- Record volume
- Asset-backed securitization
- Efficiency improvement
The customer finance business delivered record first quarter new business volume and units financed, while stable levels of penetration were achieved across the markets where financial services are offered.
The improvement in operating income when compared to the first quarter of 2013 was achieved primarily through portfolio growth, strong margins and cost control in all regions. The gross credit portfolio grew by 2.5% when compared to the first quarter of 2013. On a currency-adjusted basis the growth was 2.9%. Growth was achieved net of the sale of Volvo Rents, which reduced the credit portfolio by SEK 6.3 billion during the quarter. Overall portfolio performance and credit reserves remained stable.
In March, VFS successfully completed an asset-backed securitization program. Under the terms of the transaction, SEK 4.4 billion of securities tied to US-based loans on trucking and construction equipment assets were issued. In addition, SEK 0.9 billion of assets were syndicated in the quarter.