Summary: Volkswagen Bank GmbH Dec 07
- ID: 1711135
- December 2007
- Standard & Poors
The ratings on Volkswagen Bank GmbH (VW Bank), a leading domestic retail and car finance company, reflect the expected ongoing gradual improvements of its solid stand-alone financial performance, which somewhat mitigate its concentration in the cyclical automotive industry and reliance on German automaker Volkswagen AG (VW; A-/Stable/A-2) group branding. We expect the healthy pretax profit margin of about 1.9% (relative to risk-weighted assets; RWAs) to moderately improve further. This is on the back of an ongoing cyclical upswing in Germany helping to contain credit risk cost at below 20 basis points at midyear 2007, tight efficiency measures, a sound 41% cost-to-income ratio, and increased earnings from product bundling. Moreover, the bank continues to benefit from diversified sustainable high earnings generation...
Companies mentioned in this report are:
- Volkswagen Bank GmbH
- Volkswagen AG
- LeasePlan Corporation N.V.
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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >