Caterpillar Inc.’s subsidiary, Cat Financial, has disclosed its second-quarter 2023 revenues, amounting to $793 million, demonstrating a notable 19% growth compared to the corresponding period in 2022. Additionally, the company’s profit for Q2 2023 reached $150 million, marking a 5% increase from the previous year.

The substantial increase in revenues is mainly attributed to a favorable impact of $120 million resulting from higher average financing rates. Furthermore, the profit before income taxes for the second quarter of 2023 reached $205 million, showcasing a noteworthy 3% growth from the second quarter of 2022. This increase can be credited to a lower provision for credit losses and a rise in net yield on average earning assets.

During the second quarter of 2023, retail new business volume amounted to $3.15 billion, representing a 2% increase compared to the corresponding period in 2022. The rise in volume can be attributed to higher activity in the mining sector, partially offset by reduced volume in the EAME and Latin America regions.

As of the end of the second quarter of 2023, Cat Financial reported past dues at 2.15%, showcasing a decrease compared to 2.19% in the same period in 2022. Write-offs, net of recoveries, for the second quarter of 2023 totaled $8 million, in contrast to less than $1 million in the second quarter of 2022. The allowance for credit losses at the end of the second quarter of 2023 amounted to $320 million, representing 1.15% of finance receivables.

Dave Walton, President of Cat Financial, expressed his contentment with the company’s second-quarter results, emphasizing the robust performance of the portfolio.

“The company remains steadfast in its commitment to executing its strategic plans and delivering financial services solutions to Caterpillar’s customers and dealers worldwide,” commented Mr. Walton.