Wells Fargo reported growth in its auto outstandings despite fourth-quarter origination volume that fell to its lowest level since 2012. The bank had $55.7 billion of auto loans outstanding as of Dec. 31, 2014, up 9.6% from $50.8 billion at year-end 2013, according to financial data released Wednesday.
Meanwhile, fourth-quarter originations were $6.7 billion, down from $7.6 billion in 3Q, and the lowest level reported since the bank originated $5.4 billion of loans the final quarter of 2012.
In December 2014, Chief Executive John Stumpf told attendees at the Goldman Sachs U.S. Financial Services Conference that the bank was focused on responsible risk, rather than on being tops in the auto market. “I don’t have a chart where it says Wells Fargo must be No. 1 in this business,“ Stumpf said. “What we must do is do a good job and make sure that we have proper risk and return.”
John Shrewsberry, chief financial officer, echoed that sentiment on the bank’s earnings call yesterday. “We continued to benefit from the strong auto market,” he said. “New originations were down from a year ago, reflecting our continued risk and pricing discipline in a competitive market.”
