Financial results for the semester
ended 30th June 2018

FCA Bank records 14% increase in Managed Outstanding

Operating Income reached €302 million, up 18% on first half 2017 whereas Net Income stood at €201 million. The increase in the Operating Income is mainly due to the growth of the end-of-period outstanding to €25.7 billion, compared to € 22.7 billion in June 2017.

The positive trend in new car registrations and in FCA Bank’s support to FCA (thanks to a penetration rate of 44% on total sales in Europe) resulted in total new financing of €6.9 billion, up 6% on the first half of 2017. The cost of risk continued to decline at €24 million, equal to 0.2% of the average outstanding, in comparison to 0.3% in the same period of the previous year.

“FCA Bank continued to execute the growth and diversification strategy undertaken when it was transformed into a bank in 2015 – said Giacomo Carelli, Chief Executive Officer and General Manager – enriching the offer of fully digitized products and services, such as the new credit card and the automatic acceptance process in dealerships, further consolidating the Leasys' long-term rental business in 7 European markets and launching new commercial partnerships with prestigious carmakers. The performance of the first half stems from the efforts and dedication of all colleagues and shows the value of the strategic choices, allowing the group to maintain a positive outlook for the rest of the year ".

Key figures (€ million)
Gruppo FCA Bank 30.06.2018 30.06.2017 H1 2018 vs H1 2017 Change %
Average portfolio 23.828 21.247 2.581 12%
End-of-period portfolio 25.737 22.672 3.065 14%
Net banking income and rental margin 462 416 46 11%
Net operating costs (136) (132) (4) 3%
Cost of risk (24) (27) 3 -11%
Operating income 302 257 45 18%
Other income/expenses (21) 3 (24) ns
Profit before tax 281 260 21 8%
Net income 201 190 11 6%

Activity & volumes
Total new financing in the first half of the year amounted to €6.9 billion, including long-term rental activities. FCA Bank supported the sale of new FCA vehicles, with a penetration rate of 44% on new car registrations.
The end-of-period outstanding rose to €25.7 billion, up 14% compared to H1 2017.
Banking and rental margin
The banking and rental margin rose by 11% on June 2017, reaching €462 million, driven by the increase of the average outstanding and its profitability, stable at 3.9%.
Net operating costs
The cost/income ratio stood at 29% compared to 32% in the first half of 2017, confirming the continued attention of FCA Bank to operational efficiency and process optimization. The increase in net operating costs was €4 million compared to the first half of 2017 (+3%), despite an increase in the average outstanding by 12%.
Cost of risk
The cost of risk of FCA Bank posted a further reduction, confirming the trend of improvement already highlighted in 2017. The cost of risk stood at €24 million, equal to 0.2% on the average outstanding, down 11% compared to the same period of the previous year.
FCA Bank continued to strengthen its refinancing sources diversification policy, accessing the bond and securitization market and deposit-taking activities through the on-line Conto Deposito, notwithstanding a return to volatility in the financial markets, in particular at the end of the first semester.
More specifically, the Group issued, through the EMTN program, public and private placements for €1.3 billion and raised €1.1 billion through securitization transactions.
FCA Bank maintains a good level of capitalization, with a regulatory capital at around €2.7 billion, a Core Tier 1 ratio of 11.2% and a Total Capital Ratio of 12,8% at the consolidated level (the result of the period was not included in the calculation of the CET1).
During the first half of 2018, the Rating Agencies confirmed the credit rating assigned at the end of 2017. Moody's reviewed the rating on FCA Bank deposits on 30th May 2018 following a similar action on Italy's rating; subsequently, on 6th July 2018, it reviewed to positive (from stable) the outlook on the long-term rating, following a similar action on the rating of Crédit Agricole SA.


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