Braunschweig, 3 November 2020. After the first three quarters of 2020 and despite the adverse effects of the COVID-19 pandemic, Volkswagen Financial Services report a stable current portfolio of more than 21.6 million contracts (previous year: 21.2 million; plus 2.0 percent) and an operating profit of EUR 1.6 billion (previous year: EUR 2.0 billion; minus 19.8 percent). The number of new contracts acquired in the first nine months of this year amounted to around 5.7 million units, which is only around nine percent below the previous year's level. At the end of the first six months, the difference compared to the previous-year period had been minus 17.4 percent. "After the slump in the spring, our new business has stabilized considerably during the third quarter. In addition, the sharp decline in vehicle deliveries since the outbreak of the COVID-19 pandemic was partially offset by a significant increase in penetration," says Lars Henner Santelmann, Chairman of the Management Board of Volkswagen Financial Services AG. Frank Fiedler, CFO of Volkswagen Financial Services AG, adds: "Despite the coronavirus crisis, Volkswagen Financial Services can report a good operating result after three quarters. The year-on-year decline is mainly due to higher risk costs for credit and residual value risks as a result of macroeconomic uncertainties as well as losses from interest rate hedging transactions."
Volkswagen Financial Services have initiated numerous stabilization measures to further safeguard their business in the face of the repercussions of the COVID-19 pandemic. One example is the sales promotion program launched jointly with the Volkswagen Group brands, which has already had a positive effect on the number of new contracts. In addition, the existing cost-reduction and efficiency program, Operational Excellence (OPEX), is being further pursued with undiminished intensity.
In Germany, the largest single market for Volkswagen Financial Services, the portfolio of current contracts as at 30 September 2020 totaled more than 6.39 million units (previous year: 6.34 million units, plus 0.8 percent). The number of new contracts, however, fell 11.8 percent during the same nine-month period to almost 1.60 million units (previous year: 1.81 million units).
