Volkswagen Financial Services achieve their best-ever result
- Operating result: 2.1 billion euros (+9.6%)
- Total assets: 170.1 billion euros (+7.7%)
- Portfolio: 18.2 million contracts (+10.0%)
Volkswagen Financial Services have brought the 2016 financial year to a successful conclusion and achieved newrecord levels in both their operating result and their volume of current contracts. "The 2016 financial year was challenging for Volkswagen Financial Services, but nevertheless very successful. Volkswagen Financial Services have achieved their best-ever operating result and secured their future growth with a strategic realignment," says Lars Henner Santelmann, the Chairman of the Board of Management of Volkswagen Financial Services AG. Significant improvements have been achieved in almost all key financial indicators for the financial services business division of the Volkswagen Group: the total assets increased to 170.1 billion euros (+7.7%) and the portfolio of current contracts including all joint ventures rose to 18.2million (+10.0%). Looking ahead, Chief Financial Officer Frank Fiedler added: "We are optimistic that we will also achieve a very good result for the financial services division of the Volkswagen Group during the course of this year and we are expecting an operating result for the 2017 financial year that will at least be at the level of the previous record of 1.9 billion euros attained in 2015."
"Last year, Volkswagen Financial Services reached a new record figure for their level of current contracts. This puts us on a good path towards achieving our strategic goal of 30million contracts in 2025," says Dr. Christian Dahlheim, Chief Sales Officer of Volkswagen Financial Services AG. The growth is being primarily driven by the company's broad international positioning. A high volume of new contracts has been particularly recorded in the markets of China, Germany, Mexico and the United Kingdom.
All business units have contributed towards the rise in overall current contracts. The main drivers of growth proved to be services such as maintenance and wear & tear or tyre services, which are of particular importance for the fleet business among other segments. Asat 31.12.2016, the level of service contracts amounted to 3.4 million contracts, an increase of almost 25.5 percent.
The overall figure for new contracts acquired in the segments financing, leasing, insurance and services rose to almost 7.6 million during the last financial year, an increase of more than 12%. As at 31.12.2016, 15,324 persons were employed at Volkswagen Financial Services, which is 0.9% more than at the end of the previous year. 6,503 of these work in Germany.
In addition to promoting further growth, the focus in the 2017 financial year predominately lies on implementing the planned realignment. As part of this, the loan and deposit business in the European Economic Area (EEA) is to be bundled at Volkswagen Bank GmbH. Volkswagen Bank GmbH will subsequently become a wholly-owned subsidiary of Volkswagen AG. The other activities remain within the domain of Volkswagen Financial Services AG, which is also directly affiliated with Volkswagen AG.
With their realignment, Volkswagen Financial Services provides greater transparency and clarity for the supervisory authorities, enhances flexibility and leverages efficiencies in order to further strengthen and expand their successful business model.
Information for editors
Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise as at 31.12.2016 Volkswagen Financial Services AG along with its associated companies and the financial services companies in the USA, Canada, and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania and Porsche brands and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 15,324 employees worldwide – including 6,503 alone in Germany. Volkswagen Financial Services report total assets for of around EUR 170.1 billion, an operating result of EUR 2.1 billion euros and a portfolio of around 18.2 million current contracts (as at: 31.12.2016).