The customer finance business delivered good results during the quarter stemming from profitable growth and stable portfolio performance in the majority of served markets.
New financing volume during the quarter amounted to SEK 11.7 billion (12.7). Adjusting for movements in exchange rates, new financing volume decreased by 2% compared to the second quarter of 2012. In total, 12,655 new Volvo Group units (13,506) were financed during the quarter. In the markets where financing is offered, the average market penetration rate in the second quarter was 26% (27%).
As of June 30, 2013, the gross credit portfolio amounted to SEK 103.3 billion (101.9). On a currency adjusted basis, the credit portfolio increased by 5.6% when compared to the second quarter of 2012.
Credit provisions in the quarter amounted to SEK 224 M (193) while write-offs of SEK 125 M (163) were recorded. Credit reserves increased to 1.34% of the credit portfolio at June 30, 2013 from 1.30% at March 31, 2013. The annualized write-off ratio through June 30, 2013 was 0.47% (0.57%).
Operating income in the second quarter amounted to SEK 416 M (387). The improvement compared to the previous year is driven mainly by stronger margins and higher earning assets. During the quarter, VFS syndicated approximately SEK 2.1 billion of the credit portfolio, including SEK 1.2 billion in Brazil in accordance with its risk diversification and funding strategy. The result of the syndications is included in Other operating income and expenses.