Despite a drop in volume, Ally’s originations were decisioned from a record 2.9 million loan applications, a 7% increase YoY, representing the “strongest fourth quarter ever” in terms of loan application volume, LaClair noted.
Outstandings increased on a YoY basis, rising to $81.1 billion from $78.9 billion. Conversely, used–vehicle origination volume dipped to 49% of originations, compared with 52% during 4Q18. However, the bank experienced “strong” increases in the lease segment during the quarter, according to LaClair, with lease originations at 14% of the total volume compared with 10% during the same time last year. New vehicles accounted for 37% of the mix.
Meanwhile, 30-day delinquencies rose 6 basis points to 3.61%, while net charge-offs increased 1 basis point to 1.49% of Ally’s portfolio. The rise in delinquencies reflects the “increased mix and seasoning of the used portfolio,” LaClair said.
During the earnings call, Ally Chief Executive Jeffrey Brown expressed his confidence in the bank’s origination trends moving into 2020.
“In the bank space, it’s a pretty rational [competitive] environment,” he said. “We’re confident in keeping origination trends. In terms of pricing power, we still feel pretty good. We’re unique with the scale we have in auto and the deep relationships we have with our dealers.”
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