FI showroom red and grey logo
MenuMENU
SearchSEARCH

Auto Originations Up 17 Percent in 3Q, Reports Capital One

An increase in auto and commercial loan originations helped fuel a 1 percent profit gain in the third quarter for Capital One Financial Corp., the company reported last week.

by Staff
October 25, 2011
2 min to read


MCLEAN, Va. — An increase in auto and commercial loan originations helped fuel a 1 percent profit gain in the third quarter for Capital One Financial Corp., the company reported last week.

Commercial loan increased 9 percent to $32.1 billion, while auto originations increased 17 percent from the second quarter – 40 percent from the year-ago period – to $3.4 billion.

Ad Loading...

The company’s net income for the period was $813 million, up $10 million from the year-ago period but down $98 million from the second quarter.

"We believe the period of shrinking loans through the Great Recession has come to an end," said Richard D. Fairbank, Capital One's chairman and CEO.

In consumer banking, loan balances were up modestly as strong growth in auto loans was partially offset by an expected runoff of the home loan portfolio, company officials said. In the auto finance segment, charge-off and delinquency rates increased in the quarter, which officials said is consistent with expected seasonal patterns. Year over year, charge-offs and delinquencies improved 102 basis points and 108 basis points, respectively.

Auto finance credit performance remains strong, with originations continuing to perform better than originations from 2007 and 2008. Auto finance credit metrics also are near their all-time lows, driven by the company’s efforts to retrench and reposition the business, tight underwriting and loss mitigation actions through the recession and continued strength in used car auction prices.

Other strong segments included revolving credit card loans, which grew 0.5 percent to $276 million in 3Q, and commercial banking which saw ending loans increase 2.9 percent and net charge-offs reach their lowest levels since 3Q 2008, according to Capital One.

Ad Loading...

“Our strong third quarter results demonstrate that we remain well-positioned to win in the marketplace and deliver shareholder value," said Richard D. Fairbank, Capital One's chairman and CEO. "We expect that the acquisitions of ING Direct and the HSBC US Card Business will deliver attractive financial results in the near-term."

In June, Capital One announced that it would online bank ING Direct for $9 million. Company officials said it is still waiting for regulators to OK its purchase. Also pending is the banks purchase of HSBC’s credit card portfolio for $2.6 billion, which was announced in August. Company officials said the acquisition should close by the end of the year.

More Auto Finance

Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Ad Loading...
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →