Daimler Financial Services saw new contract volumes increase by 14% in December 2016 year on year, increasing the value its portfolio to €133bn (£113bn).

The number of contracts under Daimler FS increased to 4.3m financed or leased values, and earnings before interest and taxes (EBIT) rose 7% to €1.7bn.

Daimler Financial Services said that its German subsidiary, Mercedes-Benz Bank, made a “significant contribution” to the figure.

Mercedes-Benz Bank serves the German motor finance market and finances more than half of contracts for Daimler vehicles in Germany.

The German arm increased new business volumes by 11% year on year in 2016 to €11.9bn, and 368,000 vehicles.

By segment, Mercedes-Benz Bank’s leasing and financing rose 11% for cars and 9% for commercial vehicles over the same period, and its portfolio grew by 10% to €21.8bn.

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By GlobalData

Franz Reiner, chief executive officer of Mercedes-Benz Bank, said: “Our growth shows that we as a mobility bank have the right products in the marketplace.

“Our direct banking business with private customers has also developed very positively, with the volume of deposits rising by 11% to 11.5bn euros. We anticipate further strong growth rates for the current year.”