DaimlerChrysler Financial Services shows stable business development in the second quarter

The business development of DaimlerChrysler Financial Services was generally stable in the second quarter of 2007. The Financial Services division posted EBIT of €220 million (Q2 2006: €220 million). Despite rising interest rates in Europe, earnings were of the same magnitude as the high level of the prior-year period, partially due to the release of certain valuation allowances in the non-automotive financial services business.

Contract volume increased by 8% to €58.1 billion; adjusted for exchange-rate effects there was an increase of 10%. New business decreased slightly from €7.5 billion to €7.3 billion; adjusted for exchange-rate effects there was a slight increase of 1%.

Contract volume in the region Europe, Africa & Asia/Pacific of €33.2 billion surpassed the high prior-year figure by 6%. In Germany, DaimlerChrysler Bank’s portfolio grew to €16.1 billion (end of Q2 2006: €15.4 billion). The total deposit volume increased significantly over the previous year to €3.8 billion (+17%). Contract volume in the Americas region amounted to €20.9 billion at the end of the quarter (end of Q2 2006: €19.6 billion). Adjusted for exchange-rate effects, the portfolio grew by 12%.

DaimlerChrysler Financial Services anticipates a stable development of business and earnings during the rest of the year. The separation of the financial services business in the NAFTA region will cause additional expenses. Financial Services, however, assumes that it will achieve a return on equity of more than 14% once again in full-year 2007.

Due to the disposal of the North American financial services business related to Chrysler, which took effect with the closing of the transaction on August 3, 2007, the figures for the Financial Services division are shown for the first time without Chrysler Financial (NAFTA); the prior-year figures have been adjusted accordingly.