YEAR-END REPORT FOR 2008 Volvofinans Bank AB (publ) January 1 December 31, 2008

Transcription

1 YEAR-END REPORT FOR Volvofinans Bank AB (publ) January 1 December 31,

2 1 (13) STATEMENT BY THE PRESIDENT For the first time in several years, we find ourselves having to report earnings that are lower than the earnings of the preceding year. There are very few other times in the company s 50-year history when we have had to do so. Our income in the fiscal year amounted to SEK 273 M, compared with the SEK 304 M we reported for. Given the current circumstances, however, I would call this an excellent achievement. Signs of an approaching economic downturn were already apparent in spring, as we watched our income slowly drop and our costs rise which would be unsustainable in the long term. We were therefore forced to lay off employees for the first time in the company s history. Throughout its 50 years, Volvofinans has always performed well and in principle enjoyed steady growth. However, the financial crisis that developed in also affected our own numbers. There are bright spots, however, the brightest of them being that after our merger with Volvofinans Konto Bank AB we obtained a bank charter, and in the process, a new name Volvofinans Bank AB and that after the entry of the Sixth AP Fund in, we obtained a strong government shareholder. Our ownership structure Volverkinvest, 50%, Sixth AP Fund, 40%, and Ford Credit, 10% gives us significantly greater opportunities to act swiftly and decisively. For example, we were able to quickly declare our interest in the guarantee programme operated by the National Debt Office, and through bank loans ensure our liquidity, in an otherwise tentative finance market. This has mitigated the effect of the downgrading that we, Volvofinans Bank, like many other banks and companies, have suffered from A3 to Baa1 for our long-term borrowing. The short rating, however, remained unchanged at P-2. Additional measures and steps have been taken that will render us well equipped to weather more difficult times and consequently emerge even stronger once the economy begins to recover. Together with the country s Volvo dealerships, we are fully under way with our new credit rating system, VF Score. Efforts to obtain a definitive approval for our IRC system are under way. Our business concept has evolved into a mission to support the Volvo dealerships sales of cars and car-related services through borrowing and financing, referring now to most car models, instead of the current limited range. This will provide us access to a significantly larger market than previously. Both the car and the truck markets have decreased considerably, and all manufacturers are now waiting to see the effect of announced large-scale government infrastructure investments. As a result of the market turmoil, Volvofinans Bank s leasing and installment plan contracts are slowly decreasing. On the other hand, the number of users of the two Volvofinans charge and credit cards, the Volvo Card and the Volvo Truck Card, has risen sharply. The favorable trend is ongoing, and even customers who did not purchase their car from a Volvo dealership are using the card. We Volvofinans Bank and the country s Volvo dealers are currently experiencing a depressed market whose downward trajectory continues. Behind all the problems, however, there are opportunities, and that is where we are now moving forward. We have tightened our belt and streamlined our organization. We now conduct banking operations and have an eminently stable ownership in Volverkinvest (Volvo dealerships in Sweden) and the Sixth AP Fund. We have adapted our operations to current regulations and acquired excellent administrative and risk management tools. And last but not least, we have filled our reserves to enable us to support our dealers. Our suppliers particularly Volvo Cars, Volvo Trucks, Ford and Renault are fighting a tough battle but developing new green vehicles with an eye to the day the economic curve again start to point upward. So, I look to the future despite the currently challenging times with confidence. Göteborg, February 2009 Bert Björn President Volvofinans Bank AB As stipulated by the Securites Market Act (SFS :528), Volvofinans Bank AB is obliged to make this information public. This information was submitted for release on February 27, 2009, at 6:45 p.m.

