FCA Bank Group – Half-Year 2015 Financial Results

FCA Bank achieves the best half-year financial results since inception of the Joint Venture. Penetration on FCA network sales sharply improved

Profit before tax for the period totaled €184.3 million and the net profit reached €131.3 million, up 45% on half-year 2014. The increase being driven by the portfolio growth, which rose to €16.3 billion compared to €14.7 billion in June 2014, thanks to the sharply improved penetration on FCA network sales, along with an increase in the profitability of the portfolio itself. FCA Bank has been one of the enablers of the improved commercial performance of FCA.
The reduction in the cost of risk continues also in the first semester, down to €42.3 million at 0.54% on the average portfolio, compared to 0.6% of half-year 2014.
Shareholders' equity is at €2 billion, with Core Tier 1 Ratio at 11%.
On 14^th January 2015 FCA Bank S.p.A. (formerly FGA Capital S.p.A.) formally received its banking license from the Italian supervisory authority.

"The half-year results benefited from the excellent commercial performance in Italy and in Europe and the diversification of funding sources, obtained through the recent successful capital market deals" said the Chief Executive Officer and General Manager of FCA Bank, Giacomo Carelli.

I.               Key figures

New business

Total FCA Bank Group financed volumes in the first half of 2015 amounted to €4.8 billion including long-term rental activities. FCA Bank supported FCA's new car sales, with an increased 45% penetration rate on total registrations (43% in the first half of the previous year). FCA Bank has been one of the enablers of the improved commercial performance of FCA.
The average portfolio for the period also grew to €15.7 billion, with an increase of around 7% on 2014.

Net Banking Income and Rental Margin

Net banking income and rental margin for the half-year increased by 22% compared to 2014, to €346.9 million, driven by portfolio growth (from €14.7 billion in the first half of 2014, to €15.7 billion in the corresponding period of 2015, reaching €16.3 billion as at 30^th June 2015) and increasing profitability, which rose from 3.9% last year to 4.4% in the first half of 2015.

Expenses

Management's continued focus on the operational efficiency is reflected in the decreasing of the net operating expenses over revenues that reached the ratio of 34.1%, an improvement of 5 percentage points compared to the previous year, despite a slight increase of the overall costs, mainly due the strong growth in portfolio.

Cost of risk

The cost of risk of FCA Bank recorded another decrease, confirming the trend already seen in 2014. In absolute terms, the cost of risk amounted to €42.3 million, equal to 0.54% of the average portfolio.

I.           Refinancing

Financial indebtedness for the group amounted to €15 billion at June 2015 of which:

-        Loans from Banks: €6.9 billion

-        Securitizations: €3.64 billion

-        Bonds: €4.44 billion

In 2015 the Group strengthened its funding diversification policy, accessing the Capital Markets with a combination of secured and unsecured transactions. Specifically, the Group issued debt under its MTN Notes Program on the public market for a total value of €1 billion, and finalized two private placements of €150 million each.
The Group launched one ABS transactions (ABEST-11) for a total amount of ABS Notes of €469 million, and finalized more than €800 million of banking facilities.

II.          Capitalization

FCA Bank maintains a good level of capitalization also having distributed dividends to shareholders for €91.6 million. As of 30^th June 2015, the Shareholders' Equity was at €2 billion, with Core Tier 1 Ratio¹ at 11.1%.

III.        New Commercial Agreements

FCA Bank and the Erwin Hymer Group (EHG) have recently signed a commercial co-operation that led to the creation of Erwin Hymer Group Finance, the brand that will offer a wide range of financial services for the EHG dealerships and for retail customers of Motorhomes and Caravans produced by the German multinational corporation.
EHG operates in the so-called "Leisure Vehicles business", of which it is a leader in Europe, and was looking for a single financial partner with expertise in the automotive sector and a wide coverage of the European markets.
EHG produces and distributes Motorhomes and Caravans through 9 prestigious commercial brands and is a major customer of the FCA Group in the purchase of Fiat Ducato chassis.

IV.        Rating

On 22^nd June 2015 Moody's Investors Services upgraded the long-term rating of FCA Bank SpA from "Baa3" to "Baa2" with stable outlook. On 8^th July 2015 Fitch upgraded the long-term rating of FCA Bank SpA from "BBB-" to "BBB", also changing the outlook from stable to positive.

Turin, 4^th August 2015 

¹ Core Tier 1 Ratio preliminary data

FCA Bank

FCA Bank is a bank operating mainly in the motor financing sector aimed at satisfying all mobility requirements and is a joint venture between FCA Italy, part of Fiat Chrysler Automobiles, the global automotive group and Crédit Agricole Consumer Finance a major player in the consumer finance market. The company manages most of the financial activities to support the sales of prestigious automotive brands in Europe. Financial and leasing programs are operated by FCA Bank and specifically designed for the dealer networks and private customers as well as for business fleets. FCA Bank SpA is present in 16 European countries either directly or through its subsidiaries. At the end of June 2015 FCA Bank reported a portfolio of outstanding loans worth €16.3 billion.

For further information:

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