Banks’ auto originations rise in Q4

Banks reported growth in auto originations in the fourth quarter as credit performance was mixed.

Auto originations at Ally Financial, Capital One, Chase Auto, U.S. Bank and Wells Fargo increased year over year, according to the banks’ earnings reports.

The increases were:

Ally’s originations rose 4.9% YoY to $10.8 billion;

Capital One’s originations increased 8.5% YoY to $10.2 billion;

Chase Auto’s originations ticked up 1.9% YoY to $10.8 billion;

U.S. Bank’s indirect loan and lease production, mostly comprised of auto loans, grew 2.7% YoY to $1.4 billion; and

Wells Fargo Auto’s originations soared 104% YoY to $10.2 billion

Huntington Bank’s auto originations, however, declined 4.6% YoY to $2.1 billion in Q4.

While Bank of America did not break out auto originations, auto outstandings came in at $55.3 billion, up 0.7% YoY, according to the bank’s earnings supplement.

Meanwhile, auto credit performance was mixed across major banks in Q4. Ally Financial, Capital One, Chase Auto and Wells Fargo reported YoY dips in auto loans delinquent by 30 days or more. Huntington's auto delinquencies rose, while Fifth Third Bank and Truist reported declines in 30- to 89-day auto delinquencies YoY.

PNC Financial’s rate of auto loans 30 to 59 days past due was 0.45%, down 9 basis points (bps) YoY, according to the bank’s earnings supplement.

Bank of America’s net charge-offs across its indirect and direct consumer book, which is largely made up of auto loans, rose 5 bps YoY to 0.22%.

Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush dive into fourth-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates.