De Lage Landen, a global provider of high-quality asset-based financing products to manufacturers and distributors of capital goods and end users, reported today a net profit of € 201 million ($269 million) over 2010, an increase of 79% compared to 2009 (€ 112 million ($150 million)). The total credit portfolio increased 6% to € 25.2 billion ($33.8 billion) from € 23.7 billion ($31.8 billion). Operating income increased 15% to € 1.18 billon ($1.58 billion) from € 1.03 billion ($1.38 billion).

“We are back on track,” says De Lage Landen CEO Ronald Slaats. “We started the year with ambitious targets, but we worked hard and we exceeded our expectations. Thanks to our focus on cost control and risk management, we were able to improve our profitability. I can proudly say that we have recovered from the crisis.”

De Lage Landen said it now operates in 35 countries with over 5,250 FTEs and is exploring opportunities in India.

Review

The Vendor Finance division grew portfolio as well as new business volume irrespective of economic challenges, and expanded into emerging markets. Existing partnerships were extended.

Consumer Finance in the Netherlands increased credit volume through the Rabobank channel, and new business volume through its online label, Freo. It also signed an agreement for the acquisition of a € 200 million ($268 million) consumer credit portfolio.

Factoring’s credit portfolio grew 28%. New business volume was at an all-time high.

De Lage Landen’s subsidiary, Athlon Car Lease, benefited from the improving market for ex-lease cars.

Outlook

The aftermath of a worldwide economic crisis and a changing regulatory environment-most notably regarding lease accounting changes-combine to provide an unclear picture of the future. In the construction, transportation and industrial markets, recovery is expected to be slow. Healthcare and food and agriculture have been least impacted by the overall recession, with only modest drops in equipment sales. Office equipment, technology and car lease are expected to recover in line with the global economies.

“Against these circumstances, we are well-positioned for growth,” says De Lage Landen CEO Ronald Slaats. “In the past five years, we invested in the extension of our business model through expanded product offerings, the broadening of our geographical presence, and the enhancement of our technical infrastructure. Now, our aim is to unlock the full potential of these investments by further connecting our business lines across the globe, creating stronger connections with all stakeholders as a result.”

De Lage Landen said it will take up Rabobank’s strategic priorities in international food and agriculture and all-finance in The Netherlands. It will also continue to treat sustainability as a business priority, recognizing a global marketplace that increasingly values ethical behavior and eco-friendly, innovative products.