Capital One Auto Originations Decelerate Amid Increased Competition

Capital One Financial Corp.’s auto origination volume fell 5% last year, according to a fourth-quarter earnings report. In an earnings call, Chief Executive Richard Fairbank attributed the deceleration to an increase of competitive intensity in the auto industry. Auto originations fell to $26.2 billion in 2018, compared with $27.7 billion in 2017. Despite Capital One’s […]

• Bianca Chan
• January 25, 2019
• Earnings

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 […]

• Nicole Casperson
• January 24, 2019
• Earnings, Innovation & Mobility

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 […]

• Nicole Casperson
• January 23, 2019
• Earnings, Sales & Marketing, Strategy, Update

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 […]

• Bianca Chan
• January 3, 2019
• Archives, Compliance, Earnings, Risk

Nicholas Financial Applies for Direct Lending License in Ohio

Nicholas Financial is looking to expand its direct lending footprint into Ohio. Clearwater, Fla.-based Nicholas already offers a direct loan product in three states. “We have not only been able to increase our focus on direct loan production in Florida and North Carolina, but we are now writing direct loans in the state of Georgia […]

• Monica Melton
• November 2, 2018
• Credit Performance, Earnings, Operations, Strategy

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 […]

• Monica Melton
• November 1, 2018
• Credit Performance, Earnings, Operations

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

Credit Acceptance 3Q Profits Accelerate Despite Downturn in Active Dealer Volume

Net income at Credit Acceptance Corp. shot up 50% year over year in the third quarter, though average volume per active dealer declined — 2.9% — for the first time in 2018, Chief Executive Brett Roberts said in an earnings call yesterday. “This quarter was down a little bit from the trend line, and volume […]

• Nicole Casperson
• October 30, 2018
• Earnings