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sâmbătă, 20 februarie 2016

2015 Financial Results FCA Bank

FCA Bank reaches unprecedented € 249.1 million net profit for the year on the back of record financed volumes

Profit before tax for the year totaled €359.4 million and the net profit reached €249.1 million, up 40% and 36% over prior year, respectively. The increase being driven by the portfolio growth, which rose to €17.2 billion compared to €15.3 billion at year-end 2014, The increase in new car registrations and FCA Bank's growing support to FCA (with a commercial penetration of 47%, up 4 p.p. on 2014) resulted in total financed volumes of €9.6 billion, up 25% on 2014. FCA Bank has been one of the enablers of the improved commercial performance of the automotive manufacturer.
The reduction in the cost of risk continued also in 2015, down to €70 million at 0.44% of the average portfolio amount, compared to 0.57% in 2014.

"Yearly results benefited from the excellent commercial performance in Italy and in the rest of Europe and from the further diversification of the funding sources, by leveraging our full banking license granted in 2015" said the Chief Executive Officer and General Manager of FCA Bank, Giacomo Carelli.

New business
Total FCA Bank Group new financed volumes in 2015 amounted to €9.6 billion including the long-term rental activities. FCA Bank supported FCA's new car sales, with an increased 47% penetration rate on total registrations (43% in the previous year). FCA Bank has been one of the enablers of the improved commercial performance of FCA.
The average outstanding portfolio for the period also grew to €16.1 billion, with an increase of 9% on 2014.

Net Banking Income and Rental Margin
Net banking income and rental margin for the half-year increased by 18% compared to 2014, to €667.4 million, driven by portfolio growth (from an average portfolio of €14.7 billion in 2014, to €16.1 billion in 2015, reaching €17.2 billion as at 31th December 2015) and increasing profitability, which rose from 3.8% last year to 4.1% in 2015.

Management's continued focus on the operational efficiency is reflected in the decreasing of the net operating expenses over revenues that reached the ratio of 35.3%, an improvement of 5 percentage points compared to the previous year, despite a slight increase in the overall overheads, mainly due the strong growth in the portfolio.

Cost of risk
The cost of risk of FCA Bank recorded another decrease, confirming the trend already seen in 2014. In absolute terms, the cost of risk amounted to €70 million, equal to 0.44% of the average portfolio.

II. Refinancing
Financial indebtedness of the group was in excess of €16 billion in December 2015.
In 2015 the Group strengthened its funding diversification policy, accessing the Capital Markets with a combination of secured and unsecured transactions. Specifically, the Group issued debt under its MTN Notes Program on the public market for a total value of €1.9 billion, and accessed the ECB refinancing scheme (TLTRO) for € 1 billion.

III. Capitalization
FCA Bank maintains a good level of capitalization, also having distributed dividends to shareholders for €91.6 million. As at 31th December 2015, the Shareholders' Equity was at €2.1 billion, with a Core Tier 1 Ratio1 at 11.2%.

IV. Rating
In 2015, a number of positive rating action were taken by the Rating Agencies, on the back of the positive trend of the FCA Bank Group and of its new banking status, which allows the application of the respective Banking methodologies:
  • Moody's upgraded the long-term rating to Baa2 with Stable Outlook on 26th June 2015 (moreover an upgrade of the Deposit Rating to Baa1 was made in January 2016);
  • Fitch upgraded the long-term rating to BBB with Positive  Outlook on 8th July 2015;
  • Standard&Poor’s changed the Outlook from Stable to Positive on 9th September 2015.

Turin, 19th February 2016

1 CET 1 includes the yearly profit net of assumed dividends pay-out ratio of 50%.

FCA Bank
FCA Bank is a bank mainly operating in the motor financing sector, aimed at satisfying all mobility requirements and is a joint venture between FCA Italy, part of Fiat Chrysler Automobiles, the global automotive group, and Crédit Agricole Consumer Finance, a major player in the consumer finance market. The company manages most of the financial activities to support the sales of prestigious automotive brands in Europe. Financial and leasing programs are operated by FCA Bank and specifically designed for the dealer networks and private customers as well as for business fleets. FCA Bank SpA is present in 16 European countries either directly or through its subsidiaries. At the end of December 2015 FCA Bank reported a portfolio of outstanding loans worth €17.2 billion.

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