Cat Financial, the finance subsidiary of building machinery maker Caterpillar, has seen its revenues grow 4% to $2.69bn (€2.16bn) in 2017.
Higher financing rates and lending activity with parent Caterpillar benefited revenues for $61m and $48m respectively. The gains were partly offset by $29m for lower average earning assets.
Retail new business volumes also rose 3%, to $11.2bn. Volumes were pushed by an increase in Asia-Pacific activity, partially offset by a decrease in Latin America and North America.
Pre-tax profits totalled $590m, up 29%. Lower US corporate tax rate from new legislation resulted in a $151m benefit, which was partially offset by mandatory repatriation of non-US earnings.
Allowance for credit losses rose to $365m, equal to 1.33% of net receivables (2016: $343m, 1.29%). Nevertheless, write-offs decreased over 7.8%, to $114.
Dave Walton, president of Cat Financial and vice president with responsibility for the financial products division of Caterpillar, said: “We are pleased with the overall performance of our business during 2017, including continued good portfolio health and operational execution during the year.
“With our ongoing focus on expanding our ability to serve customers globally through financial services solutions, we remain well-positioned to serve the needs of Caterpillar, Cat dealers and our growing customer base worldwide.”