SCUSA Originations Up for the Year, Down for the Quarter

Santander Consumer USA reported total originations of $6.1 billion for the fourth quarter, up from $5.8 billion at the same time last year, but down from $7.4 billion the prior quarter, caused by seasonality, the company said.

Included in the total originations for the quarter, under SCUSA’s private label Chrysler Capital, were $2.4 billion in Chrysler retail loans, $722 million in Chrysler leases originated for the company’s own portfolio, and $565 million in Chrysler lease originations facilitated for an affiliate, according to a Feb. 3 earnings release.

For the full year, origination volume was at $27.5 billion — up 33% compared to 2013 –$16 billion of which were loans and leases originated under Chrysler Capital for the company’s own portfolio, and $2.2 billion of Chrysler lease and dealer loan originations facilitated for an affiliate.

Delinquencies rose slightly in 4Q, with 31-60 day delinquencies at 9.0%, up from 8.5% in 3Q, and 61+ days at 4.5%, up from 4.1% in the previous quarter. SCUSA said the increases are seasonal and remain in line with delinquency trends year-over-year.

SCUSA will also continue to focus on the growth of its capital-light, higher ROE serviced for others platform, by “completing loan sales of $1.1 billion through monthly loan sale programs to Bank of America and Citizens Bank of Pennsylvania, and facilitating $565 million of lease originations for an affiliate,” according to the release.

In 2014, SCUSA sold or facilitated originations of $9.2 billion to third parties or to an affiliate. Servicing fee income totaled $19.6 million in the fourth quarter 2014, up from $4.5 million from the same time last year, primarily due to the increase in the portfolio of loans, the company said.