Chase Auto Finance’s portfolio wrapped up the year at $48.4 billion — 5% higher than it was in 4Q09 — but fourth-quarter loan-origination volume dropped to its lowest level in two years.
Chase Auto Finance originated $4.8 billion in the final quarter of 2010, down from $6.1 billion in the third quarter and $5.9 billion in the fourth quarter of 2009.
In fact, aside from the third and fourth quarters of 2008, when the credit markets started to crumble, Chase Auto’s 4Q10 volume was the lowest it’s been since the second quarter of 2006.
Despite the lower volume, the portfolio’s charge-off rate fell more than half year over year, to $71 million from $148 million. Also, the provision for credit losses related to auto and student loans plunged 81%, to $46 million from $242 million.
Here’s a look at Chase Auto’s origination volume (in billions) since 2005:
