Solid Auto Biz Props Up Chase’s 2Q Earnings
Auto finance was a bright spot for JPMorgan Chase last quarter.
Year over year, origination volume at Chase Auto Finance grew 9.4% to $5.8 billion, bolstering the auto portfolio 10.7%, to $47.5 billion.
Higher auto loan and lease balances helped prop up revenue for the bank’s mortgage banking and consumer lending division last quarter. Net revenue hit $2 billion, up 10% from the prior-year quarter.
As for loan performance, the net chargeoff rate for the auto portfolio fell to 0.49% from 1.36% in 2Q09. Meanwhile, net chargeoffs grew to 0.39% from 0.10% in the mortgage portfolio and to 4.04% from 2.79% in the student loan portfolio.
Overall, JPMorgan Chase reported $4.8 billion of earnings for the second quarter, up from $2.9 billion in the prior-year period.
