The customer finance business recorded strong levels of new business volume and assets under management reached all-time highs. This profitable growth, along with stable portfolio performance, resulted in solid results for the quarter.
New financing volume during the quarter amounted to SEK 15.0 billion (12.4). Adjusting for movements in exchange rates, new financing volume increased by 24.2% compared to the fourth quarter of 2012. In total, 16,450 (14,063) new Volvo Group units were financed during the quarter. In the markets where financing is offered, the average market penetration rate in the fourth quarter was 28% (28%).
As of December 31, 2013, the gross credit portfolio amounted to SEK 105.3 billion (100.9). On a currency adjusted basis, the credit portfolio increased by 6.3% when compared to the fourth quarter of 2012.
Credit provisions in the quarter amounted to SEK 244 M (184) while write-offs of SEK 220 M (188) were recorded. Credit reserves decreased from 1.34% to 1.31% of the credit portfolio at September 30, 2013 and December 31, 2013, respectively. The annualized write-off ratio through December 31, 2013 was 0.71% (0.58%).
Operating income in the fourth quarter was on par with last year and amounted to SEK 397 M (391). During the quarter, VFS syndicated approximately SEK 3.1 billion of the credit portfolio, including SEK 1.8 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.