BMW Financial Services (BMWFS) has reported
growth of 5.1% in total contracts, 10% in new contracts and 8.7% in
business volume in the first nine months of the year compared to
the first nine months of 2010.
As of 30 September, lease and financing
contracts for dealers and retail numbered 3,303,635, while business
volume in balance sheet terms was €71.98bn (£62.03bn).
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The workforce also increased by 41.8% to 5,621
employees at the end of the quarter compared to the end of Q3
2010.
The Q3 report attributed the growth in
business and workforce to its purchase (under the Alphabet
multi-brand fleet management division) of ING Car Lease in July for
€637m (£573m). By the end of the quarter BMWFS was managing no
fewer than 460,000 business contracts.
The proportion of BMW Group cars leased or
financed by BMWFS worldwide, however, fell by 6.5 percentage points
on the previous year, to 41.1%, including statistics for China for
the first time.
European results continued to be mixed, with
11% growth in Germany, while France stagnated, and car sales fell
in the UK by 6%, in Italy by 13%, and in Spain by 20%.
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By GlobalDataMeanwhile, demand for BMW Group cars in the
so-called BRIC markets continued its upward trend, with 50% growth
in Russia, 18% in China, 15% in India and 8% in Brazil.
In the third quarter alone, global credit and
leasing business grew by 291,610 new contracts, 5.8% up on the same
period for 2010, although revenues increased by only 0.05%, up
approximately €2m (£1.73m) to €4.28m (£3.69bn).
Finance and leasing volume rose 14.4% in
retail for the first nine months of 2011, totalling 2.3bn
contracts.
Year-to-date, 882,691 new retail contracts
were signed, a 10% increase on January-to-September 2010, including
a 19.8% rise in leasing, which accounted for 30.9% of
contracts.
The period also saw growth in multi-brand
financing contracts by 13.3%, or 104,918 new contracts, and deposit
business by 9.7%, though securities business fell 0.4% compared
with the first nine months of 2010.
Insurance business grew by 23% in the third
quarter to a total portfolio of 1,724,105 contracts (up by 14.2%
compared to 30 September 2010).
BMWFS also raised its earnings before interest
and tax by 67.3% for the nine month period, 18.2% for the quarter,
and profit before tax was up by 66.2%, and 11.3% for the
quarter.
BMW Group as a whole posted a growth in net
profit of 101.9% for the nine-month period, and 23.8% for the
quarter. Profit before tax was up by 94.6% for the nine-month
period, and up 21% for the quarter.
BMW Group forecasts that BMWFS’s profitability
will be sustained at a high level in Q4, with a predicted equity
return of 18% for the full year. The Group also predicts a slight
increase in bad debt risks and no rise in residual value risks.
richard.brown@vrlfinancialnews.com
