BMW Financial Services reported a 5% jump in pre-tax profits to 1.64bn (£1.38bn) in 2013 as it helped the car and motorbike manufacturer to an overall net profit of 5.34bn.
The financial services business, which includes fleet lessor Alphabet and consumer lender Alphera, matched expectations but exceeded targets at the group, achieving a return on equity of 20.2, which was up from the 18 of 2012.
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A primary driver for BMW FS’s strength, despite tough conditions across Europe, was the retail customer base and a return in consumer confidence, claimed BMW.
The group achieved record automotive sales in 2013, increasing the number sold by 6.4% to over 1.8 million vehicles. This rise exceeded the global average increase in car sales of 5.1%.
Despite this, the automotive division reported an 8.5% fall in pre-tax profitability to 6.7bn. In part some of the reason for the decline in profits was a rise of 21% in the research budget of the firm as it prepares for future technology and changes in legislation.
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By GlobalData
