Germany’s VR Leasing expects to go back to
profitability this year, after recording a loss from ordinary
activities totalling €18.8 million in 2009.
This follows February’s results, when the company said that
new business volume was almost unchanged at €2.24 billion – a 3.4
percent reduction compared with 2008.
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Presenting the full 2009 results at VR
Leasing’s annual conference in Frankfurt, the lessor’s CEO Reinhard
Goedel said that the loss was “not a surprise”, due to a hike
in loan loss provisions.
Loan loss provisions increased from €70
million in 2008 to €96.7 million last year, the lessor said.
However, the leasing company expects to go
back to profitability in 2010 and Goedel said that a €20 million
profit figure for this year would be “realistic”, matching 2008’s
results.
He added that the “central factor will not be
new business, but risk provisions. The more we can reduce this, the
better our earnings will be”.
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