Press Release

November 2, 2023

Volkswagen Financial Services report solid third quarter 2023 amidst challenging environment

New contracts rise by almost 11 percent to over six million units

Contract portfolio stable at over 22 million units

Earnings forecast for 2023 remains unchanged

Operating profit after nine months falls to EUR 2.54 billion (-42.5 percent)

Volkswagen Bank continues to grow

Braunschweig, 2 November 2023. Volkswagen Financial Services have continued the current fiscal year with a solid third quarter. For example, the new contract acquisi-tions worldwide increased by 10.8 percent during the months from January to Sep-tember 2023. The portfolio of current contracts remained stable at just over 22 million. "We continue to see the normalization of the financial services business in terms of earnings that has been apparent since the beginning of the year and feel confirmed in our assessment for 2023," said Dr. Christian Dahlheim, Chairman of the Management Board of Volkswagen Financial Services AG. He added: "We are pleased with the de-velopment of new contracts, which exceeded six million units in the first nine months of the fiscal year. This reflects the improved vehicle availability." Frank Fiedler, CFO of Volkswagen Financial Services AG, noted: "All our forecasts regarding business per-formance are being confirmed. We are therefore sticking to our earnings target, de-spite the numerous global political and macroeconomic uncertainties."

In terms of new contract acquisitions, the leasing and services segments recorded particular-ly strong growth rates of over 20 percent. With a total figure of 6.36 million new contracts worldwide, a new record was set for the first three quarters of a fiscal year.

Used cars and fleets on a growth trajectory

The used car strategy pursued by Volkswagen Financial Services also continues to bear fruit. Through Europe-wide marketing and close coordination with the dealer partners and the Volkswagen Group brands, 694,000 new contracts (+4.8%) were concluded from January to September 2023, bringing the contract portfolio to 2.67 million units (+1.5%).

The fleet business remains a major growth driver in the German market. With around 228,000 newly signed fleet customer contracts, new contracts exceeded the previous year's level by more than 33 percent.

The Volkswagen Bank success story continues

Volkswagen Bank is continuing on its growth course. Dr. Volker Stadler, Chairman of the Management Board of Volkswagen Bank GmbH, pointed out: "With its deposit business, Volkswagen Bank makes an essential contribution to the refinancing mix and therefore to the growth of Volkswagen Financial Services." Currently, the "Plus Sparbrief" savings bond, for example, yields a fixed top rate of 4.0 percent p.a., and over 40,000 new contracts have been concluded since the start of this offer.

The total assets of the Volkswagen Financial Services business division have grown to around EUR 263 billion. 

Portfolio of current contracts worldwide
(in thousands of units*)
As at 30 September 2023
As at 30 September 2022 Change in %
Financing 5,334 5,677 -21.1
Leasing  4,851 4,767 +1,8
Services 5,724 5,351 +7.0
Insurance 6,140 6,173 -0.5
Total 22,050 21,968 +0.4
*rounded figures      
New contracts worldwide
(in thousands of units*)
January to September 2023
January to September 2022 Change in %
Financing 1,370 1,320 +3.8
Leasing 1,429 1,188 +20.3
Services 1,605 1,323 +21.3
Insurance 1,961 1,915 +2.4
Total 6,365 5,747 +10.8
*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 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 17,713 employees worldwide – including 7,692 alone in Germany. Volkswagen Financial Services report total assets of around EUR 240 billion, an operating profit of EUR 5.60 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2022).

More information at: www.vwfs.com

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