Despite tax and interest rises in
Germany operating earnings at Deutsche Leasing Group rose 27 per
cent last year, while growth in its foreign businesses is expected
to fuel profits in 2008.

Prudent credit management meant default volumes, of €21.5m, were
lower than expected in 2007, although despite the creation of 149
new jobs its assets under management rose by only €1.6bn to reach
€28.8bn.

Leasing of moveable assets rose 21 per cent to total €6.2bn and
its combined real estate and structured finance arm grew 38 per
cent to total €1.6bn, fuelled partly by its majority acquisition in
Deutsche PPP Holdings GMBH, which operates public sector
construction projects. New business grew 24 per cent to reach
€7.8bn.

While domestic leasing of moveables is expected to be flat
year-on-year in 2008, new business for the year to March 31 2008 is
expected to grow 11 per cent, driven largely by new foreign
business.

The Group’s parent, Deutsche Sparkassen Leasing AG, reported net
profits for year end 2007 of €32.5m.