profits in Q2
Net profits for quarter two at the leasing and factoring arms of
ING dropped by some 15 per cent year on year.
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Profits after tax for the first six months of 2008 totalled €28m
compared with a figure of €33m for the equivalent period last year.
This compares with after tax profits during quarter one of
€29m.
Underlying profits before tax totalled €40m, down year on year
by 16.7 per cent.
Despite this marginal slide in profits during Q2, total income
was flat year on year at €108m, although this was attributed by ING
to particularly high income in 2007 caused by the sale of leased
assets in Poland during the second quarter of that year.
Costs at ING Lease grew €6m to reach €60m during Q2 2008, while
costs/income ratio also grew during the same period by 6.4 per cent
to 55.7 per cent.
This slight increase in costs were linked to additional
administrative burdens arising out of its acquisition of
Citileasing and also the integration of its structured commercial
finance and factoring activities.
Meanwhile, its lease portfolio grew in the first half of 2008 by
double-digit figures, particularly in Belgium Italy, the
Netherlands, Poland and Russia. It also reported good margin
increases in new production in recent months, as well as plans to
roll-out its E-leasing tool – which speeds up the application and
credit processing time – to new markets. Currently it is only
employed in the Netherlands.
Other expansion plans include establishing new bases for its
growing factoring arm. In early 2008 it set up an office in Spain
to bolster its factoring capability in that country. It also hopes
that a system for running supply chain finance deals will be
operational some time in the second half of 2008.
Risk adjusted return on capital – return on capital minus
provisions set aside for predicted future credit risk – grew to
24.4 per cent from 21.4 per cent in Q2 2007. The upturn was partly
caused by “parameter changes with regards to credit risk capital”,
a spokesman said.
