Antonio Fabrizio talks risk with Frederik Linthout

The recent rebranding of Germany’s
HVB Leasing to UniCredit Leasing GmbH is the latest example of the
Milan-headquartered lessor’s new strategy to promote a shift from
“patchwork to network” across its European satellites.

But if the change in form is notable and
visible, there’s no change in substance for a leasing company which
was founded back in 1963 and which helped to pioneer the German
leasing market. In fact, the German lessor will continue to be
100-percent owned by HypoVereinsbank (itself owned by UniCredit
since 2005), and the same key people will be still there, including
the company’s CEO Frederik Linthout.

Linthout has been working at the lessor for
over 20 years, and currently has responsibility for risk, finances
and IT, while his colleague Stefan Lechner is in charge of the
sales function.

This distinction follows German financial
regulations, which require that leasing companies which also are
banks – as in the case of UniCredit Leasing GmbH – have two
separate CEO roles for origination and credit decision. From the
risk point of view, Linthout has always run a tight ship, and this
was reflected in the company’s recent performance.

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Indeed, while risk provisioning has
considerably increased following the financial crisis, September
2009 figures showed that the company still had a satisfying
performance in terms of risk provisioning compared with the rest of
the German market, Linthout said.

A large part of that is directly attributable
to his strategy, which has included a cautious approach in areas
like road transport and automotive, two of Germany’s worst-hit
sectors. However, according to Linthout, recovery rates have been
satisfactory and at fair values, thus reducing losses. Recent deals
have included a €20 million rail financing project, as well as a
contract with a supermarket chain and another with a logistics
company for tank containers, both multi-million euro
investments.

UniCredit Leasing GmbH is also investing
heavily in renewable energy, and is in the process of finalising a
€50 million project in the photovoltaic sector.

Compared with 2008, the company’s new business
volume this year has so far decreased by around 25 percent, less
than UniCredit Leasing Group’s 40 percent average drop.

The decrease has been offset by higher
margins, in line with the rest of the German market, and following
a number of years when huge competition significantly narrowed
margins.

UniCredit Leasing GmbH