Braunschweig, 29 July 2016
Volkswagen Financial Services AG again with a sovereign performance in the bank stress test
- Even under the adverse scenario, the Common Equity Tier-1 (CET1) ratio decreases by only 2.4 percent
Volkswagen Financial Services AG has once again successfully passed the bank stress test coordinated by the European Banking Authority (EBA). On the basis of the 2015 Annual Financial Statements, a baseline and an adverse scenario were simulated for the years 2016 to 2018 and the capital ratios were calculated under the given preconditions. The Common Equity Tier-1 (CET1) ratio of Volkswagen Financial Services AG was 12.0 percent at the starting point for the test (31.12.2015). The stress test has shown that Volkswagen Financial Services AG has a solid business model and adequate capital resources. In the baseline scenario, the CET1 ratio increases to 12.9 percent at the end of the term, and in the adverse scenario it decreases by only 2.4 percent in relation to the starting figure to 9.6 percent.
"The gratifying result of the 2016 stress test again shows the robustness of our business model even in the turbulent times assumed for this simulation," says Dr. Michael Reinhart, Member of the Board of Management of Volkswagen Financial Services AG with responsibility for risk management and credit analysis. He adds: "We consider risk transparency and the proactive management of risks to be a key element of our long-term business success. Since the last stress test in 2014, we have further optimised our processes and additionally strengthened what was already a solid capital base."
Altogether, around 70 employees of Volkswagen Financial Services AG were involved worldwide in the performance of the 2016 EBA stress test.
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 service 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).
Volkswagen Financial Services AG is a wholly owned subsidiary of Volkswagen AG headquartered in Braunschweig. The company is responsible for coordinating the worldwide financial services activities of the Volkswagen Group. Volkswagen Financial Services AG employs 11,746 employees throughout the world – including 6,513 alone in Germany. At the end of 2015, Volkswagen Financial Services AG recorded total assets of around 121 billion euros, a pre-tax result of 1.5 billion euros and a portfolio of around 13.8 million current contracts (as at: 31.12.2015).
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Volkswagen Financial Services