Cat Financial, the finance subsidiary of building machinery maker Caterpillar, has seen its revenues grow 4% to $2.69bn (€2.16bn) in 2017.

Higher financing rates and lending activity with parent Caterpillar benefited revenues for $61m and $48m respectively. The gains were partly offset by $29m for lower average earning assets.

Retail new business volumes also rose 3%, to $11.2bn. Volumes were pushed by an increase in Asia-Pacific activity, partially offset by a decrease in Latin America and North America.

Pre-tax profits totalled $590m, up 29%. Lower US corporate tax rate from new legislation resulted in a $151m benefit, which was partially offset by mandatory repatriation of non-US earnings.

Allowance for credit losses rose to $365m, equal to 1.33% of net receivables (2016: $343m, 1.29%). Nevertheless, write-offs decreased over 7.8%, to $114.

Dave Walton, president of Cat Financial and vice president with responsibility for the financial products division of Caterpillar, said: “We are pleased with the overall performance of our business during 2017, including continued good portfolio health and operational execution during the year.

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“With our ongoing focus on expanding our ability to serve customers globally through financial services solutions, we remain well-positioned to serve the needs of Caterpillar, Cat dealers and our growing customer base worldwide.”