Ford Motor Credit earned $801 million before taxes in the first quarter, notching a 25% year-over-year increase and the captive’s best results in nine years.
“Ford Credit benefited from lower depreciation on vehicles in our leased portfolio and improvement in credit loss reserves, reflecting continued strength in consumer credit metrics,” said Bob Shanks, chief financial officer of Ford Motor Co., during the company’s first-quarter earnings call. The captive’s revenue pushed $3 billion, up from $2.9 billion a year prior.
Net receivables dropped 1.4%, to $146 billion, while 60-day delinquencies fell 1 basis point to 0.13%. Ford Credit loans had an average Fico score of 741 in the first quarter, with a 6% mix of “higher-risk notes” in the portfolio, according to a company earnings presentation.
In addition, U.S. retail charge-offs were on the decline, falling to $65 million in the quarter from $70 million in the prior-year period.
