DLL, a global provider of asset-based finance, reported interim results for the first half of 2023. Despite current economic and geo-political challenges, the company delivered portfolio and income growth during the first six months of the year with net profits of €260m.
The company’s portfolio balance, when adjusted for currency movements, increased by 5% when compared to December 31, 2022, and totalled €42bn ($46bn). New business volume was €19bn ($20bn) and reflected growth of 22% on a year-over-year basis.
The company reported a net profit of €260m ($281m) for the first six months of 2023, which represented an increase of 157% from the prior year when the result was heavily diluted by impairments linked to the decision to cease all business activities in Russia and divest the local business.
2023 saw a continuation of the significant increase in market interest rates, as Central Banks continued their efforts to fight inflation.
Consequently, DLL’s interest expense grew to €582m ($629m), or 285 basis points (bps) compared to 125 bps in the same period the year before. Despite the increase in interest expense, DLL improved its net interest income with 5.8% growth to €645m ($697m) adjusted for currency movements, compared to €612m in the same period last year.
Impairments for the first half of 2023 totalled €55m ($60m). This result equates to 27 bps, well below the long-term average of 40 bps. DLL closely monitors developments in this area as the global economy continues to face headwinds. The company continued to focus on strategic investments in the climate and energy transition, on strengthening the operations and control environment and on digitisation to further enhance the customer experience.
Carlo van Kemenade, CEO and chairman of the DLL executive board, said: “In this time of fast-changing economic and geo-political challenges, we remain committed to our customers and markets, standing by our partnership promise. I am proud that we were able to grow our portfolio and present strong interim results, which reflect our solid partnerships and the hard work exhibited by our global workforce.”