JPMorgan Chase reported the highest auto originations the bank has seen since 2008.
Second quarter 2014 auto loan originations for the New York-based bank rose to $7.1 billion up 4% from $6.1 billion in the first quarter, and up from the $6.8 billion reported the same time last year. Overall, JPM’s Q2 auto portfolio grew to $53 million, up from $52.9 million reported during the first quarter. The net charge-off rate for auto loans was 0.22%, up slightly from 0.18% in the prior year and down from 0.32% in the prior quarter.
Chase Auto Finance is the third largest bank provider of auto finance – and the 6th largest auto finance provider overall. The bank remains optimistic about the auto industry overall, with new vehicle sales growth across the industry reaching its highest level since 2006.
During the company earnings call, chief financial officer Marianne Lake said new vehicle sales continue to grow year-on-year. “We’ve seen the 11th straight quarter of loan and lease growth as our partners continue to outpace the general market which remains competitive. The auto pipeline remain healthy consistent with the recovery in the auto market,” she said.
