Toyota’s financial services operating income grew 18% in the year ending March, totalling £1.9bn (JPY 283.9bn).
The company attributed the result to larger lending volumes as well as reduced credit and residual value losses.
Operating income from the automotive segment increased 18.8% to £13bn, reportedly thanks to cost reduction and positive currency exchange effects.
Europe reversed the loss from the previous year, recording operating income of £504m.
Toyota forecast a slowdown in results for 2019, with consolidated operating income forecast to fall 4.2%.
The company said in March it would phase out diesel on its next generation of vehicles in Europe, focussing instead on its electrified range. The move was followed this month by rival Nissan.
It also opened a London office to develop its connected mobility business in Europe.
The company said: “For the future automotive market, developed countries are expected to remain steady while emerging countries are expected to expand gradually on the back of economic recovery and other factors.
“Meanwhile, the automotive industry is facing the time of profound transformation that could happen only once in hundred years in response to increasing serious environmental issues and other social challenges, technological innovation such as automated driving, connected vehicles and robotics which adopts the rapidly evolving technology of artificial intelligence, and diversification of lifestyles.”