Eindhoven, August 27, 2020 - DLL, a global provider of asset-based financial solutions, reported interim results for the first half of 2020. Despite challenging external conditions, the company delivered portfolio and income growth during the first six months of the year, but net profits were heavily diluted by growing risk costs attributable to the COVID-19 pandemic.
The company’s portfolio balance increased by more than 2% over the prior year’s interim results and totaled EUR 35.4 (USD 39.7) billion. During the first half of 2020, new business volume was EUR 12.4 (USD 13.6) billion, representing a 5% drop from the prior year and can be attributed to a reduced level of demand linked to the COVID-19 pandemic. This resilient top line performance was achieved under challenging economic conditions and supported by the company’s broad geographic diversification and spread of business across multiple industry sectors.
Excluding the effect of currency movements, the company recorded a net profit of EUR 52 (USD 58) million in the first six months of 2020, a drop of 71% from the prior year. This result can be directly linked to higher risk impairments, which registered significant growth due to the negative impact of the COVID-19 pandemic. The underlying performance of the portfolio continued to trend positively, with net interest income of EUR 625 (USD 689) million, which represented more than 8% growth over the prior year.
“I am very proud of the hard work and dedication exhibited by our global workforce during these unprecedented times.” commented Bill Stephenson, CEO and Chairman of the Executive Board. “Over the past months, we have clearly demonstrated the ability to operate our business on a 100% remote basis in more than 30 countries, while managing the well-being of our employees and supporting our customers during their time of need. Despite the impact of the pandemic on our risk costs, the underlying performance of our business model remained both positive and strong.”