RCI Banque continued
to grow in 2013 and confirmed its ability to deliver strong results,
posting new financings of €11.4 billion,
a rise of 5.5%. Average performing loans remained stable at €24.2 billion
despite a negative foreign exchange effect. Full-year earnings before tax came
to €744 million, down slightly by 3,8%
vs 2012.
By collecting almost €3.4 billion in deposits with its
savings accounts in France and Germany, RCI Banque covered 52% of its funding
plan through this channel and confirmed its ability to limit its dependence on
the capital markets.
* The number of new
financing contracts rose to 1,160,612[1]. This increase of 184,163
contracts (+18.9%) includes 130,017 contracts attributable to the difference in
scope between 2012 and 2013. New financings amounted to €11.4 billion, showing
a rise of 5.5%.
* The global
penetration rate stood at 34.6%, a slight decrease of 0.4 points compared
to 2012. On a like-for-like scope basis, the penetration rate was 36.7%.
* Average performing
loans remained stable at €24.2 billion despite a negative foreign exchange
effect of €600 million, mainly on the Americas. Total performing loan
outstandings at end-2013 amounted to €25.8 billion.
* Net banking income
came to €1.221 billion euros, representing 5.04% of average performing
loans at end-December. Services accounted for 25% of net banking income.
* The cost of risk
was kept under control at -0.42% of average performing loans and the
operating ratio was stable at 31%.
* Earnings before tax
amounted to €744 million, down 3.8% vs 2012, yielding an ROE of 20.1%.
* 52% of the funding plan for the year was covered by the
growth in collected retail deposits[2].
Commenting on the results, Dominique Thormann, Chairman and CEO of RCI Banque said: “In
2013, RCI Banque confirmed its growth momentum, achieving a ten-year record and
maintaining a high financial performance. The company reduced its dependence on
the capital markets thanks to retail savings deposits collected, which
represented 17% of outstandings at end-December. The second phase of our
strategic plan will see a growing global automotive market combined with more
services related to automobile use. RCI Banque will continue to help grow
Alliance brand sales and seek to meet motorists’ needs in ever-more effective
ways”.
Continued growth in
europe and on emerging markets
In 2013, RCI Banque enjoyed the benefit of both strong
Alliance brand momentum and dynamic sales on all markets. The financing
penetration rate increased by 1.7 points to 36.7% compared to 2012 on a
like-for-like scope basis. Taking into account the first-time consolidation of
the Turkish and Russian affiliates in 2013, RCI Banque’s global financing
penetration rate came to 34.6%, down 0.4 points vs 2012. The financing
penetration rate in Turkey and in Russia was 25%.
In Europe, where the TIV fell by 1.6% compared to 2012, RCI
Banque’s financing penetration rate increased by 1.2 points to 35.1%.
Especially strong performances were posted on Clio 4 and Captur, with financing
penetration rates of 44.6% and 39.3% respectively.
RCI Banque also continued to grow in countries outside
Europe, which now account for 38% of new vehicle financing contracts in volume
terms. RCI Banque’s results for Americas region rose sharply, with a financing
penetration rate of 42.7%. Brazil confirmed its position as the second biggest
contributor to the volume of new vehicle financing contracts. In the Eurasia
Region, RCI Banque’s business activity is mainly concentrated in Russia, the
third biggest contributor to the number of new vehicle financing contracts.
Financings were arranged under a commercial agreement until November 2013 when
the Renault-Nissan Alliance set up RN Bank in Russia, a joint-venture between
RCI Banque (30%), Nissan (30%) and UniCredit Group (40%).
RCI Banque’s business
growth was also supported by the development of used vehicle financings,
which showed an increase of 6.3% vs 2012 with 189,061 contracts.
Consequently, in 2013 RCI Banque achieved its best ever
commercial performance with 1,160,612 financing contracts, an increase of 18.9%
vs 2012 (+184,163 contracts). On a like-for-like scope basis compared to 2012 –
without contracts written in Turkey and Russia – growth remained sustained at
5.5%, or 54,146 additional contracts.
The sale of services is also a key strategic focus. Services
help promote customer satisfaction, increases loyalty to Alliance brands while
contributing to RCI Banque’s profitability. 1,756,496 services contracts were
written in 2013. Two years ago, RCI Banque also became a service provider to
manage the battery rental of electric vehicle. This service is now provided in
19 countries for Renault and Nissan with approximately 31,600 leased batteries.
