Chase Auto Drives Revenue With Higher Lease Volume in 1Q Earnings

Chase Auto Finance drove revenue higher for the company by growing its lease book, reflecting the company’s optimism in the strength of consumer lending, Chief Financial Officer Marianne Lake said on the earnings call.

Chase reported higher revenue that was in part driven by an increase in auto lease volume, the company reported. The bank’s lease portfolio grew to $17.6 billion during the quarter compared with $13.8 billion the same period the year prior. Chase originates leases for Mazda and Subaru brands.

The lender originated $8.4 billion in 1Q18, up 5% year over year. That pushed the portfolio to $83.4 billion, up from $79.1 billion during the same period the year prior.

Net charge-offs totaled $76 million during the quarter, down 6% YoY from $81 million. As a percentage of its portfolio, that decline brought net charge-offs to just 0.47% of its portfolio compared with 0.5% the same period the year prior.

Likewise, delinquencies in the portfolio were down. Delinquencies 30 days or more past due made up 0.71% of the portfolio, a 23 basis improvement YoY.

Additionally, expenses for JP Morgan Chase rose to $6.9B, up 8% YoY, “driven by investments in technology and marketing, higher auto lease depreciation and business growth” the earnings report said.