3 2 (13) OWNERSHIP/OPERATIONS Volvofinans has been 50% owned since the company was started in 1959 by the Swedish Volvo dealerships, through their holding company, AB Volverkinvest. The Sixth AP Fund has owned 40% of the company since September and Ford Credit International Inc. owns 10% (previously 50%). Through product and sales financing, with favorable profitability, Volvofinans primary task is to actively support sales of the products sold by the Swedish Volvo dealerships in the Sweden market. In July, Volvofinans Bank AB (having changed its name from AB Volvofinans) was granted permission by the Swedish Financial Supervisory Authority to conduct banking activities and is the Parent Company of Volvofinans Konto Bank AB. Volvofinans Konto Bank AB conducted credit card operations and administered and financed primarily the charge and benefits card used in Volvo dealership operations the Volvo Card. The merger of the operations of Volvofinans Bank AB, Volvofinans Konto Bank AB, currently undergoing a change of name to Volvofinans Konto AB, and Volvofinans IT AB took place on October 1, in accordance with a decision of the Board of Volvofinans Bank AB. VOLUMES/LENDING Sales of new cars in Sweden declined by 17.2% compared with the year-earlier period. A total of 253,982 cars (306,799) were registered. Volvo s and Renault s combined market share was 21.7% (23.9), or 55,128 registrations (73,376). The total contract portfolio (loans and leasing contracts) amounted to 196,359 (205,609). The portfolio s share of truck and bus contracts amounted to 8,584 contracts (8,835), or slightly more than 4%. Of the total sales of cars, new and used, by Swedish Volvo dealers, 49.1% (42.6) generate a financial contract for Volvofinans. Penetration of new and used cars is 55.7% and 42.8%, respectively. Volvofinans finances Swedish Volvo dealers truck sales, excluding the portion conducted through the Volvo Truck Center, which is owned by AB Volvo. The penetration for new trucks amounted to 46%. The Volvo Card continues to develop favorably and lending is on the level of the preceding year. The number of active accounts is half a million every month, and total consumption of goods and services using the Volvo Card amounted to approximately SEK 10.4 billion. For the Volvo Dealers Truck Card, goods and services purchased using the 21,500 cards amounted to SEK 484 M. The number of corporate customers for which Svensk Vagnparksfinans (Swedish vehicle fleet financing) handles the vehicle administration has remained at a consistently high level. At the end of the period under review, 32,737 cars (32,338) were administered with cost follow-up. The Group s lending volume amounted to SEK 23.7 billion, compared with SEK 24.8 billion in the preceding year. The truck and bus portion of lending amounted to SEK 3.5 billion (3.5), which corresponds to 14% of total lending. The Group s primary segments are the business areas comprising the car and truck markets. The geographic distribution reflects that of the Group as a whole. Operating revenue, operating income, the number of contracts and lending volume for the Volvofinans business areas are presented below. Operating income is defined as the net of interest income, interest expense, net leasing income, dividends, net income from financial transactions, commission income and commission expense. Jan - Dec Cars Trucks Group Assets, SEK M 21,283 4,099 25,382 Lending volume, SEK M 20,393 3,928 24,321 Operating revenue, SEK T 570,706 41, ,303 Operating income, SEK T 239,249 33, ,820 Overhead costs, SEK T 310,125 8, ,060 Number of contracts 220,512 8, ,096

4 3 (13) INCOME Volvofinans Group income before loan losses declined 6% to SEK M (311.0). Net interest was affected by both rising and falling interest rates as well as higher borrowing margins. The declining number of loan and leasing contracts had an adverse effect on commission income. Overhead cost is higher than in the preceding year. Income before appropriations and tax during the year fell 10% to SEK M (304.0). CREDIT RISKS AND LOAN LOSSES The Group s credit risk remains extremely low, since most credit risks and residual value risks are carried by the Swedish Volvo dealers. The Group has a new definition of problem credits, according to which they increased in compared with the preceding year. Problem credits refer primarily to all receivables that are more than 90 days past due. Problem credits were previously associated only with the Group s collection receivables, which related exclusively to credit card receivables. The Group s problem credits for credit card receivables amount to SEK M (78.0) and for lending and leasing to customers, SEK M (0). The increase in problem credits for credit cards is due to the changed definition and to the fact that the average debt has risen as a result of increasingly higher fuel prices and increased customer access to longer credit periods. For most, that is, SEK M, of the problem credits relating to lending and customer leasing, the dealer bears the credit risk through recourse agreements. There are no credits for which interest concessions have been negotiated, nor has there been any property seizure to protect a claim. Identified customer losses refer primarily to the credit card operations. Loan losses have remained on extremely low levels. Recovered losses pertain primarily to liquidity for sold, previously written-off losses. Reservation for anticipated credit losses pertaining to the household segment are calculated using static risk models, and the corporate segment is calculated using an expert-based risk-classification model and a manual run-through. Amounts in SEK T Confirmed loan losses -12,822-12,726-4, Recovered losses 2,828 2,602 1, ,994-10,124-3, Credit risk provisions Reservations for anticipated loan losses -10,429 3,124-12,023 9,809 Loan losses, net -20,423-7,000-15,285 9,597 CAPITAL PROCUREMENT Group Parent Company The crisis in the world s finance markets during the year affected capital procurement for Volvofinans, since the bank s primary financing is fuelled by the money and capital markets. Excluding an increase in borrowing costs during the year, during the autumn Volvofinans secured its funding, to a greater degree than previously, through short-term bank loans. In December, Volvofinans joined the government guarantee program, enabling the bank to apply for a government guarantee for some of its borrowings in the market. Volvofinans is an active operator in the Nordic money and capital markets through its three market loan programs, with framework sums totaling SEK 33,0 billion. Volvofinans Nordic Commercial Paper Programme, with a limit amount of SEK 15.0 billion, enables us to issue loans in the Scandinavian currencies and EUR. For borrowing in the European money market, we utilize our Euro Commercial Paper Programme, which has a limit amount of EUR 500 M. Commercial papers issued during the year amounted to a combined value of SEK 15.3 billion. For long-term borrowing, an MTN programme is utilized, with a limit amount of SEK 12.5 billion, following an increase of SEK 2.5 billion in January During five bond issues have been executed, totaling SEK 1.7 billion and with maturity terms from two to five years. Total financing obtained through our three market programmes amounted to SEK 11.4 billion at year-end. As a complement to borrowings in the market, long-term credits are contributed directly by banks or through bank syndicates. At year-end, this financing amounted to SEK 5.7 billion. Of net financing, 55% referred to long-term borrowing at year-end. With the aim of increasing the percentage of long-term financing, in January 2009 Volvofinans carried out a bond issue that raised a total of SEK 3.0 billion.

