Chase Expects Auto Loan Growth in 4Q
JP Morgan Chase originated $6.4 billion of auto loans in the third quarter, down from $6.8 billion the previous quarter, and up 2% from the $6.3 billion reported in 3Q12. Card, Merchant Services as well as Auto YOY net interest income fell $149 million to $3.3 billion, primarily driven by spread compression in the auto and credit card segments.
The net charge-off rate for auto loans was 0.35% for the quarter, down from 0.74% in the prior-year period and up from 0.18% in the prior quarter. JPM’s average auto loans were $50.4 billion for the quarter, up 4% from the prior year but flat compared with the prior quarter.
During the earnings call this morning, JP Morgan Chase CFO Marianne Lake said despite higher rates leading to increased competitive intensity, Chase expects year-over-year auto loan growth for the fourth quarter.
