Chase Auto Lease Outstandings Rise 41% YoY in 2Q

  • Huixin Deng
  • July 14, 2017

Chase Auto Finance’s second-quarter lease outstandings increased 41% in the past year to $14.7 billion, the bank announced in its earnings report today.

The bank reported higher auto lease incomes but noted that overall non-interest expenses rose in part due to auto lease depreciation.

Despite the rise in leasing, total loan and lease originations were down 2.3% year over year to $8.3 billion. Auto outstandings were $80.2 billion, up from $74.1 billion last year.

Losses were also on the rise in the quarter while delinquencies fell. Loans 30-days or more past due made up 0.9% of the company’s auto portfolio in the second quarter, compared with 1.2% in 2Q16.

“We have seen the normalization of delinquency rate in the past year in terms of the auto trend,” Marianne Lake, JPMorgan Chase & Co.’s chief financial officer, said on the call.

Losses, on the other hand, rose by $2 million to $48 million. However, as a percentage of the bank’s portfolio, charge-offs remained flat at 0.29%. Allowance for loan losses were at $499 million in 2Q17, up from $449 million in 2Q16.

“The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking,” Jaime Dimon, chairman and CEO at JPMorgan, said on the call. “Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits, reflecting our consistent investment in the business.”

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