Volvo reported its customer finance unit, Volvo Financial Services, experienced further improvements in profitability during the first quarter mainly attributable to lower credit losses, which were 52% lower compared to the same period in 2010. Volvo said portfolio quality and performance remained strong in North America, Latin America and Asia-Pacific and parts of Western Europe, particularly Germany, demonstrated solid recovery during the period.

New financing volume in the first quarter of 2011 amounted to SEK 9.4 billion (USD 1.54 billion) versus SEK 6.8 billion (USD 1.12 billion). New financing volume increased by 50% compared to the first quarter of 2010, when adjusted for changes in exchange rates, due to increased Volvo Group unit deliveries and stable market penetration.

In total, 10,664 new Volvo Group units compared to 6,196 were financed during the quarter. In the markets where financing is offered, the average penetration rate in the first quarter was 23%.

At March 31, 2011 total assets amounted to SEK 87 billion (USD 14.3 billion) versus SEK 94 billion (USD 15.45 billion) at the end of the same year-ago period. Volvo noted that the credit portfolio was down 8% due to the strengthening of the Swedish krona. During the quarter, the credit portfolio increased by 2.0% when adjusted for exchange-rate movements. Gross income is down only slightly from prior year as the reduction in portfolio size was offset by lower level of non-earning assets and more efficient funding.