Volvofinans Bank received, in july 2008, a permit from the Swedish Financial Supervisory Authority to carry out banking business.
The bank's main remit is to promote sale of the products marketed at the Swedish Volvo dealers through financing of products and sales.
The head office, which has the majority of the approx. 175 employees, is located in Gothenburg. There is also an office in Stockholm. Volvofinans is not currently carrying out any business outside Sweden.
The sale financing is being carried out in the form of loans and leasing to private individuals and companies through the Volvo dealers. The agreement stock exceeds 218,000 agreements. Under the name Svensk Vagnparksfinans, major companies are offered financing and administration of company cars, and over 350 companies have signed general agreements to date.
Volvofinans Bank also carries out credit-card business and administrates and markets Volvohandeln's loyalty card – the Volvo Card. There are 1,200,000 Volvo Cards, and it is one of the country's most widely disseminated cards. The bank's balance-sheet total is around SEK 25bn.
Volvofinans financing requirements are largely met by three public marketing programmes. A Nordic Commercial Paper Programme of SEK 8bn and a Euro-Commercial Paper Programme of € 500m are used for short-term borrowing, and an MTN programme of SEK 15bn is used for long-term borrowing.
For further information please see our presentation Year-End Report 2011 in the document box to your right and our annual financial report (to be found under 'Reports & News releases').