Chase Auto Grows Portfolio by $3.6 Billion in 2Q

JPMorgan Chase & Co. grew its outstandings auto balances, despite originations remaining flat, the bank reported in its second-quarter earnings call today. 

Chase Auto Finance’s 2Q loan and lease outstandings reached $83.8 billion — a year-over-year increase of $3.6 billion. Despite a rise in lease originations, total originations remained flat year-over-year at $8.3 billion.

In terms of global economic growth, particularly in the U.S., Chief Executive Jamie Dimon said the bank delivered record results this quarter. He attributes the growth to high consumer and business sentiment, as well as stronger competition in all fields, including its auto portfolio.

“Competition is a good thing,” Dimon said. “It’s called capitalism.”

Delinquencies 30 days or more past due dipped to 0.77% of the portfolio in the quarter compared with 0.88% in 2Q17. Charge-offs, on the other hand, rose by $2 million YOY to $50 million in the quarter. As a percentage of the bank’s portfolio, charge-offs increased to 0.31% compared with 0.29% the year prior. 

Dimon and Chief Financial Officer Marianna Lake said they are not experiencing signs of fragility in the economy. Both called the banking system healthy as consumer confidence is high. “If you’re looking for potholes out there, there’s not a lot of things out there,” Dimon said.

President Trump’s trade tariffs could put a damper on consumer sentiment, but Lake noted the bank is not experiencing any signs of that happening.

“Trade at this point is in people’s minds, but it’s not causing any change in the decisions that they’re making,” Lake said

Click here to view JPMorgan Chase’s full 2Q18 results.