Profits up 46% at BMW’s Irish finance arm as sales surge at Volvo

Carmaker BMW's finance arm in Ireland recorded a 46 per cent rise in profits last year as sales jumped 17 per cent.

Newly filed accounts for BMW Financial Services Ireland showed a profit of €13.3 million for the 12 months ending December 31st, 2015, up from €9.12 million a year earlier.

The company offers finance and leasing deals to BMW and Mini customers. It also provides finance to customers of other carmakers through its Alphera brand.

Turnover rose to €27.1 million from €23.1 million on the back of increased hire purchase contracts.

The group’s hire purchase business grew by 19 per cent last year, with loans of €272 million, versus €228.5 million in the prior year.

A breakdown of revenues shows hire purchase contract sales increased from €16.5 million in 2015 to €19.8 million last year, while finance leases rose to €4.21 million from €4.17 million.

New car sales

The company employed 17 staff last year, with payroll costs of €1.36 million, up fro €982,000, a year earlier.

BMW Financial Services receives all its new funding from BMW Malta Finance Ltd, which is supported by BMW AG. It had loans due to the Maltese arm of €332.5 million at the end of last year, as against €273.3 million last year.

In related news, recently filed accounts for Volvo’s Irish subsidiary show it reported a 30 per cent rise in new car sales last year.

Pretax profits rose to €387,211 from €260,829 a year earlier on turnover that jumped 55 per cent from €29 million to €45 million.

The company said it hoped to build on its success last year.

“We are particularly excited by the local introduction of the New S90 during 2016 to enhance Volvo’s position in the premium large sedan market. Until now, Volvo has not been recognised as a credible alternative to the dominant German brands,” it said.

“The developments on the product side will be enhanced in 2016 by investments in our deal network,” it added.

Volvo, which employed 10 people last year, has staff costs of €687,102, up from €580,583 a year earlier.

The directors proposed a €300,000 final dividend for 2015, having paid out a €10,000 interim dividend in respect of 2014, earlier this year.