Volkswagen Bank, parent of Volkswagen Financial Services UK since September, has said the UK accounts for 60% of its residual value risk exposure, which it put at a total of €433m (£380m).

In September, a restructuring within the VW group led to a separation of Volkswagen Bank from Volkswagen Financial Services AG, with the former remaining responsible for most European leasing operations. The UK business was brought entirely under VW Bank.

As a result of portfolio acquisitions from the restructuring, VW Bank reported an increase in residual value risk exposure amounting to €433m, up from just €6bn in 2016.

In its 2017 results, VW Bank said the UK alone accounted for 60% of direct risk exposure to residual values, i.e. contracts where the risk has not been passed on to third parties like dealers and customers.

Other subsidiaries singled out as bearing exposure were the French and Swedish subsidiaries. “The volume in other countries is still very low or the residual values have been set at such a conservative level that it can be assumed the customers will take over the vehicle at the end of the term,” the company said.

The company said it did not expect elements like Brexit or the diesel debate to have an effect on residual values for the moment.

Likewise, Volkswagen Financial Services AG said it was not seeing any significant fall in diesel residual values, although it added that it was monitoring trends “on a continuous basis.”

It said: “In Europe, the share of the market accounted for by diesel vehicles is diminishing … There is general uncertainty in the automotive sector about trends in the residual values of diesel vehicles.

“There are various reasons for this … which could affect residual value risk in the relevant portfolio.”

VW Bank grew its interest income on lending 7% in 2017, to €1.4bn. Retail and dealer financing grew receivables 12.4% to €20bn and 17.9% to €12.4bn respectively.