Listen: Weekly Wrap on Q3 earnings, Auto Finance Summit preview

Third-quarter earnings season continued last week with many financial institutions reporting sequential declines in auto loan originations. Bank of America , Chase Auto , Citizens Bank , Fifth Third Bank , Huntington Bank , PNC Financial , U.S. Bank and Wells Fargo have all reported sequential declines in outstandings for Q3. Citizens Bank recorded the largest quarter-over-quarter decline at 5.1%. Alternatively, Ally Financial and Truist are the only institutions to report sequential increases at 2.2% and 2.9% , respectively. Meanwhile, the 10 financial institutions that have reported Q3 results are split on which recorded declines or increases in outstandings for year-over-year comparisons. Bank of America recorded the largest YoY increase in total portfolio at 7.4% while PNC tallied the largest decrease at 13%. In this episode of the Weekly Wrap, Associate Editor Riley Wolfbauer discusses the week’s earnings a s earnings continue, along with a preview of the Powersports Finance Summit and Auto Finance Summit taking place Oct. 26-28 in Las Vegas. Subscribe to The Roadmap Podcast on iTunes , Spotify , or download the episode. Editor’s note: This episode is sponsored by Solifi . Nominations are now open for the 2022 Auto Finance Executive of the Year. Submit your nomination by Friday, Oct. 28.

Video Transcript:

Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.

Riley Wolfbauer 0:01 Hello everyone and welcome to the roadmap from auto finance news since 1996, the nation's leading newsletter on automotive lending and leasing. It is Monday, October 24. And I'm Riley Wolfbauer. This is our weekly wrap on what happened in auto finance for the week ending October 21 2022. This episode is sponsored by salsify. In auto finance news third quarter earnings season continued last week with a slew of banks reporting quarter over quarter decreases in total outstandings Bank of America, Chase Auto, Citizens Bank, Fifth Third Bank, Huntington Bank, PNC Financial, US Bank and Wells Fargo all recorded sequential declines in outstandings for the third quarter, Citizens Bank recorded the largest quarter quarter quarter over quarter decline at 5.1%. Alternatively, Ally financial and truest are the only institutions to record sequential increases at 2.2% and 2.9%, respectively. Meanwhile, the 10 financial institutions that have reported q3 results are split in half when it comes to year over year comparisons for which recorded declines or increases in outstandings. Bank of America recorded the largest year over year increase in total portfolio at 7.4%. While PNC Financial tallied the largest decrease at 13%. The decline in outstandings for the third quarter comes on the heels of worsening macro economic conditions, high vehicle prices and the Fed increasing interest rates, causing consumers to pull back from the auto market and wait for prices to decrease or wait for race to normalize. Unfortunately, with that approach, the Fed is still anticipated to raise rates two more times this year and vehicle prices do not look like they will be coming down quickly. So the industry could see decreased outstandings continue in the coming quarters. As conditions are worsening. It appears that delinquencies are on the rise across the industry and are beginning to return towards pre pandemic levels. Seven of the 10 banks who have reported so far have seen sequential increases in delinquencies. While Huntington and PNC Financial were the only banks to record decreases and delinquencies. truest delinquency numbers came in flat sequentially and year over year. Coverage of earnings season is continuing this week with GM Financial, Harley Davidson Financial Services, Ford credit and Capital One. Weakening third quarter performance and current macroeconomic conditions will be a major point of discussion at this week's auto finance summit. The power sports finance summit takes place tomorrow and Wednesday, and the auto finance summit runs Wednesday through Friday. Tune into our auto finance daily page as we bring you live coverage from both events taking place at the Wynn Las Vegas and additional earnings coverage throughout the week. Meanwhile, the auto finance news team has announced the finalists for the fourth annual auto finance Executive of the Year Award. The award is presented for nor for notable contributions made by industry leaders during this calendar year. The winning executive will be profiled on the cover of the December issue of auto finance news. Voting closes this Friday, October 28. The link to cast your vote is included in the copy for this podcast. That about does it for today's episode. Thanks for joining us on the roadmap. Follow us on Twitter and LinkedIn. And please stay tuned for coverage of the powersports finance Summit and the auto finance summit taking place in Las Vegas this week. We will see you online at Auto Finance News dotnet and here next time.