IBM Credit Corp, Stamford, Connecticut, reports that during 1987 it bought $1,600m of equipment for direct financing and operating leases, compared with $1,500m in 1986. Assets as of December 31 1987, were $6,500m, up from $5,700m in 1986 – an increase of 14%. Finance and other income rose 13.5% to $726.7m, but net profits for the year plunged 27.3% to $85.8m; IBM Credit puts the decline down primarily to lower finance income yields and some valuation adjustments in the company’s leveraged-lease portfolio. The decline was offset somewhat by greater end-of-lease sales and an increase in investment and other income.
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