GM Financial: More Loans, Fewer Leases in Q3
GM Financial reported increases in loan originations and reduced delinquencies and charge-offs, but lease originations fell $2.3 billion from the first three quarters of 2017.
Photo by Sahmeditor via Wikimedia
FORT WORTH, Texas — General Motors Financial Company Inc. reported net income of $441 million for the quarter ended Sept. 30, 2018, compared to $442 million for the quarter ended June 30, 2018, and $202 million for the quarter ended Sept. 30, 2017. Net income for the nine months ended Sept. 30, 2018, was $1.3 billion, compared to $466 million for the nine months ended Sept. 30, 2017.
Retail loan originations were $6.7 billion for the quarter ended Sept. 30, 2018, compared to $6.0 billion for the quarter ended June 30, 2018, and $4.7 billion for the quarter ended Sept. 30, 2017. Retail loan originations for the nine months ended Sept. 30, 2018 were $17.8 billion, compared to $15.5 billion for the nine months ended Sept. 30, 2017.
The outstanding balance of retail finance receivables, net of fees, was $37.9 billion at Sept. 30, 2018. Operating lease originations were $5.4 billion for the quarter ended Sept. 30, 2018, compared to $6.2 billion for the quarter ended June 30, 2018, and $6.5 billion for the quarter ended Sept. 30, 2017.
Operating lease originations for the nine months ended Sept. 30, 2018 were $17.3 billion, compared to $19.6 billion for the nine months ended Sept. 30, 2017. Leased vehicles net was $44.1 billion at Sept. 30, 2018. The outstanding balance of commercial finance receivables, net of fees was $11.1 billion at Sept. 30, 2018, compared to $10.7 billion at June 30, 2018 and $9.5 billion at Sept. 30, 2017. Retail finance receivables 31 to 60 days delinquent were 3.4% of the portfolio at Sept. 30, 2018 and 3.6% at Sept. 30, 2017.
Accounts more than 60 days delinquent were 1.3% of the portfolio at Sept. 30, 2018 and 1.6% at Sept. 30, 2017. Annualized net charge-offs were 1.7% of average retail finance receivables for the quarter ended Sept. 30, 2018 and 1.9% for the quarter ended Sept. 30, 2017. For the nine months ended Sept. 30, 2018, annualized retail net charge-offs were 1.8%, compared to 1.9% for the nine months ended Sept. 30, 2017.
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