Cat Financial reported Q1/16 revenues of $643 million, a decrease of $46 million, or 7%, compared with the first quarter of 2015. First-quarter 2016 profit was $100 million, a $33 million, or 25%, decrease from Q1/15.

The decrease in revenues was primarily due to a $23 million unfavorable impact from lower average earning assets and a $13 million unfavorable impact from lower average financing rates.

Profit before income taxes was $145 million for Q1/16, compared with $187 million for Q1/15. The decrease was primarily due to a $17 million decrease in net yield on average earning assets reflecting geographic mix changes and currency impacts, an $11 million increase in provision for credit losses and a $10 million unfavorable impact from lower average earning assets.

During Q1/16, retail new business volume was $2.29 billion, a decrease of $173 million, or 7%, from Q1/15. The decrease was primarily related to lower volume in the mining and marine portfolios.

At the end of Q1/16, past dues were 2.78%, compared with 3.08% at the end of Q1/15. Write-offs, net of recoveries, were $31 million for Q1/16, compared with $12 million for Q1/15. The increase in write-offs, net of recoveries, was primarily driven by the Caterpillar Power Finance and North American portfolios.

As of March 31, 2016, the allowance for credit losses totaled $340 million, or 1.21% of net finance receivables, compared with $392 million, or 1.38% of net finance receivables at March 31, 2015. The allowance for credit losses at year-end 2015 was $338 million, or 1.22% of net finance receivables.

“Our portfolio has performed well overall despite ongoing weakness in many of the key end markets we serve,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar. “The global Cat Financial team is focused on actively managing portfolio health and continuing to serve Caterpillar customers and Cat dealers worldwide through financial services excellence.”