DLL, a global provider of asset-based financial solutions, reported interim results for the first half of 2022. Despite challenging market conditions, the company delivered portfolio and income growth during the first six months of the year, but its net profits were heavily diluted by impairments attributable to the company’s holdings in Russia.

The company’s portfolio balance, when adjusted for currency movements, increased by more than 3% over last year’s first half interim results and totaled €39.5 billion ($41.2 billion). DLL also reported new business volume of €15.4 billion ($16.1 billion), which reflected growth of 8% on a year-over-year basis.

The company reported a net profit of €101 million ($110 million) for the first six months of 2022, which represented a drop of 66% from the same period last year. DLL said this result was heavily diluted by impairments that were taken on its portfolio in Russia and linked to the decision to cease all new business activities in Russia and manage the orderly rundown of the local business. Impairments for the first half of 2022 totaled €209 million ($228 million), with virtually all of these charges related to DLL’s business in Russia. This result equates to 110 basis points and is significantly above DLL’s long-term average of 44 basis points.

Although impairments had an adverse effect on net profits, DLL said the underlying performance of its portfolio remained strong and continued to trend positively. The company reported net income of €831 million ($908 million), which represented almost 5% growth compared with the same period last year when adjusted for currency movements. In addition, operating costs were up by 9% on a year-over-year basis, as the company increased its workforce by 5% and made strategic investments to strengthen its operating and control environment and develop digital solutions to further enhance the customer experience and drive future efficiencies.

“Like many of our customers, DLL entered 2022 with cautious optimism as the world emerged from the COVID-19 pandemic.” Carlo van Kemenade, CEO and chairman of the executive board at DLL, said. “And despite being confronted with many new geopolitical and economic challenges in recent months, we have been able to support our customers, deliver solid results and invest in strengthening our foundation for future growth. I am very proud of the hard work and dedication exhibited by our global workforce during these unprecedented times.”