Three Top 20 Finance Sources Report Solid Loan Growth in 2012
Chase, Wells Fargo and Huntington Bank report expanded auto lending in the fourth quarter 2012 vs. the same quarter in 2011.
JP Morgan Chase, Wells Fargo and Huntington banks reported strong gains in auto lending for 2012, though quarter-over-quarter results fell flat for Wells Fargo.
Fourth quarter average auto loans for Chase totaled $49.3 billion, up 5 percent from the year-ago period and up 2 percent over the previous quarter. Auto originations accounted for $5.5 billion in the fourth quarter 2012, up 12 percent from the prior year and down 13 percent from the third quarter 2012.
Chase’s charge-off rate for auto loans was 0.36 percent, down from 0.37 percent in fourth quarter 2011 and down 0.74 percent in third quarter 2012. “The prior quarter included the impact of incremental charge-offs related to auto loans discharged under Chapter 7 bankruptcy,” Chase stated in a note to shareholders.
Wells Fargo’s auto originations totaled $5.4 billion in the the fourth quarter 2012, down 15 percent from the third quarter but up 8 percent from fourth quarter 2011. Total loans for the bank’s fourth quarter totaled $799.6 billion, up $29.9 billion from the same quarter one year prior.
Within the 15 Eastern states it serves, Huntington Bank grew originations by $0.4 billion in the fourth quarter vs. the year-ago period. For the year, however, overall consumer loans dipped from the prior year, with auto originations falling by 1.4 billion, or 23 percent to $2.5 billion.
In the third quarter 2012, Wells Fargo and Chase were listed as the No. 1 and 4 auto finance sources by market share, respectively. Huntington Bank was listed in the Top 20 at No. 17.
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