Stuttgart. Mercedes-Benz Bank AG set new records for all key performance measures last year. The Stuttgart-based automotive bank thus finds itself in a strong position as the year 2009 begins. “Our business model proved its worth last year, and it continues to offer us good opportunities, even in difficult times,” said Mercedes-Benz Bank CEO Peter Zieringer during a press conference in Stuttgart. “In addition, Mercedes-Benz Bank is profitable and has a high level of liquidity.”

In an otherwise contracting automotive market, new leasing and financing business at the bank rose by 6 percent last year, surpassing the €9 billion mark for the first time ever. Contract volume was up by 4 percent to €17.2 billion in 2008. Mercedes-Benz Bank now finances or leases more than half of all newly registered vehicles from Daimler in Germany. “Our offerings generate important momentum for the automotive industry,” said Zieringer. “We succeeded in significantly increasing our market share last year, and we also reached our profit targets.”
More and more customers are now choosing leasing as an alternative to new-vehicle purchases – and despite a difficult economic environment, Mercedes-Benz Bank recorded a 10 percent increase in leasing volume in 2008. The bank plans to continue supporting dealerships in the future by consistently providing loans in both good and bad times, thereby helping to ensure that private and commercial customers can finance their vehicles at favorable conditions. “This is especially important in times when other banks cut lending, a circumstance that has already had a negative effect on the automotive sector,” Zieringer explained.

Mercedes-Benz Bank also continues to strengthen its market position in the direct banking business, as customers have been rewarding the bank’s stability and attractive terms. Deposit volume at Mercedes-Benz Bank increased by approximately 50 percent between 2007 and 2008, from €4.1 billion to more than €6 billion. “Our strategy of continously offering competitive interest rates is paying off, as a very large number of customers are now putting their money in our hands,” Zieringer reported. Total deposit volume has also risen since the beginning of this year, and now stands at €10 billion. The interest rates offered by Mercedes-Benz Bank are in fact so attractive that the bank recently had to temporarily halt new account openings in order to ensure that all applications would be handled properly, and with the usual high level of service quality. However, this move did not affect existing customers, who can continue to conduct all transactions. All remaining applications for accounts are currently being processed so that Mercedes-Benz Bank will once again be able to accept deposits from new customers without any restrictions beginning on March 25, 2009.

Mercedes-Benz Bank is preparing itself for a difficult economic situation in 2009. Nevertheless, because of the strong position it occupies and the broad range of products and services it offers, the bank is looking ahead to the coming months with optimism. Mercedes-Benz Bank firmly expects to once again make a significant contribution to earnings at Daimler’s Financial Services division in 2009. The bank also plans to expand its market share in the leasing and financing business. However, in view of the market situation it is difficult at this time to say with any certainty how new business will develop throughout the coming year, according to Zieringer. The goal of Mercedes-Benz Bank, said its CEO, is to act as a cushion against turbulence in the overall market. Still, the bank does expect to see a significant double-digit increase in its direct banking business this year.