FCA Bank Group – 2014 Financial Results

 

FCA Bank achieves its best financial results since inception of the Joint Venture

 

Net profit for the period totaled €182.5 million, up 6.3% on 2013. The increase being driven by the sharp reduction in the cost of risk (-23.3%) down to €83.4 million at 0.57% on the average portfolio, reflecting a further substantial improvement compared to 2013.

Shareholders’ equity is at €1.9 billion, Core Tier 1 Ratio at 11.7%.

On 14th January 2015 FCA Bank S.p.A. (formerly FGA Capital S.p.A.) formally obtained its banking license from the Italian supervisory authority.

 “The new status as a bank will further enhance the Company’s reputation among international investors, enabling it to diversify funding more effectively and offer customers even more attractive products” said the Chief Executive Officer of FCA Bank, Giacomo Carelli.

 

I.          Key figures

 

New business

Total FCA Bank Group financed volumes in 2014 amounted to €7.6 billion including long-term rental activities. In 2014 FCA Bank supported FCA’s new car sales, with an increased 43% penetration rate on total registrations, compared to 40% of the previous year.

The average portfolio for the period also grew to €14.7 billion, with an increase of around 1% on 2013.

 

Net Banking Income and Rental Margin

Net banking income and rental margin for the year fell by 3.7%, compared to 2013, to €565.7 million.

The slight decrease was due to a non-recurring event in Germany (the reimbursement of handling fees following a ruling by the Federal Court of Justice that affected all financial institutions operating in that Country).

 

Expenses

Management’s continued focus on the operational efficiency is reflected in the decreasing trend of the net operating expenses, which experienced a further 2.3% reduction in 2014, to €225.8 million.

 

Cost of risk

FCA Bank’s cost of risk experienced a significant reduction as a result of the improved credit cycle management process. In absolute terms, the cost of risk was contained at €83.4 million, equal to the 0.57% on the average portfolio, reflecting a further improvement compared to 2013.

 

II.         Refinancing

Financial debt for the group amounted to €13.7 billion at year-end of which:

–        Loans from Crédit Agricole Group at €4.1 billion

–        Loans from Other Banks at €2.7 billion

–        Securitizations at €3.8 billion 

–        Bonds at €3.1 billion

In 2014 the Group strengthened its funding diversification policy, accessing the Capital Markets with a combination of secured and unsecured transactions. Specifically, the Group issued three Notes under its MTN Program for a total value of €2.2 billion and launched two ABS transactions (ABEST-9 and ABEST-10), for a total value of €0.9 billion. A Syndicated Facility expiring in January was renewed for 3 years and its size was increased to €550 million.

 

III.        Capitalization

FCA Bank maintains a good level of capitalization, at year-end the Shareholders’ Equity was at €1.9 billion, with Core Tier 1 Ratio1 at 11.7%.

 

Turin, 30th March 2015

 

 

[1] Pro-forma Tier 1 Ratio (Basel II)

 

 

FCA Bank

FCA Bank is a bank operating mainly 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 either directly or through its subsidiaries. At the end of 2014 FCA Bank reported a portfolio of outstanding loans worth €14.7 billion.