Chase Boosts Auto Portfolio in 1Q
Chase Auto Finance originated $6.3 billion of auto loans last quarter, up 12.5% from the prior-year quarter. Meanwhile, its auto portfolio grew 10.4% during the same period, to $46.9 billion.
Parent company JPMorgan Chase attributed the increases to “marketshare gains in prime segments and new manufacturing relationships.”
Last week, Chase announced that it had signed a multi-year private-label agreement with Mazda North American Operations, creating a captive called Mazda Capital Services. The new brand is slated to be rolled out later this year.
JPMorgan Chase noted other improvements in its auto portfolio last quarter. For one thing, its net chargeoff rate fell nearly half, to 0.88% from 1.66% in 1Q09. The company also noted “an increase in net interest income, reflecting the impact of higher auto loan balances and wider auto loan spreads.”
Overall, JPMorgan Chase earned $3.3 billion for the quarter, up 57.1% from $2.1 billion in the first quarter of 2009. On a per-share basis, earnings climbed to $0.74 from $0.40.
Click here for JPMorgan Chase’s 1Q10 investor presentation.
Click here for the 1Q10 financial supplement.
