General Motors Financial Co. is planning its first securitization of floorplan loans for later this year, Chief Financial Officer Chris Choate said on the company’s earnings call Thursday. GMF commercial lending, 88% of which is comprised of floorplan loans, grew 50% YOY to $3.3 billion in the first quarter.
On the retail side, GMF’s originations hit $4.1 billion at the end of 1Q, up 20% compared with the same quarter a year ago. Originations in North America, meanwhile, were up 64% year over year. The jump was partially attributable to the late-2014 rollout of prime lending at GMF.
“In the first quarter, we had a 6% share of GM’s new-car prime business,” Chief Executive Daniel Berce said on the call. “We are expecting that increase steadily throughout the year. We don’t have a target on where we’d like that to be by the end of the year.”
Berce also indicated that GMF is “not seeing a pullback in bank participation in subprime.” On the contrary, he noted that the subprime sector has grown more competitive, and that “we don’t expect that to abate throughout 2015.”
As of March 31, GMF’s consumer loan portfolio totaled $25.6 billion, with another $8.9 billion of leases. GMF assumed sole responsibility for General Motors Co. vehicle leases during the quarter, and Berce indicated this exclusivity would naturally lead to growth in the business throughout the year.
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