The acquisition of ING Car Lease contributed
€3.6bn in new business to BMW Financial Services (BMW FS) in 2011,
while pre-tax profit at the group grew by 47.4%.
The leasing and finance arm of the German
automotive manufacturer reported a 13.6% year-on-year increase in
new business volume, totalling €75.2bn for the year compared with
€66.2bn in 2010.
Gross profit for BMW FS was €1.8bn in 2011
compared to €1.2bn in 2010.
Dr. Friedrich Eichiner, finance member of the
Board of Management of BMW, attributed the gains to competitive
refinancing conditions in the capital markets.
He said: “Lower interest rates and, in
particular, lower credit spreads in the first half of the year
enabled our financial services business to deliver solid
“The risk situation for the segment continued
to improve after the financial crisis. Our measures aimed at
supporting residual values and our lending business also had a
The expansion of BMW Bank across Europe is
also part of the group’s refinancing strategy in 2012, Eichiner
added. BMW Bank currently holds €12bn in deposits in Germany, up
12.6% on 2010.
The acquisition of ING Car Lease in September
and its integration into BMW’s multi-marque fleet leasing brand
Alphabet expanded the division’s lease portfolio by 9% to just
under 475,000 vehicles.
The BMW FS book totalled 3,592,093 lease and
credit financing contracts at the end of 2011, up 12.6%
year-on-year from 2010 with a 25% increase in lease contracts in