Volkswagen Financial Services (VWFS) said it expects to end the financial year 2017 with record profits, exceeding the €2.1bn (£1.8bn) posted last year.

According to its provisional figures, the portfolio of current contracts will have increased by over 8% to more than 19.7m.

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These contracts are made up of customer financing, leasing, maintenance and inspection contracts.

For the first time, these figures also include contracts form Porsche Financial Services. The previous years were not adjusted.

Chief financial officer Frank Fielder said: “By the end of 2017, we expect the operating result for the Volkswagen Financial Services division to be significantly higher than in the previous year.

“The good result is primarily based on the positive growth of our current contract portfolio and a lower level of refinancing costs than last year.”

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VWFS noted services business, such as maintenance and inspection contracts, has grown particularly strongly over the year.

In September, VWFS realigned itself to bundle the credit and deposit business conducted witin the European Economic Area in Volkswagen Bank. Responsibility for the other activities, such as the leasing, insurance, service and mobility business and the credit business outside Europe, remain with Volkswagen Financial Services AG.

“The reorganisation has enabled us to reduce the complexity of our corporate structure and to create the scope for capital-efficient growth both at Volkswagen Bank GmbH and at Volkswagen Financial Services AG,” said Michael Reinhart, chairman of the management board of Volkswagen Bank