5 4 (13) FINANCIAL RISKS Since the Group operates in the financial sector, its operations are continuously exposed to a number of financial risks. Liquidity risk is the risk that Volvofinans payment obligations cannot be met at maturity without significant increase in repayment cost, or, in the worstcase scenario, cannot be met at all. To assure its repayment capacity, Volvofinans has entered agreements with banks on credit facilities that may be utilized at short notice. Short-term borrowing, with remaining maturities of less than one year, must be covered at any given time by unutilized bank facilities. The total volume of available facilities at yearend amounted to SEK 10.1 billion, of which SEK 1.2 billion took the form of an agreement on liquidity contributions with Volverkinvest and the Sixth AP Fund. Of this, SEK 6.2 billion consists of long-term facilities with a remaining term of two years or more. Interest-rate risk is the present and future risk that the net interest income will decline due to an adverse interest rate change. Most of Volvofinan s credits and all of its borrowings carry short-term interest rates and, accordingly, there is no significant interest-rate risk. Currency risk arises as a result of unfavorable fluctuations in exchange rates. All lending by Volvofinans is denominated in SEK. When financing occurs in foreign currencies, currency risk is hedged, which means that Volvofinans is not exposed to any exchange-rate fluctuations. RATING Volvofinans has international credit ratings from Moody s Investors Service as follows: - Short-term financing: P-2 - Long-term financing: Baa1 CAPITAL ADEQUACY The new capital adequacy regulations imply that the capital requirement is linked more strongly to the institute s total risk profile, which means a lower level of minimum capital adequacy for Volvofinans. Volvofinans computes capital adequacy for its credit risk based on the standard method, whereby all exposures are distributed among 15 exposure classifications with different risk weights for each classification. Capital adequacy for operating risks is computed in accordance with the basic method, whereby the capital adequacy requirement amounts to 15% of the Group s average operating revenues over the past three fiscal years. EVENTS AFTER FISCAL YEAR-END On February 2, 2009, the Swedish Financial Supervisory Authority recalled its permission for the company s subsidiary, Volvofinans Konto Bank AB, to operate a banking business, at the request of the subsidiary. Otherwise, no significant events occurred after year-end. The Annual Report is scheduled to be published during the week of March 30, 2009, and the March 31 report will be published on May 18, The report will be available on our website: For further information, contact the company President, Bert Björn. Volvofinans Bank AB, , or info@volvofinans.se This report was not reviewed by the auditors. In the invent of conflict in interpretation or differences between this interim report and the Swedish version, the latter will prevail. On October 17, Moody s announced a downgrading of its credit rating for long-term borrowing by one step from A3 to Baa1. At the same time, it changed its outlook for the ratings from Stable to Negative. The credit rating for short-term borrowing, P-2 was confirmed and remained unchanged. Detailed analyses from Moody s Investors Service are presented on the Volvofinans website,

