The Industry's Leading Source For F&I, Sales And Technology

Special Finance®

Chase’s Q3 Auto Originations Up 6%

October 14, 2014

NEW YORK — JP Morgan Chase reported today that its auto finance business unit grew auto originations in the third quarter 6% from a year ago to $6.8 billion. On a quarter-over-quarter basis, however, originations were down 4%.

The bank’s average auto loans were $52.7 billion, up 4% from a year ago but down slightly from $52.8 billion in the second quarter.

The bank’s card, merchant services and auto segment posted net income of $1.1 billion, a $120 million decrease from a year ago. The decrease was driven by higher provision for credit losses. But despite its net charge-off rate for auto loans increasing from 0.35% in the year-ago period to 0.38%, Chase posted a $100 million reduction in the allowance for auto and student loan losses.

Non-interest expense for the bank’s card, merchant service and auto division increased $77 million from a year ago to $2 billion. The increase was predominantly driven by an accrual related to Home Depot fraud and higher auto lease depreciation expense.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

CLOSE [X]

READ NEXT

CNW Sees 4% Sales Increase in September

The market research firm’s prediction is based on skyrocketing subprime approvals and an active Hispanic consumer market, which, for the first time, could outpace African-Americans in new-vehicle purchases.