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 call. “FCA is still planning on making its own U.S. captive.”
Auto loans from Chrysler Capital are a substantial contributing factor to SCA’s origination growth, which has been a central focus for Santander since a strategy enacted last fall. Chrysler Capital loan originations rose 34% year-over-year to $2.4 billion, while leases increased 73% to $2.9 billion.
Meanwhile, total auto originations shot up to $7.6 billion, and the subprime lender’s net income grew 17% to $232 million.
“We had good, strong originations across all channels, especially Chrysler Capital,” Scott Powell, president and chief executive of Santander Consumer, said during the earnings call. “We’ve made progress on the regulatory front, as well, and our results reflect our continuing focus on the dealer and consumer experience.”
This year, the company has been able to resolve a series of regulatory compliance issues. Last August, the Federal Reserve Bank of Boston released Santander from regulatory restrictions imposed in a written agreement in July 2015. The lender’s parent bank was also released from a consent order issued by the Office of the Comptroller of the Currency.3 - Readers Like This Post