Originations were up and delinquencies down for General Motors Financial Co. in the third quarter.
The captive financing arm of automaker GM, formerly known as AmeriCredit, reported net income of $51 million after accounting for $30 million in expenses related to the acquisition. By comparison, the company had earned $26 million in 3Q09.
Originations, too, were on the rise last quarter, to $959 million from $906 million in the prior quarter. Origination volume last year was a fraction of where it is now — $229 million for 3Q09 — because AmeriCredit was handcuffed by capital constraints.
Loan performance, meanwhile, has been on the mend for GM Financial. Payments 31-to-60 days late improved to 6.2% from 7.6% in the prior-year period, and chargeoffs fell to 5.4% from 8.4%.
GM Financial’s portfolio totaled $8.7 billion at quarter’s end, compared with $10 billion at Sept. 30, 2009.
For parent company GM, third-quarter net income hit $2.2 billion on $34.1 billion of revenue. The automaker plans to raise as much as $10.6 billion in an initial public offering that may price as soon as Nov. 17.
