The rise in new car registrations and FCA Bank's commercial support to FCA - thanks to a penetration rate of 44% of total sales in Europe - resulted in total new financing of €12.1 billion, up 4% on 2016.

The cost of risk continued to decline also in 2017, settling at €43 million, or 0.20% of the average outstanding portfolio, compared to 0.30% in 2016.

"FCA Bank continued to execute the growth and diversification strategy undertaken when it turned into a bank in 2015,” said Giacomo Carelli, Chief Executive Officer and General Manager. “Strengthening its presence in the 18 countries in which it operates, remaining on track with the ambitious digitalization plan for its services and launching the new mobility solutions of its Leasys subsidiary in the main 7 European markets."

FCA Bank, which was formed in 2015 after it successfully applied for an Italian banking licence, is a joint venture between Fiat Chrysler Automobiles Italy and Crèdit Agricole Consumer Finance. It currently operates in seventeen European countries plus Morocco and has diversified with several new partnerships, including a joint venture with Ferrari's financial services division, as well as offering consumers online savings accounts.

In 2017, total new financing volumes at FCA Bank amounted to €12.1 billion, including long-term rental activities. FCA Bank supported the sale of new FCA vehicles, with a penetration rate of 44% of new car registrations. The year-end outstanding portfolio totalled €23.9 billion, with a 15% increase on 2016. 

The banking and rental margin for the year rose by 15% on 2016, reaching a total of €840.5 million, driven by an increase of the portfolio and its profitability, which was stable at approximately 4%.

The operating efficiency achieved reduced the cost-income ratio to 31%, thus continuing along the improvement path started with the transformation into a bank. The €19 million rise in absolute terms of net operating costs, compared to 2016, was mainly due to the increase in the outstanding portfolio. 

FCA bank's cost of risk fell again, continuing the downward trend already shown in 2016. In absolute terms, the cost of risk amounted to €43 million, or 0.20% of the average outstanding portfolio.

Meanwhile, FCA Bank maintains a good capitalisation level, even though it distributed an interim dividend of €100 million during the year. At 31 December 2017, equity amounted to approximately 2.5 billion, with a Core Tier 1 ratio of 12.0%.

In 2017, the rating agencies reviewed the ratings of the FCA Bank Group, following its positive results. Moody's confirmed the long-term rating of Baa1 and the A3 rating on long-term deposits making it one of the mostly highly rated banks across the Italian banking sector, Fitch upgraded the long-term rating to BBB+ with stable outlook on 31 May 2017 while Standard&Poor's upgraded its rating to BBB with stable outlook on 31 October 2017.