Profits were boosted in 2010
at the vehicle finance and leasing specialist, as cost of risk
decreased. Claire Hack reports.
Go deeper with GlobalData
Mercedes-Benz Bank achieved a 5% increase in new
business volumes in vehicle financing and leasing during 2010.
The Daimler Financial Services
subsidiary wrote €8.5bn of business in the year to 31 December
2010, and recorded a decrease in the cost of risk.
CEO Peter Zieringer said: “In
addition to improving our competitive position further regarding
the financing of Daimler vehicles, we have also substantially
increased our profitability.
“As a result, we were able to make
a big contribution to the earnings of Daimler Financial Services,
which amounted to €831m in 2010.”
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By GlobalDataThe increase in new business helped
the bank to boost market share of Daimler passenger car and
commercial vehicle sales to 55% in 2010, up from 53% in 2009. Total
contract volume remained the same at €16.1bn.
The bank also recently launched
FlexibleStars, a new leasing solution aimed at enabling customers
to exit contracts easily should they choose to change vehicles.
The new offering makes
Mercedes-Benz Bank the first automotive bank to allow customers to
obtain or transfer ongoing leasing contracts.
Deposit volume in the direct
banking business was cut to €10.9bn at the end of 2010, down from
€12.6bn in 2009.
Zieringer said: “We cut back our
deposit volume somewhat last year in response to the substantial
improvement in business prospects and the continued favourable
refinancing conditions.”
Mercedes-Benz Bank also expanded
its insurance business in 2010, increasing the number of contracts
by 11%, to 397,000.
During 2011 and 2012, Mercedes-Benz
Bank will open a new service centre in Berlin, employing up to 700
people.
The move is part of a bid to strengthen the company’s
competitiveness by extending service times, speeding up processes,
and reducing costs.
