GM Lease Portfolio Soars 121% YoY

General Motors Financial Co.’s total lease portfolio in North America more than doubled to $28.3 billion, from $12.8 at the same time last year, according to second-quarter earnings released Thursday. Overall, leasing accounted for 54% of GMF’s North American portfolio as of June 30, up from 40% at midyear 2015.

For the quarter, GMF originated $6.4 billion of leases in North America, up from $5.5 billion year over year. Meanwhile, North American loan originations were relatively unchanged at $2.5 billion. Delinquencies 30-to-60 days past due dropped to 4.9%, from 5.9% YOY, while annualized net charge-offs were relatively unchanged at 2.3%. The improved credit performance for the second quarter reflected the portfolio’s increase in prime originations.

“The credit performance we’re seeing does reflect the portfolio mix shift to prime,” GMF President and Chief Executive Dan Berce said during the company’s call. “In fact, the subprime portion of our portfolio — defined again as Fico scores less than 620 — is now 55% of the North American portfolio, compared to 71% a year ago.”