BMW 2013 Annual Report Download - page 37

37 COMBINED MANAGEMENT REPORT
Dealer financing up on previous year
In addition to retail customer financing, the Financial
Services segment also provides financing products
for
the dealer organisation. The total volume of dealer
financing at 31 December 2013 was € 13,110 million,
an increase of 3.5 % compared to one year earlier (2012:
€ 12,669 million).
Deposit business decreased
Deposit-taking represents an important source of re-
financing for the BMW Group. The volume of customer
deposits went down by 4.3 % during the twelve-month
period to € 12,457 million (2012: € 13,018 million).
Insurance business continues to grow
In addition to its financing and leasing products, the
Financial Services segment also offers a wide range of
individually packaged insurance services to customers
in 30 countries. There was no let-up in demand for
insurance products in 2013. The number of new con-
tracts
rose worldwide by 6.3 % to 1,041,530 contracts
(2012: 979,776 contracts). The insurance contract port-
folio expanded by 18.9 % to 2,567,168 contracts (2012:
2,158,892 contracts).
Stable risk profile
Helped by the positive trend in the global economy and
an easing of the euro crisis, the segment’s well-estab-
lished risk management procedures again proved their
worth. The credit risk situation in southern Europe was
also more stable. The loss ratio incurred on the segment’s
total credit portfolio was reduced by 2 basis points to
0.46 % (2012: 0.48 %).
Reflecting developments on international used car mar-
kets,
our vehicles’ residual values also improved slightly
worldwide over the course of the year. The only excep-
tion was in the countries of southern Europe, where,
although there was no improvement, prices at least sta-
bilised at a low level. Average losses on residual value
risks also decreased.
Further information with respect to risks and opportuni-
ties related to Financial Services can be found in the
section “Report on risks and opportunities”.
With the new structure in place, BMW Bank has its
headquarters in Germany, branches in Italy, Spain and
Portugal and a subsidiary in France.
Fleet business remains on growth course
As a fleet management specialist offering a full range
of
services including leasing and funding, Alphabet
is the fourth-largest provider in the European market.
The total portfolio of fleet-related contracts climbed
by 6.6 % to stand at 535,528 contracts at the end of the
reporting period (2012: 502,397 contracts).
Multi-brand financing on the rise
Demand for multi-brand financing increased again in
2013. In total, 181,605 new contracts were signed in
2013, surpassing the previous year’s equivalent figure
by 10.8 % (2012: 163,945 contracts). A portfolio of
452,009 contracts was in place at the end of the reporting
period (2012: 417,408 contracts; + 8.3 %).
Contract portfolio retail customer financing of
Financial Services segment 2013
as a percentage by region
EU Bank 31.3 Europe / Middle East / Africa 24.9
Americas 30.9 Asia / Pacific 12.9
EU Bank
Americas
Asia / Pacific
Europe / Middle
East / Africa
Development of credit loss ratio
in %
0.9
0.8
0.7
0.6
0.5
0.4
0.3
09 10 11 12 13
0.84 0.67 0.49 0.48 0.46