Cat Financial reported revenues of $2.60 billion for 2016, a decrease of $78 million, or 3%, compared with 2015. Profit was $384 million, a $76 million, or 17%, decrease from 2015.

The decrease in revenues was primarily due to a $66 million unfavorable impact from lower average earning assets and a $43 million unfavorable impact from returned or repossessed equipment, partially offset by a $33 million favorable impact from higher average financing rates.

Profit before income taxes was $561 million for 2016, compared with $619 million for 2015. The decrease was primarily due to a $43 million unfavorable impact from returned or repossessed equipment and a $30 million unfavorable impact from lower average earning assets, partially offset by a $24 million decrease in general, operating and administrative expenses.

Retail new business volume for 2016 was $10.91 billion, a decrease of $511 million, or 4%, from 2015. The decrease was primarily related to lower volume across North America, marine and mining, partially offset by an increase in Asia/Pacific and Europe.

At the end of 2016, past dues were 2.38%, compared with 2.14% at the end of 2015. The increase in past dues was primarily driven by the European marine portfolio. Write-offs, net of recoveries, were $123 million for 2016, compared with $155 million for 2015.

As of December 31, 2016, the allowance for credit losses totaled $343 million, or 1.29% of net finance receivables, compared with $338 million, or 1.22% of net finance receivables at year-end 2015.

As for Q4/16, Cat Financial reported revenues of $642 million, a decrease of $6 million, or 1%, compared with Q4/15. Q4/16 profit was $85 million, a $29 million, or 25%, decrease from Q4/15.

The decrease in revenues was primarily due to a $19 million unfavorable impact from lower average earning assets and a $13 million unfavorable impact from returned or repossessed equipment, partially offset by a $24 million favorable impact from higher average financing rates.

Profit before income taxes was $122 million for Q4/16, compared with $129 million for the Q4/15. The decrease was primarily due to a $13 million unfavorable impact from returned or repossessed equipment, a $9 million unfavorable impact from lower average earning assets and a $9 million increase in provision for credit losses. These unfavorable impacts were partially offset by a decrease of $22 million in other operating expenses primarily driven by the absence of employee separation charges that were recorded in the prior year.

During the quarter, retail new business volume was $2.86 billion, a decrease of $496 million, or 15%, from the Q4/15. The decrease was primarily related to lower volume in North America and Latin America.

“We are pleased with the overall performance of our business during 2016, including continued strong portfolio health during the year despite challenging market conditions in some of our key segments,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar. “With our ongoing focus on expanding our ability to serve customers globally through financial services excellence, we remain well positioned to serve the needs of Caterpillar, Cat dealers and our growing customer base worldwide.”