U.S. Bank Grows Lease Portfolio 29% in 4Q

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U.S. Bancorp grew its auto lease outstandings 29% year over year to $7.9 billion in the fourth quarter, the company disclosed in its earnings report Wednesday.

Meanwhile, the weighted average Fico for auto leases dipped two points to 782 in the quarter as compared to the same quarter a year prior.

“Investments over the past several years aimed at enhancing our auto relationships are driving strong marketshare growth,” Andrew Cecere, U.S. Bank’s president and chief executive, said on the earnings call. “We are well positioned as one of the few remaining non-captive lessors in the industry and as one of the few financiers to offer both a lending and leasing option to our dealers.”

Additionally, continued “high-quality” indirect originations drove growth in U.S. Bank’s auto loan outstandings and in the fourth quarter, up 6.4% year over year to $18.8 billion.

However, the Minneapolis-based bank saw an uptick in 30-to-89-day auto loan delinquencies to 0.95% of the total auto portfolio compared to 0.74% during the same quarter the year prior. Also, auto loan charge-offs rose to 0.44% of the total auto portfolio, up from 0.43% in 3Q16.

Meanwhile, auto lease delinquencies 30 to 89 days past due rose to 0.41%, from 0.28% the same time a year prior.

Back in April 2015, U.S. Bank made a strategic shift toward originating more prime and super-prime loans and now has an average Fico score of 772 up from 769 the year prior. Additionally, U.S. Bank has been cutting back on its 84-month loan offerings since April 2015.

For more content like this, attend the third annual Auto Finance Innovation event, slated for March 7-8, at the Parc 55 in San Francisco. For information, or to register, visit autofinanceinnovation.com.

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