DLL, a global provider of asset-based financial solutions, released interim results for the first half of 2022. Despite challenging market conditions, the company delivered portfolio and revenue growth in the first six months of the year. year, but its net profits were greatly diluted. by write-downs attributable to the company’s investments in Russia.
The company’s portfolio balance, once adjusted for currency fluctuations, increased by more than 3% compared to the interim results of the first half of last year and totaled 39.5 billion euros (41.2 billions of dollars). DLL also recorded new business volume of €15.4 billion ($16.1 billion), reflecting 8% year-on-year growth.
The company reported net profit of 101 million euros ($110 million) for the first six months of 2022, down 66% from the same period last year. DLL said this result was heavily diluted by writedowns taken on its portfolio in Russia related to the decision to cease all new business activities in Russia and to manage the orderly downturn in local activity. Impairments for the first half of 2022 totaled €209 million ($228 million), with nearly all of these charges related to DLL’s business in Russia. This result is equivalent to 110 basis points and is significantly above DLL’s long-term average of 44 basis points.
Although the writedowns had a negative effect on net earnings, DLL said the underlying performance of its portfolio remained strong and continued to trend positively. The company posted a net profit of 831 million euros ($908 million), which represents growth of almost 5% compared to the same period last year after adjusting for currency fluctuations. Additionally, operating costs increased 9% year-over-year 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 efficiency.
“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 Board of DLL, said. “And although we have faced many new geopolitical and economic challenges over the past few months, we have been able to support our customers, deliver strong results and invest in strengthening our foundations for growth. future. I am very proud of the hard work and dedication shown by our global workforce during these unprecedented times. »