Santander Consumer USA Inc. reported a 28% decline in originations year over year to $4.58 billion compared to $6.37 billion the year prior, the company’s third quarter earnings report stated.
President and Chief Executive Jason Kulas said these numbers are inline with the company’s overall business strategy of more tightly structuring deals in the fallout of several settlements last year.
“Fewer originations are in part due to our disciplined underwriting standards as we are committed to driving originations at the right price and structure, and in part due to increased competition in the prime space,” Kulas said in the release. “This strategy should strengthen our overall relationship with Fiat Chrysler (FCA) and our Chrysler Capital volume, as well as our serviced for others strategy.”
Lease volume originations through Chrysler Capital were down 17% YoY for the quarter, and the same rate of decline applies to the company’s auto originations portfolio as a whole through the 9 months ending in September.
Net charge offs declined to a rate of 8.3% compared to 13.8% the year prior, while the 60-day delinquency ratio on personal loans raised to a rate of 13.4% up from 7.3% last year, according to the report.
Kulas assured investors of the company’s continued work to change the culture at the company following a $10 million fine from the CFPB this year for overdraft practices as well as last year’s $9.35 million DOJ fine for illegal service member repossessions.
“Our commitment to building a culture of compliance and putting customers at the center of everything we do is the foundation of our continued success,” Kulas said in the release. “We remain confident in our ability to execute our business plan and deliver value for all our stakeholders and customers through market cycles.”
