LeasePlan reports 13% net profit increase

LeasePlan has published its annual results for 2011, revealing a net profit increased by 13% to 225 million Euros, compared to 199 million Euros in 2010.

Its total number of vehicles increased by 2.7% to over 1.3 million, while its retail bank in the Netherlands, LeasePlan Bank, entered its second full year of operation with figures of almost 2.8 billion Euros in deposits, including a large number of term deposits.

Vahid Daemi, chairman and CEO of LeasePlan Corporation, said: “LeasePlan once again delivered impressive results in an economic environment that continues to present many challenges.

“Net profit for the year grew by 13% to EUR 225 million, fuelled by substantial improvements in traditional interest margins and stable performance in other diversified income streams.

“Our ability to deliver consistently strong profitability from a range of sources reflects the scale advantages of our business model.”

He continued: “Despite a tough environment for growth, LeasePlan remained focused on its sustainable growth path. The number of vehicles increased by 2.7%, chiefly owing to an acquisition in Portugal and supported by autonomous growth namely in our largest markets.

“Thanks in particular to our ability to adapt to market conditions, we have continued to serve our clients well by providing the right products and services. This is evident in an increase globally in client satisfaction and loyalty.

“Owing to the limited economic recovery and on-going market uncertainties, we did experience a negative trend throughout the year on the results for terminated contracts. This resulted in an overall outcome for terminated contracts in 2011 that was worse than 2010.

“The result shows a mixed picture with some countries experiencing difficulties, while in other countries the news is more positive. On average vehicles terminated were sold with a loss, with a marked deterioration in the second half of the year.

"On a positive note, we are able to compensate the negative trend in terminated contracts with stronger performance in other areas due to our diverse income streams.”