6 5 (13) CAPITAL ADEQUACY Amounts in SEK M Group* Dec. 31, Parent Company* Dec. 31, Group* Dec. 31, Parent Company* Dec. 31, Capital base Capital base 2,961 2,948 2,734 2,737 Core capital 2,751 2,738 2,539 2,542 Supplementary capital Capital requirement Capital requirement for credit risk as per standardized method 1,668 1,668 1,706 1,615 Capital requirement for operational risk as per base method Total minimum capital requirement as per Basel II 1,757 1,757 1,789 1,658 Total minimum capital requirement as per Basel I 1,983 1,979 2,053 1,913 Capital adequacy measurement Capital adequacy ratio 1,69 1,68 1,53 1,65 Capital adequacy level, % 14,20 14,14 12,82 13,56 Core capital ratio, % 13,20 13,13 11,91 12,59 * In accordance with Basel II Standardized

7 6 (13) CONSOLIDATED STATEMENT OF INCOME Amounts in SEK T Jan-Sep Interest income 1,399, ,028 1,052,606 1,143, , ,011 Leasing income 279,018 83, , ,923 66, ,588 Interest expenses -1,056, , , , , ,469 Share in earnings of associated companies 1,825 1,825-2,762 2, Net result from financial transactions* -12,166-11, , ,755 Commission income 279,693 74, , ,046 67, ,140 Commission expenses -24,584-10,198-14,386-15,012-3,705-11,307 Total operating income 866, , , , , ,810 Jan-Sep General administrative expenses -253,165-62, , ,249-65, ,423 Depreciation of tangible and intangible fixed assets -254,614-80, , ,450-61, ,668 Other operating expenses -65,895-24,774-41,121-41,493-9,671-31,822 Total operating expenses -573, , , , , ,913 Income before credit losses 293,243 48, , ,020 66, ,897 Credit losses, net -20,423-18,412-2,011-7,000-2,987-4,013 Income before appropriations and tax 272,820 29, , ,020 63, ,884 Estimated tax -24,746 43,274-68,020-82,322-14,875-67,447 Net income 248,074 73, , ,698 48, ,437 * Net result from financial transactions Currency-related , ,636 Interest-bearing securities & related derivatives -12,771-11,711-1, ,119-12,166-11, , ,755

8 7 (13) PARENT COMPANY STATEMENT OF INCOME Amounts in SEK T Jan-Sep Interest income 909, , , , , ,290 Leasing income 2,500, ,698 1,868,059 2,391, ,634 1,769,516 Interest expenses -1,047, , , , , ,399 Dividends received ,119 1, Net result from financial transactions* -12,166-11, , ,755 Commission income 133,009 72,504 60,505 80,265 20,614 59,651 Commission expenses -18,109-7,758-10,351-10,312-2,428-7,884 Total operating income 2,465, ,649 1,793,022 2,336, ,215 1,749,021 Jan-Sep General administrative expenses -141,713-65,874-75,839-84,247-21,921-62,326 Depreciation of tangible and intangible fixed assets -2,092, ,941-1,557,691-2,060, ,135-1,529,988 Other operating expenses -36,694-24,674-12,020-10, ,746 Total operating expenses -2,271, ,489-1,645,550-2,155, ,303-1,603,060 Income before credit losses 194,632 47, , ,873 34, ,961 Credit losses, net -15,285-18,411 3,126 9,597 1,878 7,719 Income before appropriations and tax 179,347 28, , ,470 36, ,680 Appropriations -121, , Estimated tax -16,886 25,282-42,168-3,907 39,123-43,030 Net income 40,861 54, ,430 8,363 75, ,650 * Net result from financial transactions Currency-related , ,636 Interest-bearing securities & related derivatives -12,771-11,711-1, ,119-12,166-11, , ,755

