Wells Fargo and JPMorgan Chase ramped up originations in the fourth quarter of 2019, according to earnings reports released today.
Wells Fargo increased auto originations 45% year over year to $6.8 billion, reflecting “the company’s renewed emphasis on growing auto loans following the restructuring of the business,” the report noted. Overall outstandings climbed 6% year over year to $47.9 billion, but direct outstandings dropped 42% to $615 million compared with $1 billion in the prior-year period. Meanwhile, indirect outstandings rose 7% to $47.3 billion.
Net charge-offs as a percentage of average loans fell 8 basis points to 0.73%, and 30-plus day delinquencies decreased 21 bps to 2.57%, largely driven by higher quality originations, the earnings presentation noted.
Additionally, Chief Executive and President Charlie Scharf noted that his focus during the first three months at the helm of the bank has been on “advancing our required regulatory work with a different sense of urgency and resolve.” Scharf expects that to continue into the year in order to “build the appropriate foundation for [the bank] to move forward.”
Meanwhile, JPMorgan’s auto loan and lease portfolio remained flat at $83.5 billion despite a 6.7% year-over-year increase in originations to $8.5 billion. Average operating lease assets also posted a year-over-year increase, rising to $22.4 billion from $20 billion last year.
Net charge-offs ticked down 1 basis point to 0.37% as a percentage of average loans, while 30-plus delinquencies increased 1 basis point to 0.94%.
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