Daimler Financial Services (Daimler FS) posted earnings
before income tax (EBIT) of €101 million in the third quarter
of 2009, the company has announced.
This is down from the €173 million EBIT figure recorded in the
same period last year, which the captive arm of Daimler attributed
to higher expenses for credit risks, as well as expenses incurred
in connection with the expansion of the direct banking business at
Mercedes-Benz Bank.
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Contract volumes also declined by seven percent to €58.7 billion
between the end of 2008 and the end of the third quarter 2009.
But the Berlin-headquartered company said it expanded its market
share during the economic crisis, by maintaining a steady lending
practice in a market where many banks have tightened their lending
criteria.
As a result, the penetration rate of new Daimler vehicles
financed by the captive rose to more than 40 percent, the company
said.
Daimler FS’ chairman Jürgen Walker said: “We’ve achieved the
turnaround, and we expect to once again make a contribution to the
Group’s earnings even though we had the toughest year in our
company’s history.”
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By GlobalData“We had sufficient liquidity to maintain a strong market
presence throughout the whole year and provide our customers with
affordable loans,” he added.
Antonio Fabrizio
