Wells Fargo & Co.’s first-quarter auto originations fell 10% year over year, the result of a move to bolster credit quality, Vice President of Consumer Lending Communications Natalie M. Brown told AFN.
“Our strategy has never been to grow for growth’s sake,” Brown said. “We are focused on credit quality and deepening relationships by earning more loans from our network of dealers. We will give up marketshare if the loan does not make sense for the customer, the dealer, or us.”
Brown noted that, although the auto market was strong, Wells Fargo felt a pinch from the harsh winter in the East and Midwest that impacted some consumers’ desires to shop for cars.
“But, overall, the market is strong,” she said. “Sales were strong in March, which strengthens our confidence in the market.” Despite the originations decline, Wells Fargo’s portfolio grew 7% to $56.3 billion as of March 31. However, 30-day delinquencies in the bank’s indirect portfolio grew to 1.81% from 1.47%, and net charge-offs inched up to 0.76% from 0.73%.
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