German SME lessor VR Leasing returned to
profit in the year to end-December 2010, despite a fall in the
number of new contracts signed.
Profit before tax was €5 million in 2010,
compared to a loss of €16.7m the year before, thanks to a reduction
in loan loss provisions, which fell 29.7 percent to €82.3m, down
from €117.1m.
New contracts signed during 2010 totalled 108,651, down from
126,601 in 2009, owing to the company introducing a more
conservative risk policy.
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Net interest income fell to €190.3m, down from
€201.3m. Administrative costs were also down, from €176.3m to
€171.4m. The company’s rating of A with a stable outlook by
Standard & Poor’s was confirmed.
VR Leasing commented that mid-sized companies had held back on
investments during the first half of 2010, leading to lower demand
for financial contracts, and that the decline in new business was
more pronounced in Germany than in other markets.
Germany’s cooperative banks remain an
important part of VR’s activities, and it does business with
two-thirds of them. The company’s factoring unit, VR Factorem,
reported sales up to a record €2.3 billion, compared to €1.8bn in
2009.
claire.hack@vrlfinancialnews.com
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