BMW 2015 Annual Report Download - page 37

37 COMBINED MANAGEMENT REPORT
growth with a 19.4 % increase in the number of contracts
being managed at the end of the reporting period. The
Americas region (+ 8.0 %), Europe / Middle East / Africa
(+ 6.7 %) and the EU Bank* (+ 3.5 %) also recorded year-on-
year growth.
Further solid growth in fleet business
The BMW Group is one of the leading leasing and full-
service providers of fleet management services in Europe.
Lease and financing arrangements as well as other ser-
vices are provided to commercial customers under the
brand name “Alphabet”. At 31 December 2015 the
segment was managing a total portfolio of 602,303 fleet
contracts, 8.5 % more than in the previous year (2014:
555,349 contracts).
Slight decrease in multi-brand financing
Multi-brand financing saw a slight decrease (– 1.8 %)
in the number of new contracts signed in 2015
(162,870 contracts), compared to the previous year
(2014: 165,776 contracts). At 31 December 2015, the
total portfolio comprised 470,150 contracts, slightly
more than one year earlier (2014: 465,702 contracts;
+ 1.0 %).
Dealership financing significantly up on previous year
As in the previous year, the total volume of dealer finan-
cing increased significantly again year-on-year, growing
by
16.6 % to stand at € 17,156 million at the end of the
reporting
period (2014: € 14,710 million).
Solid increase in deposit business
Deposit business provides an important source of fund-
ing for the Financial Services segment. The volume of
customer deposits held at the year-end grew by a solid
8.4 % to € 13,509 million (2014: € 12,466 million).
Significant growth in insurance business
Demand for insurance products remains high. In addition
to the Group’s financing and leasing products, customers
can select from a broad range of insurance arrange-
ments, addressing all aspects of individual mobility. Sig-
nificant growth was recorded in 2015, with the num-
ber of new insurance contracts signed up by 11.2 % to
1,207,196 contracts (2014: 1,085,781 contracts). At 31 De-
cember 2015, the insurance contract portfolio com-
prised 3,200,742 contracts (2014: 2,874,158 contracts;
+ 11.4 %).
The total volume of new credit and leasing contracts
concluded with retail customers during the twelve-
month period under report was € 50,606 million, sig-
nificantly up (+ 22.5 %) on the previous year’s figure
(2014: € 41,318 million).
The dynamic increase in new retail customer business
is also reflected in the overall size of the contract
port-
folio. In total, 4,326,631 contracts were in place with re-
tail
customers at 31 December 2015 (2014: 4,005,428 con-
tracts), a solid year-on-year increase of 8.0 %. In regional
terms, the Asia / Pacific region continued to enjoy strong
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
11 12 13 14 15
Financing 20.0 20.7 22.5 20.8 24.2
Leasing 21.1 19.7 21.5 20.9 22.1
Contract portfolio retail customer financing of
Financial Services segment 2015
as a percentage by region
Americas 30.4 Europe / Middle East / Africa 24.8
EU Bank* 28.5 Asia / Pacific 16.3
* EU Bank comprises BMW Bank GmbH, its branches in Italy, Spain and Portugal, and
its subsidiary in France.
Americas
EU Bank*
Asia / Pacific
Europe / Middle
East / Africa