Volkswagen Financial Services increased outstandings by 4.7%, in addition to seeing growth in originations, the company reported in its half-year earnings report.
The total number of contracts in the lender’s portfolio totaled 6.2 million compared with 5.9 million the same period the year prior. The leasing portfolio likewise saw growth, climbing 11.5% to 4.2 million in the period ended June 30.
In addition to growing the portfolio, the lender also increased originations by 10.9%. Volkswagen Financial Services added 1.2 million contracts during the quarter up from 1.1 million the same period the year prior.
“Following our record performance in the financial year 2017, the earnings improvement during the first half of this year is especially satisfying,” Frank Fiedler, chief financial officer, said in a press release. “We are therefore confirming our earnings forecast for 2018 and expect our operating profit to be at the level of the previous year. This is, however, not something that can be taken for granted, because to achieve this level again, we must continue to focus on our targets during the second half of the year.”
The main driver behind the contract growth was primarily from markets in Germany and Poland, a steady incline of the global economy, and further expansion in the fleet business, especially in Europe.
