Press release
62KB
july 28, 2016 - Fiat
First Half 2016 Financial Results FCA Bank Group posted best half-year results since inception
- Profit before tax for the period totaled €203.2 million whereas the net profit reached €145.9 million, up 11% on the first semester of 2015. Increase was driven by the growth in the average outstanding portfolio, that reached €17.8 billion compared to €15.7 billion at June 2015.
- The increase in new car registrations and #fca Bank's support to #fca (with a commercial penetration at 50%, up 3.2 p.p. on 2015 year-end) resulted in total financed volumes of €6.1 billion, up 26% vs. H1 2015. The portfolio reached €19 billion at the end of June 2016.
- The reduction in the cost of risk continued also in 2016, down to €28 million at 0.32% of the average portfolio amount, compared to 0.54% in June 2015.
"During the first half of 2016 #fca Bank has continued to improve its performance - CEO Giacomo Carelli said - getting excellent feedback from customers, business partners and investors, as well as positive rating actions by the agencies. For instance Moody's has recently upgraded #fca Bank long term deposits rating to A3, which currently represents the highest rating for an Italian bank, just before the launch of the "Conto Deposito" in the Italian market, planned in September."
New business
Total #fca Bank Group new financed volumes in 2016 amounted to €6.1 billion including the long-term rental activities. #fca Bank supported FCA's new car sales, with an increased 50% penetration rate on total registrations (vs. 45% in the previous year).
The average outstanding portfolio for the period also grew to €17.8 billion, with an increase of 13% on 2015.
Net Banking Income and Rental Margin
The net banking income and rental margin increased by 2% in H1 2016 compared to 2015, to €355.3 million, driven by the portfolio growth, that at the end of June reached €19 billion with a stable profitability at 4%.
Operating Expenses
Management's continuous focus on the operational efficiency is reflected in the cost control with a percentage on the average outstanding portfolio that decreased by 0.14 p.p to 1.37%. The slight increase in the overall overheads to € 121 million is mainly due the strong growth in the portfolio.
Cost of risk
FCA Bank cost of risk further decreased, confirming a trend already seen in 2015. In absolute figures, the cost of risk amounted to €28 million, equal to 0.32% on the average portfolio.
II. Refinancing
Financial liabilities of the group reached €18 billion in June 2016.
In 2016 the Group strengthened its funding diversification policy, accessing the Capital Markets via a combination of secured and unsecured transactions. Specifically, the Group issued debt under the MTN Program through public and private placements for a total value of €1.6 billion, and accessed the ECB refinancing scheme (TLTRO2) for € 0.6 billion.
III. Capitalization
FCA Bank maintains a good level of capitalization, even after having distributed dividends to shareholders for € 125 million. As at 30 June 2016, the Shareholders' Equity was €2.1 billion, with a Core Tier 1 Ratio (profit included) at 11.5%.
IV. "Conto Deposito"
On the back of the experience and skills developed in more than 90 years also in the private savings products, in September #fca Bank will launch the "Conto Deposito" product in Italy, with highly competitive yields and terms, through remunerative fixed interest rates.
"Conto Deposito" won't be exclusively addressed to the Group employees with dedicated terms and conditions, but will also be made available to #fca Bank's customers and to every saving account holder looking for a reliable and profitable investment.
V. Rating
During the first months of 2016 the rating agencies upgraded #fca Bank's rating, on the grounds of the positive trend in the Group results.
- Moody's improved the long-term rating to Baa1 and the long-term rating on deposits to A3 with stable outlook on 19th July 2016;
- Fitch confirmed the long-term rating to BBB with positive outlook on 15th June 2016;
- Standard&Poor's upgraded the rating to BBB- with stable outlook on 19th May 2016.
Turin, 28th July 2016
FCA Bank
FCA Bank is a bank mainly operating in the motor financing sector, aimed at satisfying all mobility requirements and is a joint venture between #fca Italy, part of Fiat Chrysler Automobiles, the global automotive group, and Crédit Agricole Consumer Finance, a major player in the consumer finance market. The company manages most of the financial activities to support the sales of prestigious automotive brands in Europe. Financial and leasing programs are operated by #fca Bank and specifically designed for the dealer networks and private customers as well as for business fleets. #fca Bank SpA is present in 16 European countries and in Morocco either directly or through its subsidiaries. At the end of June 2016 #fca Bank reported a portfolio of outstanding loans worth €19 billion.
1 Ratio is an estimate and CET 1 includes the half-year net income.
FCA
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