LeasePlan profits jump to €90 million for H1 2010
The leasing and fleet management company posted an increase in net profits from €61 million in the first half of 2009 to €90 million for the same period this year. It also reported 18% growth in income with expenses up by 8%.
LeasePlan added that its portfolio remained stable, with a total of 1,299,000 cars on its books for H1 2010 compared to 1,309,000 in H1 2009.
Vahid Daemi, CEO and chairman of LeasePlan Corporation, said: 'I am pleased to see that LeasePlan has achieved a solid increase in net profit in the first half of 2010. Our increase in profit was supported by the stability and diversity of our operating income. The used vehicle market continued to recover and, in combination with our risk mitigating actions, has resulted in a substantial improvement in contract termination results.'
The company said that it continues to pursue a diversification of its funding. Earlier this year, it launched the LeasePlan Bank internet savings bank in the Netherlands, which reached over €1 billion in deposits in August 2010 and has now taken a temporary break from accepting new customers.
Commenting on the outlook for the rest of the year, Mr Daemi said: 'Overall, the good performance of our business against the backdrop of a period of economic turbulence and volatile financial markets means that we are looking forward with confidence.
'We are cautiously optimistic about the business environment in the majority of countries where we operate. For the second half of the year we expect to achieve at least the same level of profit made in the first half of 2010, provided that the global economic recovery continues.'For more of the latest industry news, click here.