General Motors Financial Co. continues to bolster retail loan growth with a 31.7% yearly rise in originations, the company reported Wednesday.
“We navigated significant headwinds in 2018 to deliver another year of strong results, demonstrating the earnings resiliency of this company,” General Motors’ Chief Financial Officer Dhivya Suryadevara said in a statement. “The actions we’ve been taking to shape a stronger, more profitable portfolio of businesses position GM for long-term success.”
The captive’s retail loan originations shot up 31.7% to $26.2 billion in 2018, while lease originations declined 11.0% to $22.6 billion.
The boost in retail loan originations helped strengthen the total portfolio. Yearend outstandings increased 11.3% to $84.3 billion.
Also read: How General Motors’ Closings May Affect GM Financial
“GM delivered another strong year of earnings in a highly volatile environment in 2018,” Chief Executive Mary Barra said in a statement. “We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value.”
GM Financial delinquencies dropped 30 basis points to 3.3% of the portfolio at yearend. Losses improved as well, declining 20 basis points to 1.8% of the captive’s portfolio.
For more content like this, check out our upcoming event Auto Finance Accelerate, May 13-16 at the Omni San Diego. Visit www.AutoFinanceAccelerate.com to register.
