Volkswagen Financial Services has said its 2017 profit would exceed the record EUR2.1bn euros ($2.47bn) it made in 2016.

According to Reuters, the bank also said provisional figures indicate the number of contracts in its portfolio rose 8% to 19.7m in 2017, up from 18.2m in 2016. Those contracts are for customer financing, leasing, maintenance and inspection. The 2017 figure includes for the first time about 250,000 contracts for Porsche. The previous year was not adjusted.

Chief financial officer Frank Fiedler reportedly said lower refinancing costs and portfolio growth contributed to the profit gain.

The news agency noted a study by consultancy Bain & Company this week said automobile banks were among Germany's most profitable financial institutions because of their narrow focus and captive clientele.

New car registrations in Germany, Europe's largest car market, would grow to one of their highest ever levels this year, fueled by a strong economy and sales incentives for cleaner diesel models, the country's main auto lobby said earlier in December, according to Reuters.