Truckmaker Volvo’s financial services division reported revenues of SEK 602m (£50.5m, €57.3m) in the first quarter of 2018, up 13.3% year-on-year.

New retail financing increased 12.8% to SEK 11.7m, driven by contracts in North America. Total portfolio reached SEK 135bn, up 7.1% from a year earlier.

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Credit provisions shrank significantly, down 36% to SEK 108m.

Europe continued to be the main originator for the portfolio, accounting for 46% of contracts, followed by North America with 39%.

The group carried out a SEK 6.0bn securitisation of US contracts as well as the syndication of SEK 2.0 of assets during the quarter.

The group said: “New business volume increased due to increased deliveries of group products while penetration was stable.

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“The portfolio continued to perform well during the quarter, highlighted by low customer overdues and credit losses in most markets.”

Martin Lundstedt, chief executive officer of the Volvo group, added: “Financing and other services are important parts of our total offer to customers and it is important to drive innovation also in this area.”

The group saw operating income of SEK 8.3bn for Q1, up 21.4%, together with a 15.8% increase in net sales, to SEK 89.1bn.

It reported strong business for trucks, engines and construction equipment, next to a weak quarter for buses.

The group recently voiced plans for the 2019 launch of all-electric trucks in Europe, in partnership with Renault, rolling out among selected existing customers first.

It also announced the divestment of shares in Chinese manufacturer NHL, which it expects to generate SEK 700m in capital. The transaction is expected to go through within six months, and is awaiting approval from Chinese regulators.