Rabobank Group reported that total income from the DLL leasing segment in in 2015 rose 9% to €1,719 ($1,910 million). The lease portfolio grew and the interest rate margin improved. As a result, net interest income increased by 9% to €1,094 ($1,215 million). In line with the higher activity level, net fee and commission income rose by €27 million ($30 million) to €57 million ($63 million).

DLL achieved a net profit of €498 million ($553 million), up 14% from €436 million ($484 million). The lease portfolio grew by 8%, partly due to exchange rate effects, to €35.7 billion ($39.6 billion). DLL noted loan impairment charges of 25 basis points was down from 43 basis points a year earlier.

DLL further optimized its lease portfolio by focusing more on activities in the industries in which it is specialized. DLL’s activities are well spread across 35 countries and nine sectors. The Dutch activities represent 19% of the lease portfolio. The food and agriculture share increased to 31%, up from 30% a year earlier. The Dutch lease portfolio amounted to €6.6 billion ($7.32 billion), representing 19% of the total lease portfolio. Food and agriculture in combination with the Dutch portfolio represents almost half of the activities of DLL.

Commenting on Rabobank’s overall financial results, chairman of the executive board Wiebe Draijer said, “We need a significant improvement in performance. This is the only way we will be able to achieve the required return of 8% on invested capital, given the consequences of higher capital requirements. The improvement program we have started is targeting an increase in gross profits of approximately €2 billion ($2.22 billion) by 2020 (excluding the impact of the balance sheet reduction on our results), to be achieved through cost savings and higher income. Furthermore, the flexibilization and limitation of the balance sheet should contribute to achieving higher capital ratios. As a result, our efficiency ratio, excluding regulatory levies, will fall towards the 50% mark, which is more in line with other market players. In 2015, this ratio arrived at 62.6% and including the regulatory levies at 65.2%. As a consequence of ongoing programs, the number of internal and external employees decreased to fewer than 52,000 FTEs in 2015. The local banks in the Netherlands saw a decline in the number of staff.”

Draijer continued, “In the period 2016-2018, the number of jobs will decrease by 9,000, mainly in the back office and the supporting services of the bank. This reduction will take place in addition to the ongoing programs under which 3,000 jobs will be lost in 2016. These radical measures will be implemented in a socially-responsible way, with care and consideration for the individual employee. The reduction in the number of jobs is, on the one hand, a consequence of prioritization and, on the other hand, of strategic technological developments.”