Compiled by Jason T Hesse
Siemens Financial Services
Go deeper with GlobalData
Siemens Financial Services
reported strong year-on-year results in its third quarter, although
these were down compared to the previous quarter.
Compared with the same period last
year, pre-tax profit grew 47 percent to reach €87 million; but
compared to its second quarter results, when it reported €117
million in profit, the third quarter of 2009 was 26 percent
down.
At 29.3 percent, return on equity
(ROE) still remained well above its 20 to 23 percent target, but
here too there was a sharp decrease on the previous quarter, when
the German lessor reported ROE of 39.8 percent.
GE Capital
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By GlobalDataGE Capital saw revenue fall 29
percent to $12.8 billion (€9 billion) in the second quarter of
2009. The Commercial Lending and Leasing (CLL) segment of GE
Capital saw profits decrease by 74 percent to $232 million,
attributed to higher credit costs.
The lessor reported a slight
improvement in delinquencies in equipment finance, however, from
2.84 percent in the first quarter of 2009 to 2.78 percent in the
second quarter of 2009. This was largely due to an improvement in
the Americas portfolio, rather than Europe and Asia, where
delinquencies were up quarter-on-quarter.
Lloyds-HBOS
Impairment charges of £0.4
billion (€0.5 billion) saw Lloyds Banking Group’s asset finance
division report a loss of £250 million for the first half of 2009,
contributing to the bank’s overall £4 billion cash haemorrhage.
This result represents a fall of £292
million from the £42 million profit reported in the first half of
2008, a figure which includes HBOS’s results as if it had been
acquired at the start of that year.
Despite improvement of margins across
the asset finance division, income was down 13 percent to £890
million; while a fall in new business led to an 11 percent drop in
operating expenses to £734 million.
Volkswagen Financial
Services
Volkswagen’s financial services
division – which includes its leasing business – recorded an
operating profit of €321 million in the first half of 2009,
compared with €523 million last year.
The finance arm of Europe’s largest
carmaker also generated sales revenue of €6.3 billion, up 18
percent year-on-year, which was attributed to higher proceeds from
the sale of leased vehicles taken back.
The rental and leasing business
reached €3.5 billion in the first half of 2009, up on the first
half of 2008’s figure of €2.97 billion.
Scania Financial
Services
At VW-owned Scania, the financial
services business made an operating loss of SEK13 million (€1.3
million) during the first half of 2009, down from SEK282 million in
the same period last year.
The captive’s customer finance
portfolio amounted to SEK44.7 billion at the end of the first half
of 2009, a SEK2.6 billion decrease since the end of 2008.
Penetration rates grew however,
reaching 43 percent at the end of June, up from 34 percent last
year. Portfolio growth was offset by higher bad debt expenses,
which were mainly attributable to central and eastern Europe.
SG Equipment Finance
French lessor SG Equipment
Finance wrote €1.9 billion of new financing in the second quarter
of 2009, a 3.6 percent dip on its first quarter results, or a
year-on-year fall of nearly 20 percent.
Although the lessor reported that
business was up 43.9 percent year-on-year in the UK, results were
slightly lower in France, which saw business decline 2.2
percent.
Particularly hard-hit were Germany and
Scandinavia, where new finance shrunk by 23.5 and 19.7 percent
respec-tively.
BNP Paribas
BNP Paribas’s Equipment Solutions
business unit, which includes BNP Paribas Lease Group, reported
that revenues had fallen 8.8 percent year-on-year to €259 million
in the second quarter, due to unfavourable trends in the used
vehicle market.
Quarter-on-quarter, revenue was 22.2
percent up, however. Pre-tax income at the unit was €35 million,
compared to €49 million in the same period last year.
Volvo Financial
Services
Volvo’s finance arm reported an
operating loss of SEK296 million in the second quarter of 2009, as
new business collapsed and as customers in all markets struggled to
meet their obligations.
In line with its parent company, which
posted deeper-than-expected second-quarter losses at SEK6.9
billion, Volvo FS was hit in all regions and markets where it
operates.
The captive specifically said that in
markets such as Spain, the widespread economic slowdown had clearly
impacted portfolio performance, whereas in eastern Europe there had
been no improvement since the first quarter, as many countries
continued to experience a steep decline in economic activity.
PACCAR Financial
Services
The financing arm of truck maker
PACCAR reported lower business and a higher number of repossessions
in the second quarter of the year, with a pre-tax income of $15.6
million, down from the $58.7 million earned in the same period last
year.
PACCAR’s captive, which provides
financing for Kenworth, Peterbilt and DAF dealers and customers,
had second-quarter revenues of $243.5 million, compared with $330.5
million the previous year.
The business also noted that although
credit losses improved in the US and Canada, these were offset by
credit losses in Europe, where repossessions were increasing.
Cat Financial
Cat Financial saw second-quarter
revenues fall 10 percent year-on-year, to $700 million.
The captive also reported $1.8 billion
in new retail financing – a figure down by 60 percent, or some $2.8
billion, year-on-year.
This was largely attributed to a
downturn in new business in Cat Financial’s North America, Europe
and Asia operating segments.
At $122 million, pre-tax profit was
also down at the captive, by 32 percent year-on-year.
