22 February 2018

FCA Bank achieves record 383 million in net profit

 

Operating income for the year amounted to €534 million while net profit reached €383 million, up 23% on 2016. This improvement was due to the increase of the outstanding portfolio to nearly €24 billion, from €20.8 billion in 2016. The rise in new car registrations and FCA Bank's commercial support to FCA (thanks to a penetration rate of 44% of total sales in Europe) resulted in total new financing of €12.1 billion, up 4% on 2016. The cost of risk continued to decline also in 2017, settling at €43 million, or 0.20% of the average outstanding portfolio, compared to 0.30% in 2016.

 

"FCA Bank continued to execute the growth and diversification strategy undertaken when it turned into a bank in 2015 - said Giacomo Carelli, Chief Executive Officer and General Manager - strengthening its presence in the 18 countries in which it operates, remaining on track with the ambitious digitalization plan for its services and launching the new mobility solutions of its Leasys subsidiary in the main 7 European markets."

Activity volumes

In 2017, total new financing volumes amounted to €12.1 billion, including long-term rental activities. FCA Bank supported the sale of new FCA vehicles, with a penetration rate of 44% of new car registrations.
The year-end outstanding portfolio totalled €23.9 billion, with a 15% increase on 2016. 

 

Banking and rental margin 

The banking and rental margin for the year rose by 15% on 2016, reaching a total of €840.5 million, driven by an increase of the portfolio and its profitability, which was stable at approximately 4%.

 

Operating costs

The operating efficiency achieved reduced the cost-income ratio to 31%, thus continuing along the improvement path started with the transformation into a bank. The €19 million rise in absolute terms of net operating costs, compared to 2016, was mainly due to the increase in the outstanding portfolio. 

 

Cost of risk

FCA bank's cost of risk fell again, continuing the downward trend already shown in 2016. In absolute terms, the cost of risk amounted to €43 million, or 0.20% of the average outstanding portfolio.

 

I.               Funding

Also in 2017 the Group continued to pursue the diversification of its funding sources, through the issue of new bonds, the execution of securitization transactions and deposit-taking activities with the public through the on-line Conto Deposito.

More specifically, the Group issued, through public and private placements, €2.5 billion under its EMTN program.

 

II.              Capitalization

FCA Bank maintains a good capitalization level, even though it distributed an interim dividend of €100 million during the year. At 31 December 2017, equity amounted to approximately 2.5 billion, with a Core Tier 1 ratio of 12.0%.

 

III.            Rating

In 2017, the rating agencies reviewed the ratings of the FCA Bank Group, following its positive results:  

  • Moody's confirmed the long-term rating of Baa1 and the A3 rating on long-term deposits;
  • Fitch upgraded the long-term rating to BBB+ with stable outlook on 31 May 2017;
  • Standard&Poor's upgraded its rating to BBB with stable outlook on 31 October 2017.

 

Turin, 22 February 2018

 

FCA Bank S.p.A.

FCA Bank S.p.A. is a bank engaged mainly in car financing, with the objective of meeting any mobility requirements. It is an equally-held joint venture of FCA Italy S.p.A., a company of global car manufacturer Fiat Chrysler Automobiles N.V., and Crédit Agricole Consumer Finance, a company of the Crédit Agricole Group, leader in consumer credit. The company provides financial products to support the sales of prestigious car brands in Italy and in Europe. Loan, lease, rental and mobility financing programmes provided by FCA Bank S.p.A. are specifically conceived for the sale networks, for private customers and corporate fleets. FCA Bank S.p.A. has a presence in 17 European countries and in Morocco, directly or through subsidiaries. At 31 December 2017 FCA bank had a credit portfolio of approximately €24 billion.

 

 

 

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