases to more than EUR 2 billion - Economic result reaches EUR 170 million - Berliner Sparkasse’s interests in AKA acquired for the development of ECA business - Swiss office planned
In the financial year 2018/19 (balance-sheet date: 30 September 2019), the Deutsche Leasing Group continued to expand its volume of new business and exceeded the EUR 10 billion limit (EUR 10.3 billion; previous year: EUR 9.2 billion). With a stable trend for SMEs and savings banks business at the same level as in the previous year, in particular large-scale and international vendor business in 23 countries contributed to the Group’s positive new business trend. The Group has thus significantly outperformed the leasing sector as a whole.
Its economic result rose by 7 per cent to EUR 170 million. Its net asset value increased by 5 per cent to slightly in excess of EUR 2 billion. Equity including the contingency reserves in accordance with §§340f and 340g of the German Commercial Code rose by EUR 74 million and totaled EUR 1.3 billion.
“Despite the economic slowdown and political uncertainty, in the past financial year we expanded our market share and were able to further consolidate our capital base,” says Kai Ostermann, Chief Executive Officer of Deutsche Leasing AG. “This positive trend means that we are able to keep our dividend distribution to our shareholders at a high level of EUR 40 million.”
DAL Deutsche Anlagen-Leasing once again registered a successful financial year and made a significant contribution to the Group’s overall success. With a new business volume of EUR 2.5 billion, DAL achieved a record result in the financial year 2018/19. New business was characterised by several large-scale transactions in the regional rail passenger transport segment.
Deutsche Factoring Bank stabilised its factoring turnover as of 31 December 2019 at the previous year’s level, with a volume of EUR 18.2 billion. The share of import and export factoring business increased and reached 27 per cent.
S-Kreditpartner (SKP), a joint venture of Deutsche Leasing and Landesbank Berlin/Berliner Sparkasse, increased its volume of loans by 18 per cent to EUR 8.3 billion (as of 31 December 2019) due to the expansion of instalment credit business with the company’s partners as well as the new savings bank customers picked up. More than half of the savings banks are now using SKP’s range of products and services through fully fledged partnerships.
Start of the financial year 2019/20
The Deutsche Leasing Group started out in the first quarter of the financial year 2019/20 with a positive business trend and has already initiated or completed important strategic projects.
Within Sparkassen-Finanzgruppe, Deutsche Leasing intends to further expand its role in the business and commercial customers segment and to develop a holistic and digital product portfolio for the savings banks in this segment. Deutsche Leasing is currently piloting a loan for this customer group which enables investments of up to EUR 70,000 either online or at a savings bank branch within the space of a few minutes.
In mid-March, Deutsche Leasing reached an agreement with Berliner Sparkasse on the purchase of the latter’s interests in AKA Ausfuhrkredit-Gesellschaft mbH (AKA). The Deutsche Leasing Group is thus pursuing the goal of expanding its ECA (export credit agency)-backed business, focussing on a volume of investment of between EUR 1 and 10 million, and offering this worldwide. This ECA offering is particularly suitable for SME customers of the savings banks and Deutsche Leasing. A related partnership agreement was already signed with the 25 largest savings banks in the previous year. Deutsche Leasing officially joined the AKA consortium at the shareholder banks’ regular meeting in late April.
In its international business, Deutsche Leasing is strengthening its commitment to Germany, Austria and Switzerland (the “DACH” region) in order to support companies in this part of Europe in over 20 sales and investment markets worldwide. With this goal in mind, Deutsche Leasing is planning to establish an office in Zurich to support investment goods manufacturers in Switzerland as well, as a partner and platform provider for their sales financing activities.
“Our economic development and our strategic investment and innovation trajectory were within our planning range up to March,” Ostermann adds. “It is not currently possible to foresee the consequences of the Covid-19 crisis. However, we envisage a serious economic downturn, which will also have a sustained impact on our planning as a partner to the real economy.”
The Deutsche Leasing Group is the leading solution-oriented asset finance partner for German SMEs and offers a broad range of investment-related financing solutions (asset finance) as well as supplementary services (asset services). Within Sparkassen-Finanzgruppe, Deutsche Leasing is the centre of excellence for leasing and factoring and other SME-oriented asset finance solutions and supplementary services in Germany and other countries. In its international business segment, Deutsche Leasing supports its German customers’ activities in 22 countries, including their core European export markets, as well as in China, Russia, the USA, Canada and Brazil.
