Volkswagen Financial Services (VWFS), the leasing and finance arm of the German auto manufacturer, made 1.1bn in pre-tax profit in the nine months to 30 September 2012, a 9.4% rise on the same period last year.
However, net profit was down 6% on 2011 at 759m after an increase in income tax paid over the period.
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The division reported 14.6bn in revenue for the first nine months of 2012, marking a 15.1% rise from last year’s 12.7bn. Over the third quarter, profits rose just over 1%, from 360m to 364m, with revenues over the same period growing from 4.2bn to 5bn.
Financing and leasing contracts in the first three quarters of 2012 were up 11.1% to 6.2m, with leased or financed vehicles accounting for 27.2% of total group deliveries worldwide, a decrease from the 35.4% reported in the first nine months of 2011.
VWFS attributed this decline to the inclusion of Chinese market figures which started in 2012, as the level of leasing in China is "significantly lower" than it is across other markets.
In its statement, Volkswagen said that the Group’s brands and innovative financial products "were used to leverage further potential along the automotive value chain and thus contribute to the Volkswagen Group’s positive sales and earnings performance."
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By GlobalDataGlobally, the group launched several initiatives to increase business during the reporting period including a proprietary leasing business in China in the third quarter and specific targeting of SME business in France which pushed penetration to 25% by August.
Overall revenue for Volkswagen Group was 144bn, up 24% compared to the same period in 2011, with profit before tax up from 17bn to 23bn.
