FIRST-HALF 2016 RESULTS: RCI BANQUE CONTINUES TO GROW AND REPORTS A 14.4 PER CENT INCREASE IN NEW FINANCING
Company press release.RCI Banque reported strong business growth in first-half 2016 with 770,305 new financing contracts, up 12 per cent first-half 2015. The overall penetration rate on Alliance brand sales increased by 0.9 points to 36.5 per cent. New financings came to €8.9 billion, for an increase of 14.4 per cent compared to first-half 2015. Average performing assets1 rose 14.4 per cent compared to end-June 2015 to reach €31.9 billion at end-June 2016. Earnings before tax came to €431 million at end-June 2016, up 1.9 per cent. RCI Banque continued to diversify its refinancing sources in a market that remained characterised by volatile conditions. Net retail savings deposits collected in the period were up €4.8 billion, coming to €11.8 billion at June 30, 2016. They accounted for 34.1 per cent of outstandings at the end of June. ◾770,305 vehicles financed, up 12 per cent vs first-half 2015, representing €15.6 billion of new financings (up 14.4 per cent). ◾Penetration rate at 36.5 per cent of deliveries, up 0.9 points vs first-half 2015. ◾Average performing assets reached €31.9 billion, an increase of 14.4 per cent vs first-half 2015. ◾Net banking income at €698 million, up 3.4 per cent compared to end-June 2015 and accounting for 4.39 per cent of average performing assets at end-June 2016. ◾Operating expenses for 1.41 per cent of average performing assets, compared with 1.52 per cent in first-half 2015. ◾An operating ratio of 32 per cent, up slightly by 0.8 points. ◾Cost of risk at 0.30 per cent of average performing assets, compared with 0.31 per cent at end-June 2015.◾Earnings before tax amounted to €431 million, up 1.9 per cent compared to first-half 2015. 'RCI Banque's results are on track with the objectives set as part of the medium-term plan. RCI Banque is confirming its profitable growth target while strengthening its strategy on sales support for the Renault-Nissan Alliance brands.' announced Clotilde Delbos, Chairman of the Board of Directors of RCI Banque. 'RCI Banque is pursuing its growth momentum at a sustained pace and is reporting a strong increase in sales performance. With more than 1.6 million services sold in the first half of the year, RCI Banque is also confirming its ambition to diversify its offers to better respond to the needs of our customers.' stated Gianluca De Ficchy, Chief Executive Officer of RCI Banque. ROBUST SALES PERFORMANCE IN A GROWTH MARKET
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The automotive market grew 3.1 per cent in first-half 2016 in the operating countries of RCI Banque subsidiaries2 and the sales volumes of the Alliance brands increased 8.4 per cent, driven notably by numerous new model launches. RCI Banque continued to improve its penetration rate, which stood at 36.5 per cent at end-June, up 0.9 points compared to first-half 2015. Excluding companies consolidated for under the equity method3, the penetration rate came to 39.3 per cent (up 0.8 points year on year). The combined growth in the overall penetration rate and higher Alliance sales enabled RCI Banque to post a record volume of new financing contracts, up 12 per cent in the period (770,305 new contracts compared with 687,766 at end-June 2015). New financings increased for all Alliance brands to reach €8.9 billion, up 14.4 per cent vs first-half 2015. The services business, a major focus of the RCI Banque group strategy, continues to develop at a brisk pace, with volumes up 21.7 per cent compared to end-June 2015. RCI Banque sold more than 1.6 million services in first-half 2016, over 60 per cent of which vehicle-related. RCI BANQUE MAINTAINS STRONG FINANCIAL PERFORMANCE Boosted by strong growth in new financings, RCI Banque's average performing assets increased 14.4 per cent compared to first-half 2015 to €31.9 billion. Net banking income came to €698 million, up 3.4 per cent in the period, driven by a robust increase in financing outstandings, and limited mainly by a negative currency effect and an activity downturn in Latin America. The cost of risk stabilized at a very good level of 0.30 per cent of average performing assets (compared with 0.31 per cent in first-half 2015). Operating expenses decreased by 11bp at 1.41 per cent of average performing assets. With an operating ratio of 32 per cent, RCI Banque is showing its ability to continue developing its business and rolling out new strategic projects while keeping costs under control. Earnings before tax came out at €431 million at end-June 2016, up 1.9 per cent and once again reflecting impressive performance levels, despite an unfavourable currency effect of €27 million (concentrated mainly in the Americas Region). RCI BANQUE CONTINUES TO DIVERSIFY ITS REFINANCING POLICY RCI Banque confirmed its access to varied financing sources. In first-half 2016 it launched three public bond issues with fixed and variable coupons and maturities of respectively three, seven and three years, for a total amount of €1.850 billion. It also implemented a private placement for €300 million with a two-year maturity. Meanwhile, the German subsidiary launched a public securitization transaction backed by German automotive loans, €500 million of which was placed with investors. This combination of maturities, coupon types and issue formats is part of RCI Banque's strategy to diversify financing sources, which it has led for several years now. Outside Europe, RCI Banque entities in Brazil, South Korea, Morocco and Argentina also borrowed on their domestic bond markets. Deposit collection remains a significant source of refinancing for RCI Banque. At June 30 2016, net deposits collected amounted to €11.8 billion, or 34 per cent of outstandings, thus meeting the objective of achieving deposits at one-third of the financings granted by RCI Banque to its customers. (1) Average performing assets: average performing outstandings, including operational lease assets. (2) RCI Banque is present in 36 countries. (3) Companies accounted for under the equity method are Russia, Turkey, India. The Group's statutory auditors have carried out their limited review of these accounts and their report on the half-yearly financial information is currently being issued.
