BMW Group Financial Services (BMW FS) signed 801,526 new contracts globally over the first half of 2015, up from 728,914 in the same period 2015.
As a result the portfolio of lease and financing contracts in place with retail customers at 30 June 2015 rose by 6.6% to a total of 4,146,505 contracts. According to BMW, this was due in particular to growth in the Asia Pacific region, where the total number of contracts climbed 19.2%. Growth in other regions was reported as ‘solid.’
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Revenues for the period also experienced strong growth, up 21.6% year-on-year to 12,212m (£8,582m), while profit before tax over for the six months to June reach 1,055m, up 16.6% year-on-year.
Friedrich Eichiner, chief financial officer and member of the board of management of BMW, said: "Business profit is currently benefitting from attractive refinancing conditions and a healthy risk situation, as well as from currency translation effects on earnings outside of Europe."
BMW FS’s penetration rate also increased, up 4.2% year-on-year to reach 45.1% for the first six months of 2015.
Eichiner also said: "Demand for financial services products – both leasing and financing – remains strong in all regions of the world. BMW Group Financial Services continues to strive for profitable growth, with a good balance between leasing and financing."
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By GlobalData"The credit loss ratio for the entire portfolio is low, at 0.34%, which is below last year’s figure. We are making appropriate risk provisions and taking a comprehensive, proactive approach to risk management. On its basis, we expect residual values and credit risks to remain stable throughout the second half of the year. This should support continued positive business development in the Financial Services segment," said Eichiner
The results for BMW FS came as part of the Group’s general results. These revealed that BMW Group earnings before interest or taxes exceeded 5bn over the six months to June for the first time.
