A Timetric briefing service

BMW FS revenues up, profit down, 2012

18 March 2013 by Richard Irvine-Brown

BMW Financial Services (BMW FS) has recorded a growth in revenues while profit before tax dropped, year-on-year, according to BMW Group figures for 2012.

Revenue at BMW FS, the global finance operation of the BMW Group, was €19.55bn (£16.76bn) for the year, up by 11.65% on the figure for 2011 while profit before tax was €1.56bn, down 12.79%.

BMW attributed the fall to an exceptionally profitable 2011, including €439m from the reduction in provision for residual value and bad debt risks. 2012, however, included €124m profit from end-of-contract leasing vehicles.

1,341,296 new lease and credit financing contracts were signed in 2012, up 12.09% on the total for 2011. At the end of 2012, the rolling total of contracts in the BMW FS portfolio stood at 3,846,364, up 7.08% on the total at the close of 2011.

Quarter four

BMW FS revenue for Q4 2012 stood at €4.97bn, up 2.01% on the same period of 2011 and the highest for any quarter of the year.

Although lower than any other quarter of 2012, profit before tax was up 3.04% on Q4 2011, at €271m. Earnings before interest and tax (EBIT) were €267m, up 3.89% year-on-year.

Q1 2012

Q2 2012

Q3 2012

Overall

Revenue for the BMW Group in 2012 was €76.85bn, up 11.66% year-on-year.

EBIT was €8.30bn, up 3.52%, and profit before tax €7.82bn, up 5.91%.

Group profit for 2012 was €5.12bn, up 4.38% on 2011.

The Group attributed the growth, in part, to the annual record high in sales volumes of 1,845,186 BMW, Mini and Rolls-Royce vehicles delivered worldwide, up 10.56% on 2011.

Revenues from the Automotive segment reached €70.21bn, up 11.04%, with over 1.5 million BMW cars sold in a year for the first time.

richard.brown@timetric.com