€460m in 2007
A 6 per cent fall year on year saw RCI
Banque, the financing arm of manufacturer Renault, make a
pre-tax profit of €460m (£348m) in the 12 months to December 31
2007, with net profit at €316m (£239m).
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Penetration levels among buyers of Renault cars were at 32.1 per
cent overall, with the rate in western Europe declining slightly
from 34 per cent in 2006 to 33 per cent, amid what RCI Banque
described as “difficult conditions”.
The new business volume was €9.4bn (£7.1bn) from 898,334 new
contracts, a fall in numbers of new loans of 5.3 per cent. RCI
Banque highlighted that the decline came mainly from financing
contracts for used vehicles, which fell by 18 per cent to 171,009,
while new car loans remained “steady” at 727,325.
In the course of 2007 RCI Banque took over sole operation of
Renault’s financing and leasing operations in the UK, which until
mid-2007 operated as a joint venture with Renault
Financial Services. Capital
Bank formerly jointly owned Renault Financial Services until
its stake was bought by RCI in 2007.
“Cost of risk continued to be tightly controlled despite inching
up to 0.68 per cent from 0.61 per cent in 2006, the deterioration
experienced in the United Kingdom, Brazil and Spain being
counterbalanced by good performances in Germany, France and Italy,”
RCI Banque said.
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By GlobalData“Prudent refinancing” had enabled the captive to survive the
unfavourable financial conditions caused by the credit crunch
relatively unscathed, RCI Banque said, “with no particular impact
on the group’s margins or its liquidity”.
In 2008 the captive plans to grow its international presence,
following the launches of subsidiaries in Denmark, Finland, Norway,
Sweden and Morocco and the expansion of operations in Slovenia,
Slovakia and Ukraine in 2007.
