Societe Generale’s fleet leasing subsidiary ALD Automotive has posted €343.7m (£315.8m) in profits for the first half of 2019, a year-on-year decline of 1.8%.
There was also a 27.4% fall in car sales year on year, from €59.8m to €43.4m. There was a 7.2% increase in total fleet to 1.7m vehicles worldwide.
Gross operating income was €681.4m in the first half of 2019, up 1.6% year-on-year.
Operating expenses were up 2.8% in H1 2019 vs. H1 2018, pushing the Cost/Income ratio (excluding Car Sales Result) down to 49.4% from 50.7% a year earlier. Net income was €280.7m in H1 2019, showing virtually no change from the €280.0m recorded in H1 2018.
Key events for the company during this half of the year included an agreement to acquire BBVA Automercantil’s vehicle renting portfolio in Portugal. The transaction also includes the entry into an agency agreement whereby BBVA will make a full service leasing solution managed by ALD available to its corporate and private customers in Portugal.
ALD Automotive also completed the acquisition of Stern Lease acquisition and partnership agreement in the Netherlands, as well as entering into a partnership with retail chain Eroski in Spain.
Mike Masterson, ALD chief executive officer, said: “In Q2 19, ALD has again proven its resilience in a complex environment, with fleet growth in line with expectations. Private lease continued to show strong dynamics and passed an important milestone in Spain, where ALD was selected by Amazon for the distribution of personal car leasing.
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“The shift in our fleet away from diesel has accelerated, outperforming the objectives we had set ourselves for this year. We continue to actively promote electric and hybrid vehicles and are enriching our offer around electric vehicles. Our solid financial performance in Q2, which was underpinned by our commercial successes and our strong operating leverage, makes us confident we will reach the guidance we have set for 2019.”