Best half-year result ever for VWFS
Volkswagen Financial Services (VWFS) had its best half-year operating result ever, improving on last year's figure by 5.7%, to €1.231 billion. Another milestone achieved: more than 20 million contracts in portfolio.
“Following our record performance in 2017, the earnings improvement during the first half of this year is especially satisfying”, said Frank Fiedler, CFO of VWFS, who confirmed the earnings forecast for 2018, with whole-year operating profit expected to reach the same level as in 2017.
The excellent results for H1 2018 were made possible by a 7.4% increase in the number of current contracts, to 20.2 million units, and by a growth in new contract acquisitions of 8.7% to just under 4.2 million units.
Of those 20.2 million current contracts, 6.2 million were for vehicle financing (+4.7%), 4.2 million were leasing contracts (+11.5%), 4.3 million service contracts (+13%) and 5.5 million insurance contracts (1.5%). In main VWFS market Germany, current contracts increased from 6.2 million to 6.39 million (+3.1%).
As for new contract acquisitions, vehicle financing represented almost 1.3 million units (+10.9%), new leasing contracts were 973,000 (+10.4%), new service contracts numbered 837,000 (+2.6%) and new insurance contracts more than 1.15 million (+9.8%).
There's growth worldwide, with particularly good results for VWFS fleet business in Europe. “The good collaboration with the brands of the Volkswagen Group and the strong markets in Europe and North America are a significant support”, said Dr. Christian Dahlheim, CSO for VWFS.
However, Mr Fiedler warns against complacency: “This not something that can be taken for granted, because in order to achieve this level again, we must continue to focus on our targets during the second half of the year”.