Press Release

August 8, 2019

Volkswagen Financial Services post strong result for the first half of 2019

Half-year operating result totals EUR 1.281 billion (plus 4.0 percent)

Current portfolio grows to over 20.9 million contracts (plus 6.0 percent)

New contracts increase to just under 4.1 million units (plus 0.4 percent)

Braunschweig, 8 August 2019. Volkswagen Financial Services have achieved a new record operating result with the figure of EUR 1.281 billion for the first half year up to 30 June 2019 (previous year: EUR 1.231 billi on). Total assets increased to around EUR 215 billion (plus 3.9 percent) and the level of current contracts in the company's portfolio rose six percent to 20.9 million units (previous year: 19.76 million units). "The fact that we have been able to increase our operating result during the first half year in what is currently a very challenging market environment is extremely gratifying. The growth in the contract portfolio, in particular, is the basis of this success. Even though the global economic climate will not be improving during the second half of 2019 , we expect the Volkswagen Financial Services division to record an operating profit at the previous year's level by the end of the year," says Frank Fiedler, CFO of Volkswagen Financial Services AG.

In addition to the overall c ontract portfolio, the number of new contracts also grew during the first half of 2019. With a plus of 0.4 percent to just under 4.1 million units , the total number of all new contracts acquired showed a slight increase The growth in n ew contracts for vehicles from the Porsche, SEAT, MAN and non Group brands was very positive across all product groups.

Contract portfolio
The 20.94 million current contracts comprise 6.5 million for vehicle financing (+4.8 percent), 4.5 million for l easing contracts (+6.9 percent), 4.2 million for service contracts (+9.6 percent) and 5.7 million for insurance contracts (+ 4.0 percent). In Germany, the highest volume market for Volkswagen Financial Services, the total number of current contracts rose from 6.02 million to 6.30 million units , a growth of 4.6 percent.

New contracts
The figure of 4.1 million new contract acquisition s embraces 1.2 million new contracts in the vehicle financing segment 4.5 percent), just under one million new leasing contr acts (+5.3 percent), 0.8 million new service contracts (+10.7 percent) and 1.1 million new insurance contracts ( 4.8 percent).

Portfolio of current contracts worldwide
(in thousands*)
As at 30 June 2019 As at 30 June 2018 Change in %
Financing 6,522 6,222 + 4.8
Leasing 4,513 4,221 + 6.9
Services 4,197 3,829 + 9.6
Insurance 5,710 5,489 + 4.0
Total 20,942 19,761 + 6.0
* in tausend Stück, gerundete Werte      
New contracts worldwide
(in thousands*)
January to June 2019 January bis June 2018 Change in %
Financing 1,203 1,260 - 4.5
Leasing 987 937 + 5.3
Services 814 735 + 10.7
Insurance 1,095 1,150 - 4.8
Total 4,099 4,081 + 0.4
*rounded figures      

Information for editors

Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 16,267 employees worldwide – including 7,010 alone in Germany. Volkswagen Financial Services report total assets of around EUR 207.6 billion, an operating result of EUR 2.6 billion euros and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).

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