U.S. Bank bolstered volume last quarter as it moved down the credit spectrum to offer used-car loans in the near-prime sector.
“We’re right on track” to double indirect auto loan and lease production, said Chief Executive Richard Davis during an earnings call Wednesday, adding that first-quarter production “was up 33% from the same time last year, and we continue to see our rankings and marketshare starting to move as we hope that it would.”
Overall, the bank reported a $13.9 billion auto loan portfolio as of March 31, compared with $12.5 billion the same time last year. In its earnings presentation, the bank said “low” delinquencies and net charge-offs reflect seasonality and continued strength in used-vehicle values. The weighted average credit score for indirect auto was 751 for the quarter.
