Big 3Q for Chase Auto

Chase Auto Finance, JP Morgan Chase & Co.'s auto lending and leasing unit, turned in strong performance last quarter, and appears to be picking up market share amid a turbulent economy.

Auto originations at Chase climbed 82% year-over-year and 30% quarter-over-quarter, according to the company's 3Q09 earnings report released today. Chase said its market share gains are coming in the prime auto finance segment, and as a result of "new manufacturing relationships." Last fall, Chase became Mazda's captive finance company, and agreed to provide financing for Jaguars and Land Rovers.

Specifically, Chase Auto originated $6.9 billion of auto loans last quarter, up from $5.3 billion the previous quarter, and $3.8 billion in the same quarter of 2008. The bank now maintains an auto portfolio of $43.3 billion, essentially flat year-over-year and quarter-over-quarter.

See JPM's earnings presentation here. The bank's auto finance statistics are on page five.

Tags: earnings, jpm

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Comment by Frank Rauscher on October 23, 2009 at 1:12pm: Chase owes much credit to the man who was at the core of auto finance for them (I believe that he has retired). They got his talent when Bank One acquired Valley National Bank of Arizona. Of course, Chase acquired Bank One. VNB was the first to securitize auto loans over 25 years ago and they only permitted 'suitable" auto financing at fair (non-predatory rates) over terms that limited the time that the borrower was upside down. A simple philosophy - "Pay or Walk" and good underwriting kept loan losses down.

Any banks that are having problems with this area only lack one thing - Talent.