The Deutsche Leasing Group has posted its strongest financial results to date for the fiscal year 2023/24, defying a sluggish economic environment to achieve record highs in both profit and dividend distribution.
The Group reported new business volume of €10.3 billion, slightly up from €10.1 billion the previous year, thanks in part to robust contributions from its subsidiary DAL Deutsche Anlagen-Leasing, which accounted for €2.4 billion. Despite macroeconomic headwinds, Deutsche Leasing has maintained steady growth across its operations.
A major highlight was the Group’s economic result reaching a record €216 million, up sharply from €180 million in the previous year. This was driven by increased income from leasing and interest, while its resale results remained strong and stable. Risk adjustments, both domestically and internationally, fell below last year’s elevated levels—reflecting cautious yet resilient management.
Deutsche Leasing also strengthened its financial foundations, with its net asset value rising to €2.5 billion, marking the fifth consecutive annual increase. The consolidated balance-sheet total grew to €24.7 billion, while expanded equity climbed to €1.54 billion.
For shareholders—the German savings banks—the rewards were tangible. Dividend distribution surged to €45 million, up from €40 million a year earlier.
“In the financial year 2023/24, we have resolutely forged ahead with strategic projects and charted our course for the future,” said Kai Ostermann, CEO of Deutsche Leasing.
“With our strengthened equity base, we will continue to expand our green finance activities over the next few years,” he added.
Capital boost and green transition focus
A key strategic development was the resolution of a €300 million capital increase by Deutsche Leasing’s shareholders, the savings banks. This injection, to be delivered over the next three years, is earmarked for funding green transformation projects, particularly in renewable energy and infrastructure. The Group aims to support projects worth up to €6 billion, in close collaboration with the savings banks.
Mixed results across subsidiaries
The Group’s joint venture S-Kreditpartner (SKP) delivered a standout performance, increasing new business volume by 30% to €5.2 billion and expanding its end-customer base by 9.2% to €11.4 billion—outpacing the market by a wide margin. Deutsche Leasing also increased its stake in SKP to 40% and acquired its leisure vehicle dealer finance business, worth around €650 million.
By contrast, Deutsche Factoring Bank (DFB) saw a 16% drop in factoring turnover to €18.4 billion amid a weak economy and a strategic focus on profitability. However, expectations are positive for 2025, driven by Deutsche Leasing’s market alignment with savings banks.
Strengthened market position and outlook
In a further sign of institutional maturity, 2024 saw Deutsche Leasing receive issuer ratings for the first time from two major credit agencies: “A+/Stable Outlook” from Fitch and “A2/Stable” from Moody’s. DFB also secured a matching Fitch rating last year.
Looking ahead to the first half of 2024/25, the Group expects a slight dip in business volumes compared to last year, reflecting continued economic uncertainty and hesitant investment trends in Germany.
“We are familiar with the complex challenges which our SME customers currently face,” said CEO Ostermann. “At the same time, we feel it is necessary to keep pursuing future-oriented topics with viable investment concepts. We know how to finance change—even in demanding conditions.”
