Press Release

Aug 4, 2021

Volkswagen Financial Services double their operating profit in the first half of 2021 – Earnings forecast for 2021 raised to EUR 4 billion

Operating result rises to EUR 2.34 billion (+102.5 percent)

Earnings forecast for full year 2021 raised to EUR 4 billion

Further outlook for subsequent years: sustainable earnings target of EUR 4 billion

Braunschweig, 4 August 2021. Volkswagen Financial Services have closed the first half of 2021 with a record result. "The operating result of EUR 2.34 billion marks the most successful half-year period in our company's history to date," said Lars Henner Santelmann, Chairman of the Management Board of Volkswagen Financial Services AG. "We have therefore earned more in the first half of 2021 than in the whole of 2016." Frank Fiedler, CFO of Volkswagen Financial Services AG, added: "We are proud and happy that we were able to increase our operating result to such an extent in a challenging market environment. The increase in earnings over the previous year not only resulted from the rise in new contracts but in particular also from the high demand for used vehicles and the lower risk costs for credit and residual value risks." Santelmann also noted: "Based on the extremely positive business performance during the first half of the year, we are already forecasting an operating result of around EUR 4 billion for the financial year 2021 as a whole." Fiedler stressed: "Our ambition is to ensure that this historic level of earnings at Volkswagen Financial Services is maintained over the next few years as well."

Volkswagen Financial Services are also making great progress in implementing their digitalization strategy. "Since 2015 we have invested around one billion euros in the digitalization of our product range and in new mobility concepts," Santelmann pointed out. He added: "Together with our efficiency program, we have thus created the necessary basis to provide the Volkswagen Group brands and their customers with comprehensive digital mobility solutions, such as the recently developed car subscription product Auto-Abo."

Growth in the contract portfolio and new acquisitions during the first half of 2021

Compared to the same period last year, the number of current contracts worldwide increased to around 22.25 million units (+4.4 percent), while the number of new contracts worldwide increased to 4.16 million units (+22.9 percent).

In the European core markets outside Germany – Italy, France, Spain and the United Kingdom – new business developed extremely positively. The number of new contracts in these countries during the first six months increased to more than 1.13 million units, a rise of 44.1 percent year-on-year.

Significant increases in new contracts were also recorded in the USA (344 thousand units; +34.2 percent) and in China (282 thousand units; +21.5 percent).

In Germany, the largest single market for Volkswagen Financial Services, the number of new contract acquisitions declined slightly during the first half of the year to around 983 thousand units (-1.0 percent year-on-year). The contract portfolio fell by 1.2 percent to 6.28 million units.

The total assets of the Volkswagen Financial Services business division amounted to around EUR 233.0 billion (+5.6 percent, previous year: EUR 220.7 billion). 

Portfolio of current contracts worldwide
(in thousands*)
30 June 2021 30 June 2020 Change in %
Financing 6,490
+ 0.1
Leasing  4,776 4,627 + 3.2
Services 5,003 4,553
+ 9.9
Insurance 5,977 5,650
+ 5.8
Total 22,246 21,315 + 4.4
*rounded figures      
New contracts worldwide
(in thousands*)
January to June 2021
January bis June 2020 Change in %
Financing 1,108 982 +  12.8
Leasing 919 786 +  24.6
Services 855 713 +  19.9
Insurance 1,217 903 +  34.8
Total 4,159 3,384 +  22.9
*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 16,558 employees worldwide – including 7,472 alone in Germany. Volkswagen Financial Services report total assets of around EUR 225.6 billion, an operating result of EUR 2.8 billion and a portfolio of around 21.9 million current contracts (as at: 31.12.2020).

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