Consumer Portfolio Services increased originations 5.1% last year, bucking company expectations, Chief Executive Charles Bradley Jr. said during the company’s fourth-quarter earnings call this week.
“2018 was a better year than we expected but nothing [that] we were looking for,” Bradley said. “We’ve done a tremendous amount of housekeeping in 2018 that should bode well for the future.”
CPS originated $902.4 million of loans last year, bumping up the company’s loan portfolio to $2.4 billion from $2.3 billion.
Though revenue declined 10.3% year-over-year to $371.1 million, Bradley anticipates growth in 2019. “We think we’ve built the right thing to be in a position to really succeed in 2019,” he said.
The lender, however, reduced expenses 7.8% to $371.1 million last year. Overall, 2018 earnings shot up to $14.9 million from $3.8 million in 2017, largely due to a lower than average income tax expense.
Late payments were on the rise year over year, with 30-day delinquencies accounting for 13.9% of the portfolio in 2018, compared with 11.3% in the year prior. Net charge-offs were flat year over year at 7.7% of the average portfolio.
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