Ford Credit Europe’s (FCE) profits almost doubled in the
first half of 2010 compared with the first half of 2009.
Profit before tax soared from £71m
in the first half of 2009 to £140m in the first half of 2010,
thanks to “a significant reduction in credit losses”.
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A spokesman for FCE said: “Higher
profits in Europe during the first half of 2010 can be attributed
to a number of factors, including a significant reduction in credit
losses, which have returned to within historical norms.”
He added that the reduction in
credit losses corresponds to lower loss provisions and lower
vehicle residual value losses.
“At a time when the European
economic recovery has remained fragile, FCE’s first-half profits
represent a strong performance by its pan-European team,” the
spokesman added.
A solid first-half performance may
be tempered by a potentially more difficult second half. Vehicle
industry volumes are expected to drop after government incentives
such as the scrappage scheme come to an end and contract volumes at
FCE are expected to be restricted, at least in the interim.
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By GlobalDataThe spokesman said: “FCE’s contract
volumes are likely to remain constrained in the short term, until
the benefits of economic recovery start to flow through to higher
vehicle sales.”
Ford Credit Britain is part of FCE Bank plc, a UK bank regulated
by the FSA.
