Banque PSA, the finance arm of the Peugeot Citroën brands, has reported a 17.5% decrease in net revenue for 2013 from 1.08bn (£900m) to 891m for 2013, as the car making group struggles to return to profit.
The bank’s poor performance compared to the previous year was attributed to the continuing difficult sales conditions across Europe and the cost of financing. Recurring operating income at the bank also fell 6%, from 391m to 368m.
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Overall, revenues at the finance business were 1.77bn.
A highlight for the finance division was a decline in the risk provision required on the outstanding portfolio. The provision stood at 0.61% at the end of December compared to 1.23% in 2012.
In an effort to reduce the costs of finance and bring an end to the French state subsidy, Banque PSA also confirmed it is in negotiations with Santander Consumer Finance to form a 50/50 partnership in Europe after news of a potential partnership emerged last year.
The agreement should allow Banque PSA to offer more competitive finance rates to captives and increase the penetration rate of 29.1%.
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By GlobalDataBanque PSA’s parent company, PSA Peugeot Citroën, reduced their net losses for 2013 from 5bn to 2.3bn.
