Press Release

March 23, 2022

Volkswagen Financial Services double previous-year result in 2021 and confirm sustainable earnings level of four billion euros over the next few year


Operating result of EUR 5.67 billion (+102 percent) impacted by special effects

Contract portfolio rises slightly to over 22 million units (+0.6 percent)

Total assets amount to EUR 235.6 billion (+4.4 percent)

Profit drivers: high demand for used cars and lower risk costs

Braunschweig, 23 March 2022. Volkswagen Financial Services have closed the financial year 2021 extremely successfully despite the ongoing coronavirus pandemic. With an operating result of EUR 5.67 billion (+102 percent), which was impacted by special effects, Volkswagen's financial services division recorded the highest result in the company's history. "Given the special circumstances of the past financial year, we are naturally very pleased with the result. Nevertheless, we are realistic in our assessment of this result and in our forecast for the coming years," said Dr. Christian Dahlheim, Chairman of the Management Board of Volkswagen Financial Services AG. Frank Fiedler, CFO of Volkswagen Financial Services AG, added: "The outstanding result is based on strong special effects. Firstly, our risk costs for credit and residual value risks were substantially lower than in the previous year. Secondly, the revenues from our used car business were significantly higher due to the tight delivery situation for new cars."

While the number of new contracts acquired worldwide declined only slightly by 1.1 percent to a total of 7.8 million units (previous year: 7.9 million units) – despite lower delivery figures for the Group – the portfolio of current contracts increased minimally compared with the previous year to over 22.0 million units (+0.6 percent). The total assets of the Volkswagen Financial Services business division grew – as a result of a changed product mix of higher-value vehicles and higher prices together with a resulting increase in the interest-bearing assets business – to EUR 235.6 billion (+4.4 percent, previous year: EUR 225.6 billion). 

Focus on digitalization, used cars, the fleet business and European realignment

Volkswagen Financial Services continue to focus on the digitalization of their product and process portfolio and on growth opportunities in the global used car and fleet business. Dr. Christian Dahlheim explained: "We are currently undergoing a transformation and are strengthening our business model by consistently digitalizing our business processes and the offerings for our customers. Together with the brands of the Volkswagen Group, we will further expand our role as the "The Key to Mobility". It is our intention to accompany our customers and our vehicles throughout their entire lifespan. In order to create the conditions for further growth and to meet customer demands more effectively, we are realigning ourselves in Europe. Our historically evolved country-focused setup is giving way to an organizational structure based on the three sales channels Dealers, Digital Direct Business and Fleet Customers."

Forecast: operating results of four billion euros during the next few years

Subject to macroeconomic and political developments, Volkswagen Financial Services expect a result for 2022 below last year's level. Frank Fiedler: "2021 was an exceptional year with a historic result. This will certainly not be immediately repeatable. Depending on the effects of any special factors, we have nevertheless set ourselves the target of achieving an operating profit of around four billion euros throughout the next few years."

portfolio of current contract worldwide* 31 December 2021 31 December 2020 Change in %
Financing 6,151 6,635 - 7.3
Leasing 4,770 4,692 + 1.7
Services 5,063 4,811 + 5.5
Insurance 6,048 5,769 + 4.8
Total 22,032 21,907 + 0.6
* rounded figures, in thousands      
new contracts worldwide* January - December 2021 January - December 2020 Change in %
Financing 2,084 2,381 - 12.1
Leasing 1,789 1,752 + 2.1
Services 1,635 1,647 - 0.7
Insurance 2,322 2,140 + 8.5
Tatal 7,830 7,920 - 1.1
* rounded figures, in thousands      

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 service business of the Scania brand and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. Volkswagen Financial Services have a total of 16,849 employees worldwide – including 7,570 alone in Germany. Volkswagen Financial Services report total assets of around EUR 235.6 billion, an operating result of EUR 5.67 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2021).

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