Thu, Jun 20, 5:12 PM (79 days ago)
American Honda Finance Corporation (AHFC) reported its annual financial performance for the fiscal year ended March 31, 2024. Key highlights include: - **Revenue**: Total revenue increased by 3% to $8.41 billion, driven by higher yields on retail loans and dealer loans. - **Net Income**: Net income before taxes decreased by 15% to $1.67 billion due to increased interest expenses and provisions for credit losses. - **Operating Expenses**: Leased vehicle expenses decreased by 11% to $4.34 billion, while interest expenses rose significantly by 92% to $1.70 billion. - **Earnings Per Share**: Not applicable as all shares are held by American Honda Motor Co., Inc. - **Strategic Overview**: Focused on supporting the sale and leasing of Honda and Acura products in the U.S. and Canada. - **Future Outlook**: Anticipates continued growth in financing volumes with a focus on maintaining competitive cost structures and effective risk management. - **Risk Factors**: Includes economic conditions, credit risk, interest rate fluctuations, and changes in regulatory requirements. - **Financial Condition**: Strong liquidity position supported by diverse funding sources including commercial paper, medium-term notes, and asset-backed securities. - **Market Position**: Increased financing penetration rates for new and used Honda and Acura vehicles. Overall, AHFC's financial performance reflects its strategic focus on supporting Honda and Acura product sales while managing risks and maintaining strong liquidity.