General Motors Financial Co. grew total North American originations by 19% in the first quarter compared to the same period a year prior, driven by an 87% increase in its retail loan portfolio, the company reported in its first-quarter earnings filing.
The captive originated $11 billion in auto loans and leases combined, up from $9.3 billion in the first quarter 2016. GM Financial’s North American portfolio totaled $24.35 billion at quarter’s end up from $18.8 billion during the same time last year — a 29.5% increase.
North American lease originations were down 6.8% year over year, to $6.26 billion, while loan originations nearly doubled to reach $4.8 billion in the first quarter, from $2.6 billion at the same time a year prior.
For the second quarter in a row, GM Financial saw a reduction in delinquencies. Total Loan delinquency made up 4.9% of ending retail finance receivables, down from 6.1% in the first quarter 2016.
Charge-offs, however, continue to rise. The captive charged off $131 million in the first quarter — a 9.16% increase year over year. However, as a percentage of the portfolio, charge-offs are decreasing, coming in at 2.3% of average loans and leases, from 2.6% the year prior.
Learn more about the tech and disruption in the industry at Auto Finance Innovation 2017, May 17-18 in San Diego. Visit www.autofinanceinnovation.com and to learn more about the Auto Finance Risk & Compliance Summit, visit www.afrcs.com.
