Volkswagen Financial Services (VWFS) saw return on equity drop while both operating profit and contribution to Volkswagen Group’s overall profit grew, according to the Group’s results for 2012.

Worldwide, return on equity for the Financial Services Division of the Group was 13.1% for 2012, down from 14.0% in 2011.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Operating profit at VWFS was €1.4bn (£1.2bn), up 16.7% on 2011, with 3.8 million finance, leasing and service / insurance contracts added to the portfolio in 2012.

Proportion of group

Globally, the proportion of the Group’s consolidated operating profit coming from VWFS stood at 9.21% for 2012, up from 8.63% the year before.

The consolidated operating profit for the group was €11.5bn, up 2% year-on-year, plus €3.7bn operating profit, up 42.3%, from joint ventures held in China, including Volkswagen Finance China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

As previously reported, sales revenue for the Group was €192.7bn, up 20.97% year-on-year, with profit before tax up 34.7% to €25.5bn and profit after tax up 38.5% to €21.9bn.

Compared to figures for the first half of 2012, VWFS and Group figures appear to be consistent across the year aside from pre- and post-tax profit which rose in the second six months.

Wheels on the ground

However, return on investment across the Automotive Division fell to 16.6%, from 17.7% in 2011.

Net liquidity was also down, to €10.6bn from €17.0bn, although much of this was accounted for by the buy-out of Porsche, the acquisition of Ducati and the increased stake in truck manufacturer Man.

The ratio of capital expenditure to sales revenue was up 0.4ppts to 5.9%.

The Group also failed to hit its target, declared this time last year, to sell 10 million cars in 2012, although sales of all car brands under the VW umbrella experienced worldwide volume growth, except Seat, and balance sheet improvement, except Škoda.

richard.brown@timetric.com