Earnings | Auto Finance News - Part 3

Ford Credit Earnings Fall Despite Higher Lease Penetration, Stronger Auction Values

Despite favorable lease residual performance driven by higher auction values, Ford Motor Credit Co. posted lower earnings last year, according to results released yesterday. The captive’s full-year 2018 net income dropped 26% to $2.2 billion. Lease penetration in the fourth quarter climbed 4 percentage points year over year, to 21%. The continued rise in leasing […]

Competition, Credit Quality Shape 4Q18 Originations at Chase, Wells Fargo

While JPMorgan Chase & Co.’s portfolio grew amid shrinking originations in the fourth quarter of 2018, Wells Fargo Auto’s portfolio declined despite a bump in loan volume. JPMorgan Chase Chief Financial Officer Marianne Lake attributed the origination slowdown to an “extremely” competitive auto market. “We’re seeing competition from people who have different economic drivers in […]

New Accounting Rule Likely to Hike Lending Costs

As U.S. financial institutions start to implement a new loan-loss accounting guideline this week, Jefferies Equity Analyst John Hecht forecasts higher lending costs down the road. The Current Expected Credit Losses (CECL) model, introduced by the Financial Accounting Standards Board in 2016, outlines how banking institutions account for and reserve against loan losses. Early adoption […]

GM Financial Profits, Originations Grow in 3Q

General Motors Financial boasted increased profits, higher loan originations, and improved credit quality in the third quarter, according to yesterday’s earnings. Net income for the quarter shot up 118% to $441 million, as the captive notched its fifth straight quarter of higher credit scores underlying finance volume. “We financed 43% of GM new vehicles sales […]

Santander Originations Soar 52% Despite FCA Uncertainty

Santander Consumer USA drove origination growth 52% year over year, the company reported in its third-quarter earnings released today. However, executives on the company’s earnings call failed to address Fiat Chrysler Automobiles Group’s plans to form its own captive. “We do not have further updates on those discussions,” Chief Financial Officer Juan Carlos said during the […]
  • Nicole Casperson
  • October 31, 2018
  • Earnings

Ally Boosts Used Financing to Offset Lower GM, Chrysler Penetration Rates in 3Q

Despite lower penetration rates financing General Motors and Chrysler vehicles, Ally Financial’s efforts to diversify originations kept volume consistent year over year, according to the lender’s third-quarter earnings. Ally’s penetration rates for General Motors and Chrysler were the lowest seen this year. GM’s penetration rate decreased to 5% compared with 7% during the same time […]
Page 3 of 6712345 102030...Last »