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.
Marcie:
Delightful to see GM post a profit today… What a surprise! All of the “greedy” bond holders have not had an interest payment in over 20 months and were told to stand down by the US Treasury as they gave the company to the UAW, and the taxpayer. Most any business college graduate could run a company with $57 billion in assets and an additional $36 Billion in free money. Watching Bob Lutz on CNBC this morning almost made me throw my basically worthless pile of GM debt at the TV as he so arrogantly pontificated about how terrific GMs management was during this turnaround into a “Powerhouse”. I call BS on the entire deal. This take over termed bankruptcy was the biggest scam in US history. Our President threw a major bone to his union backers and gutted the folks who had true legal claim to GMs assets through principal liens of bond indentures. I own 3 GM vehicles, but am totally incensed at the ungrateful attitude coming out of GM management. My proposal is to buy the stock on the IPO, because GM has been holding back production and they are going to flood dealers with inventory in the first and second quarter to make those first 2 quarters of earnings look dazzling, and then we will all forget about how the real owners of the company got screwed.