9 CONDENSED BALANCE SHEET Amounts in SEK T Group Parent Company Dec 31, Dec 31, Dec 31, Dec 31, Lending including leased assets 24,321,453 24,882,713 24,321,453 23,212,559 Lending to Group companies ,143 Other assets* 1,060, ,386 1,283,920 1,120,225 Total assets 25,382,151 25,871,099 25,605,373 25,017,927 8 (13) Borrowing 20,230,636 20,592,749 20,473,788 20,413,846 Other liabilities* 1,276,137 1,614,274 1,275, ,142 Subordinated loan 209, , , ,981 Deferred tax 806, , Guarantee fund loan 200, , , ,000 Untaxed reserves - - 3,064,869 2,943,269 Shareholders equity 2,411,680 2,223, , ,326 Income 248, ,698 40,861 8,363 Total liabilities and shareholders equity 25,382,151 25,871,099 25,605,373 25,017,927 * Of which, derivative instruments with positive and negative market values. Derivative instruments with positive market values 377,313 23, ,313 23,841 Derivative instruments with negative market values -9,376-57,861-9,376-57,861 KEY RATIOS Group Return on shareholders equity, % Risk capital/total assets, % Income/Risk-weighted assets, % Capital adequacy ratio Capital adequacy level, % Core capital ratio, % Credit losses/ø lending, % I/E ratio I/E ratio excluding loan losses

10 CASH-FLOW STATEMENT 9 (13) Amounts in SEK T Group Parent Company ONGOING OPERATIONS Operating income 272, , , ,469 Share in earnings of associated companies, equity method -1,825-1, Depreciation 254, ,451 2,092,632 2,060,123 Other items not included in cash flow - 2, Taxes paid -42,800-34,991-42,714-34,966 Changes in operating assets and liabilities Lending to credit institutions -471, , ,126 87,910 Lending to the public 1,148,820-5,352, , ,711 Other assets -78, , , ,219 Liabilities to credit institutions 811,989-23,950 1,002,855-23,950 Borrowing from the public 231,228 36, ,416 58,002 Securities issued -1,405, ,542-1,405, ,542 Other liabilities -338, , ,344 24,011 Cash flow from ongoing operations 382,023-4,247,640 2,154,747 2,569,211 INVESTMENT OPERATIONS Changes in shares and participations -1,000-1,027-1,682-1,027 Changes in intangible assets 6,869-28,208-14,038-17,961 Changes in tangible assets -369,181 4,572,076-2,212,554-2,365,945 Cash flow from investment operations -363,312 4,542,841-2,228,274-2,384,933 FINANCING OPERATIONS Debenture loan 14, ,607 14, ,607 Dividend paid -33,300-30,600-33,300-30,600 Group contribution , ,925 Cash flow from financing operations -18, ,207 73, ,282 Cash flow for the year Cash and cash equivalents at end of the year - 6-0

11 LEASING INCOME AND ACCUMULATED NET INTEREST Amounts in SEK T Group Parent Company Leasing income from operational and financial leasing contracts 279,018 83, ,923 66,335 2,500, ,698 2,391, ,634 Depreciation according to plan -234,804-72, ,551-57,956-2,076, ,177-2,052, ,317 Interest income 1,399, ,028 1,143, , , , , ,410 Interest expenses -1,056, , , ,944-1,047, , , ,835 Total net interest 387,345 89, ,317 77, ,073 91, ,007 39, (13) In the Parent Company, all leasing contracts are reported as operational, in the Group, some are reported as financial. This means that the net leasing amounts of financial contracts are reclassified as interest income.

12 CHANGES IN SHAREHOLDERS EQUITY, GROUP Amounts in SEK T Group Share capital Retained earnings incl. income for the year Total equity Shareholders' equity, January 1, 100,000 2,153,882 2,253,882 Net income for the year 221, ,698 Total changes before shareholder transactions - 221, ,698 Dividend -30,600-30,600 Shareholders equity, December 31, 100,000 2,344,980 2,444,980 Shareholders equity, January 1, 100,000 2,344,980 2,444,980 Net income for the year 248, ,074 Total changes before shareholder transactions - 248, ,074 Dividend -33,300-33,300 Shareholders equity, December 31, 100,000 2,559,754 2,659,754 CHANGES IN SHAREHOLDERS EQUITY, PARENT COMPANY Amounts in SEK T Parent Company Share capital Statutory reserve Retained earnings incl. income for the year Total equity Shareholders equity, January 1, 100,000 20, , ,060 Net income for the year 8,363 8,363 Total changes before shareholder transactions - - 8,363 8,363 Group contribution received 110, ,925 Tax attributable to Group contribution received -31,059-31,059 Dividend -30,600-30,600 Shareholders' equity, December 31, 100,000 20, , ,689 Shareholders equity, January 1, 100,000 20, , ,689 Net income for the year 40,861 40,861 Total changes before shareholder transactions ,861 40,861 Group contribution received 92,244 92,244 Tax attributable to Group contribution received -25,828-25,828 Dividend -33,300-33,300 Shareholders' equity, December 31, 100,000 20, , , (13)

