Chase Reports Strong 3Q Earnings; Auto Originations Up 82 Percent
Driven mainly by its investment banking division, which offset losses on credit cards and consumer loans, JP Morgan Chase reported strong earnings for the third quarter 2009. As for its auto finance segment, originations were up 82 percent.
Driven mainly by its investment banking division, which offset losses on credit cards and consumer loans, JP Morgan Chase reported strong earnings for the third quarter 2009. As for its auto finance segment, originations were up 82 percent.
Profits during the quarter rose to $3.59 billion, the highest point since the subprime mortgage meltdown. For the same period last year, the bank reported $527 million in earnings.
Driven mainly by the Cash for Clunkers program, the bank’s auto lending segment – which now serves as the captive finance company for Subaru, Jaguar, Land Rover and Mazda – originated $6.9 billion in loans, up 30 percent from the second quarter. For the same period last year, the company originated $3.8 billion in auto loans.
Average auto loans were $43.3 billion, down 1 percent from the same quarter last year.
Overall, JP Morgan Chase’s consumer lending business posted a net loss of $1 billion, up from the $659 million in the same period of last year. It’s credit card division reported a net loss of $700 million, which was an improvement on the $992 million lost in the third quarter of 2008.
The second-largest U.S. bank’s investment banking business made a net income of $1.9 billion, up from $1 billion in the third quarter 2008.
“Credit losses remain high and are expected to stay elevated for the foreseeable future,” said Jamie Dimon, CEO, in a statement. “While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend well continue.”
More Auto Finance

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
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 →