Wells Fargo Attributes 1Q Originations Decline to ‘Strong Discipline’
While Wells Fargo & Co. keeps on benefiting from a strong auto market, it is practicing “continued discipline in a competitive market,” company officials said on the bank’s earnings call today.
That “discipline” was reflected, perhaps, in Wells Fargo’s auto originations: $7.1 billion in the first quarter, down 10% year over year from a then-record high of $7.8 billion. The decline came on the heels of a 1.5% year-over-year originations decline in the fourth quarter of 2014. By comparison, Chase’s originations last quarter climbed 9% compared to the same quarter in 2014.
Despite the lower originations, Well Fargo’s auto outstandings climbed 7% to $56.3 billion as of March 31.
As for year-over-year auto loan performance, 30-day delinquencies in the bank’s indirect portfolio grew to 1.81% from 1.47%, while net chargeoffs inched up to 0.76% from 0.73%.
