Capital One Financial Corp. posted a 14% year-over-year growth in auto originations, according to its 3rd quarter earnings, released on Thursday. This was only good enough for a 1% increase from the previous quarter, however.
Auto originations were at $5.4 billion at the end of 3Q, up from $5.37 billion during the previous quarter, and from $4.7 billion during the same period last year.
“Most of the growth came from prime originations as we continue to capture additional prime share from our existing dealers,” said Richard Fairbank, chief executive officer at Capital One, during the company’s conference call. “On a linked-quarter basis, auto originations were essentially flat.”
Before he began the Q&A portion of the call, Fairbank said that the bank will continue to pursue growth opportunities in auto, as well as in card and commercial banking.
In response to a question about Capital One’s mix of subprime and prime auto loans, Fairbank said the bank no longer specializes just in one particular space.
“Our initial foundation came out of the sub-prime side and over the decade and a half that we’ve been doing it since, we have migrated to a pretty much full credit spectrum perspective,” Fairbanks said. “This is not only to leverage scale economies, but what’s very clear is that the real leverage is in deep dealer relationships and there is economic benefit in that and I think in terms of the quality, the kind of loans that come out of that, it’s a win-win to build deep dealer relationships.”
