GM Financial Earns $51 Million in 3Q

Originations were up and delinquencies down for General Motors Financial Co. in the third quarter.

The captive financing arm of automaker GM, formerly known as AmeriCredit, reported net income of $51 million after accounting for $30 million in expenses related to the acquisition. By comparison, the company had earned $26 million in 3Q09.

Originations, too, were on the rise last quarter, to $959 million from $906 million in the prior quarter. Origination volume last year was a fraction of where it is now — $229 million for 3Q09 — because AmeriCredit was handcuffed by capital constraints.

Loan performance, meanwhile, has been on the mend for GM Financial. Payments 31-to-60 days late improved to 6.2% from 7.6% in the prior-year period, and chargeoffs fell to 5.4% from 8.4%.

GM Financial’s portfolio totaled $8.7 billion at quarter’s end, compared with $10 billion at Sept. 30, 2009.

For parent company GM, third-quarter net income hit $2.2 billion on $34.1 billion of revenue. The automaker plans to raise as much as $10.6 billion in an initial public offering that may price as soon as Nov. 17.