The bank held $62 million in non-performing auto assets during the quarter — up from $55 million the comparable quarter. Yet, improved recoveries helped off-set the increase as net charge-offs decreased to $18 million compared with $22 million the year prior.
Additionally, average loans and lease balances decreased by 6.6% year over year to $12.6 billion. Retail loan growth was partially offset by the planned reduction in auto lending, the report noted.
At the beginning of the year, the bank announced that it purposely decreased its auto portfolio by 5% in 2017 and expected another $2 billion to $3 billion runoff in the coming years to improve profitability, the company said.
In the coming years the portfolio will “gradually” decline to $10 or $11 billion, Chief Financial Officer John Woods said at the time.Like This Post