German SME lessor VR Leasing
returned to profit in the year to end-December 2010, despite a fall
in the number of new contracts signed.
Profit before tax was €5m in 2010,
compared to a loss of €16.7m the year before, thanks to a reduction
in loan loss provisions, which fell 29.7 percent to €82.3m, down
from €117.1m.
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New contracts signed during 2010
totalled 108,651, down from 126,601 in 2009, owing to the company
introducing a more conservative risk policy.
Net interest income fell to
€190.3m, down from €201.3m. Administrative costs were also down,
from €176.3m to €171.4m.
The company’s rating of A with a
stable outlook by Standard & Poor’s was confirmed.
VR Leasing commented that mid-sized
companies had held back on investments during the first half of
2010, leading to lower demand for financial contracts, and that the
decline in new business was more pronounced in Germany than in
other markets.
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By GlobalDataGermany’s cooperative banks remain
an important part of VR’s activities; it does business with
two-thirds of them.
The company’s factoring unit, VR Factorem, reported sales up to
a record €2.3bn, compared to €1.8bn in 2009.
