SunTrust Banks Inc. outstandings grew 5% in the first quarter, compared with the same period last year, Chuck Jones, the regional bank’s head of national indirect lending, told Auto Finance News, even though SunTrust doesn’t break out its auto portfolio in public earnings statements.
The bank’s portfolio was up 3% from the fourth quarter of 2016, which would place the portfolio at roughly $10.4 billion, according to figures previously provided to AFN.
“Our overall philosophy with regards to indirect auto has not changed,” Jones said. “Our focus is on lending to clients with a strong ability to repay, and also periodically selling and/or securitizing auto loans, to optimize our balance sheet.”
Chief Executive Bill Rogers confirmed the company isn’t changing its strategy, when asked by an analyst if pullback in auto by national banks provides an opportunity for SunTrust to capture marketshare. The bank is, however, “leaning in on consumer lending” and maintaining an appetite for prime and super-prime loans, he added.
“I am pleased, actually, that our overall weighted-average Fico for indirect auto loans is slightly up, and our overall LTV on indirect auto loans is slightly down,” Aleem Gillani, chief financial officer and corporate executive vice president, said during the call. “So if I look at the quality of our indirect auto book, I think right now, it’s actually pretty good.”
