July 2024
Ally Financial’s second-quarter auto originations dipped YoY while credit performance worsened.
Originations landed at $9.8 billion,?unchanged sequentially but down 5.7% YoY, according to the bank’s‘ earnings supplement, released July 17. Ally received 3.7 million auto finance applications during Q2.
“In terms of where we are going to compete, we find that the auto business is a very attractive ecosystem for us,” Chief Executive?Michael Rhodes?said during the bank’s earnings call.?
U.S. Bank’s originations climbed year over year in the second quarter as banks’ Q2 earnings so far have shown mixed results when it comes to auto outstandings. ?
PNC Financial’s outstanding auto book, for example, was flat YoY in Q2 while Citizens’ auto book continued to run off.
U.S. Bank, Ally Financial, Bank of America and Wells Fargo Auto reported YoY portfolio declines in Q2, while Chase Auto reported a 5.4% YoY portfolio increase.?
Bank of America’s auto originations fell in the second quarter, while the bank’s dealership financing portfolio grew.?
Originations totaled $6 billion,?down 9.1% QoQ?and 11.8% YoY, according to the bank’s July 16 earnings presentation. Outstandings fell 0.9% QoQ and 0.6% YoY to $53.6 billion.?
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Bank of America joined Chase Auto?and?Wells Fargo Auto?in reporting Q2 declines in auto originations. A higher percentage of banks?tightened lending standards?for auto loans in the first quarter, according to the latest data from the?Federal Reserve.
Chase Auto’s origination volume fell year over year in the second quarter as the bank prioritized margins, while consumer credit performance was aligned with expectations given macroeconomic conditions.
Auto originations totaled $10.8 billion, up 21.4% quarter over quarter but a decline of 10% YoY, according to the July 12 JPMorgan Chase earnings supplement.
Origination volume dropped “coming off strong originations a year ago while continuing to maintain healthy margins,” Jeremy Barnum, chief financial officer of JPMorgan Chase, said during the bank’s July 12 earnings call.
The Auto Finance Excellence Awards, first established in 2005, are designed to celebrate achievement in the automotive lending and leasing industries.
Winners for the 2024 awards will be announced on Oct. 8 at 12:30 p.m. during a ceremony and luncheon held at the Auto Finance Summit. The summit will be held from Oct. 7-9 at Wynn Las Vegas.
In previous years, the AFE awards celebrated?Toyota Financial Services?for community service achievements,?NextGear Capital?for its commitment to its dealer partners and?Tricolor Auto Acceptance?for its technology investments in AI and machine learning models. A full list of previous winners can be found?here.
Nominations should include as much detail as possible as a panel of judges will review the submissions and determine this year’s winners.
Access the nomination form for the Auto Finance Excellence Awards?here.?