Chase Auto posted its second-highest origination volume ever in the third quarter as delinquencies and credit losses remained low.
Originations inched up 0.9% year over year to $11.5 billion, falling behind the second quarter’s record $12.4 billion, Chief Financial Officer Jeremy Barnum said today during the bank’s earnings call. Outstandings also increased 9.6% YoY to $68.4 billion.
The bank continues to post low delinquencies and credit losses in its auto segment, with this quarters’ 30-day delinquencies clocking in at 0.46% of the portfolio, down 8 basis points (bps) YoY. The net charge-off rate for auto loans also decreased 1 bps YoY to 0.02% following a recovery rate of 0.1% last quarter.
Chase Auto decreased its allowance for loan losses by 22% YoY and 0.5% sequentially to $813 million — accounting for 1.2% of the banks’ outstanding auto portfolio — marking the fourth consecutive decline of allowance for loan losses since the third quarter of 2020.
Meanwhile, digital adoption, accelerated by the pandemic, continues to drive consumers to the bank’s mobile and online platforms, according to the earnings report. Active mobile users are up 10% YoY to 44.3 million users, and active digital consumers grew 5.84% YoY to 57.9 million.
Chase Auto website traffic has increased sequentially by 5.6% to 506,000 site visitors in Q3, according to Similarweb.
Going digital is “critical to be competitive going forward,” JPMorgan Chase Chief Executive Jamie Dimon said on the call.
Shares of JPMorgan Chase were trading down 2.38% to $161.43 at market close. The bank has a market capitalization of $482.38 billion.
Auto Finance Summit, the premier industry event, returns October 27-29 in Las Vegas. The Summit continues to bring together the best and brightest in the industry year after year for unparalleled networking and professional education. To learn more about the 2021 event and register, visit www.AutoFinanceSummit.com.