Volkswagen Financial Services, the captive motor finance arm of German car maker VW Group, achieved a 10.2% year-on-year increase in revenue in the first half of 2017, according to its results.

The financial services division saw sales revenue of €17bn (£15.2bn) in the first half of this year which it attributed to a rise in business volumes.

Gross profit at VWFS also increased, rising by 10.1% year-on-year in the first six months of 2017 to reach €3.2bn. Operating profit increased 7.4% year-on-year at VWFS, growing to €1.3bn in the first half of the year, while operating returns on sales stood largely unchanged at 7.5%.

Volkswagen said that €1bn in outflows resulted from a capital increase at VWFS carried out in January, which was implemented to finance business volume growth and comply with regulatory capital requirements.

An increase in funds tied up in working capital to €9.6bn was also attributed to higher business volumes. The total gross cash flow of BWFS stood at €4.6bn at the end of the first six months of the year, down from €4.6bn in the same period of 2016.

Total assets held by VWFS amounted to 192.4bn at the end of the first six months of this year, a 1.5% rise from the end of 2016. As of the end of the first half of 2017, VWFS accounted for 46.2% of Volkswagen Group’s assets, almost static from the 46.3% a year prior.

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By GlobalData

VWFS expects sales revenue and operating profit for the full-year 2017 to reach at least 21016’s level.