AmeriCredit Announces Fiscal Fourth Quarter Earnings
Subprime auto lender AmeriCredit Corp. released its quarterly finances for the first time following the announcement of its impending acquisition by General Motors Co. The company was able to increase both income and originations while decreasing charge-offs and delinquency rates compared to the same quarter last year.
FORT WORTH, Texas — Subprime auto lender AmeriCredit Corp. released its quarterly finances for the first time following the announcement of its impending acquisition by General Motors Co. The company was able to increase both income and originations while decreasing charge-offs and delinquency rates compared to the same quarter last year.
The firm’s net income for the quarter ending June 30 was $86 million. The company earned $32 million for the same period a year ago. AmeriCredit’s originations totaled $906 million for the quarter, compared to $624 million for the prior quarter and $175 million for the fourth quarter 2009. Finance receivables totaled $8.7 billion, compared to $8.8 billion in the previous quarter and $10.9 billion in the year-ago period.
Annualized net charge-offs were 4.5 percent of average finance receivables for the quarter, compared to 7.1 percent for same period last year. Finance receivables more than 30 days delinquent accounted for 6.2 percent of the firm’s portfolio, down from 6.9 percent a year ago. Accounts more than 60 days delinquent dropped from 3.5 percent of the company’s portfolio in the year-ago period to 2.7 percent in the recent quarter.
The favorable returns should help bolster optimistic pronouncements made several weeks ago, when the GM acquisition was first announced.
“With AmeriCredit providing us niche capabilities in leasing and non-prime financing, along with the continued strong support of Ally Financial and others for prime retail and dealer financing, we’ve set up a very competitive solution for our financing needs, which will be resilient through credit and business cycles,” GM vice chairman and CFO, Chris Liddell, said at the time.
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