Record margin as SGEF
bounces back half-way through the year. Liz Bury
writes.
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SG Equipment
Finance reported a return to growth mid-way through 2010 and has
since experienced a sustained upward trend in new business
volumes.
Total new business grew 2.3%
on average during 2010, reaching €9.33bn, compared to €9.12bn in
2009.
The UK had a strong year,
recording growth of 21%, Poland was good, also up 21%; and Spain
rebounded with 66% growth, reflecting recovery in the high-tech
market.
Volume increased a small
amount in the US, in line with the market; and growth in Brazil and
China was stated as “robust”.
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By GlobalDataThe high point of the
performance was margin.
“In terms of bottom line,
2010 will remain as a très bon cru (a vintage year),” Benoit Chenu,
SGEF head of sales and marketing, said.
“We made a good level of net
banking income. The bottom line was one of our best since the
creation of SGEF. It more than compensated for the declines in
volume.”
Stronger margin compensated
for cost of risk during 2010, which was an improvement on 2009 when
margin gains failed to make up for the cost of risk.
The shape of the year – a
turnaround starting in June and continuing steadily from there –
was also seen in figures from related industry sectors such as
construction, printing and trucks.
Figures from parent bank
Société Générale showed a decline in new leasing business
(excluding factoring) of 3.6% to €7.6bn for the year to 31 December
2010.
However in Q4 new business
rose 18.9% compared to the third quarter.
SGEF is part of the
specialised financial services and insurance division, including
consumer finance, operational vehicle leasing and fleet management,
IT leasing and management, and life and non-life
insurance.
Cost of risk at specialist financial services, a
sub-division which excludes insurance, declined by 35 basis points
to 221 basis points, helped especially by SGEF.
