During the quarter, the customer finance business delivered solid results stemming from continued stable portfolio performance in the majority of served markets.
New financing volume during the quarter amounted to SEK 9.1 billion (10.4). Adjusting for movements in exchange rates, new financing volume decreased by 5% compared to the first quarter of 2012. In total, 10,108 new Volvo Group units (11,172) were financed during the quarter. In the markets where financing is offered, the average market penetration rate in the first quarter was 28% (25).
As of March 31, 2013, the gross credit portfolio amounted to SEK 99 billion (95.8). On a currency adjusted basis, the credit portfolio increased by 8% when compared to the first quarter of 2012.
Credit provisions in the quarter amounted to SEK 161 M (127) while write-offs of SEK 112 M (117) were recorded. Credit reserves increased to 1.30% of the credit portfolio at March 31, 2013 from 1.23% at December 31, 2012. The annualized write-off ratio through March 31, 2013 was 0.45% (0.49).
Operating income in the first quarter amounted to SEK 381 M (334). The improvement compared to the previous year is driven mainly by stronger margins.