The lender said the increase in revenues was due to a $33 million favorable impact from higher average financing rates, a $27 million favorable impact from higher average earning assets and a $13 million favorable impact from returned or repossessed equipment.

These improvements were partially offset by a $14 million unfavorable impact from lower lending activity with Caterpillar.

During the third quarter of 2018, retail new business volume was $2.88 billion, an increase of $101 million, or 4%, compared to the same period last year. The increase was primarily driven by higher volume in Europe, partially offset by a decrease in mining.

The company also benefits from a one-off tax benefit of $7 million for the write-down of net deferred tax liabilities resulting from the 2017 tax year return to provision adjustments. The write-down reflects the reduction in the U.S. corporate tax rate from 35% to 21% beginning January 1, 2018.

Dave Walton, president of Cat Financial and vice-president with responsibility for the financial products division of Caterpillar Inc, said: “We were pleased with the solid results delivered by Cat Financial in the third quarter.

“We saw improvement quarter over quarter for most key business drivers, and Cat Financial remains well-positioned to serve Caterpillar customers and dealers worldwide through financial services solutions.”