Volvo Group reported that its customer finance business delivered higher levels of gross income during the third quarter as a result of continued growth in earning assets and positive margin development. Gross income of 1,019 million SEK ($160.7 million) was up almost 11% compared to $145.1 million for the same period in 2012.

Volvo said new financing volume during the quarter of SEK 11.1 billion ($1.75 billion) was approximately the same as last year. Adjusting for movements in exchange rates, new financing volume increased by 5% compared to the third quarter of 2012.

In total, 12,215 new Volvo Group units were financed during the quarter compared to 12,253 units one year ago. In the markets where financing is offered, the average market penetration rate in the third quarter was 26% compared to 28% in the same quarter last year.

As of September 30, 2013, the gross credit portfolio amounted to SEK 101.3 billion ($16.0 billion) compared to 97.5 billion SEK ($15.4 billion) at the end of the same period in 2012.

Volvo said credit provisions in the quarter amounted to SEK 293 M ($46.2 million) compared to 135 million SEK ($21.3 million) one year ago, while write-offs of 262 million SEK ($41.3 million) compared to 110 million SEK ($17.4 million) were recorded.

Volvo noted that the increased provisions relate to non-performing loans and leases in Spain stemming from the global financial crisis in 2009 and 2010. Due to the continuing recession and protracted legal processes in that country, collateral positions and values have deteriorated. Credit reserves remained stable at 1.34% of the credit portfolio.