Captive finance company Ford Motor Credit Co. reported net income of $340 million for the second quarter, an increase of 29% from a year ago. Pre-tax income was $506 million, up 17%.
U.S. retail loan and lease originations for Ford and Lincoln dealers were up 9% in the second quarter to 334,000 contracts. Worldwide, originations were up 9% to 541,000. The results included an increase in leasing, Ford Credit said.
“Ford Credit’s business and credit conditions continue to be very healthy,” said Bob Shanks, CFO for parent company Ford Motor Co., in a conference call on Tuesday.
Also, according to Shanks, credit losses, delinquencies, and repossessions all remain at historically low levels.
“So everything that we can see in the business looks robust and very, very positive as we look at the future,” he said.
Ford Credit said its worldwide investment in operating leases was $23.4 billion, up 18% from a year ago. That number includes, but is not limited to, outstanding U.S. retail lease volume. The captive doesn’t usually break out detailed numbers for its U.S. retail lease portfolio.
Repossessions represented just 0.89% of Ford Credit’s outstanding balance in the second quarter, the company also said, down a few basis points from 0.98% a year earlier. Charge-offs showed a slight uptick, to just 0.22%, up from 0.13% in the second quarter of 2014.