Financial results for the semester ended 30th June 2017

Another six-month record performance for FCA Bank

“FCA Bank continued to grow and expanded its international footprint in the new mobility world – said Giacomo Carelli, CEO and General Manager – through the internationalisation of Leasys, the Group’s Mobility and Long-Term Rental company, which opened affiliates and branches in Germany, United Kingdom, France and Spain and is about to establish a presence, in the second half of the year, in Belgium and the Netherlands. The diversification of the activities has been acknowledged also by the rating agencies, which have confirmed or, in the case of Fitch, upgraded the Bank’s ratings”.

Business volumes

In the first half of 2017, total new volumes financed by FCA bank, including long-term rentals, amounted to €6.5 billion. FCA Bank supported sales of new FCA vehicles, with a penetration rate for new car registrations of 42.8%.
In addition, the end-of-period portfolio rose to €22.7 billion, up 19.5% on the first half of 2016. Net banking income and rental margin Net banking income and rental margin for the six months ended 30th June 2017 increased by 17.0% on the comparable year-earlier amount, reaching €415.5 million, driven by the growth of volumes financed and by a stable spread income on the portfolio of around 4%.

Operating costs

The constant attention to efficiency reflects on the Bank’s ability to keep operating costs in check, as they decreased by 0,13 p.p., to 1.24% of the average portfolio. The slight increase in absolute terms of net operating costs, to €131.9 million, in the period under review was due mainly to the substantial increase of the portfolio and Leasys’s internationalisation process. Cost of risk FCA Bank’s cost of risk declined further, in line with the trend already shown in 2016. In absolute terms, the cost of risk amounted to €26.9 million, or 0.25% of the average portfolio.

II. Funding

As at 30th June 2017, the Group’s financial liabilities amounted to approximately €20 billion. In the six months under review, the Group pursued further its funding diversification strategy, by accessing the bond and securitisation markets. Specifically, in the early months of 2017 FCA Bank issued, and placed publicly and privately, over €1.5 billion in senior unsecured notes under the MTN programme. On the other hand, after two years, FCA Bank returned to the public securitisation market with two placements, ABEST 11 and A-BEST 12, one right after the other, taking advantage of a window of opportunities between May and June and raising over €1 billion at an extremely competitive price.

III. Capitalisation

FCA Bank maintains a good capitalisation level. As at 30th June 2017, Equity totalled approximately €2.4 billion, with a Core Tier 1 Ratio of 11.41%. During the first half of the year, FCA Bank obtained a TIER 2 10NC5 subordinated loan of euro 126 million, in order to strengthen own funds and lead Total Capital Ratio to 12.11%.

IV. Conto Deposito The new online savings product developed by FCA Bank, Conto Deposito, continued its positive trend, with total deposit inflows of over €360 million.

V. Rating

In the first half of 2017, the rating agencies confirmed or upgraded FCA Bank’s rating, based on the continuing good results achieved by the Group:

VI. The internationalisation of Leasys SpA

Leasys, FCA Bank’s Mobility and Long-term Rental company established in Italy in 2001, started a European expansion plan that will lead it to provide its services in the countries where the Group is already operational.
In the first half of 2017, the company opened a branch in each of Spain and Germany while FCA Bank took over the Group’s investments in the long-term rental companies in France and the United Kingdom.
The international expansion is the natural consequence of Leasys’s success in the domestic market. In fact, the company has been ranking first for several years in the industry in terms of car registrations and hit record sales in 2016.
This internationalisation process is part of a broader growth and diversification strategy of the FCA Bank Group, which aims to gain market share by offering more aggressively to the market of fleets and private rentals FCA’s upgraded range of products, thanks to Leasys’s direct presence in the geographies concerned.

02.08.2017

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