Interim Report Q1 2017: A Rocket Start
Daimler Financial Services achieved growth in its new business in the first quarter of 2017. Worldwide, approximately 447,000 new leasing and financing contracts were concluded with a total volume of €16.8 billion, which is 23% more than in the prior-year period. Contract volume reached €135.0 billion at the end of March and was thus slightly above the level of year-end 2016. Adjusted for exchange-rate effects, contract volume grew by 2%. First-quarter EBIT amounted to €524 million (Q1 2016: €432 million).
Growth Throughout All Regions
In the whole of Europe, approximately 218,000 new leasing and financing contracts were signed in the first quarter (+18%). New business thus increased by 17% to €6.8 billion. Contract volume of €54.5 billion in Europe was slightly above the level of year-end 2016.
In the Americas region, leasing and financing contracts with a total value of €5.4 billion were concluded in the first quarter, representing an increase of 11% compared with the prior-year period. In particular, growth took place in the United States (+11%) and Canada (+7%). Contract volume of €53.7 billion in the Americas region at the end of March was at the level of year-end 2016.
First-quarter new business in the Africa & Asia-Pacific region (excluding China) grew compared with the prior-year period by 24% to €2.1 billion. In South Korea, the value of newly signed leasing and financing contracts increased by 46%. Contract volume in the region amounted to €17.3 billion at the end of March, representing growth of 7% compared with the end of 2016. There was strong growth of new business also in China: In the first quarter, 72,000 new leasing and financing contracts worth €2.5 billion were concluded (+88%). Contract volume amounted to €9.5 billion at the end of March, an increase of 8% compared with the end of 2016.
Further Positive Developments: Insurance, Digital Financial & Mobility Services
In the insurance business, Daimler Financial Services brokered 468,000 contracts, which is 21% more than in the first quarter of last year. Developments were particularly positive in Japan (+75%), China (+38%) and Germany (+15%).
With the acquisition of the electronic-payment service provider PayCash Europe SA, Daimler Financial Services has entered the e-payments business. This will enable Daimler to offer its own electronic payments service under the brand name Mercedes pay.
car2go further strengthened its market leadership in the carsharing business and had a total of 2.3 million customers worldwide at the end of the first quarter.
Promising Outlook for 2017
Daimler Financial Services anticipates significant growth in new business and further growth in contract volume in the year 2017. This will be driven by the sales development of the automotive divisions, especially Mercedes-Benz Cars. In addition, we are utilizing new market potential especially in Asia, and are applying new and digital possibilities for customer contacts – in particular by systematically further developing our online sales channels. We continue to see good growth opportunities also in the field of innovative mobility services.