International leasing company DLL has recorded net profit of €179m (£163m) in the first six months of 2019, a year-on-year drop of 26%.
According to the company, this result was adversely impacted by exceptional items, including a significant one-off income tax reclassification in Europe, in addition to an increase in risk costs. The underlying performance of the portfolio continued to trend positively, with net interest income of €522m, which represented more than 6% growth over the prior year.
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The DLL results for 2018 also showed a year-on-year fall in profit before tax in continued operations from €517m (£444m) to €495m. Total net income showed a nominal fall from 2017 to 2018 financial year, from €1.38bn to €1.33bn.
For H1 2019, the company’s portfolio balance increased 7% year-on-year and totaled €34.6bn. During this same period, new business volume was €13bn, representing 8% growth over the prior year.
Bill Stephenson, chief executive officer and chairman of the executive board, said: “DLL continues to be an integral part of the growth and success of our customers around the world. In a challenging market environment, the underlying performance of the business remains positive and we intend to continue making investments in our people, who play a key role in delivering our value proposition, as well as projects that will accelerate our digital transformation and deliver innovative business models to our customers.”
Marc Dierckx, chief financial officer and member of the executive board, said: “Our focused management of lease pricing allowed us to slow margin compression in many of our key markets. However, this was offset by the continued normalization of our risk costs, which were previously at record lows but continue to increase in line with external market conditions.”
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By GlobalDataDuring this period, DLL reported risk costs more than doubled to €86m. The company also continued efforts to diversify its funding sources, including the successful closing of a £306m securitization in the UK.
