Auto loan originations are rising at two of the nation’s biggest banks in auto lending.
Chase Auto Finance and Wells Fargo generated more loans during the second quarter, although Chase had larger growth.
Originations at Chase Auto Finance climbed 10 percent to $7.8 billion from the year-earlier period, the company said.
“Results continue to reflect steady growth in new-vehicle sales and stable used-car values,” Marianne Lake, CFO at JP Morgan Chase, said during an earnings call last week. “The pipeline is healthy.”
Wells Fargo originated $8.1 billion in loans in the second quarter, a larger amount than Chase, but the rate of growth, at 5 percent, was slower.
New originations reflect a healthy auto market, Wells Fargo CFO John Shrewsberry said in an earnings call last week.
“Auto, in spite of the heat in that market and our public posture of wanting to maintain our credit discipline, still [is] providing a big opportunity because too many cars are being sold,” he said.
Industrywide, new light-vehicle sales rose 3.3 percent in the second quarter to 4.6 million units, according to the Automotive News Data Center.
Wells Fargo reported $57.8 billion in total originations outstanding in the second quarter, up 7 percent from the year-earlier period, while Chase reported $56.3 billion in outstanding originations, up 6 percent.