Originations Grow for Santander Consumer in 2Q

In an increasingly competitive market, especially for prime-risk loans, business was up on several fronts for Santander Consumer USA, which had total originations of $7.6 billion in the second quarter, an increase of 13.7% from a year ago, the company reported today.

“While competitive, we believe the market is still rational,” said Jason Kulas, chief executive, in a conference call for investors, analysts and media.

Overall, SCUSA reported net income of $285.5 million for the second quarter, up 16% from $246.5 million in the second quarter of 2014. In the conference call, analysts expressed concern over sharper competition.

“Competitive comments are kind of all over the board. Some people are cautious, some are seeking more exposure, and some are in between. The net result to us is, the environment is still as stable as it’s been,” Kulas said.

SCUSA’s second-quarter originations included $2.7 billion in Chrysler Capital retail loans, plus $1.4 billion in Chrysler leases originated for SCUSA’s ow portfolio, and another $229 million in Chrysler leases for an affiliate.

Other originations, including auto loans for others and personal consumer loans, totaled $3.3 billion for the quarter.

SCUSA had asset sales of $2.8 billion for the quarter, up from $1.8 billion a year ago. The Dallas-based lender has a large portfolio of loans that have been sold but continue to be serviced by SCUSA for the buyers. That portfolio was $13.1 billion at the end of the second quarter, up from $8 billion a year ago.

Kulas said, “The growth in ‘held for others’ was a real highlight.”