13 12 (13) ACCOUNTING PRINCIPLES Volvofinans Bank applies IFRS (International Financial Reporting Standards) as adopted by the EU. This report is prepared in accordance with IAS 34. The Parent Company prepares the interim report in accordance with legally restricted IFRS. During, a further review of classification of leasing agreements was made in addition to what occurred last year. The review resulted in additional leasing agreements in which Volvofinans is the lessor being reclassified from recognition as operational to be reported as financial. Accordingly, as at December 31,, the majority of leasing agreements outstanding are reclassified to financial leasing in the Group. The comparative figures have also been recalculated. The distinction is made solely in the Group, in legal entities all leasing is recognized as operational. Reclassification from operational to financial leasing results in the financial leasing agreements being reported as financial receivables under lending to the public, while the remaining operational agreements continue to be recognized as tangible fixed assets. As at December 31,, SEK 7,438,401 T (7,439,816) was reclassified from fixed assets to financial receivables in the Group. In the statement of income, the reclassification is effected through income from the financial leasing agreements being reported as interest income instead of leasing revenues. Depreciation reported previously is distributed between interest and amortization. This reclassification has no total earnings effect or effect on total assets, solely reclassification between items in the statement of income and balance sheet. During, Volvofinans changed depreciation method for the remaining operational leases. The assets that were hired out as operational leasing are accordingly reported as tangible fixed assets and were previously depreciated using the annuity method. In future, these are depreciated in accordance with the straightline method in the Group as well as the Parent Company. All outstanding operational leasing contracts have been recalculated. As a result, the closing balances at December 31, and December 31, were prepared for tangible fixed assets as if we applied straightline depreciation from the date the agreement was signed and what the depreciation should have been if we applied straightline depreciation instead of the annuity method from the beginning. This means that the closing balance reported is SEK 905,108 T (788,566), compared with if depreciation has been applied in accordance with the annuity method, SEK 910,409 T (790,333). This has had an earnings effect of SEK 3,534 T (1,767) in increased depreciation. The adjustment of depreciation from annuity to straightline has been changed retroactively. In other respects, the same valuation and accounting principles were applied in the report as in the most recent annual report.

14 13 (13) PRODUCT PORTFOLIO Volvofinans Bank has the market s broadest product program for car-related consumption. We offer our customers a range of such products as: Car loans and car leasing for all models sold by Swedish Volvo dealers, for both new and used cars Volvo Card, with or without Visa Volvo Card loan Travel insurance Fleet management via Svensk Vagnparksfinans for large car fleets Company car a product for smaller car fleets Personal car a product similar to Home-PC programs, totally cost neutral to the employer ABOUT VOLVOFINANS BANK Volvofinans Bank was founded in 1959 and is 50% owned by the Swedish Volvo dealerships through the AB Volverkinvest holding company, 40% by the Sixth AP Fund and 10% by Ford, through the wholly owned subsidiary Ford Credit International Inc. In July, Volvofinans received a permit from the Swedish Financial Supervisory Authority to conduct banking business. The bank s main task is to promote sale of the products marketed in the Swedish Volvo dealerships through financing of products and sales. The head office, with the majority of the approximately 175 employees, is located in Gothenburg. There is also an office in Stockholm. Volvofinans is not currently conducting any business outside Sweden. The sale financing is carried out in the form of loans and leasing to private individuals and companies through the Volvo dealerships. The contract stock exceeds 230,000 agreements. Under the name Svensk Vagnparksfinans, major companies are offered financing and administration of company cars, and over 350 companies have signed general agreements to date. Volvofinans Bank also carries out credit-card business and administrates and markets the Volvo dealerships loyalty card the Volvo Card. There are 1,200,000 Volvo Cards, and it is one of the country s most widely disseminated cards. The bank s financing requirements are largely met by three public market programs. A Nordic Commercial Paper Programme of SEK 15 billion and a Euro Commercial Paper Programme of EUR 500 M are used for short-term borrowing, and an MTN programme of SEK 12.5 billion is used for longterm borrowing. Further information about news and reports, financing programs, ratings and business concept is proved at

15 Volvofinans Bank AB (publ), Reg. No Bohusgatan 15, Box 198, SE Göteborg, Sweden Telephone Fax