DLL reported net profit of €180 million ($206 million) for 2020. Despite a difficult economic environment and softening business demand, the company grew its portfolio to €34.9 billion ($42.9 billion), an increase of 2% when excluding currency movements.

“This past year was unprecedented, and both our business model and global workforce displayed amazing adaptability and resilience,” Bill Stephenson, CEO and chairman of the executive board at DLL, said. “It was reassuring to see that our underlying financial performance remained solid and allowed us to maintain our strong presence in the market. I am proud of our efforts to support our customers and help them overcome so much adversity during this crisis year.”

DLL also reported net income of €1.497 billion ($1.709 billion), which represented almost 6% growth compared with the prior year.

“We remain comfortable with the overall quality of the portfolio and the long-term outlook on performance,” Marc Dierckx, CFO and member of the executive board at DLL, said.

On a year-over-year basis, impairments almost doubled to €409 million ($467 million), representing 121 basis points of the average portfolio.

“The economic hardships brought on by the pandemic limited the ability of some customers to service their debt,” Dierckx said. “However, the resilience of our business model, coupled with our strong capitalization, allowed us to successfully navigate through this period of uncertainty and deliver a net profit.”

DLL further noted that a significant driver of the increased impairments were IFRS-9 Stage 1 and Stage 2 impairments, which are heavily influenced by the macroeconomic outlooks in the markets where DLL operates and by key indices such as unemployment. IFRS-9 Stage 1 and Stage 2 impairments were €190 million ($217 million), which was nearly four times higher than 2019 (€49 million ($59.14 million)) and represented almost half of total impairments in 2020.

“With the start of vaccine distribution in many countries, our focus now shifts to adapting to the ‘new normal’ and the promise of a return to better times,” Stephenson said. “Even as we look ahead with optimism, we will reflect on our experiences of the past year, ensuring that DLL emerges from the pandemic as an even stronger and more agile company for our customers and our global workforce.

“The strength of our business model and strategy were significantly tested and validated again. And that strength was only surpassed by the energy and engagement of our global workforce, who worked tirelessly to provide much needed support to our customers during these difficult times. With all these essential elements in place, I am confident that DLL will continue forward on a trajectory of growth and success in 2021 and beyond.”