A still high
financial performance
New financings grew by 5.5% in 2013, fuelled by the strong
momentum seen in Alliance brand sales, and represented €11.4[3] billion.
This increase offset the negative impact of a €600 million foreign exchange
effect, mainly in Americas region. Average performing loans therefore remained
stable at €24.2 billion.
Net banking income came to €1,221 million, or 5.04% of
average performing outstandings[4] (APO), down 1.5% on 2012 (- €18 million). In
spite of the negative foreign exchange effect in the Americas region, the fall
in net banking income was mostly offset by the growing contribution made by
services, which account for 25% of net banking income.
The total cost of risk (Retail and Dealers) remained low at
a rate of 0.42% of APO (+0.04 points compared to 2012). The operating ratio
reached 31% of net banking income (+0.3 points), showing RCI Banque’s ability
to keep control over its operating expenses (€379 million in 2013 for €380
million in 2012) while continuing to grow.
Earnings before tax amounted to €744 million, showing a 3.8%
fall compared to 2012 mainly attributable to the foreign exchange effect. The
ROE came to 20.1% compared to 22.2% at end-December 2012, affected especially
by the increase in consolidated average shareholders’ equity over the period.
Diversification of
sources of funds is now a reality
In 2013, RCI Banque accelerated its strategy to access
retail savings and in February started up a deposits business in Germany under
the Renault Bank direkt brand name. Growth in collected retail deposits in
France and Germany over the financial year reached €3.4 billion (of which
almost €800 million in term deposits) and accounted for 52% of RCI Banque’s
refinancing plan (Europe scope). By diversifying its sources of funds, the
company reduced its dependence on the capital markets.
On the bond market, RCI Banque raised the equivalent of €2.1
billion through transactions that included its first issue in Sterling for
seven years and a new issue in US dollars (following its first-ever issue in US
dollars in 2011). The Group’s affiliates also used the local bond markets in
Argentina, South Korea and Brazil to raise funds. The Brazilian affiliate
issued BRL 1.4 million, thereby confirming its ability to access local
liquidity. RCI Banque also remained active on the securitization market and
rearranged its German securitization program to replicate the structure adopted
in France in 2012 for an amount of €800 million.
RCI Banque has built profitable growth with costs under
control
At the end of the first phase of its strategic plan, RCI
Banque has managed to build a sustainable and profitable growth, while keeping
costs under control.
As the Alliance brands’ finance company, RCI Banque grew
successfully its average performing loans by 15.4% between 2010 and 2013, while
the financing penetration rate went up by more than 3 points. Over the same
period, used vehicle financing contracts increased by 27% in volume terms and
the services strategy became a reality with a portfolio of almost 3.9 million
services contracts at end-December 2013. RCI Banque has achieved this growth
while keeping control over the costs of risk on Retail and Dealer financing
(+0.02 points over the period) and stabilizing the operating ratio. With an ROE
above 20%, RCI Banque maintains a high level of profitability and with
collected retail deposits amounting to 17% of its outstandings at end-December,
is now less dependent on the capital markets.
A new growth
plan that capitalizes on achievements made and is based on the company’s
transformation
With Drive 4B, its new plan for 2014-2016, RCI Banque is
pushing ahead the implementation of its strategy for the main benefit of the
Alliance and integrates its overall action into Renault’s plan “Drive the
Change”.
Four strategic focuses have been defined:
* Develop a wide range of products to meet motorists’ needs
and expectations.
* Use digital technology to improve customer knowledge; it
will help to implement new products and to increase customer
satisfaction.
* Continue providing the Alliance brands with systematic
support in the international development of their respective businesses.
* Push ahead with the group’s internal transformation,
focusing on the development of a high performance culture in all business
lines.
Under the 2014-2016
plan, RCI Banque will launch its business in India in 2014, expand
operations in Columbia and prepare for China. In 2014, RCI Banque will start
financing Datsun, a new Alliance brand (in Russia, then in India). Lastly, RCI
Banque is targeting to sell almost 2 million services per year by the end of
the plan and have collected retail deposits representing 30% of end-2016
outstandings.
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