Daimler Financial Services, the finance arm of vehicle manufacturer Daimler which manufactures Mercedes Cars and Vans, has increased its earnings before indemnities and taxation by 16% in the first half of 2014 compared to the same period in 2013.

The financial services business earned €733m (£581m) to the end of June 2014, up from €633m the year previously. The second quarter of 2014 was responsible for €336m of that total which was a rise of 5% on the same period in 2013.

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Quarterly revenues at the division increased by 8% year-on-year to €3.82bn taking the year-to-date total to €7.6bn continuing the strong revenue growth at the division which now has increased 7% from the half year to June in 2013.

Bodo Uebber, member of the Board of Management of Daimler AG for Finance & Controlling and Financial Services, said: "Our business situation is very positive in mid-2014. With our new products and the results of operations of Mercedes-Benz Cars and Daimler Trucks, we showed in the second quarter that we are maintaining a high rate of growth while improving our profitability.

"In the second half of this year, Earnings before interest and taxation (EBIT) from the ongoing business will be higher than in the first half. But in view of the volatile environment, we are monitoring the sales markets and financial markets very closely. With our sound capital resources, we are well prepared for fluctuations."

Daimler expects a significant uplift in new business and contract volume in 2014 at the Financial Services arm. The rise will be driven by a series of marketing drives towards younger drivers as well as ‘product offensives’. In addition the expansion of the finance business in China and across Asia is set to help revenues at the division in the coming six months.

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Across Daimler’s divisions the profitability of the manufacturing business has been affected by exchange rates according to the statement issued alongside the interim report. The net profits of the group were down 36% to €3.28bn for the first half the year, with most of the net profit made in the second quarter (€2.2bn) indicating a turnaround in the company’s performance.