14 Feb 17

2016, a record year for RCI Bank and Services

Clothilde Delbos, Chairman of the Board of Directors of RCI Bank

RCI Bank and Services had an excellent year. The financing arm of the Renault-Nissan Alliance reported 1,564,000 contracts concluded in 2016, an increase of 12.5% year on year. New-vehicle financing contracts went up by 11.3% to 1,288,000 units, and used-vehicle financing contracts numbered 276,000, an 18.6% increase. All of which translates into a turnover of €17.9 billion, an increase of 14.9% over 2015 and a record result for the company.

RCI Bank and Services also reports that the corporate segment of its business is gaining in importance, a trend that is likely to continue, as the company is set to introduce new services this year, specifically targeting the corporate sector.

Some other results: 

→ A total of 3.4 million insurance and services contracts were sold, up 20% compared with 2015. 63% were related to vehicle usage.

→ The continued international rollout saw RCI obtain a banking licence in Colombia and expand its credit business to the dealer network in Turkey.

→ The 2016 penetration rate came to 41%, a 1-point increase over 2015. 

→ Net banking income rose 8.1% to €1.47 billion, helped by the margin on services, which rose 5.3%. Pre-tax income also rose 8.1% in 2016 relative to 2015, reaching €912 million. 

→ The cost of risk amounted to 0.31%, compared with 0.33% at the end of December 2015.

"Buoyed by the Alliance brands' strong sales momentum, RCI Bank and Services beat the targets set in its medium-term plan. The Group has deftly managed to diversify its activities while maintaining a high level of profitability, and is thus contributing to the success of the Renault-Nissan Alliance", said Clotilde Delbos (pictured), Chairman of the Board of Directors of RCI Bank and Services.

"Throughout 2016, RCI Bank and Services seized opportunities to invest in start-ups to develop mobility offerings dedicated to the new uses of our customers", added Gianluca De Ficchy, CEO of RCI Banque.

In June, RCI Bank and Services acquired a minority stake in Bulb Software Ltd, a start-up that has developed an innovative solution for monitoring vehicle usage and related costs. At the end of the year, RCI Bank and Services won a bid to acquire start-up Karhoo, which has developed the first platform for comparing taxi prices.

Image: Renault 

Authored by: Frank Jacobs