DLL reports strong interim results

Posted 08/26/2021
Eindhoven, August 26, 2021 - DLL, global provider of asset-based financial solutions, delivered a strong first half performance, highlighted by exceptional net profit growth.  The company recorded both portfolio and income growth during the first six months of the year, while risk costs improved significantly due to more favorable economic conditions.

The company’s portfolio balance increased by almost 2% over the prior year’s interim results and totaled EUR 36.0 (USD 42.7) billion. During this same period, new business volume was EUR 13.5 (USD 16.0) billion, representing 9.5% growth over the prior year. This strong commercial performance was realized despite product shortages in certain industry sectors beginning to impact equipment availability and potentially delaying the activation of lease and finance contracts.

The company recorded net profit of EUR 298 (USD 359) million in the first six months of 2021, an increase of 520% from the prior year. This result was positively impacted by a significant improvement in risk costs as economic conditions improved in many key markets.  The underlying financial performance of the portfolio continued to trend positively, with net income totaling EUR 751 (USD 905) million, which represented 4% growth over the prior year when adjusted for currency movements.   

“It is promising to see these first early signs of economic reawakening and that DLL continues to be an integral part of the growth and success of our customers around the world.” commented Bill Stephenson, CEO and Chairman of the Executive Board. “In an improving, albeit still challenging market environment, the underlying performance of the business remains strong.”

Improving economic conditions enhance performance

Due to improved macro-economic conditions in the first half of 2021, DLL was able to reverse previously booked loss provisions, which shifted total risk costs to a net positive result of EUR 58 million.  This exceptional result corresponds to minus 33 basis points of the average loan portfolio and is well below DLL's historical long term average of plus 52 basis points.  

“Overall, and barring any significant adverse changes in the macro-economic environment due to COVID-19 or other unforeseen factors, we continue to remain comfortable with the overall quality of the portfolio and the long-term outlook on performance.” commented Marc Dierckx, CFO and Member of the Executive Board. “As we enter the second half of 2021, we will closely monitor supply chain disruptions and downstream product shortages, as well as the potential impact these events could have on our new business growth and portfolio development.”

Resuming a trajectory of growth and success

“DLL entered this business year with a goal of resuming the trajectory of growth and success that was disrupted by COVID-19.” noted Stephenson.  “Our results in the first six months of this year make clear that we are realizing this ambition.  I am very proud of the hard work and dedication exhibited by our global workforce in supporting our customers, and the efforts being made to ensure DLL is positioned for continued success in 2022 and beyond.”

About DLL
DLL is a global asset finance company for equipment and technology with a managed portfolio of over EUR 35 billion. Founded in 1969 and headquartered in Eindhoven, the Netherlands, DLL provides financial solutions to the Agriculture, Food, Healthcare, Clean Technology, Construction, Transportation, Industrial, Office Equipment and Technology industries in more than 30 countries.  DLL partners with equipment manufacturers, dealers and distributors, as well as end-customers on a direct basis, to enable businesses to more easily access equipment, technology and software.   The company also delivers insights and advice to partners and customers that drive smarter and more economical methods of use.  DLL combines customer focus with deep industry knowledge to deliver sustainable solutions for the complete asset life cycle, including commercial finance, retail finance and used equipment finance. DLL is a wholly owned subsidiary of Rabobank Group. To learn more about DLL, visit www.dllgroup.com.
Related Resource https://www.dllgroup.com
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