Braunschweig, 2 December 2016
Volkswagen Financial Services report a successful year 2016
- Operating result surpasses the two billion euro mark for the first time
- Current portfolio expected to rise to 18.12 million contracts
Volkswagen Financial Services have continued to grow during the 2016 financial year and the company will once again be making a substantial contribution to the Volkswagen Group earnings. The operating result will exceed the two billion euro mark for the first time (previous year: EUR 1.92 billion). On the basis of the preliminary figures, the overall level of current contracts is expected to rise by 9.2 percent to reach more than 18.12 million (2015: 16.59 million). "We have continued our successful growth course of the past few years during the challenging 2016 financial year as well," says Lars Henner Santelmann, CEO of Volkswagen Financial Services AG.
"With the two billion euro mark 'broken' for the first time, Volkswagen Financial Services are achieving a new record result during the 2016 financial year," says Frank Fiedler, CFO of Volkswagen Financial Services AG. "This good result is based first and foremost on our strong operating business and our efficiency programme," Fiedler adds.
On the basis of the preliminary figures, the number of retail financing contracts has further increased during the financial year 2016 and the portfolio now totals 6.44 million contracts worldwide (2015: 6.16 million.). This corresponds to a rise of 4.6 percent over the previous year. On the same basis, the number of leasing contracts has risen by approximately 10 percent to around 2.86 million contracts (2015: 2.6 million). A similarly positive development can be seen in the level of insurance contracts. Extrapolated to the end of the year, Volkswagen Financial Services will have a worldwide total of more than 5.46 million contracts on their books. This represents an increase of more than seven percent (2015: 5.09 million). The services business, for instance maintenance and inspection contracts, has grown particularly strongly. The level of such contracts is set to reach a new record high of 3.36 million units by the end of the year (2015: 2.74 million), an expected rise of 22.6 percent.
"We have received an equally strong tailwind during the course of this year from our close and good collaboration with the Volkswagen Group brands as we have from our attractive product portfolio and our international positioning," says Dr. Christian Dahlheim, Chief Sales Officer of Volkswagen Financial Services AG.
The number of new contracts is expected to total 7.44 million by the end of the year, an increase of 10.1 percent (2015: 6.76 million units). According to the preliminary figures, the number of new contracts in the vehicle financing segment amounts to 2.52 million (+6.3 percent, 2015: 2.37 million). Furthermore, by the end of the year, it is expected that around 1.3 million new leasing contracts (+8.3 percent, 2015: 1.2 million), 2.13 million new insurance contracts (+ 3.4 percent, 2015: 2.06 million) and more than 1.49 million new service contracts (+33.0 percent, 2015: 1.12 million) will have been concluded.
Information for editors
Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies and the financial services companies in the USA, Canada, Argentina 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 15,182 employees worldwide – including 6,513 alone in Germany. Volkswagen Financial Services reports total assets of around EUR 157.9 billion, an operating result of EUR 1.9 billion and a portfolio of around 16.6 million current contracts (as at: 31.12.2015).