PNC Financial Service’s auto book shrank for the fourth consecutive quarter, contributing to an overall decline in consumer loans during the first quarter of 2021.
Auto outstandings clocked in at $13.6 billion, a 4.5% decrease from last quarter and a decrease of 21% year over year, according to the lender’s Q1 earnings release. PNC’s total outstanding consumer portfolio decreased 9.3% YoY to $72.5 billion.
Still, credit performance remains strong. The rate of auto loans 30 to 59 days past due sat at 0.56%, a decrease of 38 basis points (bps) from last quarter and 47 bps YoY, while 0.14% of auto loans were 60 to 89 days past due, a sequential decrease of 10 bps, and a decrease of 14 bps from the same reporting period a year ago.
Across the bank’s total consumer portfolio, the net charge-off rate of 0.53% is a decrease of 24 bps YoY. The bank did not break out auto-specific charge-off rates.
The Pittsburgh-based lender saw an uptick in its allowance for vehicle loan and lease losses as a percentage of the portfolio, with ACL accounting for 2.53% of auto outstandings at $344 million in the first quarter. During the fourth quarter of 2020, allowance accounted for 2.67% of outstanding auto loans and leases at $379 million.
Meanwhile, PNC is on track to close an $11.6 billion purchase deal with BBVA USA in mid-2021, Rob Reilly, executive vice president and chief financial officer, said on last week’s earnings call. The bank has not released the specific date the deal will close.
Shares of PNC Financial Services [NYSE: PNC] were trading down 0.81% at $173.71 as of 1:56 p.m. ET today. PNC has a market capitalization of $73.6 billion.
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