Santander Consumer USA drove origination growth by 45% in 2Q18, the company reported in its quarterly earnings call.
Total auto originations were $7.9 billion compared to $5.5 billion at the same time the year prior.
“We had a strong second quarter, with clear momentum in our business performance and continued regulatory progress,” Scott Powell, president and chief executive of Santander Consumer, said in a press release. “Earnings were up 26% from 2Q 2017, driven by strong originations across all channels, including Chrysler, and by strong credit performance.”
Auto loans from Chrysler Capital were a contributing factor to the growth, which Santander has been focusing on as a part of a strategy enacted last fall. Core retail originations increased by 15% to 2.6 billion year over year.
Chrysler Capital loan and lease origination each saw double-digit percentage increases year over year. Chrysler loan originations rose 51% to 2.7 billion while leases increased 84% to 2.6 billion.
The growth comes after Fiat Chrysler Automobiles Group initiated discussions to buy the Chrysler Capital portfolio from Santander in a bid for the OEM to start it own finance captive.
Meanwhile, net charge-offs decreased by 150 basis points to 6% of the portfolio. The delinquency ratio fell 100 basis points year over year to 4.2%.
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